Automotive Catalyst Market

Automotive Catalyst Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030

Automotive Catalyst Market: Introduction

Automotive catalysts are used to control the emission of major harmful compounds such as carbon monoxide, nitrogen oxide, and hydrocarbons from the exhaust systems of vehicles
Catalysts catalyze the exhaust gases of vehicles at elevated temperatures to convert them into less toxic substances. Automotive catalysts are made from various materials including Platinum, Palladium, Rhodium, and ceramics.

Key Drivers of Automotive Catalyst Market

Growing per capita GDP and disposable income of the global population has led to a rise in number of vehicles in use. International Organization of Motor Vehicle Manufacturers (IOCA) stated that motorization rate was 471 per 1000 inhabitants in 2015. It is anticipated to increase in the near future. Rise in transportation and logistics activities have further boosted the number of on-road commercial vehicles. This rapid increase in sales of automobiles and miles driven has led to an increase in the demand for catalyst from OEM as well as aftermarket segment, thereby driving the automotive catalyst market across the globe.
Transportation is a leading cause for a rise in the levels of pollution worldwide. The U.S. Environmental Protection Agency states that transportation emissions contribute 28% of the total greenhouse gases emitted in the country. Amidst these rising environmental concerns, transportation regulatory agencies in the U.S., China, Australia, the European Union and several other countries have mandated installation of catalysts on vehicles to reduce vehicular emission. Thus, legislative transformations for preservation the environment are propelling the global automotive catalyst market.

Challenges in Automotive Catalyst Market

Platinum is widely used in automotive catalysts due to its efficiency and corrosion-resistance in oxygen-excessive conditions. Increase in prices of Platinum has restricted the application of platinum catalysts. Furthermore, growing inclination toward electric vehicles is hampering the demand for automotive catalysts and subsequently, restraining the global automotive catalyst market.

Impact of COVID-19 pandemic on Automotive Catalyst Market

The recent pandemic of COVID-19 has disrupted automotive supply chains, thus creating a shortage of raw materials and components. However, demand for automotive catalyst across the globe is anticipated to increase as governments are easing restrictions and companies are restarting their operations with precautionary measures.

Opportunities in Automotive Catalyst Market

Use of advanced technologies and shifting focus on product innovation to improve the performance of automotive catalytic converters is offering significant opportunities for the market. Catalyst manufacturers are exploring new materials for catalysts, including zeolite, and are also focused on the development of new types of catalysts, such as 4-way catalyst and fuel cell catalyst, in order to cater the changing demands of automakers.

Europe to hold significant share of global automotive catalyst market

The presence of leading automobile manufacturers in major countries across Europe, such as Germany and Italy, is fuelling the share held by the region in the global automotive catalyst market. Furthermore, stringent vehicle emission norms such as the EURO 6 standard introduced in 2014 have mandated automakers to control the emission from their vehicles by using catalysts. Thus, strong presence of automakers and stringent emission norms are driving the share held by Europe in the global automotive catalyst market.

Key Players Operating in Automotive Catalyst Market

The global automotive catalyst market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the automotive catalyst market are: