KUWAIT (GCCWIRE) — According to the new market research report “Automotive Fuel Tank Market by Capacity (70L), Material (Aluminum, Plastic, Steel), CNG Tank Type (1, 2, 3 & 4), Propulsion (Hybrid, Hydrogen, ICE, NGV), 2-Wheeler (Motorcycle, Moped), SCR Technology and Region – Global Forecast to 2026”, Published by MarketsandMarkets™, The Automotive Fuel Tank Market is projected to reach USD 21.3 billion by 2026 from an estimated USD 16.6 billion in 2021, at a CAGR of 5.1% during the forecast period.
The growth of the Automotive Fuel Tank Market is influenced by major factors such as the growing demand, increase in vehicle production, rapid urbanization, and growing investments for the development of lightweight vehicles with higher fuel efficiency, longer driving range, improved two-wheeler sales, and increasing use of lightweight fuel tanks in the transportation sector. Therefore, the Fuel Tank Market for Automotive is expected to witness significant growth in the coming years.
The Hydrogen tank segment is expected to be the fastest market in propulsion type during the forecast period.
The increasing stringency of emission and fuel efficiency norms has shifted the focus of automotive manufacturers toward alternative fuel vehicles, such as compressed natural gas (CNG), liquefied natural gas (LNG), and fuel cell vehicles. China has played a significant role in the manufacturing and deploying hydrogen fuel cell technologies with a plan of 1,500 FCEV buses to be included in the Lianyungang Haitong public Transport by 2020 to achieve the CO2 emission reduction goal. Germany has set a target of 1 million hydrogen-powered vehicles on the roads by the end of 2020. Under the efficiency standards adopted in 2012, the US passenger vehicle fleet needs to achieve an average fuel economy of 49.1 miles per gallon (mpg) by 2025, or 54.5 mpg as measured in terms of CO2 emissions with various credits for additional climate benefits factored in. For the year 2020, the CAFE standards have set the limit at 49 mpg for cars and 25 mpg for trucks. Several governments have set renewable energy targets and implemented favorable policies such as the Kyoto Protocol. Thus, the hydrogen fuel tank is projected to be the fastest-growing segment in the automotive fuel tank market during the forecast period.
The 45L – 70L tank segment is expected to be the largest growing market during the forecast period.
The automotive fuel tank market is segmented by capacity into three categories: 70 liters. Most passenger vehicles, including mini cars, hatchbacks, and mid-sized sedans, have a fuel tank capacity of 70 liters segment. About 3.6 million heavy-duty vehicles are required to move 10.5 billion tons of freight annually, which in turn would drive the growth of the >70 liters segment.
The Asia Pacific is expected to lead the market during the forecast period.
In the Asia Pacific, China, and Japan account for the largest share of the Fuel Tank Market for Automotive. The growth of the market in this region can be attributed to the high vehicle production and increased demand for passenger vehicles in countries such as China, India, Japan, and South Korea. The per capita income of Asian countries has been rising at a steady rate and the governments of these countries have recognized the growth potential of the automotive industry and have consequently taken various initiatives to encourage major OEMs to enter their domestic markets. Several European and American automobile manufacturers such as Volkswagen (Germany), Mercedes Benz (Germany) have shifted their production plants to developing countries in the region. The manufacturing and production of vehicles are growing at a fast pace due to FDIs coming in countries like Thailand, Indonesia, and India. The Chinese market is likely to increase the adoption of HDPE plastic fuel tanks due to lightweight and reduced emission features soon marking the largest share in the Asia Pacific region followed by Japan and South Korea. Countries like China and India being the leading two-wheeler manufacturers in the world drive the demand for fuel tanks.
The Automotive Fuel Tank Market is dominated by globally established players such as The Plastic Omnium Group (France), Textron – Kautex (US), Yapp (China), TI Fluid Systems (UK) and Yachiyo (Japan)..
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