Automotive Fuel Filter Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Automotive Fuel Filter Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The automotive fuel filter market was valued at USD 22 billion in 2020. The market is expected to reach USD 28 billion by 2026 while registering a CAGR of above 4% during the forecast period (2021-2026).

The COVID-19 pandemic has compelled about 95% of all automotive-related companies to put their workforces on hold during the lockdowns. Globally, the repercussions of the lockdown have been immense and unprecedented due to the halt of manufacturing activities. However, the market is expected to regain its momentum as economic activities resume and vehicles' production also rises across the world.

Significant expansion of the automotive industry and favorable economic reforms in developing countries are likely to boost the automotive fuel filter market. Moreover, rising concerns about the environment and stringent emission standards applicable to the automotive industry enacted by regulatory bodies are anticipated to drive the automotive fuel filter market demand. For instance,

· According to the United States Environmental Protection Agency, there has been a proposal to amend the greenhouse emission standard and corporate average fuel economy (CAFE) standard for vehicle models covering cars and light commercial vehicles.

Though on the one hand, increasing adoption of electric vehicles is expected to restrain the growth of market, advancements in automotive fuel filters, on the other hand, can propel growth of the market during the forecast period. Geographically, Asia-Pacific is expected to dominate the market owing to rising sales and production of vehicles in the region. North America and Europe are also likely to witness optimistic growth owing to increasing stringent emission regulations in the regions.

Key Market TrendsSurging Demand for Electric Vehicles to hinder growth of Market

As the transition toward clean mobility intensifies across the world, the adoption of electric vehicles (EVs) has soared in a commensurate manner. Recent data released by the International Energy Agency (IEA) show that electric car sales reached 2.1 million in 2019, overtaking the levels attained in 2018. The global EV stock stood at 7.2 million in 2019, with EVs now accounting for 1% of the global car stock.

The automotive fuel filter market’s growth is likely to be hit due to the increasing demand for EVs 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 EVs 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.

Moreover, as leading countries worldwide are promoting electric mobility and taking a variety of measures, such as fuel economy standards coupled with incentives for zero- and low-emission vehicles, demand for electric vehicles is expected to increase over conventional vehicles. Thus, increasing demand for EVs to hinder conventional vehicles’ growth is, in turn, affecting automotive filters’ growth during the forecast period.

Asia-Pacific dominating the Fuel Filter Market

In terms of geographical regions, the automotive fuel filter market is expected to be dominated by Asia-Pacific, followed by Europe and North America. The growing vehicle production in major countries, such as China, Japan, and India, is likely to drive the fuel filter market.

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 is likely to 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.

Competitive Landscape

The market is dominated by key players, such as Denso Corporation, Parker Hannifin Corp, Mahle GmbH, Mann+Hummel, and Cummins Ltd. The major companies are investing in expanding their business by opening new production plants and conducting product launches in the market. For instance,

• In June 2019, Mahle GmBH introduced a new fuel filter clean line. This fuel filter guarantees lower maintenance costs for the fuel pumps and injection nozzles. They also safeguard the injection systems though the fuel may be of poor quality.
• In August 2019, Mann+Hummel, a global expert in filtration solutions based in Ludwigsburg, Germany, announced the finalization of the acquisition of Hardy Filtration. This acquisition is intended to expand the company's global footprint and manufacturing capabilities of the Tri-Dim Filter Corporation, which Mann+Hummel acquired in 2018.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Ahlstrom
Munksjo Oyj
A. KAYSER AUTOMOTIVE SYSTEMS GmbH
ALCO Filters Ltd
Cummins Inc.
DENSO CORPORATION
Donaldson Company, Inc.
MAHLE GmbH
MANN+HUMMEL
Robert Bosch GmbH
Sogefi Group
Parker Hannifin Corp
Hengst SE

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.