The automotive catalytic converter market reached about US $13.5 billion in 2021 and is anticipated to grow at a CAGR of 7.5% during the forecast period of 2023 to 2030. It is anticipated that the automobile sector will experience significant expansion in the not-too-distant future as a result of increasing hefty investments in research and development made by car manufacturers as well as severe emission control rules and regulations across the globe. It is anticipated that the presence of these factors will boost demand and supply of new and novel automotive catalytic converter technologies, and it is anticipated that the rate of adoption of these technologies in vehicles will increase in the years to come.
Because of the increasingly strict regulations and standards that have been set for the purpose of decreasing harmful emissions from automobiles, the selective catalytic reduction convertor is projected to gain substantial traction in the market for automotive catalytic convertors. New rules and regulations regarding the safety of the environment that have been imposed by regulatory bodies and governments have been influencing manufacturers in the automotive catalytic convertor market, which has resulted in an increase in the production of vehicles that are both fuel-efficient and friendly to the environment. The rapidly expanding health and environmental concerns have persuaded governments all over the world to establish rigorous emission rules for the purpose of lowering and controlling carbon emissions. This has resulted in the growth of the market for vehicle catalytic convertors.Electric cars don't need catalytic converters, therefore hindering the market for catalytic convertors. Biofuels as a solution to emissions problems also slow the demand for auto catalytic converters.
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Three-way oxidation reduction catalytic converters dominated the revenue share in 2021. The rising number of IC-powered vehicles on the road is expected to keep three-way oxidation reduction catalytic converters in the lead. Electric cars may take longer to replace heavy-duty commercial vehicles like tractors and trucks. Two-way oxidation catalytic converters are inefficient and can't handle nitrogen oxide. Automobiles use three-way oxidation-reduction catalytic converters. The three-way oxidation-reduction catalytic converter market is expected to remain dominating due to the rising number of cars with internal combustion engines (IC engines).
Catalytic converters are made of platinum, palladium, and rhodium. Platinum market dominated the revenue share on 2021. Mixed metal catalyst is gaining popularity quickly due to its effectiveness and performance. Palladium is predicted to be the fastest growing material market for vehicle catalytic converters from 2023 to 2030. Palladium-containing material is expected to gain market share in auto catalytic converters due to its lower cost than platinum. Palladium-based gasoline catalytic converters dominate the market for automotive catalytic converters. Palladium keeps its strength and reactivity at high temperatures, making it a good oxidizer.
Europe dominated the market revenues in 2021. Euro V and Euro VI emission regulations are driving demand in Europe. The EU requires car companies to cut their CO2 emissions to 95 g/km between 2020 and 2024. The EU plans to reduce CO2 emissions by 15% by 2025 and 37.5% by 2030, especially for passenger cars. The Netherlands has tighter emission regulations of 80 g/km. Well-known manufacturers in Germany and the UK have moved the area to the forefront of the global automotive catalytic converters market. The growth of the automotive industry in South America, Asia Pacific, the Middle East, and Africa has also expanded the market for vehicle catalytic converters.
APAC is expected to have the greatest CAGR during the forecast period of 2023 to 2030. Increasing environmental concerns are expected to boost demand for electric vehicles with a lower environmental impact, which will indirectly benefit the industry. China and India are working to update their auto catalytic converter rules to Euro 6 standards. China and India are growing countries. This is expected to be crucial to the long-term growth of the Asia-Pacific and European vehicle catalytic convertor markets. India is adopting Bharat Stage VI while avoiding Bharat Stage V, which will benefit vehicle catalytic converter producers. In addition, an increasing number of on-road cars, improved road infrastructure, strict fuel efficiency rules, and greater consumer awareness about vehicle maintenance are driving the market for automotive catalytic convertors. Following these steps should create lucrative catalytic converter aftermarket prospects.
The market for automotive catalytic converters is highly concentrated. Faurecia SA, Marelli SpA, Tenneco Inc., Marelli, and BASF dominate the vehicle catalytic converter market. The global market for automotive catalytic converters is expected to benefit from strategic agreements between component makers and automakers. There is a global demand from economical high-performing cars. Global companies are expanding by developing cutting-edge technologies and more effective catalytic converters. Automotive catalytic convertor makers are focusing on developing vehicles that eliminate toxic emissions, which increases vehicle efficiency. As manufacturers gain knowledge in global norms and regulations compliance, optimal vehicle performance, and cost-effective solutions, the market for automotive catalytic convertors is predicted to rise. Automotive catalytic convertor manufacturers are collaborating with raw material suppliers to control inventory and variable raw material prices. Automotive catalytic convertor market participants are also actively participating through e-commerce platform.
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