Automotive Exhaust Aftertreatment System Market

Automotive Exhaust Aftertreatment System Market Outlook (2024 to 2034)

Worldwide revenue from the automotive exhaust aftertreatment system market is estimated at US$ 24.1 billion in 2024 and has been calculated to increase at a CAGR of 3.6% to reach US$ 36.02 billion by the end of 2034.

An aftertreatment system is a technique designed to reduce harmful exhaust emissions from internal combustion engines. In simpler terms, it is a mechanism that cleanses exhaust gases to ensure compliance with pollution standards.

Rising greenhouse gas emissions from cars and the increasingly stringent enforcement of related regulations are driving market growth. The market may encounter constraints due to the absence of biodiesel exhaust after-treatment systems and the complexities associated with urea injection setups. Furthermore, the growing production of automobiles, particularly commercial vehicles, is projected to create lucrative market opportunities for manufacturers of automotive exhaust aftertreatment systems during the forecast period.

Demand for automotive particulate filters is primarily attributed to concerns surrounding escalating carbon emissions regulations, prompting the enactment of various regional and global laws aimed at reducing emissions. Businesses are adopting strategies such as selective catalyst reduction to enhance the efficiency of particle filters. Sales of vehicles powered by renewable sources are boosting demand for eco-friendly transportation solutions. This shift redirects funding towards the development of alternatives such as electric vehicles.

The automotive ventilation system market is intricately linked to the volume of car manufacturing. As a result, the rising production of trucks and passenger vehicles in developing countries is contributing to steady global automotive exhaust aftertreatment system market growth.

Report Attribute	Detail
Automotive Exhaust Aftertreatment System Market Size (2024E)	US$ 24.1 Billion
Forecasted Market Value (2034F)	US$ 36.02 Billion
Global Market Growth Rate (2024 to 2034)	3.6% CAGR
Canada Market Growth Rate (2024 to 2034)	3.8% CAGR
China Market Value (2034F)	US$ 5.85 Billion
North America Market Share (2024E)	35.7%
East Asia Market Share (2034F)	34.3%
Key Companies Profiled	Continental; Delphi Automotive; Donaldson Company; Dinex; ESW Group; John Matthey; Cummins; Tenneco; DCL International.

How are Automakers Responding to Stringent Emission Regulations?

“Integration of Aftertreatment Devices in Response to Need for Reducing Emissions”

Emission standards worldwide are becoming increasingly stringent with every passing year, leading to a rise in demand for reducing both the particulate matter and quantities of exhaust gas emissions. Integration of after-treatment devices allows automotive OEMs and exhaust system manufacturers to keep vehicle emissions within mandated regulatory limits.

Among the most commonly utilized combinations of after-treatment devices are SCR and DPF. This pairing eliminates over 70% of both gaseous and particulate matter emissions. SCR works by converting NOx into harmless nitrogen and water with the aid of a reductant, while DPF functions to filter out particulate matter.

• For instance, BASF's Catalysts division offers a blend of a Diesel Oxidation Catalyst (DOC) and a Lean NOx Trap (LNT).

This combination of DOC and LNT offers the high efficiency of HC and CO removal provided by a fully developed DOC, coupled with the capability of an LNT to capture and diminish NOx. Such integration allows exhaust systems to effectively manage emissions within the confines of Euro 6 emission standards for diesel engines. Consequently, these synergistic combinations are fueling the demand for after-treatment devices.

“Industry-Wide Efforts to Reduce Weight of Exhaust Systems and Their Components”

Reducing vehicle weight is increasingly necessary to adhere to stringent pollution and fuel efficiency regulations and to avoid harsh penalties from government authorities. A lighter vehicle requires less gasoline to overcome inertia and thus demands less power to operate, resulting in reduced overall fuel consumption and CO2 emissions. Experts suggest that reducing vehicle weight can enhance mileage by approximately 6% to 8% and improve fuel efficiency by up to 10%.

Automotive original equipment manufacturers are focusing on various areas to decrease vehicle weight, including the development of innovative lightweight materials, aerodynamic design, and enhancing drive train efficiency (engine/transmission).

Traditional exhaust systems utilize materials such as cast iron, stainless steel, and mild steel/carbon steel, among others, for construction. However, several automakers, exhaust system manufacturers, and other entities are striving to lighten the weight of exhaust systems and their components. These are some of the key automotive exhaust aftertreatment system market trends.

What are the Hindrances to Market Expansion?

“Growing Demand for Low-Emission Vehicles and Initiatives Promoting Electric Vehicle Usage”

BEVs, CNG, and LPG-powered automobiles are examples of clean cars. Growing demand for low-emission vehicles is projected to boost sales of CNG and LPG-fueled vehicles during the forecast period. Because CNG and LPG-fueled cars boast substantially lower running costs compared to petroleum-fueled vehicles, they are considered economical.

Sales of BEVs, recognized as the most environmentally friendly vehicle type, are on the rise, due to various government regulations and successful initiatives such as tax breaks promoting electric vehicle usage. Electric car sales are rapidly increasing due to government initiatives and growing environmental awareness.

Cars powered by CNG and LPG utilize simpler exhaust systems devoid of after-treatment components like DPF, DOC, SCR, LNT, or GPF. This reduces the revenue generated by the exhaust system industry compared to ICE-powered vehicles. Conversely, BEVs propel the vehicle using an electric motor, eliminating the need for exhaust components or other types of after-treatment equipment.

Due to the global surge in BEV popularity, especially in countries like the United States and China, exhaust system manufacturers are projected to lose a significant portion of their share. Currently, clean cars have minimal impact on the exhaust system industry, but they are projected to exert a substantial influence in the near future.

Country-wise Evaluation

The market in South Korea is forecasted to expand at a CAGR of 3.5% from 2024 to 2034. The country is evaluated to occupy an automotive exhaust aftertreatment system market share of 23.2% in East Asia by the end of 2034.

What is Drawing Automotive Exhaust Aftertreatment Producers to the United States?

“Growing Government Expenditure in Automotive Sector Benefitting Manufacturers”

Attribute	United States
Market Value (2024E)	US$ 6.55 Billion
Growth Rate (2024 to 2034)	4.7% CAGR
Projected Value (2034F)	US$ 10.4 Billion

Stringent regulatory constraints and growing R&D investments by producers are supporting the expansion of the automotive exhaust aftertreatment system market size in the United States. Rising vehicle production, advancements in automotive catalysts, and technological collaborations between OEMs and Tier I companies are projected to aid market growth in the country in the foreseeable future. However, certain restrictions and challenges could hinder sectoral expansion, such as the high cost of automotive catalysts.

What is Bringing China to the Limelight among Exhaust Aftertreatment System Manufacturers?

“Vehicle Quality Standards Prompting Innovation in Gasoline Exhaust Fume Technologies”

Attribute	China
Market Value (2024E)	US$ 4 Billion
Growth Rate (2024 to 2034)	3.9% CAGR
Projected Value (2034F)	US$ 5.85 Billion

Advancements in particulate filter technology, including exhaust stream regeneration (EGR) mechanisms and emission after-treatment systems, driven by strict government pollution regulations are contributing to market growth in China. In response to forthcoming vehicle quality standards, automakers are innovating gasoline exhaust fume technologies to reduce NOx emissions.

These advancements, along with the development and modernization of vehicle catalytic converters, are projected to lead to increased utilization of advanced car particle filters during the forecast period.

Category-wise Insights

Based on product type, the three-way catalytic converter is expected to hold a share of 16.7% by the end of 2034.

How Does Use of Selective Catalytic Reduction Contribute to Environmental Conservation?

“Vital Role of Selective Catalytic Reduction in Reducing NOx Emissions”

Attribute	Selective Catalytic Reduction
Segment Value (2024E)	US$ 5.49 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 9.65 Billion

The SCR system is effective in reducing NOx levels, which are harmful to health and the environment. Consequently, companies are committed to using this component to help conserve the environment.

Which Vehicle Category Accounts for a Significant Share of the Market?

“Prolonged Operation of Commercial Vehicles Prompting Frequent Maintenance of Exhaust Systems”

Attribute	Commercial Vehicles
Segment Value (2024E)	US$ 22.82 Billion
Growth Rate (2024 to 2034)	1.8% CAGR
Projected Value (2034F)	US$ 27.4 Billion

Compared to passenger vehicles, commercial vehicles have a much longer usage duration, leading to a greater demand for exhaust systems. Consequently, the government ensures that commercial vehicles comply with guidelines and employ appropriate exhaust technologies.

Market Rivalry

Key players in the automotive exhaust aftertreatment system market intend to enter the market by launching new products or diversifying their existing lines. Manufacturers have been compelled by authorities in charge of emission regulations to develop innovative technology that lowers the quantity of harmful gases released from exhaust.

Providing better exhaust after-treatment technology has forced manufacturers to raise their R&D expenditures and adapt themselves to the evolving market trends such as exhaust systems and exhaust mufflers.

• Eaton and Tenneco joined together in March 2021 to develop an integrated thermal management system that would help commercial cars comply with strict emission standards. To lower dangerous exhaust emissions, this method directly heats the aftertreatment systems.

Fact.MR provides detailed information about the price points of key automotive exhaust aftertreatment system manufacturers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Key Segments of Automotive Exhaust Aftertreatment System Market Research

• By Product Type :

  • Three-Way Catalytic Converters
  • Diesel Particulate Filters
  • Diesel Oxidation Catalysts
  • Selective Catalytic Reduction
  • Gasoline Particulate Filters
  • Lean NOx Traps
  • Others

• By Vehicle Category :

  • Passenger Cars
  • Commercial Vehicles

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa