Rising number of technological advancements in the field of automotive engineering have resulted in substitution of conventional mechanical pumps with new age electric pumps in passenger vehicles. These new age electric pumps aid in boosting the efficiency of fuel consumption in vehicles. This trend is propelling the adoption of these advanced products in the automotive oil pump market. Some key drivers for the automotive oil pump market include rising demand for passenger vehicles, rising disposable income and resultant increase in the buying power of global consumers, and fast paced urbanization. Moreover, the increase in production, as well as sales of both commercial and passenger vehicles is also influencing the development of the automotive oil pump market.
Increasing proliferation of electric vehicles is one of the most prominent drivers for the automotive oil pump market. Furthermore, the increasing demand for electric vehicles, rising number of subsidies and promotions by governments across the world for promoting the adoption of EVs, and various cost related advantages to the automotive manufacturers are also aiding in the expansion of the automotive oil pump market. Various governments in the world are focusing on meeting their targets for zero emission by the end of 2050. This trend is also expected to motivate sales in the market.
The manufacturers in the automotive oil pump market are shifting their attention towards product innovations to encompass a larger share of the industry. The leading companies in the automotive oil pump market are tapping into expansion opportunities by developing and manufacturing high quality and next generation electric oil pumps. This trend, along with the increasing instances of electrified automotive vehicles are anticipated to present lucrative growth opportunities for the industry players in the coming years.
Automotive Oil Pump Market Players Focused on Acquisitions & Production Capacity Expansions
The leading manufacturers and companies working in the automotive oil pump market are Denso Corporation, Johnson Electric, TRW Automotive, FTE Automotive, Laxmi Oil Pumps & Systems (P) Ltd., Rheinmetall Automotive, Hitachi Automotive Systems Americas, Inc., BorgWarner, Inc., SHW AG, Delphi Automotive, Robert Bosch GmbH, Magna International, Mitsuba Corp., Mikuni Corporation, and MAHLE GmbH, among others. The players in the automotive oil pump market are engaged in expanding their research and development initiatives to come up with innovative and low-cost products.
Key strategies employed by the players in the automotive oil pump market for enhancing their industry presence include mergers and acquisitions, as well as the establishment of new production facilities. For example, Delphi Technologies was acquired by BorgWarner, Inc., for US$ 3.3 Bn in January of 2022. This move is anticipated to help BorgWarner in strengthening their production scale and capabilities, and maintain a greater flexibility across combustion, electric, and hybrid propulsion systems.
Asia Pacific Holds a Major Share of the Automotive Oil Pump Market
Geographically, the automotive oil pump market is divided into regions such as Latin America, Asia Pacific, North America, Middle East and Africa, and Europe. The largest share within the automotive oil pump market can be attributed to the region of Asia Pacific. Asia Pacific houses various automotive manufacturing hubs and is considered to be the most dominant automotive producer within the world. Increasing number of efforts are being undertaken by the governments in regional economies such as South Korea, India, and China for strengthening and supporting their automotive industries.
Various local governments in Asia Pacific region are also engaged in attracting leading automotive manufacturers to their nations by offering them various benefits and subsidies. This has led to an increased volume of automotive vehicles being produced in the region over the last few years. Automotive production in Asia Pacific caters to overseas demand, along with domestic demand, both of which have significantly risen over the past few years. This trend is also expected to bolster the growth of Asia Pacific automotive oil pump market in the near future.