Automotive Hydrostatic Fan Drive System Market

Market Overview

The global automotive hydrostatic fan drive system market size was worth USD 450 million in 2021. It is projected to reach USD 730 million by 2030, registering a CAGR of 6.2% during the forecast period (2022–2030).

The automotive hydrostatic fan drive system is a crucial part of the car that helps with lubrication, sensors, and control units. When the engine heats up, a fan drive system's primary function is to remove extra heat and keep the car's interior at a constant temperature. Engine cooling fan systems for heavy-duty cars and equipment use horsepower, which raises the overall noise level of the vehicles. These cars benefit from hydrostatic fan drive systems because they increase engine cooling effectiveness while reducing noise. Due to high-power consumption and heat operations involving engines, traditional fans drive systems like electromagnetic & viscous drives, clutch & pneumatic drives, and variable pitch fans typically fail.

The newly adopted temperature-activated, electronically-controlled, hydrostatic fan drive technology, which provides precise control and lowers the fan speed during low cooling demand, overcame this issue. The market is expanding due to governments' emphasis on reducing emissions and increasing demand for hydrostatic fans. Additionally, the global market is seeing an increase in demand for automotive hydrostatic fan drive systems due to technological advancements to reduce carbon dioxide (CO2) emissions and the engine manufacturing industry.

Market Dynamics

Market Driving Factors

Government Regulations to Reduce Emission of Harmful Gases

Laws and regulations govern the emission of polluting gases from diesel engines, such as sulfur and nitrogen oxide, carbon monoxide, and dioxides. For instance, following the Paris Climate Change agreement, governments in Asia-Pacific have been actively pushing environmentally efficient automobiles in their nations. Additionally, through the model year 2027, the National Highway Traffic Safety Administration (NHTSA) and the US Environmental Protection Agency (EPA) jointly issued the second phase of greenhouse gas (GHG) emissions and fuel efficiency criteria for medium- and heavy-duty vehicles and engines.

For instance, Horton (a premier supplier of premium engine-cooling solutions) introduced new variable-speed fan drives and fan blades in July 2018 to enhance the performance of commercial vehicle cooling systems. Phase 2 of the federal greenhouse-gas rules' increasingly strict requirements are partly met by this new fan drive and blade, which is helpful to engine manufacturers. Therefore, it is anticipated that the market for automotive hydrostatic fan drive systems will see profitable prospects in the upcoming years due to the growth in innovation with government assistance in the field of fan drive systems to provide flexibility and on-demand management of the coolant flow.

High Need for Hydrostatic Fan Drive System

Only 30% of the energy input is converted to mechanical energy during operation because internal combustion engines lose a significant amount of energy as heat. The quest to reduce energy loss and emission from automobiles is thus having a significant impact on the market for environmentally friendly automotive parts, such as cutting-edge hydrostatic fan drive systems.

Additionally, a newly developed temperature-activated, electronically-controlled, hydrostatic fan drive system provides fine control and lowers the fan speed when there is low cooling demand. Therefore, the market for automotive hydrostatic fan drive systems would expand due to the increasing demand for these systems. For instance, Quality Hydraulic & Pneumatics Inc., a manufacturer of hydraulic and pneumatic components, provides a variable & alternating hydraulic fan drive system that reduces power consumption and boosts the machine's fuel & operating efficiency. These trends strongly drive the market for automotive hydrostatic fan drive systems.

Market Restraining Factors

High Initial and Maintenance Cost

The fixed displacement type of pump needed for the fan drive system offers low noise operation. Such a method used for efficient operation carries a high initial cost. Also, the initial cost is higher for the variable pump as it provides continuous energy savings with low heat generation, where high power is required for cooling. In addition, the electronic control unit consists of a controller area network (CAN) bus to connect the engine control unit and sensors output to the pump solenoid, which increases the overall complexity and maintenance cost. Therefore, the growth of this market is hampered due to the high initial and maintenance cost of the components required to achieve optimized performance in a hydrostatic fan drive system.

Key Market Opportunities

Growing Need for Low-Emission Off-Highway Vehicles in LAMEA

The increased adoption of heavy-duty and off-highway vehicles is fueled by consistent economic expansion, an increase in disposable income, and significant government backing for the development of the automotive sector in Latin America, the Middle East, and Africa. The growth of the mining and agriculture industries has also resulted in a rise in the demand for commercial and off-road vehicles from several Latin American nations. For instance, according to data by the International Organization of Motor Vehicle Manufacturers (OICA), a total of 525,781 units of commercial and heavy-duty vehicles were sold in Brazil in 2019, registering a growth of 13.1% as compared to 2018. While in Saudi Arabia, 72,572 commercial vehicles were sold in 2019, with a 14% growth from 2018 to 2019

Off-highway commercial vehicle sales are rising in South Africa as a result of the expansion of the mining sector. Additionally, the region's tightening government pollution laws increase demand for commercial and off-road vehicles with low emissions, which is expected to enhance the market. For instance, starting on November 16, 2018, Brazil's National Council for the Environment (CONAMA) adopted the PROCONVE P-8 emission requirements for new heavy-duty vehicles (HDVs). Maximum restrictions for exhaust gas emissions, particles, and engine noise are outlined in the P-8 standards.

Furthermore, starting in 2018, the UAE's Emirates Authority for Standardization and Metrology (ESMA) regulated the use of trucks with enhanced engines and fuel efficiency that meet Euro 4 emission criteria. Thus, significant prospects for the automotive hydrostatic fan drive system market to grow are presented by rising commercial and off-highway vehicle sales and increasing demand for low-emission off-highway vehicles in LAMEA.

Regional Analysis

The Dominance of Asia-Pacific Over Others

By Region, the global automotive hydrostatic fan drive system market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific commands the market and is estimated to grow at a CAGR of 4.2% over the forecast period. Asia-Pacific comprises China, Japan, India, South Korea, Indonesia, Thailand, Singapore, the Philippines, and others. The automotive hydrostatic fan drive system market in the region is anticipated to be influenced by an increase in vehicle production, an increase in disposable income, and an increase in the adoption rate of vehicles in developing nations like India, China, and Australia. Various technological advancements in fan drive systems, a rise in the number of manufacturers, and supportive government regulations related to automotive emissions further propel the growth of the automotive hydrostatic fan drive system market in the Asia-Pacific region. In addition, the rise in infrastructure development and the booming construction industry in the region are also fueling the growth of the automotive hydrostatic fan drive system market.

North America is projected to account for USD 260 million by 2030, growing at a CAGR of 6.7%. It is a dominant automotive hydrostatic fan drive system market, owing to significant players such as Parker Hannifin, Hydraforce Hydraulics, and others offering advanced solutions. Moreover, extensive adoption of advanced coolant technologies in vehicles and an upsurge in demand for automotive vehicles propel the segment growth. Furthermore, heavy weighted commercial vehicles have greater penetration in this region, owing to the increase in production of these vehicles in the region, and are expected to remain the market leader. For instance, according to European Automobile Manufacturers Association (ACEA), North America commercial vehicle production stood at 4.7 million units in 2019.

The European market is analyzed across the UK, Germany, France, Russia, and the rest of Europe. Europe is anticipated to witness high growth in the hydrostatic fan drive system market during the forecast period after North America due to a rise in demand for electro-hydraulic fan drives and advanced technology through pneumatics across the region. Technological progress and improvements in vehicle standards contribute to the growth of the European hydrostatic fan drive system market. Moreover, increased wheel loader sales have promoted the market's development. In addition, high disposable income and a rise in vehicle standards drive the growth of this region. Furthermore, financial downturns have improved in the European countries that increased investments in new auto factories. All these factors together are anticipated to provide remunerative opportunities for market expansion.

Segmental Analysis

The global automotive hydrostatic fan drive system market is segmented on vehicle type, component, pump type, and region. 

By Type, the global automotive hydrostatic fan drive system market is bifurcated into On-Road and Off-Road Vehicles.

The Off-Road Vehicles segment holds the highest market share and is estimated to grow at a CAGR of 4.6% during the forecast period. It includes construction & mining vehicles, agricultural vehicles, trains, metro, and trams. An off-road vehicle is a vehicle designed to travel over rough ground. The key reasons to propel the automotive hydrostatic fan drive market growth are strict emission laws, car functional needs, and thermal restrictions for off-road vehicles. For instance, at Bauma 2019 (the world's biggest trade fair for construction gear), Horton, a manufacturer of fan drives, displayed its lineup of heavy-duty RCV1000 and RCV2000 variable-speed fan drives.

The variable-speed design, which turns the fan at a more extensive range of speeds to more accurately match engine cooling requirements, was made public by the LCX Series. With this new fan drive portfolio, you can boost working horsepower while reducing fuel consumption, noise, and parasitic engine draw. The RCV1000 and RCV2000 were created especially for haul trucks used in the mining industry and other heavy-duty off-road machinery. The automotive hydrostatic fan drive systems market is anticipated to benefit from these trends by offering lucrative growth prospects.

By Components, the global automotive hydrostatic fan drive system market is categorized into Variable Axial Piston Pumps, Oil Coolers, Fixed Gear Motors, Engine Control Units, and Hydraulic Valves & Sensors.

The Variable Axial Piston Pump segment holds the highest market share and is estimated to grow at a CAGR of 4.3% during the forecast period. Variable axial piston pumps are available with different flange options, and it possesses high volumetric, mechanical, and overall efficiency with a maximum 2500 rpm speed. The ongoing innovation in axial pumps to reduce noise levels and clockwise or anti-clockwise rotation to cover 180° for high-pressure applications is expected to increase the demand for variable axial piston pumps in the hydrostatic fan drive system market.

In addition, the several advantages of variable axial piston pumps, such as lower fuel cost and more productivity, allow for downsizing with equal or better machine performance and fueling the market growth of automotive hydrostatic fan drive systems in the variable axial piston pump segment. For instance, in April 2017, Danfoss, a manufacturer of fluid control equipment, developed a Series-45 portfolio of open circuit axial piston pumps for fan drive control to increase system efficiency and improve machine performance.

By Pump Type, the global automotive hydrostatic fan drive system market is classified into Fixed Displacement Pumps and Variable Displacement Pumps.

The Variable Displacement Pump segment holds the highest market share and is estimated to grow at a CAGR of 5.3% during the forecast period. An increase in the number of automotive vehicles and growth in the construction equipment industry are primary factors that are forecasted to drive the demand for the variable displacement pump. Additionally, a variable displacement pump is the most popular among pumps due to its many benefits, including pressure efficiency and a broad volumetric range, driving the market demand for these pumps.

Furthermore, market players rely on research and innovation to find solutions to cut emissions and conserve energy due to strict emission and fuel consumption standards. For instance, Parker Hannifin unveiled its brand-new closed-circuit variable displacement axial piston pump in October 2019 to excel in medium-duty applications. This long-lasting, high-performing, compact solution serves a variety of industries, including material handling, construction, oil & gas, and agriculture.

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