North America Fuel Tank Market - Industry Trends and Forecast to 2031

North America Fuel Tank Market, By Tank Capacity (Less Than 45 L, 45L -70L, and More Than 70L), CNG Tank Type (Type 1, Type 2, Type 3, and Type 4), Material Type (Plastic, Aluminum, Steel, and Others), Weight (Less Than 7KG, 7KG to 10 KG, and More Than 70KG), Fuel Type (LPG/CNG, Diesel, and Gasoline), Propulsion Type (Natural Gas, Hydrogen, Internal Combustion Engine (ICE), and Hybrid), Sales Channel (OEM and Aftermarket), Vehicle Type (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicle, and Hybrid Vehicle)- Industry Trends and Forecast to 2031.

North America Fuel Tank Market Analysis and Size

In the fuel tank market, technological advancements have revolutionized storage capabilities, enhancing safety, efficiency, and environmental friendliness. These innovations benefit consumers by providing durable tanks with improved fuel economy, reduced emissions, and enhanced corrosion resistance. As a result, the fuel tank market is experiencing a surge in demand for advanced solutions that meet stringent industry standards while delivering cost-effective performance.

The North America fuel tank market size was valued at USD 2.85 billion in 2023, is projected to reach USD 4.02 billion by 2031, with a CAGR of 4.40% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation

Market Definition

A fuel tank is a container designed to store fuel, such as gasoline or diesel, for use in vehicles or machinery. Typically made of metal or plastic, fuel tanks are crucial components of automobiles, airplanes, boats, and other motorized equipment. They ensure a steady supply of fuel to the engine, allowing for efficient operation and reliable performance.

Fuel Tank Market Dynamics

Drivers

• Growing Demand for Lightweight Solutions

The demand for lightweight fuel tanks is escalating due to the automotive industry's emphasis on fuel efficiency and emissions compliance. Materials such as plastics, composites, and aluminum are gaining traction for their weight-saving properties. For instance, the adoption of composite fuel tanks in electric vehicles contributes to extended driving ranges and improved energy efficiency, aligning with environmental regulations.

• Expansion of the Transportation Sector

The transportation sector's growth, covering shipping, rail, and aviation, fuels demand for fuel tanks beyond automotive use, requiring innovations to optimize fuel storage for longer distances and increased efficiency. For instance, in aviation, the growing global air traffic necessitates larger and more efficient fuel tanks in aircraft to meet longer flight distances and increased passenger demands, driving innovation in fuel storage technologies to optimize performance and range.

Opportunities

• Increasing Concerns About Fuel Safety and Leakage

Heightened environmental awareness and safety concerns propel the adoption of advanced fuel tank technologies, ensuring better containment and leak prevention, meeting regulatory standards, and fostering environmental responsibility.  For instance, the development of double-wall fuel tanks with integrated leak detection systems addresses concerns about groundwater contamination, ensuring safer storage and transportation of fuels, thereby meeting stringent regulatory requirements and fostering environmental stewardship. 

• Rising Infrastructure Development for Fueling Stations

Government initiatives and private investments are driving rapid growth in fueling infrastructure, particularly in hydrogen refueling stations and compressed natural gas (CNG) stations. These efforts aim to facilitate the adoption of alternative fuels and reduce dependence on traditional petroleum-based options. For instance, in California, the state government's push for hydrogen fuel cell vehicles has led to the development of a network of hydrogen refueling stations, driving the demand for compatible fuel tanks in vehicles utilizing this alternative fuel.

Restraints/Challenges

• Shift Towards Alternative Fuels

The rise of electric and hydrogen fuel cell vehicles diminishes the demand for conventional fuel tanks, compelling manufacturers to pivot towards alternative fuel storage solutions. This necessitates significant adaptation and diversification efforts within the market to remain competitive and address the evolving needs of the transportation industry amidst the shift toward cleaner energy sources.

• High Cost Associated with Composite Fuel Tanks

The high cost of carbon fiber composite-based fuel tanks, comprising about 40% of the overall tank cost, is a significant restraint to market growth. The comparative cost of these composite fuel tanks presents a notable obstacle, hindering their widespread adoption. This challenge confronts manufacturers, who strive to provide cost-effective solutions within the fuel tank market. The higher price of composites relative to other materials imposes limitations, necessitating innovative approaches to balance affordability with the benefits they offer.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In June 2021, TI Fluid Systems unveiled innovative fluid handling products tailored for the 2021 Hyundai Santa FE SUV hybrid electric vehicle, emphasizing lightweight solutions to enhance fuel systems. This initiative showcased the company's expertise in optimizing systems, aiming to improve the efficiency of the vehicle's electric mode
• In January 2021, TI Fluid Systems announced the development of a new generation of plastic fuel tank designs specifically engineered to meet stringent pressure demands in hybrid electric vehicles. Collaborating with Volkswagen China, volume production commenced, with the technology implemented in Passat and Magotan plug-in hybrid electric vehicle models
• In October 2020, Plastic Omnium and ElringKlinger, holding 40% and 60% stakes, respectively, forged a strategic agreement to develop and utilize hydrogen-based fuel cell technology jointly. This collaboration aimed to harness the expertise of both companies to advance fuel cell solutions, contributing to the evolution of clean and sustainable energy solutions in the automotive sector

Fuel Tank Market Scope

The market is segmented on the basis of tank capacity, CNG tank type, material type, weight, fuel type, propulsion type, sales channel, and vehicle type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Tank Capacity

• Less Than 45 L
• 45L -70L
• More Than 70L

 CNG Tank Type

• Type 1
• Type 2
• Type 3
• Type 4

Material Type

• Plastic
• Aluminum
• Steel
• Others

 Weight

• Less Than 7KG
• 7KG to 10 KG
• More Than 70KG

 Fuel Type

• LPG/CNG
• Diesel
• Gasoline

 Propulsion Type

• Natural Gas
• Hydrogen
• Internal Combustion Engine (ICE)
• Hybrid

 Sales Channel

• OEM
• Aftermarket

Vehicle Type

• Passenger Cars
• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Hybrid Vehicle

North America Fuel Tank Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided, tank capacity, CNG tank type, material type, weight, fuel type, propulsion type, sales channel, and vehicle type as referenced above.

The countries covered in the market report are U.S., Canada, and Mexico.

The U.S. is expected to dominate the market due to increasing demand for passenger vehicles. Moreover, heightened manufacturer focus on lightweight fuel tanks to reduce overall vehicle weight is projected to amplify market growth across the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Fuel Tank Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• TI Fluid Systems plc (U.K.)
• Yachiyo Industry Co., Ltd. (Japan)
• Magna International Inc. (Canada)
• OPmobility SE (France)
• Unipres Corporation (U.S.)
• Kautex (Germany)
• ContiTech AG (Germany)
• SMA Serbatoi SpA (Italy)
• FTS CO., LTD. (Japan)
• Crefact Co., Ltd. (U.S.)
• Boyd Welding LLC (U.S.)
• Elkamet Kunststofftechnik GmbH (Germany)
• SAG Group (Austria)
• Central Precision Limited (U.K.)
• Arrow Radiators (Melksham) Ltd (U.K.)
• A. KAYSER AUTOMOTIVE SYSTEMS GmbH (Germany)
• PIOLAX, Inc (Japan)