The global automotive variable oil pump market reached USD 8.7 billion in 2023 and is further projected to witness a y-o-y growth of 4.6%. The industry is anticipated to reach USD 9.1 billion by 2024. Sales of variable oil pumps are projected to clock a CAGR of 3.2% between 2024 and 2034, thereby resulting in a market size of USD 12.4 billion by 2034.
Variable oil pumps are set to be installed in all vehicle categories. Among these, passenger cars represent the most prominent segment owing to high sales across the globe. According to the International Organization of Motor Vehicle Manufacturers (OICA), as of 2023, global production of passenger cars surpassed 65 million units, thereby making these about 60 to 65% of overall automotive production.
| Attributes | Description |
|---|---|
| Estimated Global Automotive Variable Oil Pump Market Size (2024E) | USD 9.1 billion |
| Projected Global Automotive Variable Oil Pump Market Value (2034F) | USD 12.4 billion |
| Value-based CAGR (2024 to 2034) | 3.2% |
The automotive industry faces a multitude of challenges regarding vehicular emissions, performance, fuel efficiency, and affordability. Various regulations and targets such as CAFÉ standards have been put into practice to curb emissions to conserve the environment.
The stringent regulations have compelled manufacturers to develop advanced solutions to meet emission standards and related norms. For instance, the Government of India introduced BS6 emissions norms in April 2020 for automotive manufacturers. The efficacy of variable oil pumps indirectly impacts the performance of lubrication systems, further aiding high vehicular performance.
As the automotive industry is witnessing a gradual shift toward alternative fuels, the gasoline-driven automobile segment presents significant growth opportunities for product manufacturers. Rising adoption of electric technology and goals to minimize the use of diesel-driven vehicles are also estimated to push sales of gasoline-driven automobiles.
Several companies prefer gasoline for transmitting power as it requires relatively less service intervals and is cost-effective, compared to other types of fuels. In terms of sales channels, the OEM segment is estimated to dominate the field of automotive variable oil pumps in the forecast period. This growth is attributable to the ability of OEMs to produce superior-quality automotive variable displacement oil pumps.
The consistently evolving customer preferences are enabling manufacturers to develop cutting-edge automobile designs across the globe. Their ability to provide requirement-specific or customized variable flow oil pumps such as compact, low vibration, and brushless fuel pumps to customers is a beneficial growth driver.
Pump manufacturers are set to engage in comprehensive strategies to integrate customization into their business operations. They are set to be well-placed to gain long-term supply contracts with automakers. The ongoing development of compact and high-performance motors and engines by automakers is another factor that is projected to bolster sales.
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global automotive variable oil pump industry. The first half of the year, or H1, involves the months from January to June. The second half, i.e. H2, includes the months from July to December.
The table below presents the expected CAGRs over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of 2023 to 2033, the business is predicted to surge at a CAGR of 2.6%, followed by a higher growth rate of 3.1% in the second half (H2) of the same period.
| Particular | Value CAGR |
|---|---|
| H1 | 2.6% (2023 to 2033) |
| H2 | 3.1% (2023 to 2033) |
| H1 | 2.9% (2024 to 2034) |
| H2 | 3.5% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 2.9% in the first half and relatively grow to 3.5% in the second half. In the first half (H1), the sector witnessed an increase of 30 BPS while in the second half (H2), there was a slight surge of 40 BPS.
Rising Utilization of Advanced Pumps to Curb Vehicular Emissions
Automobile manufacturers are continually working to reduce their cars' carbon emissions to comply with ever-changing emission standards across the world. Several automakers have committed to reducing emissions dramatically by the end of this decade.
Even small tweaks and innovations introduced by automakers can help reduce carbon emissions. The use of high-pressure or electric fuel pumps in vehicles is set to reduce carbon emissions by 1.5 gm to 2 gm/km for a 1.8-liter diesel or gasoline engine. The use of unique automotive variable oil pumps is projected to surge due to the above-mentioned factors among automakers.
State-of-the-art variable oil pumps are set to be capable of adjusting pressure and oil flow based on engine requirements. This is further anticipated to reduce excessive energy consumption and lubrication enhancement. This high efficiency minimizes parasitic losses, leading to low fuel consumption and reduced emissions.
As stringent global regulations enforce tight emission standards, the adoption of these technologically sophisticated pumps helps manufacturers comply with environmental mandates. These are also projected to help improve fuel efficiency and decrease the carbon footprint of vehicles, thereby driving sales of automotive variable oil pumps.
Increasing Automotive Production and Vehicle Parc
Sales of automotive variable oil pumps are directly proportional to increasing production and vehicle parc despite unstable economic conditions. In the recent past, on average, the global automotive industry has performed satisfactorily.
Automotive production is anticipated to rise at a modest CAGR between 3% and 3.5% over the forecast period. It is projected to be higher in emerging economies as compared to that in developed economies.
It is mainly attributed to increasing urbanization and stable economic conditions in these regions. During the forecast period, the fleet on the road is also set to rise at a considerable CAGR, thus providing marginal opportunities for growth of the automotive variable oil pump aftermarket.
The growing demand propels manufacturers to invest in advanced pump technologies, enhancing lubrication systems' efficiency and contributing to vehicle longevity. Consequently, variable oil pumps are set to experience significant growth spurred by the booming automotive production landscape.
Rising Demand for Premium Features in Mid-size Cars
Surging spending power of the ever-increasing middle class, especially in developing countries such as India and China is influencing automotive manufacturers to focus on the mid-size and compact car segment. Premium or special features such as cabin comfort, anti-lock braking, easy gear shift, and power steering systems are no longer considered limited to luxury vehicles.
Changing lifestyles of consumers and rising competition among leading carmakers are projected to lead to the development of premium features in the small car segment. These are further prompting automakers to increase the scale of implementing these innovations in the aforementioned car segments.
Sales of compact or mid-size cars account for 55% to 65% share of global car sales. Hence, this segment offers lucrative opportunities for the deployment of automotive variable oil pumps custom-made for specific cars or manufacturers.
Low Replacement Rate and Aftermarket Potential May Hamper Growth
Automotive variable oil pumps are considered an integral part of the transmission, driveline, and auxiliary systems, which are rarely replaced in automotive. Replacement rate across the globe varies according to the category of a pump, ranging between 0.1% and 1% of the vehicle parc.
With advancements in technologies, the replacement rate is set to further reduce over the forecast period. Hence, it is offering very low aftermarket potential for automotive variable oil pump manufacturers across the globe.
The limited replacement rate directly impacts aftermarket potential, constraining revenue streams for manufacturers and suppliers. Additionally, the complexity and specialized nature of variable oil pumps may deter aftermarket purchases, as consumers may opt for less costly alternatives or delay replacements altogether. Consequently, the growth potential is hindered by several challenges associated with penetrating the aftermarket segment and capitalizing on replacement demand.
Automakers Embrace Electric Motors as Substitutes for Oil Pumps
Automotive variable oil pumps are likely to be actuated using electrical or mechanical energy and are accordingly classified as electric or mechanical pumps. Certain functionalities offered by steering or brake booster pumps can also be achieved by using electric motors. This acts as a minor restraint for the global automotive variable oil pump market.
With the rising shift of automakers toward electrification, demand for electric motors is set to surge exponentially. These are projected to be utilized in traditionally powered by mechanical pumps. These include hydraulic, power steering, and cooling systems.
Electric motors are anticipated to gradually replace conventional pumps in various applications. These are set to provide numerous benefits, such as improved efficiency, reduced maintenance, and enhanced control. For instance, electric coolant pumps and electric power steering systems are becoming more common in electric and hybrid vehicles. These are showcasing the potential of electric motors as substitutes for pumps in the automotive industry.
Principal Consultant
The global automotive variable oil pump market grew at 1.9% CAGR between 2019 and 2023. The revenue estimated in 2023 was USD 8.7 billion.
From 2019 to 2023, the global automotive variable oil pump sector witnessed a slow growth rate due to disrupting supply chains, production operations, and consumer demands. During the COVID-19 pandemic, factories were compelled to shut down, reducing workforce availability and creating disruptions in supply chains.
The global automotive variable oil pump market is set to rise at a strong CAGR of 3.2% in terms of value during the forecast period, reaching a size of USD 12.4 billion by 2034. This anticipated growth is projected to be driven by several factors.
Continuous innovation in pump technology, including the development of smart and adaptive variable oil pumps, is augmenting growth. These pumps can dynamically adjust oil flow and pressure based on real-time engine conditions, improving engine performance and efficiency. Hence, several modern consumers are striving to gain access to such smart pumps.
Governments worldwide are enforcing strict emissions standards and fuel efficiency requirements for vehicles. Variable oil pumps play a crucial role in meeting these standards by optimizing oil flow and reducing parasitic losses. This is further enhancing fuel efficiency and lowering emissions.
Tier 1 companies comprise leaders capturing a significant share of 40% to 45% in the global sector. These leaders are characterized by high production capacity and a wide product portfolio.
The leaders are distinguished by extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. Robert Bosch GmbH, Denso Corporation, and Hella KGaA Hueck & Co. are a few Tier 1 companies.
Tier 2 companies include mid-sized players that have a presence in specific regions and they highly influence the locals. These are characterized by a strong presence overseas and vast knowledge. These companies mainly specialize in the manufacturing of significant components, including plastic parts and metal components.
The players have good technology and ensure regulatory compliance. Tier 2 includes manufacturers such as Concentric AB, SHW Group, and Pricol Ltd. These are estimated to account for 55 to 60% of the overall industry revenue in the forecast period.
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The section below covers the analysis of automotive variable oil pump sales for different countries in several regions of the globe. India and China are leading with the most prominent growth rates, driven by increased vehicle sales. Rising purchasing power capacity of the population in these countries is also prominently driving sales.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 4.1% |
| Japan | 3.7% |
| China | 3.4% |
| Germany | 2.9% |
| United States | 2.6% |
| United Kingdom | 2.4% |
Rising investments by renowned automobile manufacturers in the development of sustainable production processes are likely to boost China. For instance, Audi recently announced its plans to invest in clean energy for specific sites in China.
The company is struggling to source power from renewable resources to produce hundreds of thousands of vehicles every year. Hence, the increasing number of initiatives taken by other companies in the country is estimated to propel demand for automotive electric oil pumps.
Sales of automotive variable oil pumps in China are projected to soar at a CAGR of around 3.4% during the assessment period. Total value in the country is anticipated to reach USD 2,871.3 million by 2034.
The United States automotive variable oil pump market is poised to exhibit a CAGR of 2.6% during the projection period. It is likely to attain a value of USD 2,066.3 million by 2034.
Increasing demand for vehicle oil vacuum pumps stoked by their ability to raise the life span of engine components is a key factor anticipated to bode well for the United States.
BorgWarner Inc., for instance, recently acquired Delphi Technologies for about USD 3.3 billion. This acquisition would help the former in strengthening its scale, capabilities, and power electronics products.
It would also enable the company to maintain high flexibility across electric, hybrid, and combustion propulsion systems. Hence, surging agreements and acquisitions between leading variable flow oil pump manufacturers and OEMs in the United States are projected to boost demand.
The United Kingdom automotive variable oil pump market size is projected to reach USD 411.4 million by 2034. Over the assessment period, demand in the country is set to rise at 2.4% CAGR.
The presence of various sports and premium car manufacturers, such as Rolls-Royce, Jaguar, Bentley, Land Rover, and Aston Martin in the country is projected to create new opportunities. At the same time, the presence of multiple volume car manufacturers, namely, Ford, Toyota, Nissan, and Honda is set to drive demand.
According to the Society of Motor Manufacturers and Traders (SMMT), in January 2022, around 62,300 private vehicles were registered in the United Kingdom, as compared to 37,955 vehicles in years to date (YTD) 2021. These numbers are estimated to increase in the evaluation period, thereby pushing sales of variable flow oil pumps in the country.
The section below shows the OEMs segment dominating based on sales channels. It is forecast to thrive at 4.7% CAGR between 2024 and 2034. Based on vehicle type, the passenger cars segment is anticipated to hold a dominant share through 2034. It is set to exhibit a CAGR of 3.4% during the forecast period.
| Segment | OEMs (Sales Channels) |
|---|---|
| Value Share (2024) | 73.1% |
In terms of sales channels, the OEM segment is estimated to dominate the automotive variable oil pump sector in the upcoming years. This growth is attributable to the ability of OEMs to produce superior-quality automotive variable displacement oil pumps.
The introduction of strict norms to reduce vehicle emissions and surge fuel efficiency is anticipated to propel the demand for lightweight and fuel-efficient advanced OEM parts worldwide. The rising demand for hybrid and luxury vehicles is another factor that is set to drive the segment.
Over the forecast period, demand for OEMs is forecast to rise at a CAGR of 4.7% CAGR. By 2034, the target segment is estimated to reach USD 9,073.2 million.
| Segment | Passenger Car (Vehicle Type) |
|---|---|
| Value Share (2024) | 67.4% |
By vehicle type, the passenger cars segment is likely to lead the automotive variable oil pump market in the estimated period. Increasing private vehicle ownership owing to the rising per capita income of individuals is set to affect the segment positively.
The emergence of several automobile financing companies providing loans to own the vehicle in a very short period is another factor that is anticipated to fuel the segment. In developing countries, owning a passenger car is often associated with high social status and this factor is projected to propel sales of automotive electric oil pumps.
The passenger car segment is projected to thrive at 3.4% CAGR during the forecast period. It is set to attain a value of USD 8,365.7 million by 2034.
The global automotive variable oil pump sector is highly fragmented, with leading players accounting for about 40% to 45% share. Robert Bosch GmbH, Denso Corporation, Hella KGaA Hueck & Co., Aisin Seiki Co., Ltd., and Concentric AB are the leading manufacturers and suppliers of variable oil pumps listed in the report.
Leading companies are focusing on launching new types of vehicles equipped with modern oil pumps. These companies are striving to gain a competitive edge by investing huge sums in research and development activities. A few others are set to showcase their unique products across exhibitions and trade fairs to increase the visibility of products and gain a large client base.
Industry Updates
In terms of fuel type, the sector is divided into gasoline, diesel, and hybrid.
A few vehicle types included in the study are passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger cars are further divided into compact, mid-size, luxury, and SUVs.
A few sales channels included in the study are OEMs and aftermarkets.
Information on key countries in regions like North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa is given.
The global is set to be valued at USD 9.1 billion in 2024.
Demand is anticipated to rise at 3.2% CAGR.
The industry is set to reach USD 12.4 billion by 2034.
The passenger car segment is expected to lead the industry.
Robert Bosch GmbH, and Denso Corporation.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Fuel Type
6.2. Sales Channel
6.3. Vehicle Type
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Fuel Type
7.1. Gasoline
7.2. Diesel
7.3. Hybrid
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel
8.1. OEMs
8.2. Aftermarket
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Vehicle Type
9.1. Passenger Car
9.1.1. Compact
9.1.2. Mid-size
9.1.3. Luxury
9.1.4. SUV
9.2. Light Commercial Vehicle
9.3. Heavy Commercial Vehicle
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East & Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Fuel Type, Sales Channel, and Vehicle Type for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Aisin Seiki Co., Ltd.
20.2. Concentric AB
20.3. Continental AG
20.4. Delphi Automotive LLP
20.5. DENSO Corporation
20.6. HELLA KGaA Hueck & Co.
20.7. Hitachi Automotive Systems, Ltd.
20.8. Johnson Electric Holdings Limited
20.9. JTEKT Corporation; KSPG AG
20.10. Magna International Inc.
20.11. Magneti Marelli S.p.A
20.12. Robert Bosch GmbH
20.13. Pricol Ltd.
20.14. SHW Group
20.15. TI Automotive Ltd.
20.16. ZF TRW Automotive Holdings Corp.
20.17. BorgWarner Inc.
20.18. FTE Automotive
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Automotive Variable Oil Pump Market
