Automotive Fuel Tank Market Size, Share, Growth Analysis, By Type(Less than 45 liters, 45 to 75 liters, and greater than 75 liters capacity.), By Material type(Plastic and Metal), By Region - Industry Forecast 2024-2031

Automotive Fuel Tank Market size was valued at USD 16.6 billion in 2021 and is poised to grow from USD 17.45 billion in 2022 to USD 25.97 billion by 2030, growing at a CAGR of 5.1% in the forecast period (2023-2030).

The automotive industry is highly competitive with many major players competing against each other. These include large automakers such as Toyota, Volkswagen, General Motors, Ford, and others, as well as smaller ones such as Tesla, Audi, BMW, and Volvo. The industry has witnessed significant technological advancements such as electric vehicles and autonomous driving systems, which have led to new entrants from companies like Google and Uber. The industry is also undergoing structural changes, with the rise of mobility services and the shift towards a more sustainable and environmentally friendly future. As such, automakers are looking to innovate and differentiate themselves in order to capture market share and stay relevant. 'Toyota (Japan)', 'Volkswagen Group (Germany)', 'General Motors (United States)', 'Ford Motor Company (United States)', 'Hyundai Motor Group (South Korea)', 'Nissan Motor Co. Ltd. (Japan)', 'Honda Motor Co. Ltd. (Japan)', 'Fiat Chrysler Automobiles (Italy)', 'BMW Group (Germany)', 'Daimler AG (Germany)', 'PSA Group (France)', 'SAIC Motor Corporation Limited (China)', 'Renault Group (France)', 'Geely Holding Group (China)', 'Tata Motors (India)', 'Mazda Motor Corporation (Japan)', 'Mitsubishi Motors Corporation (Japan)', 'Subaru Corporation (Japan)', 'Dongfeng Motor Corporation (China)', 'Kia Motors Corporation (South Korea)'

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 self-sealing tanks are primarily used in aviation. This self-sealing technology has been utilized since the Second World War. However, the automotive industry is planning to get this technology in the automotive tanks. The self-sealing fuel tanks have multilayer protection of untreated natural rubber and reinforcing fabric. This self-sealing property protects the tanks from leakages caused by accidents or forced punctures. The untreated natural rubber present in the coating of the tank swells and expands when it comes in contact with the fuel thereby seals the puncture and prevents further leaking of fuel. The prominent automotive manufacturing companies are focusing on developing this technology to achieve a leading position in the market. The increasing rate of road accidents is compelling the manufacturers to develop such technology that can prevent the leaking of flammable fluids and avoid major mishaps. This promising safety feature of the self-sealing automotive tank is expected to witness high customer demand in the coming years.

Asia Pacific holds the largest share of the market and is expected to maintain its leading position during the forecast period. Some of the developed and developing economies such as India, China, Japan, and South Korea are the leading countries that hold the maximum number of sales and production of automobiles thus propelling the growth of the fuel tank market in this region. The rapid urbanization, expansion in industrialization, improvement in the infrastructure, and rise in disposable income is promoting the growth of the market in this region.