Automotive Pump Market

[231 Pages Report] The global automotive pump market is projected to grow at a CAGR of 6.9% during the forecast period, to reach USD 17.7 billion by 2025 from an estimated USD 12.7 billion in 2020. Automotive pumps perform different functions including raising, compressing, or transferring fluids by mechanical action and facilitate circulation of fluids around a system for a vehicle’s operational performance.

The COVID-19 pandemic has become a major concern for automotive stakeholders. Suspension of vehicle production and supply disruptions have brought the automotive industry to a halt. Lower vehicle sales post the pandemic will be a major concern for automotive OEMs for the next few quarters. According to experts, there is a slim chance of vehicle sale recovery in 2020. The automotive pump market, however, is expected to witness a significant boost in 2022 owing to the carbon emission norms by different countries. Before that, lower vehicle sales and abrupt stoppage in the development of new automotive technologies will result in sluggish growth of the automotive pump market in 2021.

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COVID-19 Impact on Automotive Pump Market:

Major automotive pump manufacturer such as Aisin, Bosch and Continental have announced the suspension of production due to the lowered demand, supply chain bottlenecks, and to protect the safety of their employees in France, Germany, Italy, and Spain during the COVID-19 pandemic. As a result, the demand for automotive pumps is expected to decline in 2020. Manufacturers are likely to adjust production to prevent bottlenecks and plan production according to demand from OEMs and tier 1 manufacturers. Major pump manufacturers lost revenue in Q1 2020. As the resumption of vehicle production is not likely in the immediate future due to the severity of the pandemic, especially in the US and major European countries, tier 1 players suspect a further decline in revenue in the remaining quarters of 2020. For instance, Rheinmetall has faced sales decline in Q1 2020 due to COVID-19 crisis by 13%. The halt in production due to lockdown has been the major factor for the decline although resumption of production plants in China and US is expected to recover the losses in coming months.

Market Dynamics:

Driver: Rising focus of automakers toward fuel-efficient vehicles

In the last few years, automakers have introduced advanced technologies to meet the increasing demand for fuel efficiency and high operating capability of vehicles. The fuel injection pump helps to enhance vehicle efficiency as it delivers fuel at an optimized pressure as per the requirement of the engine. Hence, the demand for a reliable fuel injection pump has increased with the increasing focus to improve vehicle performance and value for customers.

Restraint: Anticipated growth of electric vehicles in the coming years

Electric vehicles have emerged as a suitable alternative for conventional fuel vehicles, particularly in urban areas and cities. These vehicles are environment friendly and do not emit harmful gases. Hence, the regulatory bodies of many countries are taking steps to increase the adoption rate of electric vehicles such as battery electric vehicles. The demand for electric vehicles is the highest in the European passenger car market, followed by Asia and North America.

Opportunity: Increase in installation of electric power steering in passenger cars

The EPS system eliminates the need for steering pumps, drive belt, hydraulic fluid, and pulley. Therefore, like electric power steering, electronic power steering poses a threat to steering pumps. Nissan has introduced a “Drive by Wire” system in some of its cars, which has completely eliminated the need for steering pumps. Hence, the introduction of this technology is likely to eliminate the need for steering pumps in the maneuvering function of the vehicles. Therefore, technologies such as EPS and drive by wire are expected to inhibit the market of automotive pumps to a large extent

Challenges: Increase in the cost of electrification of automotive pumps

The increase in electrification of automotive components has increased the overall cost of the vehicle. The electrification of pump for engine application is done by installing electronic components such as ECUs, sensors, and microcontrollers with actuators. Electrification helps to decrease the weight of a vehicle and meet the stringent emission norms. Although electric components have lesser reliability than mechanical components due to complex high voltage circuits and inductive losses, they provide better performance than mechanical components

By Technology: Mechanical pump is expected to be the largest segment in the automotive pump market

The mechanical pump is anticipated to be the largest market during the forecast period. Mechanical automotive pumps use mechanical force to pump the fluid, whereas electric pumps utilize electric energy from a motor to pump the fluid. Mechanical pumps, also known as geared pumps, are mechanically driven through drive belts or the camshaft and derive power from the engine of a vehicle. However, the mechanical pump market is expected to grow slowly in the coming years as electrical pumps are increasingly used in place of mechanical pumps to make the automobiles more efficient.

By Vehicle Type: Passenger car segment is expected to dominate the automotive pump market

The rising sales of passenger cars are driving the growth of this segment during the forecast period. The passenger car segment has the largest market share, in terms of value, in 2019. Hence, the market size, in terms of value, of the passenger car segment is much larger than that of other vehicle segments in the automotive pump market. The light commercial vehicle segment is expected to witness gradual growth during the forecast period.

The COVID-19 impact on passenger cars can show a positive response as citizens worldwide would prefer private cars over public transportation. For instance, ever since China lifted its lockdown, the number of private cars on roads in Beijing and other cities has almost doubled, and there has been an increase in new car dealerships. In Chinese cities, many residents have shown the intention of new car purchases in this situation.

By Type: Steering pump is estimated to be the largest market during the forecast period

The steering pump segment is expected to dominate the automotive pump market during the forecast period. Hatchback segment of passenger cars is equipped with a hydraulic steering system whereas commercial vehicles are maneuvered by the same steering system, thereby fueling the growth of the steering pump market. Steering pumps are used in hydraulic and electro-hydraulic power steering systems. However, with advancements in steering systems technology, hydraulic and electro-hydraulic steering systems are getting replaced with Electric Power Steering (EPS) system. The EPS system, which requires an electric motor and sensors, eliminates the need for a steering pump.

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Asia Pacific is expected to account for the largest market size during the forecast period

The Asia Pacific region is estimated to be the largest market by 2027. The region comprises some of the fastest developing economies of the world such as China and India. Also, the Asia Pacific region is the largest market for automotive as the growing purchasing power of consumers has triggered the demand for automobiles in the region. Also, the increasing sales of commercial vehicles and passenger cars in the region are driving the growth of the market. Concerns over ecological imbalance caused by vehicle emissions have increased in the past decade in countries such as India, China, Malaysia, and Thailand. These concerns have forced major vehicle manufacturers to shift focus toward low fuel consuming vehicles. Hence, Asia Pacific is expected to show incremental growth in the market during the forecast period. Moreover, the high demand for passenger cars in fast emerging countries of the region is likely to drive the growth of the Asia Pacific market during the forecast period.

Europe is home to leading automotive manufacturers and has been at the forefront in the early adoption of electrification in vehicles. Thus, the electric pumps segment in Europe is expected to gain traction during the forecast period. Strict environmental policies and pollution control measures are likely to contribute to the faster adoption of efficient performing pumps in the region.

However, the spread of coronavirus has affected the countries of the region. Europe’s wide production losses due to factory shutdowns amount to at least 2,396,549 motor vehicles so far, which includes passenger cars, trucks, vans, buses, and coaches. The average shutdown duration is 29 working days at the moment as per the European Automobile Manufacturer’s Association (ACEA).

Key Market Players

The major automotive pump market players include Aisin Seiki  (Japan), Delphi  (UK), Denso  (Japan), Johnson Electric (Hong Kong), Robert Bosch (Germany)

These companies have strong distribution networks at a global level. In addition, these companies offer an extensive product range. The key strategies adopted by these companies to sustain their market position are new product developments, collaborations, and contracts & agreements. For instance, in December 2017, Aisin Seiki exhibited various auto body products that contribute to fuel efficiency, including the fully variable oil pump with an optimum form that contributes to improved fuel economy.

Scope of the Report

This research report categorizes the market based on type, vehicle type, EV, technology, displacement, sales channel, off-highway vehicles, and region.

On the basis of type, the market has been segmented as follows:

• Fuel pump
• Fuel injection pump
• Water pump
• Windshield pump
• Steering pump
• Transmission oil pump
• Vacuum pump
• Headlight washer pump

On the basis of electric vehicle type, the market has been segmented as follows:

• BEV
• FCEV
• HEV
• PHEV

On the basis of vehicle type, the market has been segmented as follows:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

On the basis of technology, the market has been segmented as follows:

• Electric
• Mechanical

On the basis of displacement, the market has been segmented as follows:

• Variable displacement
• Fixed displacement

On the basis of off-highway vehicles, the market has been segmented as follows:

• Construction equipment
• Mining equipment

On the basis of application, the market has been segmented as follows:

• Body & Interior
• Engine & HVAC
• Powertrain

On the basis of region, the market has been segmented as follows:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Thailand
  • Rest of Asia Pacific
• Europe
  • France
  • Germany
  • Russia
  • Spain
  • Turkey
  • UK
  • Rest of Europe
• North America
  • US
  • Canada
  • Mexico
• RoW
  • Brazil
  • Iran
  • South Africa

Recent Developments

• In September 2018, Aisin Seiki showcased aftermarket products such as water pumps and piston engine parts, transmission-related parts such as clutch discs, and brake-related parts such as brake pads. These products were exhibited at Chongqing International Auto Parts and Service Exhibition, Chongqing International Exposition Center (CQEXPO) (Chongqing, China).
• In May 2017, Delphi Product & Service Solutions (DPSS) launched a new fuel tank cleaning kit as part of a technician education campaign to ensure the longevity of fuel pumps. Independent research has proven that most replacement pumps that fail often do so because of contamination in the fuel tank. Taking this fact into consideration, the company has introduced this cleaning kit.
• In March 2019, the company exhibited different types of vehicle pumps at the Shanghai International Automobile Industry Exhibition in China. The showcased pumps included washer pumps for window shield, headlamp, and sensor cleaning.
• In April 2016, Johnson Electric exhibited different types of pumps at the Beijing International Automotive Exhibition in Beijing New China International Exhibition Center. These pumps included the engine variable displacement vane pumps, transmission oil pumps, electric oil pumps, and vacuum pumps.
• In October 2018, an internationally operating automobile group was awarded Düsseldorf-based Rheinmetall Group large-scale orders for its CWA 400 electrically powered pumps. The orders placed with Pierburg Pump Technology GmbH (Rheinmetall Automotive) represent a volume totaling valuation USD 248 million.
• In September 2016, SHW Automotive GmbH received a new order to supply electric axle drive pumps to the world’s leading manufacturer of fully electric vehicles. SHW has succeeded in prevailing against strong international competition.

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