Press release
Automotive Pump Installations to Reach 694,207 Thousand Units in 2016
Fuel supply pumps will continue to hold leading revenue- and volume- share in 2016 among all the automotive pumps. FMI estimates fuel supply pump installations to reach 115,873 thousand units in 2016, an increase of 2.3% over 2015. The revenue share of fuel supply pumps increase from 43.4% in 2015 to 43.6% in 2016. Vacuum pumps will witness a 5.2% value increase in 2016 over 2015.
While steady automotive sales in Asia Pacific and increasing emphasis on curbing vehicular emissions will continue to boost demand in 2016, rising adoption of electric motors and long replacement cycles can pose challenges to growth.
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Demand for automotive pumps will be highest in the passenger vehicle segment vis-à-vis commercial and heavy vehicles. This will largely be supported by steady demand from a rapidly expanding middle class in developing countries of Asia Pacific. FMI estimates automotive pump installations in the passenger vehicle segment to reach 504,339 thousands units in 2016, an increase of 2.3% over 2015.
Asia Pacific excluding Japan (APEJ) will extend its lead as the largest market for automotive pumps in 2016. On back of rising adoption of advanced technologies, including DCT, CVT, and GDI, automotive pump installations in the region will reach 252,301 thousand units in 2016. APEJ’s revenue share is set to reach 33.4% in 2016, an increase of 0.5% from 2015.
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Considering the fragmented nature of the automotive pumps market, key players are focusing on business expansion in emerging markets through mergers and acquisitions. Establishment of new manufacturing facilities and reinforcement of existing ones is a key go-to business strategy for leading players in the market.
Long-term Outlook: The global automotive pumps market will increase at a CAGR of 3.8% during 2015-2025, reaching US$ 64.7 Bn by 2025-end. Asia Pacific and Western Europe will be the two largest markets, whereas demand for automotive pumps will witness the highest CAGR in Middle East & Africa.
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