Stringent government regulations associated with vehicle emissions and the increasing penetration of after-treatment devices are anticipated to drive the global automotive exhaust systems market to notch about $ 68.45 billion by 2028.
According to a new report by Grand View Research, the market is expected to expand at a CAGR of 6.2% from 2021 to 2028.
The increasing sales of passenger cars and commercial vehicles and the growing demand for lightweight emission systems are expected to create significant opportunities for players operating across the market's value chain.
Some of the key players in the automotive exhaust systems market include Bentler, Bosal, Continental, Eberspacher, Faurecia, Futaba Industrial, Friedrich Boysen, Sejong Industrial, Tenneco and Yutaka Giken.
Insights & Findings:
In terms of components, the muffler segment is estimated to register the highest CAGR of over7% from 2021 to 2028 due to the increasing demand for dual-exhaust muffler systems in mid-sized and luxury vehicles.
Based on the fuel type, the gasoline segment emerged as the largest segment in 2020 and is anticipated to retain its dominance over the forecast period.
The report said that the commercial vehicles segment is projected to expand at the highest CAGR of around 7.5% over the forecast period due to increasing demand for commercial vehicles across the transportation and logistics sectors.
The Asia Pacific emerged as the largest regional market for automotive exhaust systems in 2020 and is anticipated to retain its dominance over the forecast period.
Automotive OEMs are working on several aspects, such as new and lightweight materials, drivetrain (engine/transmission) efficiency, and aerodynamic design, to reduce the vehicular weight. Conventional exhaust systems and their components are manufactured using stainless steel, cast iron, and mild steel/carbon steel. However, several automotive OEMs, exhaust system manufacturers, and other companies are working to provide lightweight products made from composite metals with high-temperature resistance. For instance, Tenneco offers lightweight compact systems and lightweight after-treatment and dosing systems to improve the fuel economy and thermal management of the exhaust system and overall vehicle, the report noted.
The outbreak of the COVID-19 pandemic hampered the overall business scenario in 2020, and the economy is expected to continue experiencing its aftermath over the next few years. Supply chains were disrupted, and production was suspended temporarily at several facilities because of the lockdowns and restrictions imposed in various parts of the world. Subsequently, shipments got delayed, and production volumes plummeted, thereby affecting the overall automotive production. As a result of the pandemic, several companies and exhaust system manufacturers confronted a year-on-year decline in unit volumes and revenues, the market research and consulting company said.
For instance, Eberspacher, a prominent market player in the exhaust system market, witnessed a decline in the revenue of exhaust technology. As a result, the company's exhaust technology sales decreased by 0.4% year-over-year to $ 6,033.1 million in 2020 compared to $ 6,099.46 million in 2019.
In 2020, Asia Pacific captured around 60% of the automotive exhaust systems demand and was estimated to register a CAGR of about 7% over the forecast period. This share is attributed to the increasing production and sales of passenger cars and commercial vehicles in emerging economies such as India and China. China has been the largest automotive manufacturer in the world since 2008. The country's automotive production annual volumes are greater than the European Union (EU) volumes. India is the fifth-largest automotive manufacturing country in the world. The Indian market is estimated to expand at the highest CAGR over the forecast period as the Indian government is taking several initiatives to develop the automotive sector in the country, the research firm added.
Courtesy: Grand View Research. NB: Photo is representational; courtesy: Bentler.