Automotive Fuel Tank Market Size, Share & Industry Analysis, By Capacity Type (Less than 45L, 45L-75L, and Greater than 75L), By Material Type (Plastic and Metal), By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) and Regional Forecasts, 2019-2032

The global automotive fuel tank market size was valued at USD 20.09 billion in 2018 and is projected to reach USD 23.5 billion by 2032 at CAGR of 1.2% during the forecast period. The Asia Pacific dominated the Automotive Fuel Tank Market with a share of 42.01% in 2018.

A fuel tank is considered to be a crucial automotive component as it stores and protects the flammable fluid gas. The fuel tank is an integral part of the vehicle that is integrated with the engine and pumps the fuel in the form of pressurized gas as and when needed. The tank protects the flammable gas from direct contact with the atmosphere and keeps the fire out of reach. Depending on the type of vehicle, the tank varies in size, design, capacity, and is made up of materials like plastic and metal. Plastic tanks are light in weight and are majorly used in passenger cars. Thus, increasing the production of passenger cars is majorly responsible for the increase in demand for plastic tanks. The automotive manufacturing companies are spending a high percentage of funds on research to develop lightweight automobiles. The lightweight of vehicles reduces fuel consumption to a great extent. Also, the reduced weight of the vehicle helps in minimizing the carbon dioxide emission from vehicles. The automotive OEMs are expanding their production volume to meet the rising demand for automobiles across the globe thereby creating a surge in the demand for automotive fuel tanks. The stringent environmental regulations imposed by the government to curb the increasing air pollution is fueling the demand for the implementation of lightweight materials in vehicles.

MARKET TRENDS

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Self-Sealing Fuel Tanks to Accelerate the Automotive Fuel Tank Market

The self-sealing tanks are primarily used in aviation. This self-sealing technology has been utilized since the Second World War. However, the automotive industry is planning to get this technology in the automotive tanks. The self-sealing fuel tanks have multilayer protection of untreated natural rubber and reinforcing fabric. This self-sealing property protects the tanks from leakages caused by accidents or forced punctures. The untreated natural rubber present in the coating of the tank swells and expands when it comes in contact with the fuel thereby seals the puncture and prevents further leaking of fuel. The prominent automotive manufacturing companies are focusing on developing this technology to achieve a leading position in the market. The increasing rate of road accidents is compelling the manufacturers to develop such technology that can prevent the leaking of flammable fluids and avoid major mishaps. This promising safety feature of the self-sealing automotive tank is expected to witness high customer demand in the coming years.

MARKET DRIVERS

Growing Demand for lightweight vehicles is Expected to Drive the Market Growth

The automotive industry is working towards developing lightweight vehicles to reduce fuel emission and enhance the performance of the vehicles. The automotive OEMs are spending a high percentage on research to innovate and develop lightweight materials for producing automotive components to decrease the weight of the vehicles. The automotive sector is shifting from the traditional metal tanks to plastic tanks since the recent past. Plastic tanks have become the preferred choice of automotive manufacturing companies owing to its various inherent advantages over metal fuel tanks and is gaining high popularity in the market. These tanks are produced using High-Density Polyethylene (HDPE). Owing to the flexible property of the plastic tanks, they can be customized according to the requirement of the OEMs.

The automotive industry is focusing more on producing lightweight vehicles as they are the need of today’s time. The majority of the passenger cars and light commercial vehicles have plastic fuel tanks integrated into them. The rising urbanization, improvement in the standard of living, and high purchasing power of people has led to the growth in the passenger car market. The young generation is more inclined towards lightweight, low emission, and high-performance vehicles. Thus, owing to various benefits of having plastic fuel tanks in vehicles is expected to accelerate the growth of the market in the foreseeable future.

Increasing Production of IC Engine Vehicle to Drive the Market for Fuel Tanks

Globally, the increasing industrialization, developing road infrastructures, and improvement in the standard of living are the primary factors that are leading the growth of the automotive industry. The rise in the purchasing power among people is driving them to purchase new vehicles thereby fuelling the growth of automobiles. The rising concern of fuel emission and the increasing trend of lightweight vehicles are eminently boosting the automotive fuel tank market growth.

Moreover, the prominent automotive manufacturing companies are investing a high percentage on research to innovate and develop advanced technology in automobiles to reduce the weight of vehicles and thus discover new alternatives to reduce the fuel emission, to serve their customers with high performance and low emission vehicles thereby maintaining a good position in the market. Furthermore, the government is also taking various initiatives towards the environment safety and providing subsidies to promote the usage of vehicles across the world. The government is also investing in research to develop lightweight materials to be used in making automotive components.

• The new BS-VI emission norms imposed by the Government of India on the automotive manufacturing companies to control the rising fuel emission is expected to boost the production and sale of vehicles in the coming years.


• The Government of India is aiming to develop the country as a global automotive manufacturing center. The Government has come up with reforms like GST to boost the growth of the automotive sector.

MARKET RESTRAINT

Increasing Adoption of Electric Vehicles is Anticipated to Restraint the Growth of the Market

The global automotive industry is experiencing a shift from conventional fuel vehicles to electric vehicles. The electric vehicle has various components that serve similar functions as that of the conventional fuel vehicles. The electric vehicle requires less maintenance as compared to the combustion vehicles and therefore the maintenance costs are much lower. The controller and the chargers are the non-moving parts and the lithium-ion batteries used to power the vehicle are sealed and require no maintenance. Whereas, the only moving part in the electric motor is the shaft which is more reliable and requires less or no maintenance. Thus, electric vehicles are much cheaper in maintenance. The increasing emission caused by the fuels of conventional vehicles is leading to air pollution and global warming crisis.

The prominent automotive manufacturing companies are inclining more towards sustainable sources of energy. The automotive OEMs are spending heavily on research to develop vehicles with zero-emission and high-performance vehicles. Moreover, the rising inclination of people towards zero-emission vehicles and the stringent regulations imposed by the government to curb fuel emission and promote environment-friendly vehicles will restrict the growth of the market during the forecast period. Also, the growth in the number of electric vehicles is estimated to limit the sales of automotive, a thereby restricting the growth of the market in the coming years.

SEGMENTATION

By Capacity Type Analysis

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Less than 45 Liters capacity segment is Expected to Dominate the Market

Based on the capacity type, the market is segmented into less than 45 liters, 45 to 75 liters, and greater than 75 liters capacity. The less than 45 liters capacity holds the maximum share in the global market. The majority of the passenger cars such as hatchbacks and sedans fall under the category with a fuel tank capacity of less than 45 liters. The sales and production of passenger cars is growing tremendously across the globe owing to the urbanization, high demographic rate, improvement in the standard of living, and advancement in automotive technologies. The rise in disposable income is increasing people’s inclination towards purchasing a new vehicle. Also, the rising trend of low emission, lightweight, and high-performance vehicles are gaining attraction of the young generation thus propelling the growth of the market.

The automotive manufacturing companies are investing heavily in research to develop components made up of lightweight materials to reduce the overall weight of the vehicle. Also, the OEMs are manufacturing vehicles with a minimum tank capacity of 40 liters to meet the increasing demand for high-performance and greater mileage range vehicles.

The SUVs and light commercial vehicles are integrated with fuel tanks with a storage capacity of more than 45 liters but less than 75 liters. The increasing trend of off-roading activities is ultimately increasing the demand for off-road vehicles. Moreover, the demand for SUVs among the young population is growing significantly thereby fuelling the growth of the fuel tank capacity ranging from 45 liters to 75 liters.

The heavy commercial vehicles are expected to exhibit a steady growth in the market owing to the developing road infrastructure, expansion in the industrial sector such as construction, mining, and transportation thus leading to the growth of fuel tanks having a capacity greater than 75 liters.

By Material Type Analysis

Plastic material type is Expected to Hold the Largest Market Share

Based on the material type, the market is segmented into plastic and metal. The plastic tank holds the maximum share of the global market and is expected to maintain its leading position in the market during the forecast period. Most of the manufacturing companies across the globe are replacing metal tanks with plastic tanks to meet the increasing demand as well as satisfy the changing customer requirements. Plastic tanks are made up of High-Density Polyethylene (HDPE). These tanks are lighter in weight and are easily moldable, therefore customized tanks can be provided according to the requirement of the OEMs.

The plastic tank has various benefits such as their lightweight build, flexible design, corrosion resistance, and high durability thus making them a preferable choice of the automotive manufacturers. The increased demand for plastic tanks has subsequently increased the demand for HDPE. These tanks are majorly used in passenger cars such as hatchbacks, sedans SUVs, and also in light commercial vehicles. All these factors are expected to propel the growth of the plastic fuel tank in terms of volume as well as in value.

By Vehicle Type Analysis

Passenger Cars is Expected to Hold the Largest Market Share

In terms of vehicle type, the market is segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment holds the largest share in the global market owing to the increasing urbanization, expansion in industrialization, improved standard of living, high growth rate and rise in the disposable income of people. The automotive manufacturing companies are working towards developing lightweight materials for fuel tanks to reduce the weight of the vehicles. The reduction up to 100 kgs is estimated to save around 0.3 to 0.5 liters of fuel for each 100 kms drive. Thus the lightweight vehicles decrease the fuel emission and improve the performance of the vehicle. Additionally, owing to the stringent norms and policies imposed by the government to reduce fuel emission and promote the sale of lightweight and high-performance vehicles, the automotive industry is experiencing a boost in the plastic fuel tank market. All these factors are fuelling the growth of the market mainly in the passenger cars segment.

The light commercial vehicle (LCV) to exhibit global automotive fuel tank market growth, exponentially. The increase in urbanization, development in road infrastructure, the rapid expansion of industrial sectors such as construction, logistics, and transportation is boosting the demand for light commercial vehicles across the globe. 

REGIONAL ANALYSIS

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Asia Pacific holds the largest share of the global market and is expected to maintain its leading position during the forecast period. Some of the developed and developing economies such as India, China, Japan, and South Korea are the leading countries that hold the maximum number of sales and production of automobiles thus propelling the growth of the fuel tank market in this region. The rapid urbanization, expansion in industrialization, improvement in the infrastructure, and rise in disposable income is promoting the growth of the market in this region.

The manufacturing companies that are present in this region are working towards developing lightweight materials for automotive components to reduce the overall weight of the vehicle. Plastic fuel tanks are widely used by most of the manufacturers in passenger cars and light commercial vehicles. The automotive OEMs are aiming to sell around 56 million lightweight vehicles by 2020. Furthermore, the stringent regulations imposed by the government to reduce fuel emission and provide subsidies to the automotive industry to manufacture lightweight vehicles are also estimated to boost the market in this region.

North America holds the second-largest share in the global market owing to the high volume of commercial vehicles in this region. The stringent government norms about fuel emission and the increasing customer base are fueling the growth of the market.

KEY INDUSTRY PLAYERS

Kautex Textron maintains its leading position in this global market. The company makes blow-molded fuel tanks and technologically advanced systems for cars and light trucks such as pressurized fuel tanks for hybrid applications. The company is planning various alternatives so that they can position Kautex to best serve its customers for ongoing success. Also, the constant R&D efforts by the manufacturer leading to technological advancements in fuel tanks are some of the prominent factors responsible for the dominance of the company.                               

However, Continental AG and Yachiyo have maintained their positions in the competitive landscape with other prominent companies. This is projected to certainly influence the global market as these companies are anticipated to drive market innovation during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Yachiyo Industry Co., Ltd.(Japan)


• Continental AG(Germany)


• Kautex Textron GmbH & Co. KG(Germany)


• TI Automotive Inc. (U.K)


• Magna International Inc.(Canada)


• YAPP Automotive Parts Co. Ltd.(China)


• SMA Serbatoi S.P.A. (Italy)


• The Plastic Omnium Group (France)


• Martinrea International Inc. (Canada)


• Unipres Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS

• April 2016 – Kautex Textron opens a new facility in China. The company started its production of the automotive plastic fuel tank for hybrid powertrains using NGFS technology in China. The lightweight and other inherent features of the fuel tank help the OEMs to reduce the impact of carbon dioxide and hydrocarbon on the environment.


• June 2016 – TI Automotive a global leader of plastic fuel tank systems, launches a new fuel tank system Production Company in China. The new facility manufactures plastic fuel tank systems for Great Wall Motors’ Haval, a brand of SUVs, and cross utility vehicles.

REPORT COVERAGE

The automotive fuel tank market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation