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.  As a result of rising demand for automobiles around the world, it is projected that the global market for automotive catalytic converters would develop at a quick pace over the next several years. The desire for components of a vehicle that are more efficient in their use of fuel is being driven by an increase in knowledge about the detrimental effects of environmental pollution and global warming. This is likely to stimulate increased demand for catalytic converters used in automobiles. The automobile industry is making extensive use of cutting-edge technology in order to produce more environmentally friendly automobiles that consume less fuel and cause fewer emissions. It is anticipated that increase in disposable income and purchasing power of customers all over the world would boost car sales, which will result in a major expansion of the market for automotive catalytic converters worldwide. The implementation of certain rigorous government rules by governments in various developing nations in an effort to control the rising levels of air pollution is one factor that is contributing to the growth of the market for automotive catalytic converters worldwide. Another reason that is driving the global market for automotive catalytic converters is the rising levels of carbon pollution that can be found all over the world.In addition, the rapidly increasing sales of vehicles, rising levels of discretionary income, rising levels of environmental concerns such as air pollution, and rising levels of demand for environmentally friendly vehicles are some of the factors that are responsible for the growth of the Asia Pacific automotive catalytic converter market.

Impact of Covid-19 Temporarily Impacted the Market Growth

The global market for automobile catalytic converters has been negatively impacted as a result of the rapid spread of coronavirus around the globe as well as the mandatory lockdowns that have been implemented in many nations. Because of this, the supply chain has been disrupted, which has led to a halt in the manufacturing and production of automobiles across the world. The losses that were incurred by manufacturers operating in the automotive and transportation industries as a result of a disturbed ecology and a decline in sales of motor vehicles are being recovered from at this time. Due to the fact that businesses have been able to successfully recover, manufacturers in the global market for automotive catalytic converters are concentrating on expanding their production capacities in order to increase their revenue. As a result of the fact that a catalytic converter is a necessary component for the engine of a car to function properly, the market is anticipated to experience favourable expansion in the years to come. The major manufacturers that are currently working in the global automotive catalytic converter market are making investments and developing their production capabilities in order to deploy high quality converters.

Stringent Environment Regulations across the Globe Boosting the Market Revenues

The passage of severe emission rules and the increasing automotive industry in Asia-Pacific, particularly in countries such as India, China, Thailand, and Japan, are two of the primary factors that are driving the expansion of the market. It is anticipated that Europe would account for a significant portion of the global market for vehicle catalytic converters. The rapid expansion of the market can be attributed to a number of factors, including rigorous emission laws, such as Euro V and Euro VI, the increasing presence of significant manufacturers in the region, and other similar factors.The rapidly growing demand for diesel-fuelled vehicles in Europe and Asia-Pacific is a major factor driving the demand and supply of selective catalytic reduction product in the automotive catalytic convertor market. This demand is being driven by the fact that there is an increasing number of diesel-fuelled vehicles. The implementation of Euro 6 rules in Europe has resulted in a reduction in NOx emissions of approximately 97%, which has been of major benefit to the market for vehicle catalytic convertors.

Emergence of Electric Vehicle to Impede the Market Growth

The proliferation of electric vehicles is projected to impede the development of the automotive catalytic convertor market. This is due to the fact that electric vehicles do not require the installation of catalytic converters. The development of biofuels as a solution to problems linked to emissions is another factor that slows the growth of the market for automobile catalytic convertors.

Three-way Oxidation Reduction Dominating the Market Revenues

Three-way oxidation reduction catalytic converters are frequently employed in automobiles. Three-way oxidation reduction catalytic converters market dominated in terms of revenue share in 2021. It is projected that the segment of three-way oxidation reduction catalytic converters will continue to maintain its dominance during the forecast period due to the increased number of vehicles on the road powered by IC engines. In addition, it is anticipated that it would take a relatively longer amount of time for electric cars to completely replace heavy-duty commercial vehicles such as tractors and trucks.Two-way oxidation catalytic converters are inefficient and cannot handle nitrogen oxide, which is why they are not generally used in automobiles. However, three-way oxidation-reduction catalytic converters are commonly used in automobiles. The three-way oxidation-reduction catalytic converter market is anticipated to keep its dominant position throughout the forecast period due to the growing number of vehicles on the road powered by internal combustion engines (IC engines). In addition, it is anticipated that electric automobiles would not completely replace heavy-duty commercial vehicles such as tractors and trucks for a longer period of time.

Platinum Dominating the Market Revenues and Palladium Promising Significant Opportunities

In terms of material, the market for vehicle catalytic converters has been segmented under three distinct submarkets: platinum, palladium, and rhodium. Platinum market held the largest share in 2021. In addition, the use of mixed metal catalyst is gaining popularity at a quick rate due to the fact that it is highly effective and has excellent performance capabilities.In the market for automotive catalytic converters, palladium material is expected to garner significant consumer preference, therefore, registering the highest CAGR during the forecast period of 2023 to 2030.Because of its cheaper prices in comparison to platinum, material containing palladium is projected to capture a substantial amount of consumer choice in the market for automobile catalytic converters. It has been observed that the majority of gasoline catalytic converters have been based on palladium, which drives the expansion of the entire market for vehicle catalytic converters. In addition, palladium is the metal that retains its strength and reactivity in high-temperature circumstances, making it an excellent candidate for oxidation.

 Europe Dominating Revenues and APAC to Dominate Growth

Europe held the largest revenue share in 2021. The strict emission limits that have been implemented across Europe, such as Euro V and Euro VI, are the primary driver that is boosting demand in that region. For example, the European Union (EU) is currently mandating that CO2 emissions for each car company's fleet average should be reduced to 95 g/km between the years 2020 and 2024. Additionally, the EU wants to achieve a reduction of 15% in CO2 emissions by the year 2025 and a reduction of 37.5% by 2030, particularly for passenger cars in the region. Certain nations, such as the Netherlands, have implemented stricter emission rules, which require 80 g/km.In addition, the presence of well-known manufacturers in countries such as Germany and the United Kingdom has propelled the region to the forefront of the global automotive catalytic converters market. In addition, the increase of the automotive industry in South America, Asia Pacific, the Middle East, and Africa has led to an expansion of the market for vehicle catalytic converters in each of these geographic areas.

 It is expected that APAC region will register the highest CAGR during the forecast period of 2023 to 2030.  It is anticipated that increased environmental concerns would lead to an increase in the demand for electric vehicles that are superior in terms of their influence on the environment, which is projected to have a favourable indirect impact on the market.Developing regions in the automobile catalytic convertor industry, such as China and India, are also striving toward updating norms and regulations equal to the Euro 6 regulations. China and India are examples of such developing regions. This, in turn, is anticipated to be of the utmost importance to the long-term growth of the vehicle catalytic convertor markets in Asia-Pacific and Europe.For example, India is moving ahead with Bharat Stage VI standards while avoiding Bharat Stage V regulations, which will have a beneficial impact on the automotive catalytic converter market manufacturers.In addition, the expanding market for automotive catalytic convertors is being driven by an increasing number of on-road cars with an improved road infrastructure, stringent regulations regarding fuel economy, and a growing consumer awareness about the need of vehicle maintenance. Following these procedures should result in the creation of lucrative opportunities in the aftermarket for vehicle catalytic converters.

Market Remains Consolidated and Demand High Level of Innovation to Keep in Pace

The market for automotive catalytic converters is highly concentrated as a result of the dominant position held by a handful of companies, including Faurecia SA, Marelli SpA, Tenneco Inc., Marelli and BASF. The leading companies that are currently operating in the global automotive catalytic converter market are focusing on expanding their business by creating new technologies and catalytic converters that are more effective. Because of the widespread availability of automobile manufacturers in different parts of the world, the automotive sector is expanding at a breakneck pace. During the forecast period, the global market for automotive catalytic converters is anticipated to benefit from a number of different strategic alliances involving component makers and vehicle manufacturers from all over the world. End users all across the world have a strong preference for automobiles that are both economical and perform well.Companies that operate on a worldwide scale are increasing their footprint by participating in the research and development of cutting-edge technologies and catalytic converters that are more effective. Automotive manufacturers in the market for automotive catalytic convertors are exerting a significant amount of effort to concentrate on the development of vehicles that eradicate hazardous emissions, which in turn improves the efficiency of the vehicles. As a result of manufacturers' efforts to achieve expertise in worldwide norms and regulations compliance, optimal vehicle performance, and cost-effective solutions, the market for automotive catalytic convertors is expected to experience considerable growth potential in the near future.Manufacturers in the market for automotive catalytic convertors are adopting inventory management methods by engaging into collaborations with the raw material suppliers in order to cater to the fluctuating prices of raw materials. These strategies involve backward integration. Market participants in the automotive catalytic convertor market are implementing new distribution techniques such as e-commerce shops.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Catalytic Converter market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Catalytic Converter market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Catalytic Converter market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Catalytic Converter market?
• Which is the largest regional market for Automotive Catalytic Converter market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Catalytic Converter market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Catalytic Converter market worldwide?