Automotive Fuel Tank Market Size - By Capacity, By Material, By Propulsion, By Vehicle, Analysis, Share & Growth Forecast, 2024 - 2032

Automotive Fuel Tank Market Size

The global automotive fuel tank market size was valued at USD 17.6 billion in 2023 and is projected to grow at a CAGR of 4.7% between 2024 and 2032. The global automotive industry is experiencing significant growth, particularly in emerging markets. Increased vehicle production is driving higher demand for fuel tanks, spurred by rising disposable incomes, urbanization, and improved road infrastructure in developing countries. The expansion of ride-sharing services and fleet operations further boosts vehicle production.
 

For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), in the year 2023, total passenger car production amounted to 67.1 million units and commercial vehicle production reached 26.4 million units. Manufacturers are scaling up and establishing new production facilities in high-growth regions, leading to greater demand for fuel tanks and innovation in design and materials to meet diverse specifications and regional regulations. This trend benefits the automotive fuel tank industry, creating opportunities for OEM and aftermarket segments.
 

Governments worldwide are enforcing stricter emissions standards to combat air pollution and climate change, impacting fuel tank design and manufacturing. Fuel tanks play a crucial role in controlling evaporative emissions, prompting manufacturers to develop advanced tanks with improved sealing systems, integrated vapor management, and enhanced materials to minimize fuel vapor emissions. Regulatory pressure drives investment in R&D for low-emission fuel tank solutions and encourages adopting advanced systems in emerging markets to align with global environmental standards. The tightening of emissions regulations continues to shape the automotive fuel tank industry, fostering innovation and opportunities for suppliers of cutting-edge, low-emission technologies.
 

Automotive Fuel Tank Market Trends

The Internet of Things (IoT) is revolutionizing automotive fuel tanks, leading to the integration of "smart" fuel systems. These advanced tanks feature sensors and connectivity that provide real-time data on vehicle fuel delivery, quality, and system performance. This data can be transmitted to the vehicle's onboard computer and cloud-based systems for remote monitoring.
 

Smart fuel tanks optimize fuel consumption, predict maintenance needs, and enhance vehicle efficiency. Some systems can even detect fuel theft or tampering. This trend aligns with the broader move towards connected and autonomous vehicles. As vehicle technology advances, we expect more sophisticated IoT integration in fuel tanks, including predictive analytics and navigation system integration for optimized refueling planning.
 

The rise of alternative fuels like ethanol blends and biodiesel presents challenges for fuel tank design and material selection. Variations in fuel compositions can impact the durability and performance of tank materials, leading to potential degradation and permeation issues. Manufacturers must develop fuel tanks compatible with a wide range of current and future fuel formulations. This requires extensive testing, validation, and the ability to quickly adapt designs and materials. Additionally, regional differences in fuel standards necessitate producing tanks that perform reliably across diverse global markets.
 

Automotive Fuel Tank Market Analysis

Based on capacity, the 45-70 liters segment accounted for over 55% of the market share in 2023 and is expected to exceed USD 13 billion by 2032. Consumers now prioritize vehicle range in their purchasing decisions, even for non-electric vehicles. The 45-70 liters fuel tank segment offers an optimal balance between range and vehicle size.
 

This capacity typically provides sufficient range for extended highway travel without significantly impacting vehicle weight or interior space. As fuel efficiency improves across vehicle lines, tanks in this size range can offer an even greater range, enhancing consumer appeal. This trend is particularly relevant in regions with long-distance driving habits or underdeveloped refueling infrastructure.
 

Based on the material, the plastic segment is expected to exceed USD 18 billion by 2032, due to several key factors. Automakers are increasingly prioritizing vehicle weight reduction to enhance fuel efficiency and meet stringent emissions regulations. Plastic fuel tanks, being significantly lighter than traditional metal tanks, contribute to this weight reduction. This trend is driving the adoption of plastic fuel tanks across various vehicle segments, including compact cars, SUVs, and commercial vehicles.
 

Plastic materials offer greater design flexibility compared to metal, enabling more complex shapes and component integration. For instance, in May 2024, Lumax Cornaglia, a joint venture between Lumax Auto Technologies and Italy's Cornaglia Group, shifted its strategy. Initially focused on metal-based exhaust systems, the company now focuses on plastic fuel tanks, valued for their lightweight properties. This allows manufacturers to optimize space utilization, create tanks that fit diverse vehicle architectures, and incorporate features like baffles for improved fuel sloshing control. The ability to mold plastic into intricate designs also supports the production of tanks for hybrid and electric vehicles with unique packaging requirements.
 

China accounted for over 40% share of the automotive fuel tank market in 2023. Despite the EV trend, internal combustion engine vehicles still hold a market in China. Manufacturers are developing lightweight fuel tanks using advanced materials like high-density polyethylene (HDPE) and metal-plastic hybrids. These tanks improve fuel efficiency, reduce emissions, and increase driving range, aligning with China's strict fuel economy and emissions standards.
 

European automakers are increasingly adopting plastic fuel tanks over traditional metal ones. Plastic tanks offer weight reduction, design flexibility, and corrosion resistance. This trend is driven by the need for fuel efficiency and the ability to create complex shapes that optimize space in vehicle designs. Additionally, plastic tanks are more recyclable, aligning with Europe's sustainability and circular economy principles.
 

In North America, there is growing interest in alternative fuel vehicles, particularly those running on compressed natural gas (CNG) and hydrogen. This trend is leading to the development of specialized fuel storage systems for these high-pressure fuels. Manufacturers are investing in composite materials and advanced safety features to create durable and lightweight tanks for CNG and hydrogen fuel cell vehicles, catering to both commercial and consumer markets.
 

Automotive Fuel Tank Market Share

The autex, Motherson Yachiyo, and OPmobility collectively held a substantial market share of over 10% in the automotive fuel tank industry in 2023. Kautex prioritizes innovation and sustainability in its fuel tank manufacturing processes. Utilizing advanced technologies like AI and automation, the company optimizes design processes and enhances product performance, notably in areas like reducing fuel sloshing noise. Kautex actively partners with automotive OEMs, co-developing solutions tailored to specific customer needs. Committed to sustainability, Kautex incorporates lightweight materials and promotes recycling in its production, aligning with the industry's broader goals of reducing emissions and enhancing fuel efficiency.
 

Motherson Yachiyo adopts a customer-centric strategy, customizing its fuel tank solutions to align with the distinct needs of automotive manufacturers. The company channels investments into research and development, innovating fuel tank designs with a keen focus on safety, durability, and weight reduction. Furthermore, Motherson Yachiyo collaborates closely with global automakers, tapping into their manufacturing and engineering expertise.
 

OPmobility champions technological advancement and digital transformation in the automotive fuel tank sector. By harnessing data analytics and IoT, the company crafts smart fuel tank solutions that enable real-time monitoring of fuel levels and conditions. This forward-thinking strategy not only boosts operational efficiency but also elevates safety standards. Additionally, OPmobility seeks strategic alliances with technology providers, ensuring the integration of cutting-edge features into their offerings.
 

Automotive Fuel Tank Market Companies

Major players operating in the automotive fuel tank industry are:

• Donghee
• Fuel Total Systems
• Kautex (Textron)
• Magna International
• Motherson Yachiyo Automotive Systems 
• OPmobility
• SRD Holdings
• TI Fluid Systems
• Unipres Corporation
• YAPP Automotive Systems (SDIC Group)
   

Automotive Fuel Tank Industry News

• In June 2024, OPmobility, through its PO-Rein joint venture, secured a contract with CRRC, the world's leading rail manufacturer. This agreement, the first of its kind for hydrogen-powered trams, will see deployment in Malaysia. OPmobility will supply 76 Type 4 high-pressure storage systems, each containing four 175-liter hydrogen tanks, with delivery and commissioning scheduled by year-end.
   
• In May 2024, Samvardhana Motherson International (SAMIL) completed its acquisition of an 81% stake in Yachiyo Industry's four-wheeler business, a subsidiary of Honda Motor, for 22.9 billion Japanese yen ($158.54 million). Under the acquisition terms, Yachiyo 4W now supplies sunroofs and fuel tanks to SAMIL at all its manufacturing locations.
   

The automotive fuel tank market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn), and volume (Units) from 2021 to 2032, for the following segments:

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Market, By Capacity

• Less than 45 liters
• 45-70 liters
• More than 70 liters

Market, By Material

• Plastic
• Steel
• Aluminium
• Composite materials

Market, By Propulsion

• Internal combustion engine
• Hybrid
• Compressed natural gas
• Hydrogen
• Others

Market, By Vehicle

• Two-wheelers
• Three-wheelers
• Passenger cars
• Commercial vehicle

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa