Automotive Exhaust System Market - By Component (Exhaust Manifold, Catalytic Converter, Muffler, Resonator, Tailpipe), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Fuel Type (Gasoline, Diesel, Alternative Fuels), Forecast, 2023 - 2032

Automotive Exhaust System Market - By Component (Exhaust Manifold, Catalytic Converter, Muffler, Resonator, Tailpipe), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Fuel Type (Gasoline, Diesel, Alternative Fuels), Forecast, 2023 - 2032

Automotive Exhaust System Market size is anticipated to expand at over 7% CAGR from 2023-2032 driven by the global shift towards EVs worldwide.

With the automotive sector embracing sustainable mobility, traditional exhaust systems are evolving to accommodate the unique needs of EVs. The rising collaborations between traditional exhaust system manufacturers and electric vehicle producers is contributing to innovative solutions, reflecting the commitment to environmentally friendly transportation. For instance, in July 2023, Milltek Sport launched an improved high-performance exhaust system for BMW's M2 Coupé for maximizing additional capability from the new baby M vehicle. The development of exhaust solutions for hybrid and electric powertrains, including sound management systems and emission controls for range extenders, is also accelerating the market growth.

The automotive exhaust system industry is segmented into component, vehicle type, fuel type, and region.

Based on component, the market share from the catalytic converter segment is projected to generate substantial revenue from 2023-2032. The influx of stringent emission standards globally coupled with the increasing focus on environmental sustainability are propelling the demand for advanced catalytic converters. Additionally, innovations, such as three-way catalysts and advanced materials to render enhanced efficiency and compliance are resulting in the increasing adoption of catalytic converters.

As per vehicle type, the automotive exhaust system market from the commercial vehicles segment is anticipated to witness high demand between 2023 and 2032. The escalating need for global logistics and transportation coupled with a growing number of strict emission regulations for commercial vehicles is contributing to the rising demand for advanced exhaust systems, including selective catalytic reduction and diesel particulate filters. Furthermore, leading commercial vehicle manufacturers are heavily investing in innovative exhaust technologies to enhance fuel efficiency and reduce environmental impacts.

Regionally, the Asia Pacific automotive exhaust system industry is set to exhibit robust growth through 2032. The ongoing expansion of the automotive sector in countries like China and India along with the implementation of stringent emission norms are driving the adoption of advanced exhaust systems. Additionally, the jump in government initiatives for promoting clean air and sustainable transportation will further foster the market growth. Moreover, with various industry participants making significant expenditures to accelerate company growth, the regional industry will witness robust growth. For instance, Purem AAPICO established a new facility in Thailand with an annual capacity of 300,000 systems for clean mobility and to provide exhaust systems for a top U.S. automobile manufacturer.