Automotive Fuel Filter Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2022-2030

Market Overview

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.

Scope of the Report

An automotive filter, such as a fuel filter, prevents the physical elements present in the fuel from entering the vehicle’s engine. Components integrated along with the fuel filter are collectively termed the automotive fuel filter system.

They are crucial for the trouble-free operation of cars, as they help filter impurities that are likely to enter the engine, thereby extending the vehicle’s life. The fuel filter is a type of oil filter utilized to clean the fuel, which is injected into the vehicle’s engine. The scope of the report offers details about the latest technologies and developments in the market.

The automotive fuel filter market has been segmented by fuel type, vehicle type, sales channel, and geography. By fuel type, the market has been segmented into gasoline and diesel, while by vehicle type, the market has been segmented into passenger car and commercial vehicle.

By sales channel, the market has been segmented into OEM and aftermarket. Finally, by geography, the market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, market sizing and forecast have been done based on value (USD billion).

Key Market Trends

Surging 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.