Growing vehicle emission leads to stringent emission and fuel economy regulations, which drives the penetration of after-treatment devices, eventually boosting the market's growth for the automotive exhaust system to reach $ 47.9 billion by 2026.
According to the new market research report - Exhaust System Marketby after-treatment device, vehicle type, aftermarket, component, sensor, application, sales channel and region - global forecast to 2026, published by MarketsandMarkets, the market is projected to grow at a CAGR of 5.3% during the forecast period, from an estimated USD 36.9 billion in 2021.
Some of the companies that have adopted new product development and expansion strategies to gain traction in the exhaust system market include Tenneco, Faurecia, Eberspächer, Friedrich Boysen, and Benteler International.
Selective Catalytic Reduction (SCR) is one of the latest emission control devices that breaks down the hydrocarbons and NOx into water and nitrogen. It uses expensive metals such as palladium, rhodium, and platinum combined with ceramic bricks that act as a catalyst and the injection of automotive ammonia, more commonly known as Diesel Exhaust Fluid (DEF) or AdBlue, to achieve low emission levels.
The SCR technology reduces NOx emissions by nearly 90%. Therefore, its usage in most diesel vehicles across the globe is mandated under the new emission norms. In addition, SCRs trap NOx more efficiently compared to LNTs in vehicles with large engine capacities. Hence, passenger cars and LCVs with an engine capacity of above 2.0 litres are generally equipped with SCRs as they emit more NOx than vehicles with smaller engine capacities.
The growing penetration of after-treatment devices due to stringent emission norms for reducing NOx emission is a significant factor driving the demand for SCR in all vehicle segments, MarketsandMarkets said.
Sensors segment to hold the largest market share in 2021
The demand for exhaust systems components significantly reduced, owing to the sudden outbreak of COVID-19 and lockdowns, causing a decline in vehicle production and sales in 2020. Thus, the exhaust system (OE) market by component witnessed negative growth in 2020.
The reducing emission targets worldwide are expected to increase the use of exhaust sensors in vehicle exhaust systems to capture, monitor, and analyse the emission gasses and their quantity, driving the demand for sensors during the forecast period.
Asia Pacific to be dominant
The Asia Pacific region is anticipated to be the largest OE market for exhaust systems and after-treatment devices during the forecast period, followed by Europe. The growth of the exhaust system market in the Asia Pacific is mainly attributed to the increasing vehicle production and constant upgradations in emission norms, especially in countries such as China, Japan, and India, the research firm added.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Eberspaecher.