Exhaust System Market

Exhaust System Market Outlook (2024 to 2034)

Worldwide revenue from the sales of exhaust systems is estimated to reach US$ 63.02 billion in 2024. The global exhaust system market is projected to expand at 5.9% CAGR to climb to a value of US$ 111.8 billion by the end of 2034.

Both aftermarket suppliers and original equipment manufacturers (OEMs) drive demand for exhaust systems. OEMs require exhaust systems for new car production to meet consumer expectations for efficiency and performance, while also complying with stringent emission regulations. Simultaneously, as vehicles age, components deteriorate and require replacement, sustaining demand in the aftermarket sector.

Key Market Growth Drivers

• Significant advancements in exhaust systems are projected to drive market growth by improving fuel efficiency through reduced NOx emissions.
• Increasing consumer and automaker focus on sustainability is boosting demand for efficient, high-performance vehicles, thereby expanding the exhaust system market.
• Growing requirements for effective after-treatment devices are projected to significantly bolster demand for exhaust systems.
• Many OEMs are actively investing in extensive R&D to enhance exhaust after-treatment devices.
• Stricter emissions regulations are a key exhaust system market trend, driving demand for products that reduce vehicle emissions.
• Integration of after-treatment devices allows manufacturers and OEMs to mitigate vehicle pollutants while meeting regulatory standards.
• Gasoline particulate filters, known for their effectiveness in noise reduction and exhaust emissions from GDI engines, are notable advancements in after-treatment technology.
• Use of lightweight materials in exhaust systems enhances vehicle performance and fuel efficiency by reducing overall vehicle weight.
• Innovations in exhaust system technology, such as gasoline particulate filters (GPF), diesel particulate filters (DPF), and selective catalytic reduction (SCR), are improving emission control efficiency.

Report Attribute	Detail
Exhaust System Market Size (2024E)	US$ 63.02 Billion
Forecasted Market Value (2034F)	US$ 111.8 Billion
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
East Asia Market Share (2024E)	29.1%
North America Market Value (2024E)	US$ 16.2 Billion
Diesel Segment Value (2034F)	US$ 57.61 Billion
OEM Segment Value (2034F)	US$ 81.5 Billion
Passenger Car Segment Value (2034F)	US$ 64.36 Billion
Key Companies Profiled	Faurecia SE; Futaba Industrial Co.; Sawicki Speed; Milltek Sport; Friedrich Boysen GmbH & Co. KG; Eberspacher; Honda Global; Tenneco Automotive Pvt. Ltd.; Yutaka Giken Co. Ltd.; Benteler International AG; Sejong Industrial Co. Ltd.

What is the Demand Outlook for Exhaust Systems Worldwide?

“Market Driven Innovations in Exhaust Systems Such as GPFs, DPFs, and SCR and Stringent Pollution Regulations”

Innovations in exhaust systems, including gasoline particulate filters (GPFs), diesel particulate filters (DPFs), and selective catalytic reduction (SCR), significantly enhance emission control efficiency, driving market growth. SCR technology reduces nitrogen oxide (NOx) emissions by utilizing a urea-based solution to convert them into harmless nitrogen and water.

DPFs effectively remove particulate matter (PM) from diesel engine exhaust, preventing hazardous particles from being released into the atmosphere. Similarly, GPFs capture gasoline engine soot and particle pollution. These advanced technologies are essential to meet increasingly strict pollution regulations worldwide, ensuring compliance with environmental standards while simultaneously improving fuel efficiency and engine performance.

What Do Exhaust System Manufacturers Need to Keep an Eye On?

“Need for High-Quality Materials to Stand Harsh Environments and High Production Costs”

Manufacturers of exhaust systems face a significant hurdle in meeting the demand for high-performance materials that can endure extreme temperatures and harsh conditions. These materials must be heat-resistant, robust, and efficient in managing emissions. The complexity of designing and manufacturing these intricate systems exacerbates the challenge, requiring advanced engineering and specialized production methods.

In the exhaust systems market, manufacturers encounter difficulty balancing performance, durability, and cost-effectiveness due to these factors, which not only escalate production costs but also impede the expansion of the exhaust system market size.

Country-wise Insights

East Asia is poised to hold 29.1% of the global exhaust system market share in 2024 due to increasing sales of vehicles. The market in North America is forecasted to expand at a 6.1% CAGR from 2024 to 2034, driven by the presence of well-established companies in the region.

How is the Market Faring in the United States?

“High Need for Exhaust System Replacements in Older Vehicles”

Attribute	United States
Market Value (2024E)	US$ 14.77 Billion
Growth Rate (2024 to 2034)	5.9% CAGR
Projected Value (2034F)	US$ 26.15 Billion

The United States automotive market, a key player globally, effectively manages the demand for both new vehicles and a large fleet of older cars still in operation. This dynamic sustains a continuous need for exhaust systems from original equipment manufacturers (OEMs) and the aftermarket.

New cars require the latest exhaust systems to comply with stringent emission standards, while replacements are essential for older vehicles to maintain performance and legal compliance. Consequently, the market in the United States is growing due to this dual demand for both new and older vehicles.

Why is Japan the Center of Attraction for Exhaust System Producers?

“Stringent Emission Regulations and Increased Production of Electric and Hybrid Vehicles”

Attribute	Japan
Market Value (2024E)	US$ 4.7 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 9.74 Billion

Demand for exhaust systems in Japan is increasing at a significant pace, driven by stringent emission regulations aimed at minimizing environmental impact and air pollution. Japan's automotive industry, known for its production of electric and hybrid vehicles, contributes significantly to this demand for specialized exhaust systems.

In Japan, there is a growing preference for high-performance exhaust systems that enhance engine efficiency and reduce emissions, aligning with the market's strong emphasis on sustainability and fuel efficiency. Additionally, Japan's aging car fleet necessitates continuous aftermarket replacement parts, further boosting the demand for exhaust systems.

Category-wise Insights

The market is segmented into passenger cars and commercial vehicles based on vehicle type. The passenger vehicle segment is estimated to account for 61.6% of revenue share in 2024.

What Makes Exhaust Systems Critical for Diesel-Powered Vehicles?

“High Production of NOx and Particulate Matter from Diesel Vehicles”

Attribute	Diesel
Segment Value (2024E)	US$ 34.37 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 57.61 Billion

Exhaust systems are crucial for diesel-powered vehicles primarily due to the emissions they generate. When diesel engines replace gasoline engines, they produce higher levels of nitrogen oxides (NOx) and particulate matter (PM). Advanced exhaust systems are necessary for diesel vehicles to comply with stringent global emission regulations.

Selective catalytic reduction (SCR) systems and diesel particulate filters (DPF) are integral components of these advanced exhaust systems. SCR systems use a catalyst to convert harmful NOx into nitrogen and water vapor, significantly reducing emissions. Meanwhile, DPFs capture and eliminate PM pollutants from diesel engine exhaust.

Efficient exhaust systems are essential for diesel vehicles to minimize their environmental impact and ensure compliance with emissions regulations worldwide.

Why Do OEMs Account for Higher Revenue Streams?

“Integrated Supply Chains and Economies of Scale”

Attribute	OEMs
Segment Value (2024E)	US$ 44.87 Billion
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 81.5 Billion

Because of high vehicle production volumes and regulatory mandates, OEMs sell substantial quantities of exhaust systems. To meet stringent global emission standards, OEMs must install compliant exhaust systems in new vehicles. Demand for OEM exhaust systems correlates directly with vehicle production rates.

Through integrated supply chains and economies of scale during assembly, OEMs ensure seamless compliance with emissions regulations and optimal system performance. The significant sales volumes of OEM exhaust systems stem largely from this integrated supply chain and bulk purchasing advantages.

Competitive Landscape

Key players in the exhaust system industry are maintaining their position in competition by using unique features, materials, and designs. This helps them to meet the needs of various clients such as OEMs and aftermarket, by offering customized items that fulfill specific vehicle standards.

By strengthening their relationships with aftermarket distributors and service providers, manufacturers are boosting their income from replacement parts and maintenance services.

• In September 2023, a new exhaust system designed especially for the Indian Challenger and Pursuit was released by the United States-based Sawicki Speed, a high-performance exhaust expert. The brand's Mid-Length and Shorty models are compatible with the new Full-Length exhaust system.
• In September 2023, with the introduction of a Slip-On Line (Titanium) for the Honda XL750 Transalp and a Slip-On Line (Carbon) for the Honda CB750 Hornet, Akrapovic expanded its selection of Honda replacement exhausts by two.
• In July 2023, Milltek Sport, a United Kingdom-based company renowned for its high-performance exhaust systems across various vehicles, introduced an enhanced exhaust system for BMW's exhilarating M2 Coupe, pushing the boundaries of the new model's capabilities even further.
• In May 2021, Futaba Industrial Co., Ltd expressed plans to participate in the Automotive Engineering Exposition 2021 Online. The company plans to exhibit exhaust and vehicle components that reduce emissions, increase fuel efficiency, and reduce weight in support of SDGs (Sustainable Development Goals).
• In November 2021, Faurecia announced plans to acquire Hella, a German supplier specialized in the production of lighting and electronics automotive products in a US$ 7.27 billion deal. Together, the companies will become the 7th largest automotive supplier and will be well suited to take on new challenges such as autonomous driving, electric mobility, and the cockpit of the future.

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

Segmentation of Exhaust System Market Research

• By Vehicle Type :

  • Passenger Cars
  • Commercial Vehicles

• By Fuel :

  • Diesel
  • Gasoline

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

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