Automotive Exhaust Aftertreatment Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Vehicle Type (Passenger Cars and Commercial Vehicles), By Fuel Type (Gasoline and Diesel), By Sales Channel (OEM, Aftermarket), By Region, By Competition.
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 25 billion |
| CAGR (2023-2028) | 13.3% |
| Fastest Growing Segment | Passenger Car |
| Largest Market | Asia-Pacific |
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Market Overview
Automotive Exhaust Aftertreatment Systems Market has valued at USD 25 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 13.3%.
Key Market Drivers
Strict Emission Laws
One of the main contributors to the worldwide automotive exhaust aftertreatment systems market is the ever-stronger emission regulations instituted by governments and global associations. Such laws are seeking to mitigate the emission of noxious pollutants like nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and hydrocarbons (HC) from motor vehicles. Regulatory authorities like the United States' Environmental Protection Agency (EPA) and the European Union's Euro standards have been urging for reduced emission standards. Automakers are therefore forced to implement sophisticated aftertreatment systems to ensure compliance. Launch of Euro 6 and comparable specifications across different geographic markets has become obligatory for implementation of technologies such as selective catalytic reduction (SCR), diesel particulate filter (DPF), and lean NOx traps (LNT). With continuous progress in stricter emissions standards, there will be greater demand for state-of-the-art exhaust aftertreatment technologies.
Increasing Adoption of Clean and Green Technologies
The world automobile industry is shifting towards cleaner and greener technology. Electric cars and hybrid cars are becoming increasingly popular as buyers and producers try to minimize their carbon footprint. But internal combustion engines (ICEs) still dominate, and there is a prevailing fleet of conventional cars in many areas. In order to make these vehicles cleaner and emissions-compliant, the use of advanced exhaust aftertreatment systems is imperative. Automakers are putting money into research and development to make exhaust aftertreatment systems more efficient and effective. This involves optimizing catalytic converters, enhancing filtration systems, and creating innovative materials to minimize emissions. Consequently, the automotive sector is increasingly in line with world efforts to reduce climate change, which is also propelling the need for these systems.
Increased Vehicle Production
The automobile sector is still on the rise, with increasing need for cars globally. Developing countries in Asia, specifically China and India, have become major drivers of global vehicle output. The increase in disposable income, urbanization, and infrastructure growth in these markets has driven the demand for vehicles. Additionally, the vehicle replacement cycle in developed economies is constant. As the production of vehicles increases, so does the demand for exhaust aftertreatment systems. Each new vehicle manufactured must comply with emission regulations, and retrofitting existing vehicles with sophisticated aftertreatment systems is also an expanding market segment. This expansion in the manufacturing of vehicles serves as a spur for the automotive exhaust aftertreatment systems market.
Technological Progress
Technological development has been a key factor in the design of cleaner and more efficient exhaust aftertreatment systems. Companies are spending a lot of money on research and development in order to design systems that are capable of lowering emissions without compromising the performance of the vehicles and fuel efficiency.
Some of the key technological developments include
Enhanced catalyst materialsThe evolution of advanced catalyst materials like platinum-group metals (PGMs) and zeolites has increased the efficiency of exhaust aftertreatment systems to enable higher pollutant conversion.
Real-time monitoring and controlSophisticated sensors and control systems offer real-time information on exhaust emissions, making it possible to control aftertreatment processes with high precision to maximize performance and reduce fuel consumption.
Integration with vehicle systemsExhaust aftertreatment systems are becoming more integrated into the overall powertrain management of the vehicle, allowing for smooth operation and improved fuel economy.
These advances not only enhance the efficiency of exhaust aftertreatment systems but also provide opportunities for manufacturers to provide innovative solutions to automakers.
Consumer Awareness and Demand for Clean Vehicles
Consumer awareness of environmental issues and the desire for cleaner transportation options are driving automakers to prioritize emissions reduction in their marketing strategies. Consumers are willing to pay a premium for cars with advanced exhaust aftertreatment systems because they want to reduce their environmental footprint.In addition, government rebates, tax credits, and incentives for buying environmentally friendly cars have encouraged consumers to opt for cars with advanced emission control technologies. With this trend, manufacturers are incentivized to spend money on exhaust aftertreatment systems in order to address consumer demand and become competitive in the industry.
Urbanization and Air Quality Issues
The world is undergoing fast and extensive urbanization, and more individuals are now residing in urban centers than ever. This trend of urbanization has increased traffic congestion and urban traffic levels, leading to greater volumes of air pollution. Government and urban authorities are becoming increasingly concerned about improving air quality to safeguard public health.To tackle this, numerous urban areas are introducing low-emission zones (LEZs) and more stringent vehicle emission standards for entering city boundaries. In reaction to these, car manufacturers are fitting their cars with state-of-the-art exhaust aftertreatment systems in order to meet urban emission standards. This trend will continue to expand as more cities make air quality and sustainable transportation a priority.
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Global Expansion of Commercial Vehicle Fleets
The expansion of commercial vehicle fleets, including trucks, buses, and delivery vehicles, is another significant driver of the automotive exhaust aftertreatment systems market. Commercial vehicles typically have higher emissions due to their larger engine sizes and frequent use. To meet emission standards and reduce operating costs, fleet operators are increasingly adopting advanced exhaust aftertreatment technologies.Furthermore, the growth of e-commerce and the demand for timely delivery services have led to an increase in the number of delivery vehicles on the road. As many countries and regions have specific emissions standards for commercial vehicles, manufacturers are developing tailored exhaust aftertreatment solutions to cater to this expanding market.
Key Market Challenges
Increasingly Stringent Emission Standards
One of the most prominent challenges facing the automotive exhaust aftertreatment systems market is the constant evolution of emission standards and regulations. Governments and international bodies around the world are imposing increasingly strict limits on the emissions of harmful pollutants such as nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and hydrocarbons (HC). These stringent standards, such as the Euro 6 and US EPA Tier 3 regulations, require automakers to invest heavily in advanced aftertreatment technologies to meet compliance. Meeting these standards necessitates the development and integration of complex and expensive systems, which in turn increase the production costs of vehicles. This can be especially challenging for smaller automakers and manufacturers in emerging markets that may lack the resources and infrastructure to rapidly adapt to new regulatory requirements.
Cost and Complexity of Technology
The development and implementation of advanced exhaust aftertreatment systems involve significant costs. These systems often include components like selective catalytic reduction (SCR) systems, diesel particulate filters (DPF), and lean NOx traps (LNT), all of which require specialized materials and manufacturing processes. Additionally, these technologies need to be integrated into the overall vehicle design, further increasing the complexity and cost. For consumers, the cost of vehicles equipped with these advanced systems can be a barrier to adoption, particularly in price-sensitive markets. Manufacturers need to strike a balance between compliance with emission regulations and affordability for consumers.
Durability and Maintenance Challenges
Exhaust aftertreatment systems are exposed to harsh operating conditions, including high temperatures and corrosive exhaust gases. These conditions can lead to wear and deterioration over time, affecting the durability and reliability of these systems. For example, diesel particulate filters (DPFs) can become clogged and require periodic regeneration, which can be inconvenient for vehicle owners. Ensuring the long-term performance of these systems and minimizing maintenance requirements is an ongoing challenge for manufacturers. Additionally, failure to properly maintain and service aftertreatment systems can result in reduced efficiency and increased emissions, potentially leading to non-compliance with emission standards.
Fuel Efficiency Trade-Offs
While exhaust aftertreatment systems are effective at reducing harmful emissions, they can also have an impact on a vehicle's fuel efficiency. Technologies like selective catalytic reduction (SCR) require the injection of a urea-based solution (AdBlue) into the exhaust stream, which can increase fuel consumption. Similarly, diesel particulate filters (DPFs) can create backpressure in the exhaust system, reducing engine efficiency. Automakers face the challenge of optimizing exhaust aftertreatment systems to minimize their impact on fuel efficiency while still meeting emission standards. Striking the right balance between emissions reduction and fuel economy is a constant challenge, especially as fuel efficiency standards continue to evolve.
Key Market Trends
Stringent Emission Regulations
Stringent emission regulations, such as Euro 6d and EPA Tier 3, are driving the demand for advanced exhaust aftertreatment systems. These regulations limit the amount of harmful pollutants that vehicles can emit, including nitrogen oxides (NOx), particulate matter (PM), and carbon monoxide (CO). Manufacturers are increasingly adopting aftertreatment systems like selective catalytic reduction (SCR) and diesel particulate filters (DPF) to meet these standards.
Electrification and Hybridization
The rise of electric and hybrid vehicles is influencing the exhaust aftertreatment systems market. While electric vehicles (EVs) produce no tailpipe emissions, hybrid vehicles still rely on internal combustion engines. Advanced aftertreatment systems are essential for hybrid vehicles to reduce emissions and comply with regulations, as well as improve overall efficiency.
Integration of Advanced Technologies
To achieve better emission control and fuel efficiency, automotive exhaust aftertreatment systems are incorporating advanced technologies. This includes the use of sophisticated sensors, advanced catalyst materials, and improved control algorithms. These technologies enhance the efficiency of systems like SCR and DPF, ensuring optimal performance and compliance with emissions standards.
Real-World Emission Testing
Real-world emission testing has gained prominence in the wake of emission scandals. Governments and regulatory bodies are implementing more stringent testing procedures to ensure that vehicles meet emission standards not only in laboratory conditions but also in real-world driving scenarios. As a result, manufacturers are investing in aftertreatment systems that perform consistently under various driving conditions.
Lightweight Materials and Design Optimization
Automakers are increasingly focusing on lightweight materials and design optimization to reduce vehicle weight and improve fuel efficiency. This trend also extends to exhaust aftertreatment systems, where lightweight components and materials help minimize the impact on vehicle weight while ensuring effective emissions control.
Growing Market for Commercial Vehicles
The commercial vehicle segment is experiencing a surge in demand for exhaust aftertreatment systems. Governments worldwide are imposing stricter emissions regulations on heavy-duty trucks and buses to curb air pollution. Consequently, manufacturers are investing in aftertreatment solutions like diesel oxidation catalysts (DOCs), SCR systems, and DPFs to comply with these regulations.
Segmental Insights
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Vehicle Type Analysis
In 2022, passenger cars accounted for over 72.7% of the market's revenue for automotive exhaust systems, and this trend is anticipated to last throughout the forecast period. In 2022, passenger cars made for about 72.7% of the output of the sector. Europe had 569 cars per 1,000 persons in 2019, according to data from the European Automobile Manufacturers' Association (ACEA).
Additionally, it is estimated that the automotive exhaust systems market will expand faster than expected in developing nations like China and India.The market for commercial vehicles will grow between 2021 and 2028 as a direct result of the escalating need for large vehicles in the logistics and transportation sectors. One of the most significant ultimate customers for commercial vehicles is the logistics industry. Trucks and trailers are utilized more frequently now.
Regional Insights
Asia-Pacific led the world market in 2021. With major OEMs establishing manufacturing facilities there, China has become the most popular destination for the automotive industry. In the shift to electric vehicles, the government is a key player. Governments in several nations have put policies in place to improve the infrastructure for electric vehicles in order to lower carbon emissions and rely less on non-renewable resources. With money to build new facilities and to entice customers to buy, they are helping producers. Despite numerous efforts, there is still a demand for diesel-powered vehicles, particularly for mass transit and mining applications. With more than 35% of all passenger vehicle sales and 15% of all commercial vehicle sales worldwide, China is the largest automotive market in the world. The government is developing several ways to cut emissions considering the large number of active automobiles in the nation. For example, according to the China 6 emission regulations, China aims to reduce hydrocarbons by 50%, nitrogen oxides (NOx) by 40%, and particulate matter by 33%. China has made it necessary for all new gasoline automobiles to adhere to the rules. For instance, due to the impending adoption of China 6 regulations, sales of automobiles meeting the China 5 emission standard will be prohibited beginning in January 2021. India recently passed severe pollution regulations, which would likely lead to an increase in the demand for aftertreatment systems there. Another benefit is the huge market the nation's auto sector enjoys. Due to the region's strict emission regulations, the market for exhaust aftertreatment systems is expected to have healthy growth over the next few years and over the forecast period.
Recent Developments
- Akrapovi introduced its new Slip-On Line(Titanium) exhaust in March 2023 with a dramatic style that was especially madefor Suzuki's new adventure bike, the Suzuki V-Strom 800DE. Akrapovi expandedtheir ever-expanding collection of Yamaha motorcycle accessories by releasingthe Racing collection (Titanium) for the 2022 Yamaha TMAX and the Slip-On Line(Titanium) for the 2022 Yamaha MT-10.
- In May 2021, Futaba Industrial Co., Ltd.said that they might attend the Automotive Engineering Exposition 2021 Online.The company intends to implement new exhaust and body system components thatimprove fuel efficiency, reduce weight, and reduce emissions to meet theSustainable Development Goals.
- The integrated thermal management systemthat Eaton and Tenneco will construct in March 2021 will allow commercial carsto comply with strict emission rules. The aftertreatment systems that canlessen dangerous exhaust emissions are heated directly by this system.
- Southwest Research Institute engineerspresented a demonstration of the efficacy of innovative solutions fordecreasing diesel emissions in May 2022. The innovation successfully reducedthe nitrogen oxide (NOx) emissions from heavy-duty diesel engines to meet CARB2027 requirements.
- Bosch stated that it is creating aneffective driving technology for commercial cars with internal combustionengines that burn diesel fuel in October 2020. Systems for fuel delivery,exhaust gas after treatment, and engine and air control are all included inthis product line.
Key Market Players
- CDTi Advanced Materials Inc.
- ContinentalReifen Deutschland GmbH
- CumminsInc.
- DCLInternational Inc.
- DelphiTechnologies PLC
- Dinex
- DonaldsonCompany Inc.
- ESWGroup
- EuropeanExhaust and Catalyst Ltd
- NettTechnologies Inc.
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