CAGR: 7.9%Current Market Size: USD 162 BillionFastest Growing Region: APAC
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global automotive catalytic converter market is expected to grow from USD 162 billion in 2022 to USD 297.6 billion by 2030, at a CAGR of 7.9% during the Projection period 2023-2030. The growth of the automotive catalytic converter market is mainly driven by rising automobile production.
A catalytic converter is an exhaust emission control device that catalyzes a redox reaction to transform hazardous gases and pollutants in exhaust gas from an internal combustion engine into less-toxic impurities. Catalytic converters can make it easier for cars to transition between modes of transportation such as inland water, ships, marine, streets, roads, ports, and civil aircraft. Three-way, two-way, and other are the three basic types of car catalytic converters. It also has a design to reduce the noise produced by automotive exhaust. In addition, an automotive catalytic converter is a system used in the vehicle's exhaust system to remove dangerous gases such as nitrogen oxide, carbon monoxide, and hydrocarbons. Catalytic converters are frequently used in the automotive industry. Consumer demand for selective catalytic reduction in engines for improved fuel efficiency and safety is projected to boost the market in the coming years. Furthermore, the demand for zero-emission vehicles, as well as rise in vehicle production and sales globally, are expected to boost the market in the approaching years. Furthermore, the market is expected to be fueled by severe government requirements for environmental safety throughout the Projection period. There are various constraints and problems that can stymie market expansion. The growing use of electric vehicles is likely to operate as a market constraint.
Sample Request: - Global Automotive Catalytic Converter Market
Market Dynamics:
Drivers:
Vehicle sales are increasing all around the world, which is propelling the market forward. Furthermore, higher vehicle penetration and growing awareness among automobile users contribute to the growth of the automotive market. Furthermore, technological developments and increasing demand for automotive catalytic converter appliances are projected to boost market expansion. Additionally, improved economic conditions and an expanding middle class, as well as higher automobile subscriptions, will drive market expansion during the Projection period.
Restraints:
The increasing popularity of hybrid and electric vehicles, as well as the hefty R&D costs, are limiting industry development. Furthermore, an electric motor rather than an IC engine generates power in an electric vehicle. However, because an electric car does not have a combustion section, there is no need for a catalytic converter, which can further hinder the automotive catalytic converter sector. Furthermore, COVID-19 infections have led most industries around the world to disintegrate due to the forced stoppage of production and manufacturing activities, which has hampered major manufacturing enterprises around the world.
Opportunities:
To avoid and limit carbon emissions, regulatory and government bodies such as the US Environmental Protection Agency enforce severe emission standards, particularly in the automotive industry. Furthermore, a catalytic converter reduces pollutants and allows manufacturers to meet worldwide standards, as demand for automobiles is expected to continue increasing in the coming years.
Challenges:
The market has difficulty as the price of precious metals fluctuates. To prevent vehicular emissions, vehicle catalytic converters primarily use precious group metals such as rhodium, platinum, and palladium. As a result, these precious metals are costly, increasing the cost of car catalytic converters. Aside from that, the increasing stringency of emission standards around the world necessitates greater usage of these precious metals to reduce automobile emissions, raising the cost of catalytic converters. The high cost of vehicle catalytic converters as a result of growing precious metal prices and applications is a key concern for automobile catalytic converter manufacturers.
Segmentation Analysis:
The global automotive catalytic converter market has been segmented based on type, material type, vehicle type, and region.
By Type
The type segment is the two-way catalytic converter, three-way catalytic converter, and others. The three-way catalytic converter segment led the largest share of the automotive catalytic converter market with a market share of around 52.36% in 2022. Three-way oxidation-reduction catalytic converters are extensively used in automobiles, however, two-way oxidation catalytic converters are ineffective since they cannot remove nitrogen oxide. The three-way oxidation-reduction catalytic converter segment is predicted to maintain its dominance during the Projection period because of the rising number of IC engine vehicles on the road. Furthermore, electric vehicles are projected to take longer to replace heavy-duty commercial vehicles such as tractors and trucks. Furthermore, the improved emission reductions provided by three-way catalytic converters are a driving factor in their widespread use. This catalytic converter provides reduction, oxidation, and a particle nitrogen filter, which is superior to the two-way converter's oxidation and reduction only.
By Material Type
The material type segment is platinum, palladium, and rhodium. The rhodium segment led the largest share of the automotive catalytic converter market with a market share of around 36.57% in 2022. Rhodium is expected to have the highest CAGR during the Projection period due to its strong activity in removing nitrogen oxides from exhaust emissions and significant activity in the oxidation of hydrocarbons and carbon monoxide.
By Vehicle Type
The vehicle type segment is passenger cars and commercial vehicles. The passenger vehicles segment led the largest share of the automotive catalytic converter market with a market share of around 59.67% in 2022. The segment can be attributed to the rise in living standards, rising disposable income, rapid urbanization, and increased volume of passenger car sales and manufacturing.
Global Automotive Catalytic Converter Market - Sales Analysis.
The sale of the automotive catalytic converter market expanded at a CAGR of 5.7% from 2016 to 2022.
Automobile mobility is the single largest source of air pollution and has become a global concern. With an increasing number of automobiles on the road, emission reduction is critical for improved air quality. The catalytic converter is one of the most important components used in every automotive manufacturer to minimize the toxicity of emissions in a vehicle by eliminating dangerous compounds from the exhaust systems. The Environmental Protection Agency (EPA) in the United States and the EuroV and EuroVI in the European Union strictly set the allowable limits for automotive exhaust emissions for each vehicle.
Thus, owing to the aforementioned factors, the global automotive catalytic converter market is expected to grow at a CAGR of 7.9% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the automotive catalytic converter market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe region dominated the automotive catalytic converter market and held a 38.6% share of the market revenue in 2022.
Global Automotive Catalytic Converter Market - Country Analysis:
Germany's automotive catalytic converter market size was valued at USD 18.75 billion in 2022 and is expected to reach USD 35.7 billion by 2030, at a CAGR of 8.4% from 2023 to 2030. This will be due to the region's vast number of automotive manufacturers and the widespread use of catalytic converters. Furthermore, the market growth is being bolstered by rising demand for high-end vehicles, an increasing number of auto parts manufacturing facilities, and significant capital expenditure and R&D spending in the automotive sector by market titans. Furthermore, Germany contributes the vast majority of its income to the European market, and this tendency is projected to continue in the coming years. This is due to the presence of a high number of market participants as well as technological improvements in the vehicle sector.
China’s automotive catalytic converter market size was valued at USD 12.19 billion in 2022 and is expected to reach USD 22.8 billion by 2030, at a CAGR of 8.2% from 2023 to 2030. This can be attributed to the region's high number of daily commuters and high manufacturing capacity, as well as the region's increasing use of passenger automobiles. Furthermore, increased disposable income and improved lifestyles are driving significant market expansion in the region.
India's automotive catalytic converter market size was valued at USD 9.38 billion in 2022 and is expected to reach USD 17.49 billion by 2030, at a CAGR of 8.1% from 2023 to 2030. Emerging economies in the Asia Pacific area, such as India, are also aiming towards graduation laws and regulations similar to Euro 6 standards. For example, India is bypassing Bharat Stage V standards in favor of Bharat Stage VI requirements, which benefits the automotive catalytic converter market, major players. According to the BS-IV standards, it will take a significant investment in technology to upgrade existing vehicles and build new vehicles.
Key Industry Players Analysis:
To increase their market position in the global automotive catalytic converter market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.9% |
Market Size |
162 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Material Type, By Vehicle Type, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Tenneco Inc., Hanwoo Industrial Co. Ltd, Yutaka Giken Company Limited, Sango Co. Ltd., Faurecia, Sejong, Marelli, Eberspacher, KATCON, Benteler, Futaba Industrial Co. Ltd, BOSAL, and Boysen. |
By Type |
|
By Material Type |
|
By Vehicle Type |
|
Regional scope |
|
Scope of the Report
Global Automotive Catalytic Converter Market By Type:
Global Automotive Catalytic Converter Market By Material Type:
Global Automotive Catalytic Converter Market By Vehicle Type:
Global Automotive Catalytic Converter Market By Region:
Global automotive catalytic converter market is expected to reach USD 297.6 billion by 2030.
The automotive catalytic converter market is projected to have a CAGR of 7.9%.
Based on the type, the automotive catalytic converter market is segmented into a two-way catalytic converter, three-way catalytic converter, and others.
Vehicle sales are increasing all around the world, which is propelling the market forward. Furthermore, higher vehicle penetration and growing awareness among automobile users contribute to the growth of the automotive market. Furthermore, technological developments and increasing demand for automotive catalytic converter appliances are projected to boost market expansion.
Leading market players active in the global automotive catalytic converter market are Tenneco Inc., Hanwoo Industrial Co. Ltd, Yutaka Giken Company Limited, Sango Co. Ltd., Faurecia, Sejong, Marelli, Eberspacher, KATCON, Benteler, Futaba Industrial Co. Ltd, BOSAL, and Boysen.among others.
Political Factors- Driving a car can be incredibly dangerous. Although we prefer to think of airplanes as dangerous, the truth is that you are far more likely to be involved in a vehicle or motorcycle accident than a plane crash. As a result, governments worldwide impose stringent safety standards on the vehicle sector. These regulations oversee the construction of motor vehicles, requiring certain build standards such as seatbelts to ensure passenger safety, and have an impact on those who drive. This makes it more difficult to start a new business in the automotive industry, allowing incumbent companies to keep their market position. Roadside assistance is important for safety, and you may get SR22 rates for the best services.
Economic Factors- Individuals around the world are earning more money every year as a general tendency. This means they have more money to spend on luxury products like electronics and, of course, cars! It's no surprise, then, that demand for automobiles is slowly but steadily increasing. This is especially true in emerging countries, such as several African countries, where recent economic advancements have just recently enabled poorer households to own their own car. Finally, increased demand for automobiles means that more automobiles will be sold, and the automotive industry will become even more profitable for its participants.
Social Factors- There is no doubt that driving is becoming increasingly popular from a sociocultural standpoint. Families throughout the world are increasingly purchasing one or more motor vehicles; in fact, purchasing one or more motor vehicles is already the standard in industrialized countries such as the United States, Canada, and much of the European Union. Part of this is a cultural phenomenon: it's not that many of us couldn't get by on bicycles and buses, but we instead choose to drive motor vehicles since it's what's expected of us.
Technological Factors-Aside from the introduction of self-driving automobiles, another significant technological improvement in the automotive industry is, in general, vehicle safety. Seat belts were not made mandatory until the 1980s, and it took until the early 2000s for lower-end automakers to begin incorporating airbags into their models. Not only are industry standards evolving, but so is the underlying technology. Recently, automakers have begun to incorporate emergency braking aid systems into their vehicles, greatly reducing the likelihood of front-end collisions.
Environmental Factors- As previously said, carbon dioxide is one of the most important environmental pollutants produced by the automobile sector. It contributes significantly to global climate change via the greenhouse effect. Carbon emissions have received widespread attention in recent years. We continue to use automobiles on a daily basis, but it is unclear whether governments will be pushed to take stronger action to combat global warming — which may include a complete ban on the production or use of automobiles, or at the very least a shift towards electric vehicles.
Legal Factors- Surprisingly, the issue of copyright impacts the car business as well. Certain aspects of a car, such as its branding or shape, can be protected by copyright, trademark, or patent regulations. Legal squabbles in the car industry are unusual, although they do occur. In recent decades, a growing issue has been Chinese automakers openly stealing designs from their Western competitors. For example, Chinese automaker Geely has produced some curiously similar clones of the Rolls-Royce Phantom, causing some controversy. It's unknown what impact this copying has on the industry as a whole, but it's undeniably prevalent.
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