Automotive Exhaust Emission Control Device Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Automotive Exhaust Emission Control Device Market Data

Automotive Exhaust Emission Control Devices Market Trends & Drivers

Robust Emission Regulations

• Geographic variations in emission rules are notable, with China, North America, and Europe having some of the strictest laws in place. The most-severe pollution requirements yet, Euro 7, will be implemented in Europe on July 1, 2025, and they will force automakers to implement innovative emission control systems.
• Specific pollutants, such as hydrocarbons (HCs) and particulate matter (PM), are at the center of these regulations. To guarantee that automobiles operate efficiently in actual driving scenarios, rather than merely in lab settings, these rules establish specific limitations for each pollutant and might include real-world driving emission (RDE) testing.
• These regulations, in turn, impact the design and systems incorporated in passenger cars, commercial vehicles, heavy-duty trucks, and other automobiles.
• To encourage obedience to emission rules, governments frequently establish various kinds of incentive schemes and sanctions. This includes tax credits for greener cars, funding for the development of greener technology, and fines for manufacturers who violate the rules. For instance, the European government proposed the stricter Fit for 55 Package in July 2021, tightening the CO2 emission targets.

Rising Automotive Production and Sales

• The automotive industry globally continues to witness growth in the production and integration of advanced technologies, which indirectly affects the efficiency of the exhaust systems in vehicles.
• This increasing demand is creating many opportunities for new players to innovate their emission control offerings.
• The demand for clean technologies, such as hybrid propulsion, is increasing among the buyers of SUVs amidst consumers’ rising awareness of green vehicles with less emissions.
• Innovative technologies, including TWC, DPF, SCR, DOC, LNT, and GPF, are being adopted in vehicles to reduce emissions.

Dynamic Emission Performance Testing

• The results of lab tests results and the real-world performance of pollution control systems differ majorly.
• Portable emission measurement systems (PEMS) are expensive to purchase, maintain, and calibrate. The technical expertise needed for them is also high. The amount of data generated by these components is also complex to analyze and process.
• Different regulatory bodies have different emission standards, which creates problems in understanding the scenario.
• To guarantee uniform and reliable emission assessments in all markets, a worldwide harmonized approach to DEPTs, which includes standardized testing techniques, equipment, and data analysis methods, would be essential.

Automotive Exhaust Emission Control Devices Industry Outlook

Vehicle Type Insights

• The passenger car category held the larger market share, of around 75%, in 2023, and it will also be the faster-growing category. This is because of the sheer number of cars sold around the world every year.
• High-performance exhaust systems are an essential component of vehicles since consumers prioritize eco-friendliness and fuel efficiency.
• Efficient exhaust systems are crucial for producing passenger cars designed to be environment-friendly, while being laden with technologically advanced features.

Based on vehicle type, the market is classified as

• Passenger vehicles (Larger and Faster-Growing Category)
• Commercial vehicles

Device Type Insights

• Gasoline particulate filters (GPF) are expected to be the fastest-growing category in market, with a CAGR of 2.8%. This is a relatively newer technology than diesel particulate filters (DPFs). They are installed in the exhaust system of gasoline vehicles to reduce the emissions of fine particulate matter (PM). These fine particles, referred to as PM, are the major contributors to air pollution around the world.
• When exhaust gases traverse through these systems, the harmful microscope particles are captured. The technology lowers the quantity of harmful particulate matter from the atmosphere, thus enhancing public health and air quality, particularly in cities.
• The lower operating temperature of gasoline engines and usage of different material to handle different combustion characteristics make this category dominant.

The following device types are covered in the report:

• Three-Way Catalytic Converter (TWC)
• Diesel Particulate Filter (DPF) (Largest Category)
• Selective Catalytic Reduction (SCR) System
• Diesel Oxidation Catalysis (DOC) System
• Lean NOx Trap (LNT) System
• Gasoline Particulate Filter (GPF) (and Fastest-Growing Category)

Engine Type Insights

• Gasoline engines are the largest category in the market, holding a share of around 40% in 2023. This is because most passenger cars run on gasoline and they outnumber all other vehicles in terms of sales and production volume.
• The affordability and widespread availability of gasoline-powered vehicles make them more-viable options for the global population, which directly drives the market in this category.

Following are the engine types covered in the report:

• Gasoline (Largest Category)
• Diesel
• Hybrid (Fastest-Growing Category)

Material Type Insights

• Palladium is the largest category in the market, with 45% revenue share in 2023. As an effective catalyst, it efficiently transforms toxic pollutants, such as nitrogen oxides and HCs, into less-toxic matter, such as nitrogen and water vapor.
• Compared to the other materials used for emission reduction, palladium is cheaper for automobile manufacturers, allowing them to meet their CAFÉ targets more affordably.
• This material also outperforms others as it performs for a longer period due to its high resilience, which allows it to sustain high temperatures and rough conditions in the exhaust systems.
• Some government regulations also drive the adoption of systems containing palladium, such as the Euro 6 standards, which made it mandatory to use more-resilient palladium-based emission control systems.

During the study, we analyzed the following materials in the report:

• Platinum
• Palladium (Largest and Fastest-Growing Category)
• Rhodium

Sales Channel Insights

• The original equipment manufacturer (OEM) category held the larger market segment, of around 70%, in 2023, and it is also the faster-growing category. Automobile manufacturers purchase parts in bulk, while aftermarket entities purchase them in accordance with the actual replacement demand./li>
• Because exhaust systems are specially designed for distinct vehicle models, the major demand for them comes from OEMs.
• Automakers are now mandated to make sure their automobiles comply with the strict emission regulations. This is a strong incentive to utilize dependable and tested OEM-supplied equipment to prevent any problem.

The sales channel segment has been bifurcated as follows:

• Original Equipment Manufacturers (OEMs) (Larger and Faster-Growing Category)
• Aftermarket

Asia-Pacific is the Largest Region

• Geographically, Asia-Pacific is the Largest, holding a share of around 50% in 2023. Major automakers use it as a hub for manufacturing, and the area has seen a notable increase in automobile ownership as a result of increased disposable income. Emission control systems are thus necessary for a huge number of cars.
• Further, these countries are some of the most polluted in the world, with high rates of pollution-induced respiratory issues.
• Therefore, governments have put in place stringent measures to control vehicular emissions and clean up the air.
• Europe is projected to be the fastest-growing market, at a CAGR of 2.6%, during 2024–2030. This is due to the increment in the demand for luxury vehicles, which are integrated with more expensive emission control systems than mid-segment and economy cars.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Larger and Faster-Growing Market)
  • Canada
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K.
  • France
  • Italy
  • Spain (Fastest-Growing Country Market)
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

The market is driven by the growth in environmental consciousness and the implementation of stricter laws. The competition between companies is intense, with major focus on innovation and cost-effectiveness. The market is also expected to grow due to the rise in the production of automobiles.

Automotive Exhaust Emission Control Devices Companies News

• Purem AAPICO, a partnership among AAPICO Hitech and Eberspaecher, officially opened its new headquarters in Rayong, Thailand, in October 2023. Located 100 kilometers southeast of Bangkok, this manufacturing plant will produce exhaust systems for a pickup vehicle manufactured by a well-known American automaker.
• In May 2022, researchers affiliated with the Southwest Research Institute presented breakthroughs in technologies that reduce carbon emissions from diesel engines. By substantially reducing nitrogen oxide (NOx) emissions from heavy-duty diesel engines, these technologies are designed to allow the industry to meet the 2027 CARB regulations.