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Automotive Pump Market Overview
Automotive Pump Market size was $14.4 billion in 2021 and is estimated to witness 4.3% CAGR during the forecast period 2022-2027. Automotive pumps perform different functions including raising, compressing, or transferring automotive fluids by mechanical action and facilitate circulation of fluids around a system for a vehicle’s operational performance. Rising vehicle electrification, as well as electric power steering, are projected to propel the Automotive Pump industry globally. Automobile oil pumps are used to lubricate and cool moving parts as well as supply oil pressure to components particularly as Transmission Oil Pump, Engine Oil Pump and Brake Oil Pump. The rise in demand for fuel-efficient vehicles have prompted manufacturers to install electric oil pumps and fuel injection pumps in their vehicles, which is expected to significantly propel the global Automotive Pump market. In 2021 Concentric AB has collaborated with a global Tier 1 manufacturer of fully automatic transmissions for medium and heavy-duty commercial vehicles to create a new pump for use in their "start/stop" technology . This collaboration is estimated to boost the market demand. Moreover electric steering pumps as well as general electric pumps demand is rapidly increasing as it helps to overcome the problem of low torque at low speeds to ensure good performance even at very low oil temperatures.
Report Coverage
The
report: “Automotive Pump Market Forecast (2022-2027)”, by
IndustryARC covers an in-depth analysis of the following segments of the Automotive
Pump Market Report.
Key Takeaways
- Increased demand for passenger vehicles due to rapid urbanization, rising disposable income, and stable economic conditions, is driving the Automotive Pump industry growth.
- Increased demand for power steering in passenger vehicle as well as in commercial vehicle is driving the Automotive Pump industry demand.
- APAC region account for the largest share 34.2% of the Automotive Pump Market owing to the high vehicle production by the manufacturers such Suzuki, Toyota, Honda and others.
Automotive Pump Market Segment Analysis - By Vehicle Type
Passenger
Vehicles held major share of 28.5% in 2021. Increased demand for power steering
in passenger vehicle as well as in commercial vehicle is driving the Automotive
Pump Market demand owing to the factor that a pump
helps to operate an oil hydraulic mechanism that is designed to facilitate
steering by the vehicle’s drive and enables the handling of larger vehicles
without the driver having to put effort on the steering wheel. Moreover, the
global trend toward lower fuel consumption has resulted in the increased
in production of electric vehicles, and all such electric vehicles are
equipped with an pumps to perform its functions in the vehicle, and thus this
factor is driving market demand. In 2019, JTEKT Corporation opened a new
production facility in Morocco, the new plant was designed to begin mass
production of electric power steering systems, and it is expected that this new
production of electric power steering will increase the market demand.
Automotive Pump Market Segment Analysis -
By Distribution Channel
The
OEM segment is expected to grow at the largest CAGR of 27.1% during the
forecast period 2022-2027, due to increased number of electric oil pump units
produced by the OEMs. It is supported by low labor costs and stable
economies, which aid in the localization of manufacturing units for key OEMs,
thereby avoiding heavy import duty taxes. The cost of one unit of electric oil
pump for OEM is lower, due to agreements between OEM and component suppliers,
incentives provided to OEMs, and lower production costs because OEM production
is done on a mass scale.
Automotive Pump Market Segment Analysis -
By Geography
APAC region account for the largest share 34.2% in 2021 of the Automotive Pump Market owing to the high vehicle production by the manufacturers such Suzuki, Toyota, Honda and others. Moreover, increase in demand for passenger’s vehicle in the countries such as Japan, South Korea, and China is driving the market for APAC region. Moreover over the last decade, concern about ecological imbalances caused by vehicular emissions has risen in countries such as India, China, and Malaysia. This concern have compelled major vehicle manufacturers to shift their focus toward low-emission vehicles. The lubricating process used in electric oil pump helps to maintain fuel efficiency and reduce emissions which is further estimated to propel the market demand. Furthermore, the European region is also projected to witness high demand owing to the presence of large automotive manufacturing and a pioneer in the early adoption of vehicle electrification. Strict environmental policies and pollution control measures, such as EURO6, are likely to accelerate the region's adoption of high-performance Transmission Oil Pump.
Automotive Pump Market Drivers
Automakers' increasing emphasis on fuel-efficient vehicles
To
meet the increasing demand for fuel efficiency and vehicle capability,
automakers have introduced advanced technologies, the automotive pump helps to
enhance vehicle efficiency as it delivers fuel at an optimized pressure as per
the requirement of the engine. For instance, in hybrid vehicle to perform start
and stop engine system in an idle standing of a vehicle the automotive oil pump
support by maintaining oil pressure and lubricating the vehicle components
which further results in increasing fuel efficiency. Moreover these pumps, also
supply oil even when the engine is switched off and are characterized by high
voltage, oil-pressure, and flow rate with less noise. Thus, these factors
driving the Automotive Pump Market. According to BlueGreen Alliance, between
2012 and 2022, automakers have spent nearly $80 billion on building more fuel
efficient vehicles. This investment will drive demand for automotive pumps
Government regulations and support
Governments
around the world is providing incentives to adopt battery electric
vehicles in order to reduce vehicle emissions, which in turn promotes the
adoption of the Automotive Pump market. In February 2021 the Indian government
intends to subsidize approximately 62,000 electric passenger cars and buses, in
addition to the Faster Adoption and Manufacturing of (Hybrid &) Electric
Vehicles in India (FAME India) Scheme, which is being implemented with a total
budgetary support of Rs 10,000 crore. Thus due to such government support the Automotive
Pump Market is projected to propel for the forecasted period 2022-2027.
Automotive Pump Market Challenges
High upfront cost of Electric Pumps
The
price of an electric pump is higher than the price of a conventional pump due
to advancements in materials, components, and systems. As a result of the high
cost of the Automotive Pump, the price of the vehicle equipped with an electric
oil pump is higher. This is likely to have a negative impact on the market
during the forecast period. Moreover, Pump electrification for engine
applications is accomplished by incorporating electronic components such as
ECUs, sensors, and microcontrollers with actuators and these factors are
resulting in high cost and is estimated to hamper the growth of the market.
These electric pumps can even go up $1000 for electric fuel pump applications
with mechanical pumps being much cheaper in the $200-$500 range.
Automotive Pump Market Landscape
Technology
launches, acquisitions and R&D activities are key strategies adopted by
players in the Automotive pump market. Automotive Pump top 10
companies –
- Delphi Automotive PLC
- FTE Automotive
- Johnson Electric
- Magna Powertrain, Inc.
- Robert Bosch GmbH
- HUSCO Automotive
- DENSO Corporation
- Mitsubishi Electric Corporation
- Johnson Electric
- Rheinmetall Automotive AG.
Recent Developments
Relevant Report Titles:
Report Code: AM 44310
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