What’s Driving the US$ 44 Billion Global Automotive Pumps Market

Demand for automotive pumps is anticipated to increase at nearly 4% CAGR during the period 2015-2025. Use of pumps in the automotive industry has witnessed a steady growth, on account of growing emphasis on curbing fuel emissions.

In terms of revenue, the global automotive pumps market was valued at nearly US$ 44 billion in 2015. Increasing automotive production and sales is the key macroeconomic factor driving the demand for automotive pumps. Adoption of advanced automotive technologies (gasoline direct injection, automatic transmission, gasoline turbo charges, etc.) is another key factor fuelling the demand for automotive pumps globally.

Automotive Pumps Market Share by Pump Type

Pumps find wide-ranging applications in the automotive industry. In vehicles they are used for fuel supply, fuel injection, transmission, coolant, windshield washer, and vacuum pump. Among these, demand for fuel supply pumps is the highest, with this segment accounting for over 43% revenue share of the market in 2015. On the other hand, demand for vacuum pumps is anticipated to witness the highest CAGR during the period 2015-2025, increase at over 5% annually.

Asia Pacific Largest Market for Automotive Pumps

Asia Pacific holds a special position in the global automotive pumps market, as it is the largest revenue contributor. Home to China and India, two of the most lucrative markets for automobiles, the Asia Pacific market is anticipated to increase at a steady rate in the next decade.

China, one of the fastest growing markets for passenger cars, has seen robust demand for fuel supply pumps. Local manufacturers have sourced technology from foreign players to leverage on the potential of the booming Chinese car market. However, there are unique challenges that Chinese automotive pump makers face, including lack of economies of scale and primitive technology processes.

India, another lucrative market for automobiles, is also expected to create myriad opportunities for automotive pump manufacturers. According to a report by Confederation of India Industry (CII), India will the world’s 3^rd largest auto component industry by 2025. The India automotive pumps market is expected to witness a steady growth rate in the next decade, and become an important revenue contributor to the overall Asia Pacific market. Asia Pacific excluding Japan (APEJ) is expected to hold over 37% revenue share of the global automotive pumps market by 2025.

Western Europe and North America are the other leading markets for automotive pumps. The Western Europe automotive pumps market is expected to hold a revenue share of over 18% by 2025. The North America automotive pumps market is expected to witness steady growth and reach US$ 11.5 billion in revenues by 2025. In terms of market attractiveness, Middle East and Africa (MEA) is expected to emerge as a lucrative market during the forecast period.

The leading companies operating in the automotive pumps market are Aisin Seiki, Hella KGaA Hueck & Co., Robert Bosch, SHW AG, Denso Corporation, Hitachi Automotive, Magna International, KSPG AG, Continental, Pricol Ltd, Delphi Automotive LLP, Wabco Holdings Inc., Magneti Marelli, Concentric AB,