What Is the Current Size of the Global Piston Pin Market?

Northbrook, IL -- (SBWire) -- 10/19/2020 --The Global Piston Pin Market size is projected to reach USD 314 million by 2025, from an estimated USD 259 million in 2020, at a CAGR of 4.0%. The base year for the report is 2019, and the forecast period is from 2020 to 2025. Factors such as substantial production and sales volumes of ICE vehicles, significant demand for high-performance vehicles, and growing trend of CNG, LNG, hybrid, and plug-in hybrid vehicles to drive the piston pin market during the forecast.

In the piston pin market, by sales channel type, the OEM segment is projected to dominate the market during the forecast period. The key factor driving the OEM segment is that the number of piston pins is almost directly proportional to the number of ICE vehicles sold. All the new ICE vehicles sold by OEMs are already installed with piston pins and other necessary engine components. The majority of engine manufacturers are either manufacturing pins in-house or have partnered with piston pin manufacturers. Also, since piston pins are not required to be changed frequently, the aftermarket segment has a lesser market share than the OEM segment.

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Europe presents a significant growth opportunity for piston pins as it is expected to be the second-largest market during the forecast period. The presence of renowned automotive OEMs dominating the global automobile industry, such as Volkswagen Group, Daimler, BMW, PSA Group, and FCA, is one of the key growth factors for the piston pin market. The piston pin market in the European region is projected to be dominated by Germany (is expected to contribute around 22% of the market, in terms of value, by 2025). This is because of the significant demand for high-end premium vehicles having large engine options. Also, the country has the presence of some of the renowned automotive OEMs such as Volkswagen Group, Daimler, and BMW, which will drive the piston pin market in the region.

Asia Pacific is estimated to be the largest and fastest-growing piston pin market during the forecast period. The Asia Pacific region has emerged as a promising market for the automotive industry and OEMs across the globe. The primary reason behind this trend is the Chinese market, which has evolved into the largest producer and consumer of automobiles across the world. Other major country-level markets in the region include India, Japan, and South Korea. While India is slowly emerging as a credible force in the automotive industry, Japan and South Korea are already well-established names in the industry. According to OICA, China, and India together produce approximately 30 million vehicles every year. Despite the slowdown in the global market, the Asia Pacific region has witnessed increased vehicle production in recent years. Also, the Asia Pacific is the largest market for small passenger cars, and more than 80% of the passenger cars in this region run on gasoline.

In the piston pin market, by fuel type, the alternative fuel segment is projected to the fastest growing market during the forecast period. The use of alternative fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), and biomethane is increasing rapidly as they are cheaper (due to government subsidies) as well as less polluting than other types of fuels. Asia Pacific is expected to lead the alternative fuel segment during the forecast. As of 2020, the number of vehicles running on alternative fuels is more in Asia Pacific than in other regions. Hence, the demand for piston pins is significant. Europe is expected to be the fastest-growing market for the alternative fuel segment due to new regulations promoting cleaner energy with high energy density. The EU legislation promotes a reduction in greenhouse gas intensity of fuels used in vehicles by up to 10% by the end of 2020, which has led to the Blue Corridor program in the region. The Blue Corridor program will support LNG and CNG fueling stations across Europe.

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Key Market Players

The global piston pin market is dominated by major players such as Burgess Norton (US), Tenneco (US), MAHLE (Germany), Art Metal (Japan), and Rheinmetall Corporation (Germany). The key strategies adopted by these companies to sustain their market position are new product developments, collaborations, and contracts & agreements.

COVID-19 Impact On Piston Pin Market:

The COVID-19 pandemic is expected to have a severe impact on the piston pin market. The production and sales of new vehicles have come to a halt across the globe as the pandemic has disrupted the whole ecosystem. OEMs had to wait until lockdowns were lifted to resume production, which affected their business. Hence, vehicle manufacturers would need to adjust the production volume. In addition, component manufacturing is also suspended, and small Tier II and Tier III manufacturers could face liquidity issues. The automotive industry is highly capital-intensive and relies on frequent financing to continue operations. Thus, the production suspension during the outbreak and lower demand post the pandemic will have an unprecedented impact on piston pin providers.

The piston pin market is estimated to observe a decline post-COVID-19 due to the impact on vehicle production. However, a steady recovery post-2020 in vehicle production will support the growth of this market in the coming years. Just like most of the companies in the automotive industry, piston pin manufacturers suffered from the outbreak as well. For instance, Bohai Trimet Automotive Holding had halted its production for around 40 days until May 11, 2020, which must have affected its performance in that quarter. Similarly, Elgin Industries, too, experienced the heat of COVID-19, especially in the US. The company had to follow strict guidelines for social distancing. For instance, in March 2020, the company announced that it was reducing its working hours to 32 hours per week for the safety of its employees. The reduced hours of production must have affected the overall production rate of the company, resulting in losses in that quarter.

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