Diesel Common Rail Injection System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Diesel Common Rail Injection System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The diesel common rail injection system market is anticipated to register a CAGR of over 2.5% during the forecast period, 2020-2025.

Key Highlights

• Some of the major factors driving the growth of the market are the enactment of stringent emission control norms, especially for commercial vehicles, noise reduction, and increased fuel efficiency. However, increasing demand and penetration of electric vehicles in the automotive sector are expected to hinder the market's growth.
• The drastic pressure variations in common rail injection systems are expected to reduce the emissions of nitrogen dioxide by 50% and enhance fuel efficiency by 3%. For instance, in India, BS-IV standards were introduced in 2010, but most commercial vehicles in the market are operating under the BS-III standards. In 2016, the Ministry of Petroleum and Natural Gas stated that the diesel BS-IV vehicles contributed 42% of the total vehicle sales in the Indian market, while petrol vehicles contributed 54%.
• Some of the major companies dominating the market are Robert Bosch, Denso, Delphi Automotive Technologies PLC, and Continental AG, with Robert Bosch being the major player in the market.

Key Market TrendsGrowing Demand for Light Commercial Vehicles and Stringent Emission Control Norms, Especially for Commercial Vehicles

Light commercial vehicles, such as vans and pick-up trucks, have been considered in the light commercial vehicles segment of the market studied. In 2017, commercial vehicles recorded sales of 25,954,924 units, with an increase of 6.4% from 2016, of which, the light commercial vehicle sales (vans and pick-up trucks) contributed to a higher share of more than 75% of the total commercial vehicle sales.

With the growing environmental concerns, governments and environment agencies are enacting stringent emission norms and laws, which may result in the decline of diesel engine passenger cars in the coming years.

• The diesel engine variants of passenger cars have already started experiencing a decline from 2015.

As a result, the demand for diesel engines is only expected to witness positive growth from the rise in commercial vehicle sales, owing to the growing construction industry and significant growth in the logistics industry (primarily, due to the rise in the e-commerce business). For instance, according to Eurostat, over 75% of inland cargo transports within the EU, i.e., about 1,750 billion metric ton-kilometer (tkm), travel by road. In some European countries, this percentage goes as high as 90% or more.

• As a result, the demand for commercial vehicles has been continually increasing in the region.

Thus, based on the aforementioned positive developments, commercial vehicle manufacturers have to produce vehicles that suffice the emission regulations. The growing adoption rate of CDRI technology is expected to boost market growth in the coming years.

Asia-Pacific - Leading the Diesel Common Rail Injection System Market

Geographically, Asia-Pacific is leading the CRDI market, followed by North America and Europe. The Asia-Pacific region is majorly driven by countries, like China, Japan, and India.

In China, commercial vehicles experienced a Y-o-Y growth of 13.9%, to reach 4.161 million vehicles in 2017. This increase can be attributed to compact diesel vehicles meeting the China 5 emission standards from January 2018, along with the rising demand for commercial vehicles. Diesel demand in China increased by up to 0.5% in 2017 and by 0.8% in 2018, after shrinking by 3.5% in 2016. The diesel demand increased due to the improvement in mining and industrial activity, commercial vehicle sales, and road freight movements

The demand for diesel common rail injection systems is growing in the country due to numerous factors, such as companies entering partnerships for developing new products and manufacturers investing in R&D projects. For instance,

• Dongfeng Automobile Co. Ltd and Delphi jointly developed a new China 6 standard DDi23 engine for light-duty trucks. Delphi offered high-pressure common rail diesel injection systems and post-processing solutions to help this engine meet the China 6 emission standard.

Apart from China, the United States in North America is expected to witness high demand for diesel common rail injection system. In the last couple of years, many automakers introduced various diesel vehicles in the United States, which have been very well received by consumers, and several manufacturers have announced their plans to expand their diesel model portfolios. For instance,

• In 2017, General Motors announced to offer a new turbodiesel Chevrolet Cruze compact car, and in 2018, it announced to offer a diesel Chevrolet Equinox sport utility vehicle (SUV).

The growing demand for diesel engines and continuous investment in engine technology are fueling the market studied, which is anticipated to grow further over the forecast period.

Competitive Landscape

The diesel common rail injection system market is consolidated, with the presence of major companies, such as Robert Bosch GmbH, DENSO Corporation, Delphi Technologies, and Continental AG. The market also has the presence of other companies, such as Cummins. Robert Bosch is leading the market. The company produces the common rail system for gasoline and diesel engine systems under the powertrain category of the mobility solutions business division. The CRS2-25 model and CRS3-27 models are the two common rail systems offered with solenoid and Piezo injectors. The company has a strong presence in Europe and America.

Continental AG holds the second position in the market. Earlier, Siemens VDO used to develop common rail systems for vehicles. However, it was later acquired by Continental AG, which is currently offering diesel common rail injection systems for vehicles under the powertrain division.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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