The global automotive fuel tanks market size was valued at USD 21,120 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.47% from 2023 to 2030. The growing demand for automobiles, along with the growing number of vehicle owners, are driving the market growth of the automotive fuel tanks market. The demand for fuel tanks is expected to rise over the next few years, driven by a range of factors, such as increased vehicle production and urbanization. Growing vehicle production and stringent emission norms are the major factors driving the market.
Global Automotive Fuel Tanks Market: Regional Insights
The global automotive fuel tanks market is geographically segmented into North America, Latin America, Asia Pacific, Europe, Middle East, and Africa.
North America among regions is expected to witness substantial growth in the global automotive fuel tanks market over the forecast period, owing to surge in vehicle sales, primarily crossover utility vehicles and SUVs, presence of strong economy in the U.S., low gas prices, and improving designs of SUVs across the region. For instance, according to the Coherent Market Insights, the sales of vehicle in the U.S. reached 17.82 million units and number of vehicles produced was 11.31 million units in 2018. Thus, the market is likely to witness a strong growth in this region.
Asia Pacific is also anticipated to witness significant growth in the global automotive fuel tanks market over the forecast period. Countries across this region have higher number of vehicle production all over the world. The regions is witnessing high demand, expansion of production capacity by manufacturers, rise in demand for automobiles in emerging countries such as India, and these factors in turn are supporting the market growth in this region.
Figure.1: Global Automotive Fuel Tanks Market by Regions, 2022
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Global Automotive Fuel Tanks Market Drivers:
Increasing demand for and sales of commercial vehicles is expected to propel growth of the global automotive fuel tanks market during the forecast period. The demand for commercial vehicles continues to increase in several regions around the world, due to growth of logistics industry, rise in usage of light commercial vehicles, growing e-commerce industry, and rise in number of sales of commercial vehicles. For instance, as per the Eurostat data, nearly 75% of inland cargo is transported within European Union by road, which is nearly 1,750 billion metric ton-kilometer. In some of the European countries, the rate of inland cargo transport is as high as 90% or more.
Moreover, implementation of stringent fuel and emission economy regulations by governments is also expected to augment growth of the global automotive fuel tanks market over the forecast period. Due to enactment of emission and fuel economy regulations for commercial vehicles, auto makers are focused on manufacturing electric trucks. This in turn is expected to drive the demand for fuel tanks, which is expected to propel growth of the market in the near future.
Global Automotive Fuel Tanks Market Opportunities:
Increasing technological development in fuel tanks is expected to provide market players with growth opportunities in the global automotive fuel tanks market over the forecast period. Various technologies from different industries such as self-sealing fuel tank technology from aviation sector are emerging in the automotive sector. In this technology, when there is leakage, the fuel goes into the layers causing the swelling of layers and then the damaged part starts to repair itself on its own. Vehicles such as the new Range Rover Sentinel features this self-sealing technology, and it will be used of various other automobiles in the future. Thus, this factor is supporting growth of the market.
Growing use of lightweight materials to build cost-effective fuel tanks is also expected offer growth opportunities in the global automotive fuel tanks market over the forecast period. Gaseous materials such as hydrogen, LNG, and CNG used in alternate fuel vehicles. These materials need safe, lightweight, and strong tanks for maintaining normal vehicle weight, size, and driving range. As fuel tanks made from common grade steel slowly get damaged due to migration of gas into metal, manufacturers are increasingly using lightweight materials such as HDPE plastic. Fuel tanks made from this material are safe to use and are light in weight to be used in vehicles, and this in turn reduces the overall vehicle weight. Thus, the market will be presented with various opportunities with increasing use of lightweight material for fuel tanks.
Automotive Fuel Tanks Market Report Coverage
|Market Size in 2022:
|US$ 21,120 Mn
|Historical Data for:
|2017 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 29,956.80 Mn
Sakomoto Industry Co. Ltd., Magna International Inc., Yachiyo Industry Co. Ltd., Plastic Omnium Group, SMA Serbatoi SpA, Ti Automotive, FTS Co. Ltd. Unipres Corporation, Yapp Automotive Parts Co. Ltd., and Kautex Textron GmbH.
|Restraints & Challenges:
Global Automotive Fuel Tanks Market Trends:
The 45-70 liter fuel tanks segment is gaining traction in the global automotive fuel tanks market. Automobile manufacturers for the past five years have mostly been launching vehicles with minimum 45 liters tank capacity, in order to cater the increasing demand for vehicles suitable for long journeys having greater range of mileage. Moreover, with the use of large capacity fuel tanks, the dead space in the chassis get occupied and it adds stability to the car dynamics. Thus, this trend is expected to continue in the global automotive fuel tanks market in the near future.
Rise in industrialization and development of road infrastructure is another growing trend in the global automotive fuel tanks market, which is likely to fuel the market growth over the forecast period. Due to rise in development of road infrastructure and industrialization, the automotive industry is growing all over the world. This in turn is driving the demand for fuel tanks across the globe. As this trend is likely to continue, the market is expected to witness strong growth in during the forecast period.
Global Automotive Fuel Tanks Market Restraints:
The growth of global automotive fuel tanks market is expected to be hindered by factors such as rise in demand for electric vehicles all over the world. As the development of electric vehicles technology is increasing along with the production and sales of these vehicles, the automotive engines will be rapidly replaced by electric motors. Moreover, governments around the globe are promoting use of EV to reduce pollution caused due to fuel-powered vehicles. For instance, the government of United Kingdom and France have announced a deadline for automakers to go fully electric by 2040. Hence, this factor is likely to hinder growth of the global automotive fuel tanks market during the forecast period.
Another factor hampering the market growth is increase in cost of base metal aluminum. Recently, owing to the looming trade war between the U.S. and other countries, the cost of base metals are under pressure. Due to the implementation of tariffs on the imports from the U.S. allies including Mexico, Canada, and European Union, on steel (25%) and aluminum (10%), the cost of domestic aluminum is projected to grow. This is further likely to impact the automotive industry, and subsequently the demand for automotive fuel tanks. Thus, the increase in cost of base metal aluminum is expected to impede growth of the market.
Figure.2: Global Automotive Fuel Tanks Market, by Capacity, 2022
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Global Automotive Fuel Tanks Market Segmentation:
The global automotive fuel tanks market report is segmented into Capacity, Material Type, and Region.
Based on Capacity, the market is segmented into Less than 45 liters, 45 – 70 liters, and Above 70 liters. Out of which, Less than 45 liters is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for 45 liter tanks specifically in Asia Pacific as compared to rest of the world. Small to medium passenger vehicles comprise these fuel tanks. These vehicles such as hatchbacks are lightweight, due to which they need lightweight fuel tank to maintain the performance. Thus, use of less than 45 liters fuel tank in small to medium passenger vehicles is driving growth of the segment.
45 – 70 liters segment is also expected to witness significant growth in the near future and this is owing to the rise in production of passenger cars and mini SUVs in emerging countries such as India and China. Most of the new vehicles consists minimum capacity of 45 liters, as the demand for vehicles suitable for longer journeys is increasing. Thus, this segment is likely to benefit from this, and will witness strong growth.
Based on Material Type, the market is segmented into Plastic, Aluminum, and Steel. Out of which, Plastic segment is expected to dominate the global market over the forecast period and this is attributed to the advent of latest technologies enabling the rise in plastic gas tanks. The increasing technological development is leading to higher demand for plastic fuel tanks as these products offer various benefits over conventional metal tanks.
Aluminum segment is also expected to witness significant growth in the near future and this is owing to the augmented use of non-ferrous metals for fuel tanks, due to the increasing inclination towards higher flexibility and lightening in machining tools and robots in automotive industry. Due to the tensile strength of aluminum, it is increasingly being used in automotive, aviation, telecommunications, and industrial sector. This in turn is driving growth of this segment.
Global Automotive Fuel Tanks Market: Key Developments
In January 2018, Kautex Textron Gmbh announced that the company has shifted its headquarter to Bonn Germany. Also, the company started a new facility in Hubei Province of China for the production of automotive fuel tanks.
In November 2017, Sakamoto Industry Co. Ltd. opened a new manufacturing plant for plastic fuel tanks in Malaysia, which is a US$ 22 million facility in the Bandar Mahkota Industrial Park in Banting.
Global Automotive Fuel Tanks Market: Key Companies Insights
The global automotive fuel tanks market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.
Some of the key players in the global automotive fuel tanks market are Sakomoto Industry Co. Ltd., Magna International Inc., Yachiyo Industry Co. Ltd., Plastic Omnium Group, SMA Serbatoi SpA, Ti Automotive, FTS Co. Ltd. Unipres Corporation, Yapp Automotive Parts Co. Ltd., and Kautex Textron GmbH.
The Automotive Fuel Tank is a component of the fuel system of a car. It carries gasoline or diesel fuel, and it must meet several structural and dynamic tests. The wall 62 of the tank is complex, with many curves and configurations. It can be mounted substantially horizontally or vertically.
Frequently Asked Questions