Catalytic Converter Market

Catalytic Converter Market Overview

“The global catalytic converter market size was valued at USD 65.32 billion in 2023, and projected to reach USD 101.23 billion by 2030, with a CAGR of 8.45% from 2023-2030.”

Catalytic converters are devices that transform hazardous gases into less dangerous byproducts. When a catalytic converter comprises, a chamber known as a catalyst, it helps to reduce pollution by converting dangerous substances from an exhaust system into innocuous gases such as water vapor and carbon dioxide.

A catalytic converter is a mechanical device fitted to the exhaust system of all internal combustion engines to reduce harmful gas emissions such as carbon monoxide, nitrogen oxides, and hydrocarbons. These engines mostly use petrol or diesel for internal combustion. The catalytic converter market is inextricably linked to the automotive sector, and demand for catalytic converters is likely to rise as vehicle pollution standards tighten and the world population grows and urbanizes.

The remarkable expansion of the automotive market, higher usage of petrol and pollutant filters, and growing stringency in vehicle emission control laws may all contribute to Catalytic Converter market growth. The major focus of vehicle OEMs on the manufacturing of low-cost and low-emission catalytic converters for the exhaust system, together with large R&D investments, is expected to fuel the Market value expansion.

Furthermore, rising population need for performance aftermarket vehicle components, notably in the internal combustion engine, would aid worldwide market growth throughout the projection period. The implementation of tough rules and regulations by governments across the world to protect the environment and mitigate the harmful repercussions of global warming is a primary driver of the industry's growth.

Stringent emissions rules and rising demand for fuel-efficient cars are forcing commercial vehicle manufacturers to reduce heavy engines in commercial vehicles and replace them with modern turbochargers to significantly enhance engine power. Engine manufacturers are developing engines that partially deactivate the cylinders to save fuel consumption during operation.

Commercial cars with downsizing engines have enhanced after-treatment systems, such as better and more costly catalytic converters, systems that increase the rates of exhaust gas recirculation, and denser particle filters. These elements will contribute to the development of better and more sophisticated catalytic converters capable of controlling vehicle emissions.

For the regulation of automobile emissions, catalytic converters typically employ precious group metals such as platinum, palladium, and rhodium. These precious metals, however, are exceedingly expensive and raise the cost of catalytic converters.

Furthermore, as pollution rules become more stringent across the world, more of these precious metals must be used to reduce automotive emissions, raising the cost of catalytic converters. The high cost of catalytic converters due to increased precious metal prices and usage is a key concern for catalytic converter producers.

Demand Outlook

The growing global emphasis on environmental sustainability, as well as tougher rules on automobile emissions, drive demand for catalytic converters. Governments throughout the world are enacting stricter pollution limits, forcing automakers to use innovative emission control systems.

This offers a favorable market situation for makers of catalytic converters to fulfil rising demand. Furthermore, the burgeoning automobile industry in emerging nations, along with rising urbanization and disposable income, represents a huge potential opportunity.

The global car catalytic converter market is a derived market, which means that its expansion or contraction is governed by the number of passengers and commercial vehicles (including LCVs and MHCVs) sold. To neutralize harmful gases created by combustion, all internal combustion vehicles must be fitted with a catalytic converter. The increasing popularity of electric vehicles over internal combustion engines is providing a threat to the Market's growth.

>>> Download Sample Report Now: https://marketreportservice.com/request-sample/catalytic-converter-market-54596

Catalytic Converter Market Segment Analysis

The three-way oxidation-reduction catalytic converter (TWORCC) is expected to dominate the market, depending on the kind. TWORCC reduces hazardous emissions by 96%, hence supporting the growth of this industry. Furthermore, in this catalytic converter, oxidation and reduction occur concurrently, eliminating the need for separate equipment for reduction processes, which is necessary in a two-way oxidation catalytic converter.

The diesel oxidation catalyst is expected to have the second-largest market share due to its effectiveness in lowering hazardous emissions in compression-ignition engines such as diesel engines. Furthermore, they have an efficiency of 87.5% and aid in the removal of diesel odor and the reduction of visual particles.

The worldwide market for rhodium grew the fastest and is expected to increase at an 8.26% CAGR over the forecast period since the material is less expensive than its competitors. It also provides improved performance in terms of dangerous gas reduction.

Although palladium and platinum are comparable in many aspects, platinum is in more demand for the production of diesel catalytic converters, whilst palladium leads the demand value for petrol-powered automobiles.

Due to its largest participation in global vehicle production, the Passenger Car sector is expected to dominate the Market by vehicle type, with the highest CAGR of 7.86% over the forecast period 2023-2030. Increased passenger vehicle sales would raise demand for automotive catalytic converter systems.

APAC has a low penetration rate for various aftertreatment devices in contrast to Europe and North America, which is likely to generate development possibilities for catalytic converters in the APAC region. The rise of the passenger car markets in China and India is boosting the need for automotive catalytic converters in these countries. 

Competitive Landscape of the Catalytic Converter Market

The global market is fragmented in nature with the presence of various key players such as Futaba Corporation, Clean Diesel Technologies Inc., Eberspaecher GmbH Holding & Co., Faurecia SA, Calsonic Kansei Corporation, Standard Motor Products Europe Ltd., HJS Emission Technology GmbH & Co. KG., Benteler International AG, Tenneco Inc., Magneti Marelli S.P.A, BASF Catalysts LLC., Jetex Exhausts Ltd.

Recent Developments in Catalytic Converter Market

May 16, 2023 - Faurecia, a FORVIA group company, Michelin, and Stellantis signed a binding deal for Stellantis to purchase a 33.3% share in Symbio, a pioneer in zero-emission hydrogen transportation. Faurecia and Michelin will retain their 33.3% stakes in the company.

May 08, 2023 - BENTELER formally opened a new four-bay manufacturing facility at its Schwandorf location. The Schwandorf facility is part of BENTELER's Automotive Division. In addition to battery trays, it manufactures structural and chassis components for German manufacturers.

March 28, 2023 - Standard Motor Products, Inc. (SMP) expanded its ABS Speed Sensor product range for import and domestic automobiles. ABS Sensors from Standard were designed and tested to assure proper integration with electronic safety systems and performance under all conditions, particularly in emergency scenarios.

Regional Insights

The Asia-Pacific region will account for 53% of worldwide market share. Asia-Pacific has the highest share of vehicle production, accounting for around 56.43 percent of global vehicle production. China, India, and Japan are the key automotive production centers due to reasons such as increasing urbanization, rising GDP, and industrialization, among others.

Car emissions have increased significantly as car production has increased. As a result, only a few countries, like China, Japan, and India, have adopted automobile emission rules. As emission rules tighten, there will be an increase in demand for different aftertreatment devices. In the APAC region, China and Japan are the market leaders for after-treatment devices.

Segments Covered in the Catalytic Converter Market

Catalytic Converter Market by Product Type

• Three Way Catalyst
• Selective Catalytic Reduction
• Diesel Oxidation Catalyst
• Lean NOX Trap

Catalytic Converter Market by Material

• Platinum
• Palladium
• Rhodium
• Other Metals

Catalytic Converter Market by Vehicle Type

• Passenger car
• Light commercial vehicle
• Truck
• Bus

Catalytic Converter Market by Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

 Frequently asked questions with answers

What is the worth of catalytic converter market?

The catalytic converter market is expected to reach USD 62.07 billion by the end of 2023.

What are the upcoming trends of catalytic converter market globally?

Additive manufacturing, or 3D printing, is gaining traction in the catalytic converter market.

Which are the top companies to hold the market share in catalytic converter market?

The global market is fragmented in nature with the presence of various key players such as Futaba Corporation, Clean Diesel Technologies Inc., Eberspaecher GmbH Holding & Co., Faurecia SA, Calsonic Kansei Corporation, Standard Motor Products Europe Ltd., HJS Emission Technology GmbH & Co. KG., Benteler International AG, Tenneco Inc., Magneti Marelli S.P.A, BASF Catalysts LLC., Jetex Exhausts Ltd.

Which is the largest regional market for catalytic converter market?

The Asia Pacific dominated the global industry in 2022 and accounted for the maximum share of more than 55% of the overall revenue.

Segments Covered in the Catalytic Converter Market

Catalytic Converter Market by Product Type

• Three Way Catalyst
• Selective Catalytic Reduction
• Diesel Oxidation Catalyst
• Lean NOX Trap

Catalytic Converter Market by Material

• Platinum
• Palladium
• Rhodium
• Other Metals

Catalytic Converter Market by Vehicle Type

• Passenger car
• Light commercial vehicle
• Truck
• Bus

Catalytic Converter Market by Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Research Methodology