2-Wheeler Fuel Tank Market Expected to Reach $13.7 Billion by 2033

According to a new report published by Allied Market Research, titled, “2-Wheeler Fuel Tank Market," The 2-wheeler fuel tank market size was valued at $6.8 billion in 2023, and is estimated to reach $13.7 billion by 2033, growing at a CAGR of 7.4% from 2024 to 2033.

2-wheeler fuel tanks are the tanks or reservoir integrated into 2-wheelers, which are primarily responsible for containing liquid fuel such as petrol, or diesel. 2-wheeler fuel tanks generally have a range of 5 liters to 20 liters and are manufactured utilizing metals, plastic or composite materials. 

The 2-wheeler fuel tank industry is segmented into capacity, material type, end user, and region. On the basis of capacity, the market is segregated into less than 20 liters and more than 20 liters. By material type, the market is fragmented into metal and plastic. On the basis of end user, the global market is segmented into scooters and bikes. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

The global 2-wheeler fuel tank industry growth is driven by increase in use of two wheeler in last mile deliveries, growth in popularity of motorcycles for leisure and adventures, and increase in sale of two wheeler in developing countries. However, factors such as growth in focus towards electric 2 wheelers and high cost of composite tank and stringent regulatory framework hamper the market growth. On the contrary, advancements in material technology, and growth in demand for personalized fuel tanks provide lucrative market growth opportunity.

In addition, the 2-wheeler fuel tank market share is highly competitive, with several key players dominating the industry. Prominent manufacturers focus on innovation, product differentiation, and strategic partnerships to maintain their market positions. Market leaders include companies such Lumax Industries, Harley Davidson, Walbro, Royal Enfield, A.G Industries Pvt. Ltd., Yamaha Motor Co., Ltd., Piaggio Vehicles Pvt. Ltd., GOSHI GIKEN CO., LTD. and Honda Motor Co., Ltd.

Fuel tanks are an essential component of modern two-wheelers as they play a crucial role in vehicle performance, safety, and aesthetics. However, majority of the two wheelers in the market today use the same traditional material for manufacturing fuel tanks. The traditional materials such as aluminum, steel and other metals used in manufacturing are heavier in weight and are more prone to dent or damage during an impact. Moreover, 2-wheeler manufacturers today utilize novel manufacturing techniques to reduce the manufacturing cost and offer more durable fuel tanks.

The growing urbanization has led to densely populated cities and  congested roads, where larger delivery vehicles such as buses and trucks struggle to navigate. 2-wheelers excel in these environments, allowing easy maneuvering through urban and traffic areas and can easily reach narrow streets or remote urban areas, thus ensuring timely deliveries. In addition, two-wheelers are a cost-efficient option for delivery services operators as they require less initial investment compared to vans or trucks and incur lower operational expenses for fuel, maintenance, and insurance. 

According to a study conducted by the U.S. Department of Transportation, emissions from the last mile delivery can account for up to 50% of total carbon emissions. In addition, delivery vans and trucks cause vehicle congestion and safety issues in urban city centers. On the contrary, bikes and scooters offer a sustainable solution for the last mile delivery and low cost of operation. In light of recent disruptions such as the COVID-19 pandemic, bike deliveries have demonstrated their resilience by providing essential services such as grocery and medicine delivery, thus ensuring continuity in supply chains and meeting the needs of last mile solutions. 

Similarly, advancements in material technology have potentially revolutionized fuel tank design and manufacturing, which in turn has significantly increased its market demand. Increasing use of innovative and modern materials such as carbon fiber, reinforced plastics and other hybrid materials allow manufacturers to produce lighter tanks that are cost-effective. Thus, the growing advancement in 2-wheeler tank manufacturing technology and growing adoption of new materials are anticipated to create lucrative growth opportunities during the review period.

However, in recent years, there has been a growing focus of consumer towards electric two wheeler, owing to growth in innovations in battery technology, such as improved range, faster charging, and reduced operational costs. Similarly, electric two wheelers have lower running and maintenance costs, which make them more appealing to a wider range of consumers. The demand for electric two-wheelers is rising everywhere, but it's growing faster in developing countries 

KEY FINDINGS OF THE STUDY

• By capacity, the less than 20 liter segment is anticipated to exhibit significant growth in the 2-wheeler fuel tank market analysis in the near future.
• By material type, the metal segment is anticipated to exhibit significant growth in the 2-wheeler fuel tank market size in the near future.
• By end user, the scooter segment is anticipated to exhibit significant growth in the 2-wheeler fuel tank market forecast in the near future.