The automotive exhaust systems market comprises exhaust manifolds, catalytic converters, mufflers, tailpipe, and various sensors. Automotive exhaust systems play a vital role in reducing harmful vehicle emissions such as carbon monoxide, nitrogen oxide, and hydrocarbon by converting them into less harmful gases like carbon dioxide and water vapor before releasing them into the atmosphere. The growing stringency of emission regulations across nations is driving the adoption of advanced emission control technologies and components in vehicles, which is fueling the demand for automotive exhaust systems.
The Global automotive exhaust systems market is estimated to be valued at US$ 71.10 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the automotive exhaust systems are BENTELER International Aktiengesellschaft, BOSAL, Continental AG, Eberspächer, FORVIA Faurecia, FUTABA INDUSTRIAL CO. LTD, Boysen, Sejong Industrial Co.Ltd., Tenneco Inc., Yutaka Giken Company Limited, Johnson Matthey, BASF SE, Umicore, Klarius Products Ltd, and Cummins Inc. Key players are investing heavily in R&D to develop advanced exhaust components with enhanced emission control capabilities and are focusing on organic and inorganic growth strategies to strengthen their market presence.
The growing stringency of emission regulations across major automotive markets is fueling the demand for Automotive Exhaust Systems Demand. Stringent norms such as Euro 6d, China 6, and BS-VI emission standards are propelling OEMs to adopt advanced emission control technologies requiring high-performing exhaust components. Furthermore, the rising adoption of gasoline particulate filters in gasoline engines is creating growth opportunities.
Leading exhaust system manufacturers are expanding their global footprint through mergers & acquisitions and new facility openings to cater to the growing demand from international markets. For instance, in 2023, Faurecia plans to open a new plant in Mexico to produce complex exhaust systems for commercial vehicles.
Market Drivers
The implementation of stringent emission norms globally is one of the key drivers of the automotive exhaust systems market. Over the past few years, emission regulations across nations have been tightened significantly to control vehicular pollution. For example, Euro 6, China 6, and BS-VI emission standards impose stricter limits on vehicle tailpipe emissions. This is propelling automakers to integrate advanced exhaust aftertreatment technologies in vehicles. The growing adoption of SCR systems, particulate filters, and enhanced catalytic converters is fueling the demand for high-performance exhaust system components.
The current geopolitical situation is significantly impacting the growth of the automotive exhaust systems market. The ongoing Russia-Ukraine war has disrupted global supply chains and heightened raw material costs. Russia and Ukraine are major exporters of critical exhaust system components like palladium, platinum, and nickel. With supplies curtailed due to the war, palladium and platinum prices have surged over 20% since the beginning of 2022. Rising raw material costs are squeezing automakers’ margins and compelling price increases of exhaust systems. The semiconductor chip shortage, exacerbated by strict lockdowns in China, is also constraining automotive production volumes and hindering market expansion. Going forward, companies must diversify sourcing, localize manufacturing of key components, and focus on cost optimization to mitigate cost pressures and geopolitical risks.
Europe currently accounts for the largest share of the global automotive exhaust systems market in terms of value. Stricter emission norms like Euro 6 and the presence of leading OEMs and suppliers drive higher exhaust system demand in Western and Central Europe. However, with its large production base, growing consumer spending, and government support for new energy vehicles, China is emerging as the fastest growing regional market. Supported by local manufacturing under the ‘China Standard’ program, Chinese suppliers are also increasingly competing in global markets.
In terms of value, North America presently represents the second largest regional market for automotive exhaust systems. However, with the increasing adoption of electric vehicles in the coming years due to government incentives and emissions regulations, America’s share may gradually decline. On the other hand, emerging economies in Asia Pacific excluding China and Central and Eastern Europe currently offer the most promising opportunities for above-average market growth through 2031.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
