Automotive Fuel Delivery System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The automotive fuel delivery system market is expected to register a CAGR of over 5.8%, during the forecast period (2020 - 2025)

Some of the major factors driving the growth of the market are the enactment of stringent emission control norms, especially for commercial vehicles, noise reduction, increased fuel efficiency, etc. In addition, CNG and LPG vehicles have also gained traction, as part of an effort to reduce emissions from diesel vehicles. However, increasing demand and the penetration of electric vehicles in the automotive sector are expected to hinder the growth of the market.

The drastic pressure variations in common rail injection systems are expected to reduce the emission of nitrogen dioxide by 50% and enhance fuel efficiency by 3%. On the other hand, the aftermarket kits, especially in the emerging markets, mainly drove the segment for liquefied petroleum vehicles. Lack of LPG-equipped models contributed to the high share of the aftermarket.

The Asia-Pacific region is the largest market for automobiles in the world. Despite the Chinese market experiencing sluggish growth, which is the largest automobile market in the world, the region is expected to lead in the automotive fuel delivery system market. CNG-powered vehicles are expected to witness strong growth in the European and North American regions. However, the growth in LPG vehicles is likely to be restricted to the developing markets. Despite tough economic conditions in the South American region, the market should perform relatively well during the forecast period.

Scope of the Report

The automotive fuel delivery system market has been segmented by fuel type, vehicle type, and geography.

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Key Market Trends

Increasing Demand for Commercial Vehicles

In 2018, commercial vehicles recorded a sales of more than 2.6 million, of which, an increase of 3.9% compared to 2017. The sales of light commercial vehicles contributed to a share of more than 75% of the total commercial vehicle sales, while the remaining share was occupied by heavy commercial vehicles.

• The engine capacity of light commercial vehicles varies across the regions. The average engine capacity in the Asia-Pacific region ranges from 1,800-2,500 cc, while in North America and Europe, it ranges from 2,000-3,000 cc.
• The average engine capacity of heavy commercial vehicles in North America ranges from 11,000-15,000 cc, while in Europe, it ranges from 11,000-13,000 cc, and in the Asia-Pacific region, it ranges from 9,000-11,000 cc. However, in India, the average engine capacity of heavy commercial vehicle was recorded to be less than 9,000 cc.

With the rising exhaust emission, the governments across the world and the international agencies have enacted stringent emission norms pertaining to diesel engines.

• As a result, the light commercial vehicle manufacturers are launching new models equipped with CRDi technology, which is aiding them in sufficing the emission norms and increasing their sales.
• For instance, in December 2018, Tata Motors announced the commercial launch of four new models, in order to augment its range of intermediate and light commercial vehicles (I and LCV), such as LPT 912, LPK 912, LPK 1212, and LPT1412, in Bhutan.

These models are equipped with superior common rail diesel injection (CRDi) engine technology, which enhances fuel efficiency and ensures lowest cost of ownership, high uptime, and increased driver comfort.

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