The catalytic converter market is estimated to be USD 42.4 billion in 2018 and is projected to reach USD 73.1 billion by 2025, at a CAGR of 8.10%. The Asia Oceania region is projected to lead the catalytic converter market during the forecast period owing to the highest vehicle production compared to other regions such as North America and Europe. The increasing demand for passenger cars along with the rising stringency in emission norms would further fuel the demand for catalytic converters, especially in the European and North American countries.

The SCR segment is expected to be the largest contributor in the catalytic converter market during the forecast period

The SCR technology offers benefits including enhanced NOx reduction than LNT by nearly 90%, and hence, it is mostly preferred in diesel vehicles across the globe. SCR has a maximum installation rate in European and North American countries owing to the ongoing emission norms such as Euro 6 and Tier 3 respectively. Europe has a large adoption rate of diesel passenger cars and LCVs. Thus, it has a higher installation rate of SCRs compared to other regions such as Asia Oceania and North America for these vehicle types. Further, the newer trucks and buses in developed countries must withstand the permissible NOx limits and should be fitted with SCRs. Moreover, owing to the ongoing and upcoming stringent emission norms in developing countries such as China, India, and Thailand, the demand for SCRs is expected to increase significantly across all diesel vehicle types by 2022 at a global level.

Passenger car is estimated to dominate the catalytic converter market during the forecast period

By vehicle type, the passenger car segment is estimated to dominate the catalytic converter market owing to its largest share in vehicle production all over the world. Asia Oceania also happens to be one of the largest catalytic converter markets for passenger cars. However, the region has a low adoption rate for various aftertreatment devices. Moreover, the Asia Oceania passenger car market is dominated by gasoline engines that also restrict the adoption rate of various diesel aftertreatment devices. The adoption rate of aftertreatment devices in HDVs such as buses and trucks are higher as these vehicles are equipped with large diesel engines and emit a higher amount of harmful gases compared to passenger cars.

Asia Oceania is expected to account for the largest market size during the forecast period

Asia Oceania has the largest market share of vehicle production with about 54�56% of the total vehicle production. China, India, and Japan are the largest vehicle production hubs because of rising urbanization, increasing GDP, and industrialization among others. With the growing vehicle production, vehicle emissions have also increased significantly. Considering this, few countries such as China, Japan, and India have implemented vehicle emission norms. For instance, China and India are currently running on China IV and BS IV. However, they are planning to implement China VI and BS VI by 2020 which is equivalent to Euro VI. Moving toward strict emission norms will create a huge demand for various aftertreatment devices. In Asia Oceania, China and Japan are the leading countries for the catalytic converter market, by aftertreatment device.

Market Dynamics

Drivers

Stringent emission and fuel efficiency regulations around the globe to fuel the demand for catalytic converters

Exhaust emission from automobile sources has become a major contributor to air pollution and environmental problem. Increasing vehicle production has, in turn, increased emissions around the world.

Increasing aftermarket for catalytic converters

The demand for a catalytic converter in the aftermarket is influenced by factors such as increasing average age of vehicles, improving infrastructure, growing number of vehicles on the road, average miles driven, replacement cycle of catalytic converter, and growing concern about vehicle maintenance.

Increasing demand for SCR in heavy diesel engines

There has been an increase in emissions of polluting substances such as CO2 and NOx particles from vehicles into the environment. At present, there are two types of catalytic converters available for reducing NOx particle emissions from diesel engine vehicles, namely, Selective Catalytic Reduction (SCR) and Lean NOx-Trap (LNT).

Restraints

Increasing sales of battery electric vehicles

The global battery electric vehicle market has grown rapidly. Factors such as rising concerns over global warming and air pollution and the federal and state government support to reduce air pollution are driving the BEV market. BEVs use an electric motor to propel the vehicle. Hence, these vehicles are not equipped with an exhaust system or catalytic converters.

Opportunities

Nanoparticles for Catalytic Reduction

Catalytic converters use precious metals as catalysts to reduce the emission of harmful gases from the engine. These metals primarily include platinum, palladium, and rhodium. Nanotechnology is one of the solutions that scientists have found, to increase the effectiveness of the converter.

Introduction of Real Drive Emission (RDE) tests

The Real Drive Emission (RDE) test uses a Portable Emission Measurement System (PEMS) to measure harmful pollutants from the exhaust gas such as NOx emitted by a car while driving on the road. The RDE test is crucial to minimize the difference between approved vehicle emission results and those in the real world.

Recycling of automotive catalysts

Vehicle exhaust contains many harmful compounds such as carbon monoxide, hydrocarbons, and nitrogen oxides. Their volumes in the automotive exhaust gas can be decreased by fitting catalytic converters to the exhaust gas system. The price of these materials is very high, and that is why there is a need to collect and reuse the precious metals inside auto catalysts.

Challenges

Fluctuating price of precious group metals

Catalytic converters primarily use precious group metals such as platinum, palladium, and rhodium for the control of vehicular emissions. However, these precious metals are very expensive and add to the cost of catalytic converters. Furthermore, increasing stringency of emission regulations across the globe demands more use of these precious metals for the reduction of vehicular emissions, thereby increasing the cost of catalytic converters. The high cost of catalytic converter owing to the rising price and consumption of precious metals is a major challenge for catalytic converter manufacturers.

Controlling Adulteration in DEF

An appropriate concentration of DEF is needed to reduce NOx emissions and increase the life of SCR components.

Scope of the Report

Report Metric Details Market Size Available for Years 2016�2025 Base Year Considered 2017 Forecast Period 2018�2025 Forecast Units Value (USD million/billion) and Volume (�000/million units) Segments Covered Catalytic Converter Type, Vehicle Type, Off-Highway Vehicle Type, Material, Aftermarket, and Region Geographies Covered Asia Oceania, Europe, North America, and RoW Companies Covered Faurecia (France), Tenneco (US), Johnson Matthey (UK) (Germany), Ebersp�cher (Germany), and Umicore (Belgium)

Total 10 major players covered

This research report categorizes the catalytic converter market based on catalytic converter type, vehicle type, off-highway vehicle type, material, aftermarket, and region.

Catalytic Converter Market, By Type

Three-way catalytic converter (TWCC)

Four-way catalytic converter (FWCC)

Diesel oxidation catalyst (DOC)

Selective catalytic reduction (SCR)

Lean NOx trap (LNT)

Catalytic Converter Market, By Material

Palladium

Platinum

Rhodium

Others (Ruthenium, Iridium, Zeolites, and Vanadium)

Catalytic Converter Market, By Vehicle Type

Passenger car

Light commercial vehicle

Truck

Bus

Catalytic Converter Aftermarket, By Vehicle Type

Passenger car

Light commercial vehicle

Heavy commercial vehicle

Catalytic Converter Market, By Off-highway Vehicle Type

Agricultural Tractors

Construction Equipment

Mining Equipment

Catalytic Converter Market, By Region

North America

Europe

Asia Oceania

RoW

Key Market Players

The catalytic converter market is dominated by the global players and comprises several regional players. Some of the key players in the catalytic converter market are Faurecia (France), Tenneco (US), Continental (Germany), Ebersp�cher (Germany), Johnson Matthey (UK), Umicore (Belgium), Futaba (Japan), BAEF (Germany), CDTI Materials (US), and Benteler International (Austria). Faurecia is anticipated to be a dominant player in the catalytic converter market. Faurecia adopted the strategies of expansion, new product development, partnership, and mergers & acquisitions to retain its leading position in the catalytic converter market. Strengthening the product portfolio and global presence by building customer relationships, Faurecia has left a mark not only in the current market but also in emerging markets such as India. This is the strategy that Faurecia is following to maintain its leadership in the catalytic converter market.

Key Questions Addressed By The Report

Which type of catalytic converter is going to dominate in the future?

How are the industry players addressing the challenge of maintaining a balance between performance and low-cost diesel catalytic converter?

When is SCR going to get mass adoption in the catalytic converter market for all vehicle types?

What could be the market size of catalytic converters for off-highway vehicles?

What could be the size of catalytic converters for the aftermarket?

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the company�s specific needs.

The following customization options are available for the report:

Catalytic converter market, by vehicle type, by country

Passenger car

LCV

Truck

Bus

Catalytic converter market, by fuel type, by country

Gasoline

Diesel

Catalytic converter market, by fuel type, by technology

Gasoline

Diesel

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