Fluctuating fuel prices that have increased the demand for fuel-efficient vehicles and increasing pressure on automakers to comply with the emission norms, and the consistent growth in the demand for passenger cars trigger the growth of the automotive pump market to reach $ 17.5 billion by 2026.
According to the new market research report: Automotive Pumps Marketby type, technology, displacement, vehicles, sales channel, EV, off-highway vehicles and region - Global Forecast to 2026, published by MarketsandMarkets, theglobal automotive pump market is projected to grow at a CAGR of 4.2% in the next five years, from $ 14.2 billion in 2021.
Vehicle manufacturers' heavy investments in R&D activities to develop efficient fluid technology for automotive are expected to push the market's growth further. In addition, infrastructural development in emerging countries is expected to drive the growth of commercial vehicles, which would boost the demand for automotive pumps, the research firm said.
The major players in the market include Aisin, Denso, Robert Bosch, Valeo and Continental.
As per the report, the electric segment is the fastest-growing segment of the market during the period, based on technology. Electric pumps, which work with the help of electric motors, are gradually replacing mechanical pumps. The use of electric pumps is increasing due to their many advantages over mechanical pumps. For example, the electric fuel pump provides more fuel efficiency as compared to the mechanical fuel pump. However, the installation of an electric pump requires a sophisticated electrical circuit, which increases the cost. Therefore, major global automakers are now using electric pumps in vehicular architecture, the report said.
In terms of vehicles, the passenger car segment is expected to be the fastest-growing in the market. The growing number of favourable government policies mandating the reduction in CO2 emissions in new vehicles and growing disposable income are expected to create opportunities for the passenger car market growth. Also, economic growth in emerging countries has enhanced people's purchasing power, resulting in the growth of the passenger car segment. As a result, the passenger car segment is expected to grow 4.4% CAGR, reaching $ 12.8 billion in 2026 from $ 10.3 billion in 2021.
MarketsandMarkets said that India is expected to grow at the highest CAGR during the period in the Asia Pacific region. Due to favorable government policies, such as 100% FDI with prior government approval, leaner policies for manufacturing and imports for licensing and approvals, and World Trade Organization (WTO) compliant policies, the automotive industry in the country is growing at a higher CAGR than most countries in the region.
Various government initiatives, such as Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME), will foster the popularity of EVs and drive the sales of automotive electric pumps in India.
The passenger car segment in India for automotive pumps is expected to grow at the highest CAGR during the forecast period and is expected to be the largest market during the forecast period. The pickup in economic activity and several government initiatives are likely to propel the automotive market growth in India, thus leading to growth in the automotive pumps market, the research firm noted.
Courtesy:MarketsandMarkets. NB: Photo is representational; courtesy: Continental.