Regulatory Framework Regarding Emissions Facilitates Market Growth
The mounting pressure of global warming and the harmful effects of environmental pollution on human life have accelerated the demand for automotive catalytic converters. The various types of converters used for reducing emissions from exhaust systems are two-way oxidation catalytic converter, diesel oxidation catalyst, and three-way oxidation-reduction catalytic converter. The flourishing automotive industry across the globe is also driving the automotive catalytic converter market as manufacturers are compelled to develop vehicles that adhere to renewed pollution and emissions control norms set by respective governments, reports Transparency Market Research.
According to the research report, the global automotive catalytic converter market was valued at US$105.59 bn in 2014 and is expected to reach US$172.80 bn by 2021, as the market expands at a CAGR of 7.3% between 2015 and 2021. The shifting focus on product innovation by integrating latest technologies to improve performance and minimize emissions will also fuel the rise of this automotive catalytic converters in the coming years. The exponentially rising sales of automobiles in developing regions of Asia Pacific, the Middle East and Africa, and Latin America are also going to have a direct impact on the sales of these converters during the forecast period.
Europe to Lead Global Market with Strong Presence of Manufacturers
Europe will be the leading regional segment in the global automotive catalytic converter market between 2015 and 2021. Stringent norms such as Euro V and Euro VI being enforced across Europe have become the driving forces for this regional segment to adopt advanced automotive catalytic converters. The strong presence of leading automotive catalytic converter manufacturers in the U.K. and Germany will also facilitate the growth of the Europe catalytic converter market in the near future.
The rising vehicle production and strengthening of the economy after the slump will also generate a sizeable demand for converters across Europe. In light of these market drivers, the Europe automotive catalytic converter market is expected to be valued at US$52.72 bn by 2021 as the market is poised to rise at a CAGR of 7.0% from 2015 and 2021.
Three-way Oxidation-reduction Catalytic Converters Retain Lead during Forecast Period
The three-way oxidation-reduction catalytic converters are among the most widely used converters in gasoline engines as they have the ability to perform oxidation of hydrocarbons to carbon dioxide and water, oxidation of carbon monoxide to carbon dioxide, and conversion of nitrogen oxide to nitrogen and oxygen. Three-way oxidation-reduction catalytic converters have gained importance due to emission guidelines across the globe that mandate using these converters automobiles running on gasoline.
Owing to these reasons, the three-way oxidation-reduction catalytic converters segment is anticipated to reach US$67.78 bn by 2021 as compared to US$40.99 bn in 2014, as the segment expands at a CAGR of 7.5% between 2015 and 2021. On the other hand, diesel oxidation catalysts will also be an emerging segment as such converters will likely cater to the exclusive demands of diesel engines.
The key players in the global automotive catalytic converter market are ASF Catalysts LLC, Tenneco Inc., Eberspaecher GmbH Holding & Co. KG, Faurecia SA., and Magneti Marelli S.P.A. Product innovation and developing environmentally sustainable products will be the key focus of these companies during the forecast period. Moreover, companies are also designing products that meet prevailing safety standards to build a lasting brand image.
This market research study analyzes the automotive catalytic converter market on global basis and provides estimates in terms of revenue (USD billion) from 2015 to 2021. It identifies the drivers and restraints affecting the industry and analyzes their impact over the forecast period. Moreover, it highlights the significant opportunities for market growth in the next six years.
With the advancements in technology, there has been a considerable growth in the automotive catalytic converter market globally. Stringent emission norms such as Euro V and Euro VI have put a restriction to the use of exhaust systems that are harmful to the environment. This has made automobile manufacturers improvise on their exhaust systems and bring in application of advanced technology and innovation to their products in order to reduce automobile emission in the environment. Innovative catalytic converters such as two-way and three-way catalytic converters are extensively being used and largely demanded by automobile manufacturers because of their greater performance and reduced emission quality. Four-way catalytic converters are still in the testing phase and are expected to be much more efficient and environment friendly as compared to the other existing automotive catalytic converters.
The growth in the global automotive catalytic converter market is directly related to the growth of the global automobiles market. Therefore, with the increasing sales of automobiles globally, the demand for automotive catalytic converter is set to grow. In regions such as Asia Pacific, Middle East and Africa (MEA), and Latin America; an immense rise in the usage of passenger vehicles is expected over the forecast period, which is set to bolster the growth of the automotive catalytic converter market.
Increasing stringent emission norms across the globe is the major reason driving the growth of the global automotive catalytic converters market. Catalytic converters emit hazardous particles that are harmful to the environment. Due to the rising pollution and global warming effects, the governments of various countries have laid down strict guidelines relating to automobile emission. Therefore, the stringent emission guidelines have forced the automotive component manufacturers to manufacture environment friendly catalytic converters for domestic and international markets. Two-way oxidation catalytic converter, three-way oxidation-reduction catalytic converter and diesel oxidation catalyst are heavily in demand due to their reduced emission property.
In the coming years, hybrid and electric vehicles market are expected to gain momentum. This is going to have an adverse effect on the global automotive catalytic converters market. Electric vehicles do not come equipped with catalytic converters as there are no means of emission in such vehicles. Therefore, the gaining popularity and rising demand for electric vehicles are set to inhibit the catalytic converters market during the forecast period from 2015 to 2021.
The market is segmented on the basis of geography into Europe, North America, Asia Pacific, Middle East and Africa (MEA), and Latin America. These segments have been estimated in terms of revenue (USD billion). In addition, the report has been segmented based on type, which includes, two-way oxidation catalytic converter, three-way oxidation-reduction catalytic converter and diesel oxidation catalyst. In addition, the report is also segmented by material that includes platinum, palladium and rhodium.
For better understanding of the automotive catalytic converter market, the study comprises market attractiveness analysis, where the types are benchmarked based on their market scope, growth rate and market attractiveness.
The report also provides company market share analysis of the various industry participants. Key players have been profiled and their company overview, financial overview, business strategies and recent developments have been covered in the report. Major market participants profiled in this report include: Magneti Marelli S.P.A., Faurecia SA, Tenneco Inc., Benteler International AG, Eberspaecher GmbH Holding & Co. KG, BASF Catalysts LLC, Calsonic Kansei Corporation and Clean Diesel Technologies, Inc. among others
The automotive catalytic converter market has been segmented as:
Global Automotive Catalytic Converter Market: By Type
- Two-way oxidation catalytic converter
- Three-way oxidation-reduction catalytic converter
- Diesel oxidation catalyst
Global Automotive Catalytic Converter Market: By Material
Global Automotive Catalytic Converter Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Oceania (Australia and New Zealand)
- Rest of APEJ
- Middle East and Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
The report provides a cross-sectional analysis of by type and of by material segment with respect to the above mentioned regions.