PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615262
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615262
The automotive fuel delivery system plays an instrumental role in supplying fuel from the tank to the combustion chamber in the engine at the right time, in the right amount, and under appropriate pressure. This system mainly consists of the fuel tank, fuel pump, fuel filter, fuel injectors, and the fuel lines. As vehicles have become more sophisticated, so has the fuel delivery system, optimizing for efficiency, performance, and emissions. Automotive Fuel Delivery System Market is estimated to grow at a CAGR of 6.3% from 2024 to 2032.
Automotive Fuel Delivery System Market Dynamics
Driver: Increasing Demand for High Fuel Efficiency Vehicles
With global fuel prices exhibiting fluctuating trends and an increasing consciousness towards environment preservation, there has been a growing demand for vehicles that offer high fuel efficiency. Consumers are more informed and are looking for cars that can deliver more miles per gallon of fuel, ensuring that they get value for their money and reduce their carbon footprint simultaneously. Evidences of this trend are visible in the growing sales numbers of hybrid vehicles and those with advanced fuel delivery systems. For instance, the European Automobile Manufacturers Association reported a significant increase in the registration of electrically-chargeable vehicles in Europe in recent years, a sign of the shifting preference of consumers. Furthermore, governments around the world are instituting stricter fuel-efficiency standards. The Corporate Average Fuel Economy (CAFE) standards in the USA, which dictate the average fuel efficiency goals for manufacturers, have become increasingly stringent, pushing automakers to refine and innovate in their fuel delivery systems.
Opportunity: Growth of Direct Fuel Injection Systems
The automotive industry is experiencing a gradual shift from traditional port fuel injection to direct fuel injection systems. Direct injection allows for better control of the fuel-air mixture, resulting in more power, better fuel efficiency, and reduced emissions. The evidence of this shift is noticeable in the increasing number of new vehicle models being launched with direct injection engines. For example, Volkswagen's TSI engines and Ford's EcoBoost engines, both employing direct injection technology, have seen a rise in sales and popularity. This trend presents a golden opportunity for manufacturers in the fuel delivery system market to innovate and capture a more significant market share.
Restraint: Transition to Electric Vehicles (EVs)
While innovations in the fuel delivery systems market are ongoing, a significant restraint is the global transition towards electric vehicles (EVs). EVs do not require traditional fuel delivery systems as they run on electricity stored in batteries. Major cities around the world are aiming to become emission-free, with initiatives to phase out gasoline-powered vehicles in the future. Evidence of this transition can be observed in the increasing sales of EVs. The International Energy Agency reported that the global stock of electric passenger vehicles passed 5 million in 2019, an increase of 63% from the previous year.
Challenge: Meeting Stringent Emission Norms
While the fuel delivery system plays a pivotal role in enhancing vehicle performance and fuel efficiency, the challenge lies in adhering to the ever-evolving, stringent emission norms. Governments globally are tightening regulations concerning vehicular emissions to combat air pollution and climate change. As evidence, the European Union has set CO2 reduction targets for car manufacturers, with penalties for non-compliance. This situation demands continuous innovation from fuel delivery system manufacturers to ensure that vehicles not only perform efficiently but also emit the least possible pollutants.
Market Segmentation by Vehicle Type
Starting with vehicle type, passenger cars dominated in terms of revenue generation. This is unsurprising given the sheer volume of passenger vehicles on the road compared to their commercial counterparts. Rising urbanization, growing disposable incomes, and the inherent need for personal mobility ensured that passenger cars remained a staple in the automotive sector. Commercial vehicles, although fewer in number, still showcased a robust demand, particularly in regions undergoing infrastructural development. In terms of CAGR, passenger vehicles showed a stable growth rate, but it was commercial vehicles that showcased a slightly higher rate, influenced by the growth of e-commerce and the subsequent need for transport and logistics.
Market Segmentation by Fuel Type
Next, fuel type segmentation elucidates another layer of the market dynamics. Gasoline-driven vehicles, predominantly found in passenger car segments, led the market in terms of revenue in 2023. The prevalence of gasoline engines, especially in key markets like North America, played a part in this. Diesel, mostly used in commercial vehicles due to its fuel efficiency for long-haul transports, followed suit. The 'Other' category, which encompasses alternative fuels like CNG, LPG, and hybrid systems, although comparatively smaller in revenue in 2023, is expected to grow at the highest CAGR from 2024 to 2032. This prediction stems from increasing environmental concerns, the rise of hybrid technologies, and governmental incentives promoting cleaner fuel sources.
Regional Insight
From a geographic standpoint, Asia-Pacific stood out both in terms of highest revenue percent and CAGR in 2023. The massive automotive markets of China and India, combined with the booming middle class, urbanization, and localization of automotive manufacturing, propelled this region to the forefront. Europe and North America, with their mature markets, trailed behind but remained significant contributors to the global revenue. However, regions such as Latin America and Africa are expected to emerge as strong contenders in terms of CAGR from 2024 to 2032, largely due to their growing economies, improving road infrastructure, and rising demand for personal and commercial vehicles.
Competitive Landscape
Finally, observing the competitive landscape, 2023 witnessed several key players adopting strategies to remain resilient and relevant. Major players like Aisin Corp., BorgWarner Inc., Continental AG, DENSO Corp., Hitachi Ltd., Landi Renzo Spa, Magna International Inc., Marelli Holdings Co. Ltd., to name a few, invested heavily in R&D to innovate fuel delivery systems that were both efficient and compliant with stringent emission norms. Mergers and acquisitions, partnerships with regional players, and diversifying product portfolios were among the top strategies adopted. As the shift towards electric mobility becomes more pronounced, it's expected that these major players will pivot and diversify further, ensuring they cater to both traditional and EV markets effectively between 2024 and 2032.
Historical & Forecast Period
This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Automotive Fuel Delivery System market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Automotive Fuel Delivery System market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.
Market Segmentation
Vehicle Type
Fuel Type
Region Segment (2022-2032; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Automotive Fuel Delivery System market?
What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2032.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Automotive Fuel Delivery System market?
Which is the largest regional market for Automotive Fuel Delivery System market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Automotive Fuel Delivery System market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Fuel Delivery System market worldwide?
FIG. 9Market Positioning of Key Automotive Fuel Delivery System Market Players, 2023
FIG. 10Global Automotive Fuel Delivery System Market - Tier Analysis - Percentage of Revenues by Tier Level, 2023 Versus 2032