Automotive Fuel Tanks Market is estimated to be valued at USD 24,080.8 Mn in 2025 and is expected to reach USD 32,704.8 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 4.47% from 2025 to 2032.
The automotive fuel tanks market demand is witnessing steady growth driven by increasing vehicle production, stringent emission regulations, and the rising demand for lightweight and high-capacity fuel storage systems. As automotive OEMs seek to improve fuel efficiency and reduce vehicle weight, there is growing adoption of plastic and composite fuel tanks, especially in passenger cars and light commercial vehicles.
Automotive fuel tanks market demand is being significantly influenced by the shift towards hybrid vehicles, where specially designed tanks are needed to accommodate dual-fuel or plug-in hybrid systems. Moreover, emerging economies such as India, Brazil, and Southeast Asian countries are experiencing a surge in two-wheeler and compact car sales, which is directly contributing to market expansion.
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Advanced Fuel Tank Technology Development
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Regional Automotive Production Shifts |
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End users, including OEMs and fleet operators, emphasize the need for lighter, more durable, and corrosion-resistant fuel tanks to enhance vehicle efficiency and meet emission standards. While plastic fuel tanks have gained popularity for their weight and design flexibility, concerns remain over their long-term durability in extreme conditions, especially in heavy-duty and commercial vehicles.
Fleet operators also report the need for better integration of fuel tank systems with telematics and fuel monitoring technologies to optimize fuel usage and detect leaks early. Additionally, with the rise of hybrid vehicles, there’s a growing unmet need for compact fuel tank designs that can fit into reduced chassis space without compromising capacity.
Despite innovation, cost remains a challenge, especially for smaller OEMs and in price-sensitive markets, where metal tanks are still widely used due to affordability, even though they are heavier and more prone to corrosion.
Overall, the market shows a clear demand for smart, lightweight, and cost-effective fuel tanks with enhanced safety and compatibility features for modern vehicle platforms.
In terms of Capacity, the less than 45 liters is expected to dominate the global automotive fuel tanks market in 2025 with a share of 63.0%, due to growing sales of compact cars and two-wheelers, especially in Asia-Pacific and Latin America. These vehicles prioritize fuel efficiency, cost-effectiveness, and space optimization. Smaller tanks help reduce vehicle weight, aligning with stricter emission and fuel economy norms. They're also common in hybrids and low-cost models like the Maruti Suzuki Alto. As urbanization and regulatory pressures increase, demand for compact fuel tank solutions continues to drive automotive fuel tanks market demand.
In July 2025, BMW Motorrad revealed its all-new R 1300 GSA adventure bike, built on the latest R 1300 GS platform. The highlight: a 30‑litre aluminium fuel tank, 11 litres more than the standard GS, boosting touring range significantly. It is also BMW’s first bike to include the Automated Shift Assistant (ASA), enabling clutchless gear shifts as standard while still allowing manual override. Such innovations are propelling the automotive fuel tanks market revenue.
In terms of Material Type, the Plastic segment is expected to dominate the global automotive fuel tanks market in 2025 due to its lightweight, corrosion resistance, and design flexibility. These qualities help improve fuel efficiency and meet emission norms. Advanced multi-layer plastic tanks reduce hydrocarbon emissions and are cost-effective for mass production. OEMs like Toyota and Ford widely adopt plastic tanks, supported by suppliers such as Plastic Omnium and TI Fluid Systems. These advantages continue to boost automotive fuel tanks market growth for plastic-based solutions.
For instance, in May 2025, Lumax Cornaglia, the 50:50 joint venture between Lumax Auto Technologies and Italy’s Cornaglia Group, has pivoted its business strategy to focus on plastic fuel tanks. The company now expects plastic tanks to generate over 50 percent of its revenue by 2026.
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North America regions is expected to lead the global automotive fuel tanks market with 30.60% share in 2025. This dominance is primarily driven by the steady rise in vehicle sales, especially of crossover utility vehicles (CUVs) and sport utility vehicles (SUVs), which typically require larger and more durable fuel tanks. For instance, according to the Federal Reserve Bank of St. Louis, in June 2025, total vehicle sales in North America were approximately 15.767 million units, and in May 2025, sales were at 16.055 million units. However, sales in June were higher than the 15.34 million units recorded in June 2024. The region’s strong economic performance, particularly in the U.S. which supports high levels of vehicle ownership and replacement cycles.
Additionally, relatively low gasoline prices in North America encourage the continued popularity of fuel-powered vehicles over alternatives such as electric vehicles. Automakers are also improving SUV designs to meet evolving consumer preferences for fuel efficiency and performance, which in turn boosts the demand for advanced fuel tank solutions. For instance, in March 2025, Volvo Trucks unveiled its redesigned Volvo VNR regional‑haul model, featuring up to 7.5% improved fuel efficiency through aerodynamic enhancements, Eco‑roll technology and a next‑generation D13 VGT engine. The region's robust automotive manufacturing base, along with technological advancements in tank materials and design, further supports North America’s leadership in the automotive fuel tanks market.
Asia Pacific is also anticipated to witness significant growth in the global automotive fuel tanks market over the forecast period, driven by the region's dominant position in global vehicle manufacturing. Countries such as China, India, Japan, and South Korea collectively account for a significant share of the world’s automobile production, supported by well-established supply chains, low labor costs, and favorable government policies. For instance, in 2023, Asia produced a record-breaking 51.8 million light vehicles. This represents a nearly 10% year-on-year increase, driven by strong exports and robust production in key countries like China and Japan. The rising middle-class population and rapid urbanization in emerging economies like India are fueling increased vehicle ownership, particularly in the two-wheeler and small car segments, which boosts the automotive fuel tanks market demand. For instance, according to Data for India, about 170 million households have a two-wheeler in India.
Furthermore, several automotive manufacturers are expanding their production capacities in the region to meet domestic and export demands. For instance, major automakers and component suppliers are setting up new plants or increasing investments in Southeast Asia and India to tap into the growing consumer base. This combination of strong manufacturing activity, rising vehicle demand, and strategic investments makes Asia Pacific a key growth engine for the automotive fuel tanks market.
The United States is a major driver of automotive fuel tanks market demand, fueled by high vehicle ownership, a strong aftermarket, and a preference for large SUVs and trucks. With over 800 vehicles per 1,000 people, demand for both new and replacement fuel tanks remain strong. Consumers favor larger tanks for long-distance driving and utility, especially in rural and suburban areas. Automakers like Ford and GM continue to invest in traditional fuel-powered vehicles, such as the F-Series and Silverado, which support larger tanks. The robust aftermarket and steady ICE vehicle sales ensure ongoing fuel tank demand across the country.
According to the S&P Global, in 2025, it is estimated that there are approximately 289 million light vehicles in operation in the United States. This number has increased by 3 million since 2024.
China is a key driver of the automotive fuel tanks market demand, being the world’s largest vehicle producer and consumer. Rising auto production, expanding commercial vehicle use, and supportive government policies for fuel-efficient vehicles are boosting demand. Leading OEMs like SAIC and BYD are scaling operations, increasing the need for advanced fuel tank systems. Lightweight and efficient tanks are favored due to fuel economy norms. China's strong manufacturing base and policy support continue to fuel market growth.
According to the Trading Economics, Car Production in China increased to 2,794,000 units in June from 2,649,000 units in May 2025.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 24,080.8 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 4.47% | 2032 Value Projection: | USD 32,704.8 Mn |
| Geographies covered: |
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| Companies covered: |
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. |
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The 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.
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.
For instance, in February 2024, BMW India launched the new BMW 7 Series Protection (760i xDrive VR9) in India, offering top-tier VR9-rated armoring for defense against firearms, explosives, and rifle-calibre rounds. The model features a self‑sealing fuel tank, run‑flat PAX tires, and automatic Effortless Door motorized assistance.
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.
The automotive fuel tanks market value, though often overshadowed by powertrain and electrification conversations, is undergoing a decisive shift in engineering priority, especially in markets where internal combustion engine (ICE) vehicles remain structurally entrenched. This is not a stagnant component category. It is evolving in direct response to emissions legislation, design optimization needs, and geopolitical sourcing dynamics.
The multi-layer plastic fuel tanks (MLF tanks) are emerging as the dominant choice globally, replacing traditional steel tanks, not simply for weight reduction, but for their ability to meet advanced evaporative emissions standards. In the U.S., where Tier 3 emission rules demand volatile organic compound (VOC) containment below 0.054 g/test, high-barrier polymers such as ethylene-vinyl alcohol (EVOH) and polyamide-6 are non-negotiable in tank design. OEMs such as Ford and GM have already mandated this in most mid- and full-size platforms.
While electrification garners much attention, hybrid vehicle growth is paradoxically expanding fuel tank demand, albeit with altered geometries. Consider the Toyota RAV4 Hybrid: it features a reduced-capacity, irregularly shaped tank to accommodate batteries—posing significant design complexity that favors Tier-1 suppliers like Yachiyo or TI Fluid Systems who have advanced blow-molding capabilities. As plug-in hybrids (PHEVs) expand across Europe and North America, especially with new EU CO₂ fleet targets looming in 2025, fuel tank suppliers that can adapt modular designs to increasingly compact powertrains are better positioned to capture value.
While Europe is tightening emission norms and moving towards BEVs, markets such as India, ASEAN, and Latin America still see ICE vehicles forming over 90% of new vehicle sales. For instance, in FY2024-25, India is projected to sell over 4 million ICE two-wheelers, every unit requiring a steel or polymer tank. Notably, Indian OEMs are increasingly importing higher-grade steel tanks or switching to polypropylene-based plastic variants to reduce weight by up to 40%, thereby enhancing mileage, a critical selling point in cost-sensitive segments.
Moreover, global OEMs are “localizing” tank sourcing to mitigate logistics volatility and cost fluctuations in resin and steel prices. This was evident in Stellantis' 2025 contract awards for North American SUV platforms, where local plastic tank suppliers outcompeted traditional Asian exporters by optimizing for just-in-sequence delivery and vehicle-specific tank-integration electronics (like integrated level sensors and venting modules).
*Definition: 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.
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About Author
Ameya Thakkar is a seasoned management consultant with 9+ years of experience optimizing operations and driving growth for companies in the automotive and transportation sector. As a senior consultant at CMI, Ameya has led strategic initiatives that have delivered over $50M in cost savings and revenue gains for clients. Ameya specializes in supply chain optimization, process re-engineering, and identification of deep revenue pockets. He has deep expertise in the automotive industry, having worked with major OEMs and suppliers on complex challenges such as supplier analysis, demand analysis, competitive analysis, and Industry 4.0 implementation.
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