Global Automotive Exhaust Systems Market 2023-2030

Global Automotive Exhaust Systems Market 2023-2030

Global automotive exhaust systems market is estimated to grow at a CAGR of 5.2% during the forecast period. The major factors contributing to the growth of the market include the stringent vehicle emission standards and the rising production of commercial and passenger vehicles. Increasing environmental regulations related to vehicle emissions has augmented the adoption of automotive exhaust systems in-vehicle components. For instance, on February 19, 2016, the Indian Ministry of Road Transport and Highways (MoRTH) sanctioned a notification of Bharat Stage (BS) VI emission standards. This notification is issued for all major on-road vehicle classes in India.

These standards applied to heavy-duty and light vehicles, as well as two- and three-wheelers. After 1st April 2020, the BS-VI standards will go into effect for all such vehicles. The proposed BS-VI emission standards adoption will bring Indian motor vehicle regulations into a configuration with EU regulations for two-wheeled vehicles, light-duty passenger cars and commercial vehicles, and heavy-duty trucks and buses. These stringent emissions will further drive the demand for automotive exhaust systems that collect exhaust gases from the cylinders and eliminates harmful substances. It decreases the noise level and discharges the purified exhaust gases. The system meanwhile reduces pollution and accelerates the power of the engine.

Segmental Outlook

The global automotive exhaust systems market is segmented based on components and applications. Based on the component, the market is classified into the manifold, catalytic converter, flexible couplings, muffler, pipes, hanger rods, and others. Based on application, the market is classified into passenger vehicles and commercial vehicles.

Automotive Exhaust Systems Finds its Significant Applications in Passenger Vehicles

The demand for automotive exhaust systems in passenger vehicles is growing significantly owing to the high production of passenger vehicles. As per the International Organization of Motor Vehicle Manufacturers (OICA), more than 70 million passenger cars were produced in 2018. This results in the adoption of automotive exhaust systems in passenger cars to meet vehicle emission standards. In addition, the increasing demand for plug-in hybrid electric cars is further contributing to the demand for automotive exhaust systems to control emissions and improve fuel efficiency. As per the International Energy Agency (IEA), in China, the demand for plug-in hybrid electric vehicles (PHEV) has significantly increased from 280,000 in 2017 to 540,000 in 2018.

Regional Outlooks

The global automotive exhaust systems market is classified based on geography, including North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific is estimated to witness potential growth during the forecast period owing to the stringent vehicle emission standards and significant production of vehicles in the country. China dominates automobile production and sales. In April 2017, the country declared the “Automobile Mid and Long-Term Development Plan” which is intended for further development of the automotive sector in the upcoming 10 years. The Chinese government is primarily focusing on electric and hybrid vehicles, which would increase the demand for emission control, fuel-efficient, and lightweight materials to reduce environmental pollution.

The Europe Region is anticipated to Hold a Significant Share in the Global Automotive Exhaust Systems Market

Among these regions, Europe region is anticipated to account for a significant share of the Automotive Exhaust Systems market during the forecast period. The major European countries involved in automobile production include Germany, UK, and France. Key automobile companies operating in the region include Robert Bosch, Volkswagen, Daimler, BMW, Renault, Peugeot, Volvo, and Continental AG, among others. Stringent regulations on emission control will likely drive the growth of the market. For instance, in 2015, Europe implemented Euro 6 vehicle emission standards, to decrease pollutants including carbon monoxide. These government regulations towards reducing vehicle emissions will drive market growth in the region.

Market Players Outlook

The major players in the global automotive exhaust systems market are focusing on offering advanced products, and partnerships, and expanding their geographical presence across the globe. These companies include BENTELER International AG, Tenneco Inc., Faurecia Group, Futaba Industrial Co. Ltd., and Eberspächer Exhaust Technology GmbH & Co. KG. In February 2019, Eberspaecher Exhaust Technology International and Sharda Motor Industries Ltd. declared a joint venture to meet the emission standard Bharat Stage VI. These companies will produce and sell automotive exhaust systems for Indian commercial vehicle manufacturers. This, in turn, will enable the company to expand its market share in India.