Automotive Exhaust Systems Market Primed to Grow on Back of Stringent Emission Norms

 Automotive exhaust systems are an integral component of vehicles which help control emissions and noise from the vehicle. They play a critical role in reducing harmful pollutants from vehicles and enable compliance with stringent emission norms. Growing concerns about vehicular pollution and the rollout of BS-VI and Euro-6 emission standards by various countries have augmented the demand for advanced aftertreatment devices like particulate filters and catalytic converters in recent years. Rising automotive production and vehicle parc globally along with the transition towards hybrid and electric powertrains that require modified exhaust systems are also fueling market growth.

The global automotive exhaust systems market is estimated to be valued at US$ 71.10 billion in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the automotive exhaust systems are BENTELER International Aktiengesellschaft, BOSAL, Continental AG, Eberspächer, FORVIA Faurecia, FUTABA INDUSTRIAL CO. LTD, Boysen, Sejong Industrial Co.Ltd., Tenneco Inc., Yutaka Giken Company Limited, Johnson Matthey, BASF SE, Umicore, Klarius Products Ltd, and Cummins Inc. These companies are investing heavily in R&D to develop novel aftertreatment solutions and cater to the changing needs of OEMs and regulators.

The global automotive industry is moving towards stricter emission norms with various countries transitioning to BS-VI and Euro-6 levels of regulation. This presents lucrative opportunities for manufacturers of advanced emission control devices like particulate filters, catalytic converters, and NOx storage reduction catalysts to strengthen their positions.

Key players are also eyeing emerging economies in Asia, Latin America, Middle East and Africa for production facilities and sourcing hubs due to the fast expanding automobile parc and loose emission standards in these regions currently. They are trying to position themselves for when regulations tighten in the future and manufacture close to major automotive manufacturing clusters.

Automotive Exhaust Systems Market

Market Drivers

Stringent emission norms globally: Various countries adopting stringent emission standards like BS-VI, Euro-6 and China-6 have increased the demand for sophisticated aftertreatment technologies. This is a major growth driver for Automotive Exhaust Systems Market Demand.

Rising automobile production: Growing automotive manufacturing worldwide, especially in China, India, Mexico and other developing nations, presents increased opportunities for exhaust system suppliers.

Market Restraints

High costs of advanced emission control systems: Sophisticated components like particulate filters and scrubbers add significantly to the overall vehicle cost, making advanced exhaust systems an expensive proposition especially in price-sensitive developing markets.

Difficulties in retrofitting older vehicles: Stricter emission norms also necessitate upgrading the exhaust systems of existing incumbents which poses technical challenges and high overheads for retrofitting in old vehicles.

Segment Analysis

The global automotive exhaust systems market is dominated by the passenger vehicles segment. This segment accounts for more than 65% of the total market share as cars and other passenger vehicles form the bulk of vehicle fleet across regions. Within passenger vehicles, the compact and mid-sized cars sub-segment leads the market owing to high demand and sales volume for these types of cars globally.

Global Analysis

Asia Pacific is currently the fastest growing as well as the largest regional market for automotive exhaust systems. Countries like China and India have emerged as major auto manufacturing hubs and also have the largest vehicle parc which is continuously growing. This increases the replacement and aftermarket demand. Stringent emission norms by governments in the region are also driving the demand for advanced exhaust systems.Europe is another significant market, though its growth is matured. However, presence of major automakers and stringent emission regulations continue to boost demand from the region. North America is recovering after weak sales in past years and is focusing more on pickup trucks and SUVs, providing opportunities in these vehicle categories.

 

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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

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