Global Automotive Catalytic Converter Market: Snapshot
The use of advanced technologies and shifting focus on product innovation have improved the performance of automotive catalytic converters. Use of innovative technologies has also reduced emission that would also escalate the demand in the automotive catalytic converters market. Rising environmental concerns is considered one of the major drivers for the growth of the automotive catalytic converters market.
The rapid growth in the automotive industry has led to increase in demand for automotive catalytic converters. Manufacturers in the automotive industry are forced to use devices that emit low pollution and adhere to the emission norms regularized by the government. Moreover, the increasing demand for electric vehicles, which is accelerating the demand in the automotive sector. This is expected to fuel the demand for automotive catalytic converters as well. This in turn benefit the market’s growth in the coming years.
According to a recent report published by Transparency Market Research (TMR), the global automotive catalytic converter market is projected to rise at 7.3% CAGR during the forecast period 2015 to 2021. The valuation of the global automotive catalytic converter market is expected to reach US$172.8 bn by the end of 2021 from US$105.59 bn as estimated in 2014.
Strict Emission Guideline to Fuel Demand for Three-Way Oxidation-Reduction Catalytic Converter
The global automotive catalytic converter market is classified on the basis of material and type. Based on type, the market is segmented into diesel oxidation catalyst, two-way oxidation catalytic converter, and three-way oxidation-reduction catalytic converter. Among these types, three-way oxidation-reduction catalytic converter are largely used in gasoline engines. During the forecast period, this segment is likely to rise at 7.5% of CAGR. This is because this type of converter are capable of performing oxidation of hydrocarbons to water and carbon dioxide, conversion of nitrogen oxide to oxygen and nitrogen, and oxidation of carbon monoxide to carbon dioxide. Moreover, restrict emission guideline in various countries mandate the use of these converters in automobiles working on gasoline. Based on material, the global automotive catalytic converter market is segmented into platinum, rhodium, and palladium.
Europe Emerges Dominant Due to Increasing Presence of Prominent Manufacturers
On regional front, the global automotive catalytic converter market is segmented into Europe, South America, North America, Asia Pacific, and the Middle East and Africa. Among these regions, Europe is leading the global automotive catalytic converter market. Strict regulation for emission such as Euro V and Euro VI is the key factor driving the demand in this market. Moreover, the presence of leading manufacturers in countries like Germany and the U.K. has also made the region lead the global automotive catalytic converters market.
In addition, expanding automotive sector in regions like Latin America, Asia Pacific, and the Middle East and Africa has also created profitable growth prospects for the automotive catalytic converters market. Increasing environmental concerns related to growing pollution and rising demand for better and environmental friendly electric vehicles has indirectly positively affected to growth in this market.
The report has also analyzed some of the prominent players and their contribution to the global automotive catalytic converter market. Some of the leading players are Tenneco Inc., ASF Catalysts LLC, Faurecia SA., Magneti Marelli S.P.A., and Eberspaecher GmbH Holding & Co. KG.
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.