LONDON--(BUSINESS WIRE)--The global automotive rubber hoses market is likely to account for more than USD 11 billion by 2020, posting a CAGR of over 4%, according to Technavio’s latest report.
In this report, Technavio covers the market outlook and growth prospects of the global automotive rubber hoses market for 2016-2020. Growth in this market can be attributed to rising auto sales, especially in the passenger car segment.
Technavio’s research study segments the global automotive rubber hoses market into the following regions:
- APAC
- Americas
- EMEA
APAC: largest market for automotive rubber hoses
2015 witnessed the dominance of APAC in the automotive rubber hoses market with 53% share owing to strong economic growth, which has increased the purchasing power of consumers in the region. The rise in vehicle sales, especially passenger cars and LCVs, has triggered demand for automotive rubber hoses. China, Japan, and India are the prominent markets in APAC.
According to Siddharth Jaiswal, a lead analyst at Technavio for automotive components, “APAC has the largest and fastest-growing automotive industry in the world, with high revenue generated by China and India. Established automobile manufacturers such as GM, Ford, Volkswagen, and Daimler Chrysler have shifted their production bases to these developing countries. Such migration has driven increased vehicle production in this region and enabled manufacturers to reduce operational costs owing to the abundance of raw materials and cheap labor cost in these countries.”
The report also states that APAC has emerged as a global hub for automobiles over the years and is one of the largest producers and suppliers of vehicles. Increased automobile exports from the region have also triggered exports of components such as rubber hoses, which may increase with the rise in demand for automobiles worldwide. The steady growth in production volumes in this region – along with the growing demand for passenger car and LCVs – should benefit the automotive rubber hoses market in the region. Regional players offering automotive rubber hoses at competitive prices may also play a key role in boosting the market during the forecast period.
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Brazil, Canada, Mexico, and the US: key market for rubber hoses in the Americas
The Americas followed APAC with 24% market share in 2015. Countries such as the US, Brazil, Canada, and Mexico lead the market in the Americas. Brazil and Mexico have emerged as key markets for automotive rubber hoses, owing to a rapid increase in automotive production in these countries. The stability in automotive sales in the US (post the recession of 2008-2009) is a key contributor to growth of the automotive industry in North America. This should play a key role in boosting the market for rubber hoses.
South American countries such as Argentina and Brazil offer good opportunities for automakers due to low car ownership levels, growing middle-class populations, and a low-cost production base. Growth in automobile production in these countries may foster significant growth in the automotive rubber hoses market in the region. However, political and economic instability in the region may hinder market growth during the forecast period.
Innovations and advances by large OEMs to spur growth in the automotive industry in EMEA
The shift in production bases by many automakers to low-cost countries in APAC has restricted the market share in EMEA, accounting for a market share of just about 23% in 2015. For instance, Volkswagen Group, the German car manufacturer, plans to build 10 additional plants in China to increase its production capacity by 2018.
The sovereign debt crisis of 2009 adversely affected the automotive industry in EMEA. However, the subsequent economic recovery may enable the industry to grow steadily and demand for automobiles may increase.
“Innovations and advances in the industry driven by large OEMs such as Ford and Volkswagen in EMEA is likely to spur growth in the automotive industry. Also, strong demand for small, low-cost passenger cars from Western Europe will augment growth of the automotive industry, thereby boosting the market for rubber hoses,” says Siddharth.
Some of the top vendors in the global automotive rubber hoses market highlighted in the report are:
- Eaton
- Hutchinson
- Nichirin
- Sumitomo Riko
- Toyoda Gosei
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