North America Gasoline Direct Injection (GDI) System Market Expected to Reach $5.97 Billion by 2031—Allied Market Research

According to a recent report published by Allied Market Research, titled, “North America Gasoline Direct Injection (GDI) System Market by Component, Engine Type, Vehicle Type, and Sales Channel: Opportunity Analysis and Industry Forecast, 2022–2031,” the North America gasoline direct injection system market was valued at $3.15 billion in 2021, and is projected to reach $5.97 billion by 2031, registering a CAGR of 6.7% from 2022 to 2031.

U.S. dominated the North America GDI market in 2021. Greater demand for fuel efficient vehicles with enhanced engine performance is encouraging vehicle manufacturers in the country to integrate GDI technology in their fleets. U.S. has issued new greenhouse gas emission standards to control the increasing level of CO2 emissions. In December 2021, the Environmental Protection Agency (EPA) issued new greenhouse gas emission standards for new passenger cars and light-duty trucks with model years 2023-2026. The regulation requires automakers to reach industry-wide target of 161 carbon dioxide grams per mile (g/mi) in 2026, which increases in stringency by 9.8% from model years 2022 to 2023, 5.1% in model year 2024, 6.6% in model year 2025 and 10.3% in model year 2026.

Incorporation of GDI systems in hybrid vehicles is gaining momentum across North America. The incorporation of GDI systems in hybrid vehicles results in improved fuel efficiency and greater engine performance. Some automobile manufacturers have also introduced new hybrid vehicles coupled with gasoline direct injection engines. For instance, in February 2020, Hyundai unveiled the new 2020 Sonata Hybrid at the Chicago Auto Show. The 2020 Sonata Hybrid was officially announced last year in 2019; however has just made its North American debut. Sonata Hybrid is equipped with a Smartstream G2.0 GDi HEV engine and a 6-speed hybrid automatic transmission. The car’s electric motor delivers power output of 39 kW and maximum torque of 204.8 Nm. 

Based on component, the North America gasoline direct injection (GDI) system market is segregated into fuel injectors and rails, fuel pumps, electronic control units, and others. The fuel injectors and rails segment accounted for a major share in 2021.

Manufacturers are focusing on improving components of GDI system to deliver greater fuel efficiency and vehicle performance. For instance, in December 2021, Stanadyne LLC developed a GDI fuel injector that delivers 1,000 bar of pressure. This new injector design has been successfully tested for performance at the company’s Gasoline Engineering Center of Excellence in Jacksonville, North Carolina, U.S. During initial testing stage, this new fuel injector achieved 1,200 bar of fuel pressure.

The significant factors impacting the growth of the North America GDI system market comprises rise in demand for fuel efficiency, thermal efficiency & greater engine performance, introduction of stringent regulations associated with emissions, and growing inclination toward engine downsizing & reduced weight of vehicles. Moreover, factors such as high cost of GDI engines, and electrification of vehicles are expected to hamper the market growth. Futhermore, incorporation of GDI systems in hybrid vehicles, and technological advancements are expected to create new growth opportunities for North America gasoline direct injection (GDI) system market during the forecast period. 

COVID-19 Impact Analysis 

The COVID-19 crisis has created uncertainty in the market, massive slowing of supply chain, falling business confidence, and increasing panic among the customer segments. Governments of different countries have already announced total lockdown and temporary shutdown of industries, thereby adversely affecting the overall production and sales. 

The impact of the COVID-19 pandemic has resulted in low sales of passenger cars, shortage of semiconductor components, and temporary suspension of production of vehicles across North America, resulting in decreased demand for gasoline direct injection components. COVID-19 also impacted the production of vehicles across North America. It forced automobile manufacturers in North America to temporarily shut down their production plants, owing to lack of workforce.

However, after the removal of lockdown restrictions, increase in the sale of automobiles has been observed across North America, which further supports the growth of gasoline direct injection system market in the region. For instance, in 2021, the U.S. automobile sales recorded a growth of 3.4% in 2021 as compared to 2020.

KEY FINDINGS OF THE STUDY

• By component, the electronic control units segment is anticipated to exhibit significant growth in the near future.
• By engine type, the 4 cylinder segment is expected to register a significant growth during the forecast period.
• By vehicle type, the commercial vehicle segment is expected to register a significant growth during the forecast period.
• By sales channel, the original equipment manufacturer segment is expected to register a significant growth during the forecast period.
• By country, Mexico is anticipated to register the highest CAGR during the forecast period.

Key players operating in the North America gasoline direct injection system market comprises BorgWarner Inc. (Delphi Technologies Plc), Continental AG, Denso Corporation, Hitachi Ltd. (Hitachi Astemo, Ltd.), Hyundai Motor Company (Hyundai Kefico Corporation), Marelli Holdings Co., Ltd., Mitsubishi Electric Corporation, Park-Ohio Holdings Corporation, Robert Bosch GmbH, and Stanadyne LLC.