Global Exhaust Gas Recirculation (EGR) Cooler Market

Global Exhaust Gas Recirculation (EGR) Cooler Market (by Engine Type, Vehicle Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)

Market Insight:

The Exhaust Gas Recirculation (EGR) cooler is an important component of automobile engines that helps to lower Nitrous Oxide (NOx) levels. Extreme heat produces new, dangerous compounds by rupturing chemical bonds in the engine's combustion chamber. Exhaust gas cooling lowers temperature peaks and delays combustion.

The primary function of EGR coolers is to lower nitrous oxide levels by cooling exhaust gases before they are recirculated into the engine. New emission standards introduced by the governments and international organizations is a major driver of the market. The global EGR Cooler market is likely to reach US$562.14 million in 2023, progressing at a CAGR of 3.10% during the forecast period.

Segment Covered:

• By Engine Type: The report identifies two segments of the global EGR cooler market, in terms of engine type: Diesel and Gasoline. The diesel segment accounted for the maximum share of the market, as EGR coolers are mostly used in diesel based engines. Diesel engines produces more pollutant than others. Therefore, the use of EGR coolers have increased in diesel engines. The gasoline segment has been also increasing rapidly. Due to stringent regulations regarding new emission standards, use of EGR cooler in the gasoline engines have also increased.
• By Vehicle Type: According to the vehicle type, the global market has been categorized into two segments: Commercial Vehicle and Passenger Vehicle. The commercial vehicle segment accounted for the highest share in the market, because the engines used in commercial or heavy duty vehicles are diesel engines. In addition, due to increasing commercial activities, use of commercial vehicles has increased in the delivery processes. So, increasing use of commercial vehicles has also supported the market growth.

Geographic Coverage:

According to this report, the global EGR Cooler market is divided into five regions: Asia Pacific, Europe, North America, Latin America and Middle East & Africa. The countries covered in Asia Pacific region are China, Japan, India, South Korea and Rest of Asia Pacific, while North America includes the US, Mexico and Canada. Moreover, Germany, France, UK, Italy and Rest of Europe are included in the Europe region. In addition, Latin America includes Brazil, Argentina and Rest of Latin America.

Asia Pacific dominated the market by occupying largest share of the market. The growing automotive market in the region boosting the EGR cooler market in the region. The region comprises of countries like China, Japan, India, etc. where automobile industry contributes a large portion of the economy. Increasing car production in these regions would help the market to grow in the Asia Pacific region.

Top Impacting Factors:

Growth Drivers

• Increasing CO₂ Emissions
• Increasing sales of Vehicles
• Rising Demand for Fuel Efficient Mechanism
• New Emission Standards Applied on Automotive Sector

Challenges

• Fouling problem in EGR Cooler
• Rising Adoption of Electric Vehicle

Trends

• Innovations Associated with EGR Coolers
• EGR Cooler with Bypass
• Driver: Increasing CO₂ Emissions

In emerging nations like China, carbon dioxide emissions from burning fossil fuels have significantly increased. Because industrialization is a crucial component of developing economies, these nations emit more carbon dioxide. United Nations established several deadlines to reduce pollution levels in various nations throughout the world due to growing environmental concerns. Furthermore, various governments around the world set emission standards to control the pollution. EGR coolers used in fuel based vehicles are able to reduce the emission of poisonous gases like carbon dioxide, nitrogen oxide, etc. Due to this reason, use of EGR coolers in the automotive industry is increasing as the vehicle manufacturers need to meet the emission standards set by respective governments and international organizations. Due to these factors, the market would grow fast in the coming years.

• Challenge: Rising Adoption of Electric Vehicle

The demand for electric vehicles has risen quickly because of number of variables, including energy efficiency and low carbon emission. The traditional combustion engine is quickly becoming outdated as petrol or diesel vehicles are highly polluting. Therefore, people are shifting towards electric vehicles. Furthermore, government support to electric vehicle industry is another reason boosting the demand for electric vehicles. Increasing adoption of electric vehicles would restrain the production of fuel based vehicles. EGR cooler is largely used to control emission in diesel and gasoline based engines as they produces harmful gases. This factor would restrain the growth of the EGR cooler market in the future.

• Trend: Innovations Associated with EGR Coolers

Technical advancements are reducing the issues related to EGR cooler's exhaust gas recirculation. For instance, BorgWarner innovated the exhaust gas recirculation (EGR) cooler for commercial vehicles. For optimum flexibility, the new exhaust gas recirculation (EGR) cooler by BorgWarner offers highly flexible standard designs that cover a variety of engine sizes from 2.0 to 16.0 litre displacement. Additionally, for long-lasting performance, the new system provides strong robustness against thermal fatigue and improved coolant distribution, while reducing NOx emission. BorgWarner's EGR coolers use a floating inner core and hybrid tube heat transfer technology to withstand high thermal loads. These innovations would help the market to grow.

The COVID-19 Analysis:

The growth of the market for EGR cooler manufacturers has been restricted by the global spread of the COVID-19 epidemic. Due to the worldwide closure of manufacturing facilities in the first two quarter of 2020, sales of exhaust gas recirculation coolers fell precipitously. The governments of many nations implemented lockdowns. Although the performance of the key participants in the EGR cooler industry has been held down by the closure of production facilities and a lack of workers. The absence of vehicle movement had a significant impact on the transportation industry.

The first half of 2020 saw a considerable decline in the EGR market. However, the pandemic accelerated the need for emission-free transportation, particularly in industrialized nations like China, Europe, and the US. EGR cooler began receiving a lot of attention as governments around the world consider how to recover from the pandemic with an economy that is stronger and more resilient than it was before.

Analysis of Key Players:

The EGR cooler market is concentrated. Global players have strong dominance in the market, however, domestic players like KORENS Co., Ltd. has been a pioneer in the field of EGR cooler. The key players of the global EGR cooler market are:

• Rheinmentall AG (Rheinmentall Automotive AG)
• Senior plc (Senior Flexonics)
• MAHLE
• Denso Corporation
• BorgWarner Inc.
• Faurecia SE
• Benteler international AG
• Valeo S.A.
• KORENS Co., Ltd.
• Hanon Systems
• Tokyo Roki Co., Ltd
• Tokyo Radiator MFG. Co. Ltd