Key Factors Driving Growth in Automotive Catalytic Converter Market
Key Factors Driving Growth in Automotive Catalytic Converter Market
Blog Article
The Automotive Catalytic Converter Market is an essential pollution control device that converts toxic by-products of combustion into less-harmful emissions. Catalytic converters help reduce the emission of air pollutants like carbon monoxide, nitrogen oxides, and hydrocarbons from an internal combustion engine through a redox reaction. Growing awareness about environmental pollution and stringent government regulations regarding vehicular emission have compelled automobile manufacturers to integrate catalytic converters with vehicles.
The automotive catalytic converter market is estimated to be valued at USD 169.5 Bn in 2024 and is expected to reach USD 302.55 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.
Key players operating in the automotive catalytic converter market are Continental AG, BASF Catalysts LLC, Tenneco Inc., Magneti Marelli S.p.A, Benteler International AG, Eberspacher Group, Faurecia SA, Sango Co.Ltd, and Calsonic Kansei Corporation.
Growing vehicle production and rising replacement rate of catalytic converters due to age are fueling market demand. Technological advancements in Automotive Catalytic Converter Market material and production processes such as integration of cerium and platinum group metals have improved their purification efficiency and longevity.
Market Trends
Stringent emission regulations: Stricter emission norms implemented by governments worldwide to curb air pollution are compelling automakers to install advanced emission control systems including catalytic converters in vehicles.
Growing hybrid vehicle sales: Rising adoption of hybrid electric vehicles which require a complex dual catalytic converter system to treat exhaust from both the internal combustion engine and electric motor is creating new opportunities.
Market Opportunities
Emergence of zero-emission vehicles: Companies are developing new catalytic technologies suitable for hydrogen and battery-powered fuel cell electric vehicles to facilitate complete oxidation of any hazardous gases released during operation.
Increased converter recycling: Growing efforts towards resource conservation and reuse of precious metal components from old catalytic converters can boost aftermarket opportunities.
Impact of COVID-19 on Automotive Catalytic Converter Market Growth
The COVID-19 pandemic has negatively impacted the automotive catalytic converter market. Due to lockdowns and movement restrictions imposed globally to contain the spread of the virus, automobile production and sales had declined sharply. This led to a slump in demand for catalytic converters from OEMs. The shutdown of production facilities further disrupted automotive component supply chains including catalytic converters.
Going forward, the market is expected to witness a bounce back as lockdowns ease and production resumes backed by pent up demand. However, full recovery to pre-crisis growth levels may take longer depending on how fast economic activities normalize globally. Automakers are focusing on new vehicle launches to accelerate sales recovery. More stringent emission rules being introduced in different regions will also support demand for newer catalytic converter technologies. But supply chain disruptions remain a challenge.
Geographical Regions with Maximum Automotive Catalytic Converter Market Value
North America accounts for the largest share of the global automotive catalytic converter market in terms of value. This is attributed to stringent vehicle emission norms in the US and copyright coupled with presence of leading automakers in the region. Growing vehicle fleet and higher adoption of gasoline vehicles that require catalytic converters for emission control have boosted market revenues. Europe is another major regional market driven by strict emission regulations and large automotive manufacturing base.
Fastest Growing Regional Market for Automotive Catalytic Converters
The Asia Pacific region is projected to witness the fastest growth in the automotive catalytic converter market over the forecast period. This growth can be attributed to rising vehicle production and sales in major countries like China and India to meet growing consumer demand. Favorable government policies promoting automotive manufacturing and use of cleaner vehicle technologies are augmenting the market. Also, stringent emission norms and quality standards by regulatory authorities will drive replacement demand.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)