Automotive Fuel Tank Market Size, Share, Growth Analysis, By Material (Plastic, Steel), By Capacity (Below 45L, 45L-70L), By Propulsion (Hybrid, Hydrogen) By Vehicle Type, By Region - Industry Forecast 2025-2032

Automotive Fuel Tank Market Drivers

Growing Demand for lightweight vehicles is Expected to Drive the Market Growth

• The automotive industry is working towards developing lightweight vehicles to reduce fuel emission and enhance the performance of the vehicles. The automotive OEMs are spending a high percentage on research to innovate and develop lightweight materials for producing automotive components to decrease the weight of the vehicles. The automotive sector is shifting from the traditional metal tanks to plastic tanks since the recent past. Plastic tanks have become the preferred choice of automotive manufacturing companies owing to its various inherent advantages over metal fuel tanks and is gaining high popularity in the market. These tanks are produced using High-Density Polyethylene (HDPE). Owing to the flexible property of the plastic tanks, they can be customized according to the requirement of the OEMs.
• The automotive industry is focusing more on producing lightweight vehicles as they are the need of today’s time. The majority of the passenger cars and light commercial vehicles have plastic fuel tanks integrated into them. The rising urbanization, improvement in the standard of living, and high purchasing power of people has led to the growth in the passenger car market. The young generation is more inclined towards lightweight, low emission, and high-performance vehicles. Thus, owing to various benefits of having plastic fuel tanks in vehicles is expected to accelerate the growth of the market in the foreseeable future.

Automotive Fuel Tank Market Restraints

Increasing Adoption of Electric Vehicles is Anticipated to Restraint the Growth of the Market

• The global automotive industry is experiencing a shift from conventional fuel vehicles to electric vehicles. The electric vehicle has various components that serve similar functions as that of the conventional fuel vehicles. The electric vehicle requires less maintenance as compared to the combustion vehicles and therefore the maintenance costs are much lower. The controller and the chargers are the non-moving parts and the batteries used to power the vehicle are sealed and require no maintenance. Whereas, the only moving part in the electric motor is the shaft which is more reliable and requires less or no maintenance. Thus, electric vehicles are much cheaper in maintenance. The increasing emission caused by the fuels of conventional vehicles is leading to air pollution and global warming crisis.
• The prominent automotive manufacturing companies are inclining more towards sustainable sources of energy. The automotive OEMs are spending heavily on research to develop vehicles with zero-emission and high-performance vehicles. Moreover, the rising inclination of people towards zero-emission vehicles and the stringent regulations imposed by the government to curb fuel emission and promote environment-friendly vehicles will restrict the growth of the market during the forecast period. Also, the growth in the number of EVs is estimated to limit the sales of automotive, a thereby restricting the growth of the market in the coming years.