The automotive tappet market is estimated to be valued at US$ 9.17 Bn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Tappets are crucial parts of internal combustion engines that help in opening and closing the engine valves at appropriate timings. They reduce friction between other engine parts and increase durability of engines. With rising automobile production across the world, demand for engine components like tappets is also growing steadily.

Market key trends:
Rise in vehicle production across the world is a key trend driving the automotive tappet market. According to various industry estimates, global vehicle production witnessed a record rise of around 78 million units in 2021 from 73 million units in 2020. Growing economies like China and India are major contributors to this rise in production. Other factors like rising disposable incomes, increasing demand for personal mobility solutions and expansion of shared mobility services are positively impacting the automotive industry. This increasing vehicle production in turn is driving demand for engine components like tappets during vehicle manufacturing. The trend of rise in vehicle production is expected to continue over the coming years supporting growth of the global automotive tappet market.

Porter's Analysis

Threat of new entrants: The automotive tappet market requires high capital investment for R&D, machinery and production facilities. Established players have strong brand recognition which poses barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, established OEM relationships increase switching costs.

Bargaining power of suppliers: A few large suppliers exist for raw materials increasing their bargaining power. However, technology availability reduces dependence on single suppliers.

Threat of new substitutes: No close substitutes exist for tappets currently. However, new valve train technologies can emerge as substitutes in future.

Competitive rivalry: The market has presence of several global and regional players leading to high competition on pricing and new product development.

SWOT Analysis

Strengths: Growing automotive industry driving demand. Established distribution networks of key players.

Weaknesses: Susceptibility to changes in emissions norms. Heavy reliance on automotive industry performance.

Opportunities: Emerging markets expected to drive future growth. Developments in fuel efficient and electric vehicles present opportunities.

Threats: Inclination towards public transport in developed markets. Trade wars and geopolitical tensions impact supply chains.

Key Takeaways

The global automotive tappet market is expected to witness high growth, exhibiting CAGR of 3.8% over the forecast period, due to increasing motorization rates in emerging economies of Asia Pacific and Latin America. Asia Pacific dominates the market currently with a share of over 35% in 2023, led by China, India and Southeast Asian countries. These nations are witnessing rising disposable incomes and an expanding middle class fuelling automotive demand.

Regional analysis- North America remains a prominent market driven by a revival in sales post pandemic. However, Asia Pacific is projected to progress at the fastest CAGR through 2030 on the back of growing vehicle parc and preference for luxury and SUV segments in the region.

Key players analysis- Key players operating in the automotive tappet market are Schaeffler AG (Germany), SKF (Sweden), Eaton (Ireland), Federal-Mogul (U.S.) NSK Ltd. (Japan), Crower Cams & Equipment Company, Inc. (U.S.), COMP Cams. (U.S.), SM Motor Parts GmbH (Germany), lunatipower.com. (U.S.), RANE ENGINE VALVE LIMITED (India), Wuxi Xizhou Machinery Co., Ltd. (China), Yuhuan Huiyu Tappets Co. Ltd (China), RSR Industries (India), and SSV Technocrates. (India) Major players are focused on expanding their presence through mergers and acquisitions to strengthen supply chain