Global Automotive Fuel Tank Market By Capacity (Less than 45 liters, 45–70 liters, and Above 70 liters), By Material Type (Plastic, Aluminum, and Steel), By Region, Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 21.65 Billion
CAGR (2026-2031)	4.22%
Fastest Growing Segment	Plastic
Largest Market	Asia Pacific
Market Size (2031)	USD 27.74 Billion

Market Overview

The Global Automotive Fuel Tank Market will grow from USD 21.65 Billion in 2025 to USD 27.74 Billion by 2031 at a 4.22% CAGR. An automotive fuel tank is a specialized vessel integrated into an internal combustion engine system to safely store and supply volatile propellants such as gasoline or diesel. The market is primarily bolstered by the consistent volume of global vehicle production, particularly in emerging economies where traditional powertrains remain essential. Additionally, the sector benefits from the rising integration of lightweight polymer materials that enhance fuel economy and compliance with emission standards. According to the International Organization of Motor Vehicle Manufacturers, in 2024, global motor vehicle production reached 92.5 million units, underscoring the substantial ongoing requirement for these storage components.

However, the industry faces a significant impediment regarding the rapid global transition toward electrification. The increasing market share of battery electric vehicles eliminates the necessity for fossil fuel storage systems and directly reduces the total addressable market. This structural shift is accelerated by stringent government environmental regulations and poses a formidable challenge to long term expansion as automakers progressively reallocate resources from internal combustion technologies to zero emission platforms.

Key Market Drivers

The escalating demand for lightweight materials to enhance fuel efficiency is a primary catalyst propelling the transition from traditional steel to High-Density Polyethylene (HDPE) fuel tanks. As regulatory bodies enforce rigorous environmental mandates, automotive manufacturers are aggressively reducing vehicle mass, leading to the widespread adoption of multilayer blow-molded plastic tanks that offer superior corrosion resistance and design flexibility compared to steel counterparts. This structural shift is critical for compliance with future efficiency targets; according to the National Highway Traffic Safety Administration, June 2024, in the 'Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027-2032', the final standards require an industry-wide fleet average of approximately 50.4 miles per gallon by 2031, directly incentivizing the integration of lighter fuel storage components.

Concurrently, the growing market penetration of Hybrid Electric Vehicles (HEVs), particularly Plug-in Hybrid Electric Vehicles (PHEVs), is sustaining demand for advanced fuel storage solutions that require pressurized systems. Unlike standard internal combustion engines that continuously purge fuel vapors, PHEVs require specialized sealed tanks capable of withstanding high internal pressure to contain vapors during extended periods of electric-only operation. This technical necessity preserves value in the fuel system supply chain despite the broader electrification trend. According to the China Association of Automobile Manufacturers, September 2024, in the 'August 2024 Automotive Production and Sales' report, sales of plug-in hybrid electric vehicles surged 81.9% year-on-year, highlighting the robust expansion of this specific powertrain. This niche growth complements broader market stability; according to the European Automobile Manufacturers' Association, August 2024, in the 'Consolidated Registrations' report, new passenger car registrations in the EU increased by 4.5% during the first half of 2024, ensuring a steady baseline for component demand.

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Key Market Challenges

The rapid global transition toward electrification acts as a structural impediment to the Global Automotive Fuel Tank Market. Unlike internal combustion engine vehicles that require specialized vessels to store liquid propellants, battery electric vehicles (BEVs) operate on electrochemical energy storage systems, effectively eliminating the necessity for a traditional fuel tank. This technological substitution does not merely suppress demand but permanently erodes the total addressable market for fuel systems. As automotive original equipment manufacturers progressively reallocate production capacity from combustion engines to zero-emission platforms, the volume of fuel tanks required for new vehicle assembly faces a direct and irreversible decline.

The scale of this market displacement is evident in the world’s largest automotive manufacturing hub, where the shift away from fossil fuels is accelerating. According to the China Association of Automobile Manufacturers, in 2024, sales of new energy vehicles reached 12.87 million units, capturing 40.9% of the total automobile market. This statistic indicates that a substantial proportion of new vehicle production has already exited the fuel tank ecosystem. Consequently, the industry is confronted with a narrowing customer base as the prevalence of electric mobility directly reduces the volume of conventional storage components needed globally.

Key Market Trends

The integration of smart fuel management sensors and electronics is transforming fuel tanks from passive storage vessels into active diagnostic components. As vehicle architectures become more complex, original equipment manufacturers are increasingly requiring fuel systems that provide granular real-time data on fuel quality, pressure variance, and leakage detection to optimize engine performance and ensure safety compliance. This shift towards electronically integrated systems allows suppliers to maintain value despite the stabilization of total unit volumes. According to TI Fluid Systems, March 2025, in the 'Full Year Results 2024', the company successfully expanded its Adjusted EBIT margin by 40 basis points to 7.8% despite a revenue decline, a performance driven by operational efficiency and its strategy to supply advanced fluid handling products, underscoring the financial resilience provided by high-tech component integration.

Concurrently, the increasing utilization of recycled and bio-based polymer materials is reshaping material sourcing strategies to align with global circular economy mandates. Automotive manufacturers are aggressively seeking to lower the carbon footprint of their supply chains by replacing virgin high-density polyethylene with sustainable alternatives that maintain rigorous durability standards. This focus on eco-design facilitates compliance with stricter end-of-life vehicle directives and reduces the embodied carbon of internal combustion platforms. According to OPmobility, March 2025, in the '2024 Integrated Report', the group reported that its financial year 2024 revenue rose 2.2% year-over-year to €11.6 billion, a growth trajectory attributed to its strategic transformation towards sustainable mobility solutions, which prioritizes the development and integration of recycled materials in its product lines.

Segmental Insights

The plastic segment represents the fastest growing category in the global automotive fuel tank market, primarily driven by the industry focus on vehicle weight reduction. Automakers are increasingly adopting plastic tanks to enhance fuel economy and lower carbon emissions, supporting adherence to strict mandates like the Corporate Average Fuel Economy standards. Furthermore, plastic materials provide effective corrosion resistance and allow for adaptable designs that fit into complex vehicle architectures. These functional benefits over traditional metal options make plastic the preferred choice for manufacturers aiming to meet evolving efficiency targets.

Regional Insights

Asia Pacific leads the global automotive fuel tank market due to substantial vehicle production volumes in major economies like China, India, and Japan. The region benefits from increasing demand for passenger vehicles and a dense network of original equipment manufacturers. Furthermore, strict regulatory frameworks, including China VI and India’s Bharat Stage VI, compel manufacturers to adopt lightweight fuel storage solutions to improve vehicle efficiency and reduce emissions. This alignment of high manufacturing output with rigorous environmental standards ensures the region remains the primary center for automotive fuel tank development and consumption.

Recent Developments

• In April 2025, ABC Technologies completed the strategic acquisition of TI Fluid Systems, a leading global manufacturer of automotive fluid storage, carrying, and delivery systems. Following the transaction, the combined business was rebranded as TI Automotive, creating a comprehensive Tier 1 supplier with an expanded portfolio in fuel tanks, thermal management, and fluid transport technologies. This consolidation was aimed at enhancing the company's ability to support global automotive manufacturers in their transition toward electrification and advanced fuel system architectures.
• In November 2024, Hexagon Purus was selected by New Flyer of America Inc. to supply Type 4 hydrogen storage cylinders for the fifth consecutive year. Under this contract, valued at approximately $6.3 million, the company agreed to provide lightweight hydrogen fuel tanks for the Xcelsior CHARGE FC, a zero-emission hydrogen fuel cell-electric transit bus. The cylinders, capable of storing hydrogen at high pressure to enable extended driving ranges, were scheduled to be manufactured at the company's facility in Westminster, Maryland, reinforcing the supplier's strong position in the commercial transit market.
• In October 2024, Toyota Motor Corporation unveiled its newly developed portable hydrogen cartridges at the Japan Mobility Bizweek. These innovative, compact fuel tanks were designed to make hydrogen energy more familiar and accessible for everyday use, allowing for easy hand-carrying and swapping similar to giant batteries. The technology, which reduced the size and weight of traditional hydrogen tanks used in fuel cell electric vehicles, was showcased alongside a hydrogen-powered cooker developed in collaboration with a partner company to demonstrate the versatility of the portable storage solution.
• In April 2024, OPmobility secured a significant order to supply high-pressure hydrogen fuel tanks for a European premium automobile manufacturer's production in the United States. This contract, intended for a future SUV model, marked a major milestone for the company's expansion in the North American hydrogen mobility sector. To support this and other recent commercial successes, the company announced it would establish a new manufacturing facility in Grand Blanc Township, Michigan. This plant is designed to become a leading hub for hydrogen storage systems, catering to both heavy-duty and commercial vehicle markets.

Key Market Players

• Plastic Omnium
• Kautex
• Yachiyo
• TI Fluid Systems
• YAPP
• Magna
• Unipres
• FTS
• Futaba
• Martinrea

By Capacity	By Material Type	By Region
Less than 45 liters 45-70 liters Above 70 liters	Plastic Aluminum Steel	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Fuel Tank Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Fuel Tank Market, By Capacity:

• Less than 45 liters
• 45-70 liters
• Above 70 liters

• Automotive Fuel Tank Market, By Material Type:

• Plastic
• Aluminum
• Steel

• Automotive Fuel Tank Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE