Market Trends of Automotive Fuel Filter Industry
This section covers the major market trends shaping the Automotive Fuel Filter Market according to our research experts:
Surging Demand for Electric Vehicles to hinder growth of Market
- As the transition toward clean mobility intensifies worldwide, the adoption of electric vehicles has soared in a commensurate manner. According to EV-Volumes data, 1.3 million battery electric vehicles were sold in Europe in 2021. This represents a 65 percent increase in battery electric vehicle sales in the region in 2020. Between 2016 and 2021, the global volume of battery electric vehicles sold increased steadily.
- The automotive fuel filter market's growth is likely to be hit due to the increasing demand for electric vehicles, as these filters are primarily utilized in conventional, fossil fuel-driven vehicles. The heavy reliance of vehicle manufacturers on automotive filters to minimize carbon emissions will thus prove counterproductive for this market, as the growing adoption of electric vehicles will lower the incentives for manufacturers to produce and deploy these components. As a result, the growth of this market will suffer in the process.
- Electric vehicles do not require oil changes or fuel tanks, as no fuel is used to power the engines. As a result, the filter's application is restricted to purifying the energy within the vehicle. The limited scope of filter application in electric vehicles may have a negative impact on automotive filter fuel sales in the coming years.
- Furthermore, as leading countries worldwide promote electric mobility and implement various policies, such as fuel economy standards in conjunction with incentives for zero- and low-emission vehicles, demand for electric vehicles is expected to outpace conventional vehicles. As a result of increasing demand for electric vehicles stifling traditional vehicle growth, the growth of automotive filters is impacted during the forecast period.
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Asia-Pacific dominating the Fuel Filter Market
- In terms of geographical regions, Asia-Pacific is expected to lead the automotive fuel filter market, followed by Europe and North America. The fuel filter market is expected to be driven by rising vehicle production in major countries such as China, Japan, and India.
- Regional automakers have been investing in new technologies to augment the production of vehicles, which is stoking the adoption of filters in this region. Moreover, owing to the rapid expansion and enlargement of the auto manufacturing sector in India and China, the demand for automotive filters will likely go up during the forecast period.
- In addition, accelerated urbanization and escalating pollution levels in this region will also promote the uptake of automotive filters. In North America, the market will be primarily driven by the increasing stringency of emission regulations. Automotive engine technologies in North America are becoming increasingly sophisticated, and supplying clean fuel to these complex engines is critical.
- Fuel filters are an integral part of conventional engine vehicles, as they filter the fuel and play a major role in engine efficiency and emissions. Since stringent emission and fuel efficiency norms have been enforced by governments and governing bodies in the region, automotive manufacturers are now compelled to seek different methods to meet these standards. This is driving the demand for automotive fuel filters in these regions.
- For instance, in August 2022, in China, Xi'an Cummins Engine Co., Ltd., a division of Cummins Inc. (Cummins), saw the Xiaoxiang M15 15L engine roll off the assembly line. Customers can change their engine oil every 150,000 kilometers owing to the NanoNet fuel filters.
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