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Automotive Exhaust Systems Market

Market Study on Automotive Exhaust Systems: Witnessing a Visible Shift Towards Lightweight Materials, the Market will Gain from Rising Adoption of EVs, and Growing Integration of Advanced catalytic Converter Technologies

A Detailed Analysis of the Automotive Exhaust Systems Market Based on Growing Focus on Pollution, Vehicle Emission Mandates, Fuel Efficiency, and Sustainable Mobility Solutions

Automotive Exhaust Systems Market

The global automotive exhaust systems market is forecast to expand at a CAGR of 5.5% and thereby increase from a value of US$46.2 Bn in 2023, to US$67.2 Bn by the end of 2030.

Attributes

Key Insights

Automotive Exhaust Systems Market Size (2023E)

US$46.2 Bn

Projected Market Value (2030F)

US$67.2 Bn

Global Market Growth Rate (2023 to 2030)

5.5% CAGR

Historical Market Growth Rate (2018 to 2022)

4.8% CAGR

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Automotive Exhaust Systems Market Outlook (2023 to 2030)

The automotive exhaust systems market pertains to the sector of the industry that is engaged in the manufacturing and distribution of vehicle emission management components. These systems are crucial in mitigating environmental damage through the regulation and treatment of the byproducts generated throughout the combustion procedure. Mufflers, exhaust ducts, and catalytic converters are essential components.

With the increasing stringency of global automotive regulations, there is a burgeoning demand in the market for advanced exhaust systems that adhere to emission standards. This requires a transition to novel technologies, including the utilization of lightweight materials and selective catalytic reduction, in line with the industry's general inclination towards sustainability and adherence to regulations.

Multiple factors contribute to the ever-changing nature of the worldwide automotive exhaust systems market. Globally enforced stringent emission regulations are the primary factor driving the expansion of the industry. The imperative for manufacturers to comply with these regulations drives the market demand for state-of-the-art exhaust technologies.

Additionally, the growing consciousness and prioritization of environmental sustainability among consumers impact their purchasing choices, favoring automobiles that are outfitted with environmentally favorable and efficient exhaust systems. Moreover, the increasing manufacturing and distribution of vehicles worldwide, specifically in developing economies, stimulates the need for exhaust systems. The shift towards electric vehicles in the automotive industry has a consequential effect on the market for conventional exhaust systems, thereby generating prospects for innovation and adjustment within the sector.

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Market Growth Drivers

Rigorous Regulatory Framework Governing Vehicle Emissions

The global automotive exhaust systems market is significantly influenced by the rigorous regulatory framework that governs vehicle emissions. Governments across the globe have implemented rigorous emission standards and regulations to mitigate air pollution and address environmental concerns. The regulatory bodies place ever more rigorous restrictions on the acceptable levels of pollutants discharged by automobiles, which necessitates that manufacturers make investments in sophisticated exhaust systems to comply.

Significantly, critical emissions, including nitrogen oxides (NOx) and particulate matter, are currently undergoing intense examination, which is prompting the automotive sector to implement novel technologies and refine design improvements in exhaust systems.

The regulatory pressure to promote healthier emissions is emphasized by a worldwide agreement to reduce climate change and improve air quality. Prominent automotive markets, such as the European Union, the United States, China, and India, have enacted or suggested all-encompassing emission regulations that require vehicles to incorporate advanced exhaust systems.

In Europe, for example, the Euro 6 emission standards impose rigorous restrictions on the release of NOx and particulate matter, compelling automotive manufacturers to incorporate sophisticated catalytic converters and particulate filters into their exhaust systems. In the same way, the Clean Air Act enforces rigorous emission regulations in the United States, which has prompted the implementation of sophisticated exhaust technologies to meet or surpass these benchmarks.

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Market Restraints

Prohibitive R&D Costs

One of the primary factors restraining the worldwide automotive exhaust systems market is the increasing expense of research and development required to comply with rigorous emission regulations. In the light of ongoing stringent emission regulations imposed by regulatory bodies across the globe, manufacturers are obligated to make significant investments in research and development to create exhaust systems that not only adhere to present standards but also proactively anticipate and accommodate forthcoming regulatory demands.

Automotive manufacturers, especially lesser market participants, incur significant financial debt due to the intricate nature of attaining reduced emissions while preserving peak engine performance.

Ongoing Instability in Prices of Basic Materials

An influential factor that poses a challenge to the global automotive exhaust systems market is the ongoing instability in the prices of basic materials. Material utilization in the fabrication of exhaust systems is substantially dependent on alloys, steel, and other similar substances.

Variations in the costs of these primary resources can have a substantial influence on the overall production expenses of exhaust system components. The automotive sector is particularly vulnerable to changes in commodity prices due to its extensive production volumes and narrow profit margins.

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Opportunities

Rapid Expansion of EV Industry

The worldwide automotive exhaust systems market is being driven by an advantageous circumstance: the rapid expansion of the electric vehicle (EV) industry and the accompanying transition to hybrid technologies. Amidst the ongoing shift towards sustainability in the automotive sector, the emergence of electric and hybrid vehicles offers a distinct prospect for producers operating in the exhaust systems industry.

Although conventional internal combustion engine vehicles continue to be the prevailing choice, the growing prevalence of electric and hybrid technologies calls for the creation of exhaust systems that are customized to meet the unique requirements of these alternative propulsion systems.

The electric vehicle market is experiencing significant expansion due to the worldwide dedication to diminishing greenhouse gas emissions and reliance on fossil fuels. Governments across the globe are creating a favorable atmosphere for the growth of the electric vehicle industry by providing subsidies, tax advantages, and rigorous emission regulations to encourage the purchase of electric vehicles.

The current trend toward electrification provides exhaust system manufacturers with a prospect to expand their range of products. Although wholly electric vehicles may render conventional exhaust systems less significant, the demand for inventive exhaust solutions that seamlessly integrate with electric components is increasing in hybrid vehicles.

Market Segmentation

What Type of Testing Equipment will Witness the Highest Sales?

Catalytic Converter to Dominate Market Scope Owing to Increasing Emphasis on Emission Control

With the greatest market share anticipated, the catalytic converter segment will dominate the automotive exhaust systems market. The increasing emphasis on emission control and the critical role that catalytic converters play in reducing hazardous pollutants are factors contributing to this dominance. The increasing stringency of emission regulations imposed by governments across the globe is driving the demand for advanced catalytic converters, thereby establishing this sector as a fundamental component of automotive exhaust systems.

On the contrary, it is expected that the exhaust manifold segment will undergo the most rapid expansion. The current upswing is propelled by developments in materials and design, which have resulted in enhanced longevity and improved functionality. The segment is poised for significant growth in the future years due to the advancements in exhaust manifold technologies, which encompass lightweight materials and integrated designs, as automakers endeavor to achieve improved fuel efficiency and decreased emissions.

Which is the Leading Fuel Type Segment?

Petroleum Surges Ahead with Continued Prevalence of ICE Engines

It is anticipated that the petroleum segment will hold the most significant portion of the automotive fuel market. The prevalence of petroleum engines in passenger vehicles and the growing consumer interest in fuel-efficient and environmentally sustainable alternatives are factors that contribute to this dominance.

Despite the growing prominence of hybrid and electric vehicles in the automotive industry, gasoline-powered vehicles maintain a considerable market presence, contributing to the sector's substantial market share. In contrast, the diesel market is projected to witness the most rapid expansion. The demand for diesel engines in commercial vehicles, such as trucks and buses, where the fuel efficiency and torque benefits of diesel engines are of the utmost importance, is driving this expansion.

Furthermore, progress in clean diesel technologies, which aim to mitigate environmental issues, is anticipated to contribute significantly to the expansion of the diesel sector, particularly in use cases where the distinctive qualities of diesel fuel offer a clear edge.

Which Vehicle Type are to Lead Through 2030?

Passenger Cars to Widen their Footprint with Ongoing Need for Fuel-efficient Vehicles

Passenger cars are anticipated to account for the most significant portion of the automotive market. The substantial quantity of passenger cars in circulation worldwide, in conjunction with the ongoing need for fuel-efficient and technologically advanced automobiles, is the driving force behind this dominance.

The passenger car segment comprises a wide array of automobiles, spanning from compact cars to high-end sedans, to accommodate a variety of consumer tastes and contribute significantly to the segment's market dominance. On the contrary, it is expected that the light commercial vehicle (LCV) sector will witness the most rapid expansion.

In conjunction with the growth of urban areas, the increase in e-commerce and last-mile delivery services is propelling the need for LCVs that are both agile and efficient. Especially as logistics and transportation services evolve to meet the demands of a dynamic and interconnected global economy, the adaptability of LCVs in meeting both commercial and private transportation requirements, positions this sector for rapid expansion.

Top Regional Markets

North America’s Pre-eminence will be Intact Through 2030

It is expected that the North American region will hold the largest market share in the worldwide automotive industry. The foundation of this hegemony can be traced back to the firmly established automotive sector in North America, specifically the United States.

The region's market share is substantially influenced by a strong consumer demand for vehicles and a concentrated fleet of industry leaders. Further driving the demand for automotive exhaust systems in this region are stringent emission regulations and an increasing inclination towards technologically advanced and fuel-efficient vehicles.

Promising Prospects Appear in Sough Asia, and Oceania

South Asia, and Oceania will witness the most rapid expansion of the worldwide automotive exhaust systems market. The exponential expansion can be ascribed to the thriving automotive sector in nations such as India and the ASEAN area. Increasing disposable income, urbanization, and population growth are all contributing to the robust market for automotive exhaust systems by fueling the demand for automobiles.

Furthermore, the implementation of rigorous emission regulations and governmental efforts to promote sustainable transportation solutions are stimulating the uptake of cutting-edge exhaust technologies. This, in turn, is driving the automotive exhaust systems market's exponential expansion in the region.

The convergence of economic progress, increasing consumer expectations, and regulatory obligations establishes South Asia, and Oceania as a pivotal catalyst for the forthcoming growth of the worldwide automotive exhaust systems market.

Analyst’s Viewpoint

The worldwide market for automotive exhaust systems is positioned for substantial expansion, propelled by a convergence of elements that highlight market dynamics and industry trends. An important factor driving this expansion is the increasing severity of emission regulations on a global scale. To address environmental concerns, governments in key automotive markets, including North America, Europe, and Asia, are enforcing increasingly stringent emission standards.

The dynamic nature of this regulatory environment stimulates the growth of the market, compelling automakers to invest in sophisticated exhaust systems to comply with these ever-changing standards. Moreover, the increasing environmental consciousness and consumer awareness are influencing a change in consumer inclinations towards automobiles that are outfitted with exhaust systems that are favorable to the environment.

Presently, there is a growing trend among consumers to favor automobiles that not only provide superior performance but also adhere to sustainability objectives. This change in consumer behavior establishes an industry-consumer symbiotic relationship. Manufacturers are allocating resources towards research and development endeavors to address this demand and produce exhaust systems that not only abide by regulatory requirements but also satisfy consumer demands for vehicles that are more environmentally friendly and fuel-efficient.

Furthermore, the trajectory of the market is impacted by the cooperative endeavors of manufacturers to maintain a leading position in technological progress. The prevalence of partnerships and collaborations between exhaust system suppliers and automotive manufacturers is on the rise, contributing to the establishment of a cooperative research and development environment. By adopting this collaborative strategy, the automotive sector can consolidate its resources, exchange knowledge, and collectively confront the obstacles presented by rigorous emission regulations and the ever-changing automotive environment.

Supply-side Dynamics

Prominent contenders in the global automotive exhaust systems market comprise industry titans Faurecia, Tenneco Inc., Eberspacher, Bosal, and MagnaFlow, among others. These corporations demonstrate a robust market presence by capitalizing on their extensive distribution networks and technological prowess to sustain a competitive advantage. Notably, prevalent automotive manufacturing nations-including the United States, Germany, China, Japan, and South Korea-have adopted the market to an exceptional degree.

Propelled by rigorous emission regulations and a thriving automotive sector, these countries make extensive use of advanced exhaust systems. As an example, Germany, a prominent player in the automotive industry, enforces mandatory compliance with Euro 6 emission standards for high-performance exhaust systems, thereby demonstrating the market's efficacy in attaining regulatory compliance.

The industry landscape is significantly influenced by the dominant players in the global automotive exhaust systems market, who achieve this through ongoing innovation and strategic initiatives. These corporations allocate substantial resources towards research and development to implement innovative processes, including selective catalytic reduction (SCR) and lightweight materials, which establish novel standards for efficiency and environmental friendliness.

Furthermore, their market position is fortified through strategic partnerships with manufacturers, which facilitate the smooth incorporation of sophisticated exhaust systems into automobiles. By combining an emphasis on expanding their global footprint with an emphasis on eco-friendly solutions, dominant actors drive market growth and influence industry standards. Typically, their proactive methodology toward technological progressions and strategic alliances is transforming the competitive environment and driving the market toward a future characterized by enhanced sustainability and technological sophistication.

Competitive Intelligence and Business Strategy

Prominent entities in the worldwide automotive exhaust systems industry are employing strategic implementation of diverse methodologies to maintain and augment their market dominance. Prominent companies in the industry, such as Faurecia, Tenneco Inc., Eberspacher, Bosal, and MagnaFlow, are making substantial investments in R&D to unveil groundbreaking technologies that effectively tackle the interplay between regulatory adherence and consumer preferences for sustainability and efficiency.

Critical components of their market strategies are sophisticated exhaust systems that integrate technologies such as selective catalytic reduction (SCR), diesel particulate filtration (DPF), and lightweight materials. To optimize their market presence, these companies are leveraging their technological prowess to develop exhaust systems that not only satisfy but surpass internationally mandated emission standards.

By adopting this proactive stance, they not only guarantee adherence to regulatory requirements but also establish themselves as trailblazers in the industry, thereby garnering collaborations with prominent automotive manufacturers who are in search of state-of-the-art solutions for their vehicles.

Moreover, the focus on sustainability is consistent with the overarching industry movement towards environmentally conscious modes of transportation. Industry leaders are currently in the process of creating exhaust systems that not only mitigate emissions but also enhance fuel economy, catering to the growing demand from consumers for environmentally friendly and fuel-efficient automobiles.

Key Company Developments

New Manufacturing Facility

In May 2023, Cummins completed the acquisition of Faurecia's manufacturing facilities in the United States, and the Netherlands for €142 million. This transaction will fortify Cummins' foothold in the commercial vehicle exhaust systems sector, facilitate worldwide expansion, and augment industry capabilities.

Market Impact: The €142 million acquisition by Cummins of Faurecia's U.S. and Dutch manufacturing facilities represents a strategic move with far-reaching consequences for the global automotive exhaust systems market. This advancement is anticipated to strengthen Cummins' standing in the industry of commercial vehicle exhaust systems, augmenting its functionalities and broadening its worldwide presence. The acquisition is consistent with the industry-wide pattern of consolidation and strategic alliances, demonstrating that major players have made a deliberate effort to bolster their technological prowess and market presence to achieve long-term expansion in the ever-changing automotive sector.

(Source: Cummins Newsroom)

New Product Line

Futaba Industrial Co., Ltd. declared its intention to showcase its products at the Automotive Engineering Exposition 2021 Online in May 2021. Components for the exhaust and body systems that reduce the emission of substances of environmental concern, increase fuel efficiency, and decrease weight will be implemented by the company in support of the Sustainable Development Goals.

Market Impact: By exhibiting environmentally conscious components for exhaust and body systems at the Automotive Engineering Exposition 2021 Online, Futaba Industrial Co., Ltd. demonstrates a proactive posture toward achieving global sustainability objectives. Futaba Industrial's product development is in line with the industry-wide inclination towards environmentally sustainable solutions, as evidenced by its focus on minimizing significant environmental pollutants, enhancing fuel efficiency, and reducing weight. This advancement signifies a collaborative effort within the automotive industry to promote the adoption of environmentally sustainable technologies, thereby making a significant contribution to the global market and furthering the Sustainable Development Goals.

(Source: Moriroku Holdings)

Automotive Exhaust Systems Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

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

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Product Type
  • Fuel Type
  • Vehicle Type
  • Region

Key Companies Profiled

  • Faurecia
  • Tenneco Inc.
  • Eberspächer Group
  • Friedrich Boysen GmbH & Co. KG
  • Yutaka Giken Co., Ltd.
  • Benteler Automotive
  • Sejong Industrial Co., Ltd.
  • Futaba Industrial Co., Ltd.
  • SANGO Co., Ltd.
  • Bosal International N.V.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Automotive Exhaust Systems Market Research Segmentation

By Product Type:

  • Exhaust Manifold
  • Muffler
  • Catalytic Converter
  • Oxygen Sensor
  • Exhaust Pipes

By Fuel Type:

  • Gasoline
  • Diesel

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Faurecia
  • Tenneco Inc.
  • Eberspächer Group
  • Friedrich Boysen GmbH & Co. KG
  • Yutaka Giken Co., Ltd.
  • Benteler Automotive
  • Sejong Industrial Co., Ltd.
  • Futaba Industrial Co., Ltd.
  • SANGO Co., Ltd.
  • Bosal International N.V.

- Frequently Asked Questions -

The global automotive exhaust systems market is anticipated to grow at a CAGR of 5.5% during the projected period.

The global market size of automotive exhaust systems is around US$46.2 Bn as of 2023.

As of 2023, the US spearheads the global market for automotive exhaust systems market.

Some of the most prominent players in this market include Faurecia, Tenneco Inc., Eberspächer Group, Friedrich Boysen GmbH & Co. KG, Yutaka Giken Co., Ltd., and Benteler Automotive.

The LCV segment is expected to grow at the fastest pace during the forecast period.

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