Catalytic Converter Market Forecasts to 2030 – Global Analysis By Type (Two-way Catalytic Converter, Three-way Catalytic Converter and Other Types), Material (Platinum, Palladium, Rhodium and Other Materials), Application and By Geography

Catalytic Converter Market Forecasts to 2030 – Global Analysis By Type (Two-way Catalytic Converter, Three-way Catalytic Converter and Other Types), Material (Platinum, Palladium, Rhodium and Other Materials), Application and By Geography

According to Stratistics MRC, the Global Catalytic Converter Market is accounted for $15.4 billion in 2023 and is expected to reach $28.2 billion by 2030 growing at a CAGR of 9.0% during the forecast period. A catalytic converter is an emissions control device installed in the exhaust system of internal combustion engine vehicles to reduce the emission of harmful pollutants into the atmosphere. Catalytic converters play a vital role in reducing air pollution by converting harmful pollutants, such as nitrogen oxides (NOx), carbon monoxide (CO), and hydrocarbons (HC), into less harmful substances like nitrogen, carbon dioxide, and water vapour.

Market Dynamics:

Driver:

Rising vehicle production

As the global automotive industry experiences sustained growth, the demand for catalytic converters rises. With expanding urbanization, rising disposable incomes, and an ever-growing population, the demand for both passenger and commercial vehicles continues to escalate. In this context, catalytic converters play a crucial role in mitigating the environmental impact of vehicular emissions and ensuring that vehicles meet mandated emission standards. These factors accelerate market demand.

Restraint:

Environmental concerns

The production and use of catalytic converters involve the extraction and utilization of precious metals, such as platinum, palladium, and rhodium, which are critical components for catalytic conversion reactions. The mining of these metals often results in environmental degradation, habitat destruction, and resource depletion. Additionally, the disposal of catalytic converters at the end of their life cycle poses environmental challenges, as improper handling can release harmful materials into the ecosystem.

Opportunity:

Technological advancements

Ongoing research and development efforts focus on enhancing the performance and durability of catalytic converters. Innovations in catalyst materials, such as the use of novel coatings and compositions, contribute to the more effective conversion of pollutants into less harmful substances. Moreover, these technological advancements aim to optimize catalytic converter functionality, ensuring better pollutant removal and a longer lifespan. Therefore, advancements in technology are a significant factor propelling the market growth.

Threat:

Recycling challenges

Catalytic converters contain precious metals such as platinum, palladium, and rhodium, which are critical for their emission-reducing functionality. However, the intricate design and integration of these metals make efficient recycling a technical challenge. The increasing incidents of catalytic converter theft contribute to a black market where stolen units may not undergo proper recycling procedures. As a result, recycling challenges pose a threat to market expansion.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the catalytic converter market as automotive production declined, leading to reduced demand. Supply chain disruptions, workforce limitations, and economic uncertainties further exacerbated the challenges. However, the push towards sustainable and electric vehicles, coupled with a recovery in the automotive sector, could drive future growth as stricter emission regulations continue to emphasize the importance of catalytic converters in reducing pollutants from internal combustion engines.

The three-way catalytic converter segment is expected to be the largest during the forecast period

The three-way catalytic converter segment is estimated to hold the largest share, playing a pivotal role in reducing harmful emissions from internal combustion engines. This advanced emission control device is specifically designed to address three major pollutants: nitrogen oxides (NOx), carbon monoxide (CO), and hydrocarbons (HC) produced during the combustion process in vehicles. Moreover, automotive manufacturers worldwide incorporate TWCs in their vehicles to meet regulatory requirements and contribute to a cleaner and more sustainable transportation ecosystem.

The passenger car segment is expected to have the highest CAGR during the forecast period

The passenger car segment is anticipated to have lucrative growth during the forecast period. Passenger cars, including sedans, hatchbacks, and SUVs, commonly use catalytic converters to reduce the environmental impact of their internal combustion engines. Additionally, the catalytic converter helps mitigate pollutants like nitrogen oxides, carbon monoxide, and hydrocarbons generated during the combustion process. As environmental awareness grows and emission regulations become more rigorous, the demand for efficient catalytic converters in passenger vehicles continues to rise.

Region with largest share:

North America commanded the largest market share during the extrapolated period. Stricter emission standards imposed by regulatory bodies such as the Environmental Protection Agency (EPA) drive the demand for advanced catalytic converter technologies. The region's commitment to reducing vehicular emissions to combat air pollution and climate change underscores the significance of these emission control devices. Moreover, North America has witnessed a growing focus on sustainable practices and a shift towards electric vehicles, impacting the traditional automotive landscape.

Region with highest CAGR:

Asia Pacific is expected to witness profitable growth over the projection period, owing to rising urbanization and increasing environmental awareness. As countries in the region experience rapid economic growth, there is a surge in vehicle ownership, contributing significantly to the demand for catalytic converters. Governments across Asia Pacific are implementing stringent emission standards to address air quality concerns, compelling automakers to adopt advanced emission control technologies, further propelling the catalytic converter market.

Key players in the market

Some of the key players in the Catalytic Converter Market include Basf Se, Umicore Sa, Faurecia Sa, Johnson Matthey Plc, Tenneco Inc, Continental Ag, Cummins Inc, Bosal International N.V, Sango Co. Ltd, Calsonic Kansei Corporation, Magneti Marelli S.p.A and Hanwoo Industrial Co., Ltd.

Key Developments:

In August 2023, Cummins Inc. and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, announced a collaboration to leverage complementary positioning in hydrogen, natural gas and other lower carbon fuel value chains.

In January 2023, Johnson Matthey (JM), a global leader in sustainable technologies and Plug Power, a leading provider of turnkey hydrogen solutions for the global green hydrogen economy announced a long-term strategic partnership to accelerate the green hydrogen economy.

In November 2022, Cummins Inc and Tata motors collaborate to offer solutions i hydrogen-powered commercial vehicle space. Under the pact, the two partners will collaborate on the design and development of low and zero-emission propulsion technology solutions for commercial vehicles in India.

In April 2022, Umicore and Automotive Cells Company have signed a long-term strategic supply agreement for EV cathode materials in Europe. Umicore will supply ACC’s future large-scale European battery plants with next-generation high nickel cathode materials out of its greenfield production plant in Nysa, Poland.

Types Covered:
• Two-way Catalytic Converter
• Three-way Catalytic Converter
• Other Types

Materials Covered:
• Platinum
• Palladium
• Rhodium
• Other Materials

Applications Covered:
• Light Commercial Vehicle
• Passenger Car
• Heavy Commercial Vehicle
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements