The global automotive exhaust systems market is a crucial part of the automotive manufacturing industry. Automotive exhaust systems play a vital role in filtering out toxic gases from vehicle emissions and helping automakers adhere to stringent emission norms. Exhaust systems ensure environmental friendliness of vehicles by lowering CO2 emissions through advanced catalytic converters, particulate filters and mufflers. The rising awareness about vehicle emissions and their impact on climate change has prompted policymakers worldwide to implement more stringent fuel efficiency and vehicle emission standards. This is promoting advancements in exhaust system technology and spurring the demand for lightweight, eco-friendly designs across both gasoline and diesel cars.
The global automotive exhaust systems market is estimated to be valued at US$ 44.13 Bn in 2024 and is expected to reach US$ 71.10 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the automotive exhaust systems include 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. The key players are focused on developing novel exhaust technologies through extensive R&D and strategic collaborations.
Growing demand: stringent emission norms introduced by governments across regions are driving automakers to integrate advanced emission control systems in vehicles. The demand for low-emission vehicles is rapidly increasing with growing environmental consciousness among consumers. Various states in countries like China and India are implementing regulations to ban older diesel vehicles fitted with only rudimentary filters.
Global expansion: Leading automotive exhaust manufacturers are expanding their global footprint through new facilities, mergers and acquisitions to cater to the growing vehicle production worldwide. FORVIA Faurecia recently acquired majority stake in Hella for €6.7 billion to enlarge its global network. Tenneco is setting up a new plant in Mexico to boost supply in North America.
Market key trends
One of the key drivers in the Automotive Exhaust Systems Market Share is the shift towards lightweight materials. With stricter fuel economy norms, automakers are opting for aluminized and stainless steel exhaust components to reduce vehicle weight. Companies are also developing aluminium exhaust heat shields and aluminium catalytic converters. Further, the demand for selective catalytic reduction (SCR) systems is gaining momentum with growing acceptance of diesel vehicles meeting Euro 6 emission standards. SCR technology helps diesel vehicles attain over 90% reduction in NOx emissions. Significant investments are being made in SCR by leading automakers to transition to new-age clean diesel technology.
Porter’s Analysis
Threat of new entrants: High R&D costs and capital requirements pose a barrier to entry for new players. Existing players have established supply chains and production facilities.
Bargaining power of buyers: Automakers have considerable influence over suppliers due to their size and purchasing power. However, production processes require close collaboration.
Bargaining power of suppliers: A few large suppliers dominate the market. However, automakers can maintain relationships with multiple tier 1 suppliers to avoid dependency on any single source.
Threat of new substitutes: Alternatives like electric vehicles pose a long-term threat. However, combustion engines will remain dominant for the foreseeable future due to infrastructure and range limitations of EVs.
Competitive rivalry: Intense competition exists among major players. Success depends on product quality, technology, compliance with emission norms and ability to reduce costs.
Geographical regions with highest market value include Asia Pacific, Europe and North America due to high vehicle production and sales in countries like China, Germany, USA and Japan. China in particular accounts for over 25% of global vehicle sales and production.
The Middle East and Africa region is expected to grow the fastest during the forecast period, driven by increasing automotive production and sales in countries like South Africa, Iran, Egypt and Turkey. Supportive government policies and investments in manufacturing are expected to boost demand for automotive exhaust systems.
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