The automotive catalytic converter market is projected to generate $28,342.9 million revenue in 2030, advancing at a CAGR of 8.0% during 2021–2030. The growth of the market can be attributed to the strict regulations for emission control from vehicles and the expanding automobile industry. Moreover, the R&D spending for technological advancements and the growing number of automotive OEMs will fuel the market growth in the coming years.
Three-way oxidation–reduction catalytic converters find the widest adoption in the automobile industry. Therefore, this category held the largest revenue share, of around 40%, in 2021, and it is set to maintain its position during the forecast period. This can be attributed to their better efficiency and reaction action against unburned hydrocarbons, nitrogen oxides, and carbon monoxide.
Rhodium-based automotive catalytic converters accounted for the highest revenue in 2021, and they are also expected to witness significant automotive catalytic converter market growth during the forecast period. They are finding increasing adoption in the automotive industry because of their superior ability to reduce the emission of harmful gases and cost-effectiveness as compared to the variants based on platinum.
Geographically, Europe held the largest revenue share in 2021 in the global market, and this trend will continue during the coming years. This will be due to the huge number of automobile and auto parts manufacturers, high adoption of these components in order to abide by the EU’s emission regulations, and increasing demand for luxury vehicles. In addition, Germany is the highest revenue contributor to the regional market due to the strict emission regulations for vehicles and large number of manufacturers of premium cars and trucks in the country.
APAC will account for the fastest growth during the forecast period, as there are huge opportunities for automotive manufacturers to set up their production plants in the region. Additionally, the growing population needs more convenience while commuting on a daily basis, which fuels the market advance by driving the sale of automobiles.
Facility expansions, contract wins, collaborations, partnerships, acquisitions, and product launches are the major strategic developments in the automotive catalytic converter market. For instance, in March 2020, BASF SE launched its newly developed tri-metal catalyst technology, which permits light-duty gasoline automobiles to partially switch to the less-expensive palladium from the less expensive platinum, without breaching emission regulations.
Similarly, in March 2020, Continental AG and Vitesco Technologies Group AG collectively won the contract for supplying electric heating elements for diesel catalytic converters to a European vehicle manufacturer.
Some of the major players in the automotive catalytic converter market are BASF SE, Tenneco Inc., Continental AG, Johnson Matthey Group, Yutaka Giken Company Limited, Jetex Exhausts Ltd., and Eberspacher Group.