Exhaust System Market Forecasts to 2030 – Global Analysis By Vehicle (Buses, Passenger Cars, Trucks and Other Vehicles), After-Treatment Device (Selective Catalytic Reduction, Diesel Particulate Filter, Diesel Oxidation Catalyst and Other After-Treatment

Exhaust System Market Forecasts to 2030 – Global Analysis By Vehicle (Buses, Passenger Cars, Trucks and Other Vehicles), After-Treatment Device (Selective Catalytic Reduction, Diesel Particulate Filter, Diesel Oxidation Catalyst and Other After-Treatment Devices) and By Geography

According to Stratistics MRC, the Global Exhaust System Market is accounted for $45.84 billion in 2024 and is expected to reach $70.75 billion by 2030 growing at a CAGR of 7.5% during the forecast period. An exhaust system in an automobile is a crucial component responsible for managing and directing the emissions produced during the combustion process in the engine. It begins at the engine's exhaust manifold, where the spent gases are collected, and continues through a series of pipes, catalytic converters, mufflers, and resonators before finally exiting through the tailpipe. The primary functions of the exhaust system include reducing harmful emissions, dampening noise generated by the engine, and enhancing engine performance by maintaining proper back pressure.

According to the World Bank, the middle-income population worldwide has increased from 5.66 billion in 2017 to 5.75 billion in 2019.According to the Institute of Company Secretaries of India in 2018, the sales of Mercedes-Benz were around 2.2 million, and Volkswagen was 1.7 million in 2020.

Market Dynamics:

Driver:

Rising demand for fuel efficiency

The rising demand for fuel efficiency is revolutionizing the exhaust system market as manufacturers prioritize innovative solutions to meet stringent emission standards and cater to environmentally conscious consumers. As governments worldwide impose stricter regulations on vehicle emissions, automakers are compelled to adopt advanced exhaust systems to enhance fuel efficiency and reduce harmful pollutants. This drive has led to the development of lightweight materials, improved catalytic converters, and enhanced exhaust pipe designs, all aimed at optimizing engine performance and minimizing emissions.

Restraint:

Fluctuations in the prices of raw materials

Fluctuations in raw material prices pose significant challenges to the Exhaust System Market. As raw materials such as steel, aluminum, and precious metals are essential components of exhaust systems, any price volatility directly impacts manufacturing costs. When prices rise unexpectedly, manufacturers often struggle to maintain profit margins without passing on the increased costs to consumers, which can deter potential buyers. However, fluctuations can disrupt supply chains and production schedules, leading to delays in delivering exhaust systems to customers.

Opportunity:

Increasing vehicle sales

As more vehicles hit the roads, the demand for exhaust systems escalates in tandem. This is primarily due to the necessity for efficient emission control and noise reduction, both of which are critical components of exhaust systems. The automotive industry's shift towards stricter emission regulations and the adoption of advanced exhaust technologies amplify this demand. With consumers increasingly conscious of environmental impact and seeking quieter, more fuel-efficient vehicles, manufacturers are compelled to innovate exhaust systems to meet these evolving needs.

Threat:

Regulatory compliance

While regulations aimed at reducing emissions drive innovation and demand for more efficient exhaust systems, they also impose stringent standards that can hinder market growth. Compliance requirements necessitate costly research, development, and manufacturing processes to meet evolving emission standards, thus increasing production costs for exhaust system manufacturers. However, varying regulations across different regions or countries create complexities for global market players, requiring them to adapt their products to meet diverse standards.

Covid-19 Impact:

The widespread lockdowns and restrictions led to a decrease in automotive production and sales, consequently reducing the demand for exhaust systems. Supply chain disruptions further exacerbated the situation, causing delays in manufacturing and distribution. Disruptions at any point along the supply chain, whether due to raw material shortages, transportation delays, or production constraints, can significantly impact the availability and cost of exhaust system components. The global nature of supply chains means that events in one part of the world can have ripple effects throughout the entire supply network, amplifying the market's susceptibility to supply chain disruptions.

The Passenger Cars segment is expected to be the largest during the forecast period

Passenger Cars segment is expected to be the largest during the forecast period, as the global demand for passenger cars continues to rise, there is a proportional increase in the need for efficient and environmentally friendly exhaust systems to comply with stringent emissions regulations. Additionally, this drives innovation and investment in exhaust system technologies, including catalytic converters, particulate filters, and exhaust gas recirculation systems, among others.

The Selective Catalytic Reduction segment is expected to have the highest CAGR during the forecast period

Selective Catalytic Reduction segment is expected to have the highest CAGR during the forecast periodby significantly reducing harmful emissions from vehicles powered by diesel engines. SCR works by injecting a urea-based solution into the exhaust stream, where it reacts with nitrogen oxides (NOx) to form harmless nitrogen and water vapor. This process helps vehicles comply with stringent emission regulations, making them more environmentally friendly and ensuring cleaner air quality. As governments worldwide continue to tighten emission standards, the demand for SCR systems has surged, driving growth in the exhaust system market.

Region with largest share:

Asia Pacific region commanded the largest share of the market over the projected period. As more individuals and businesses acquire vehicles, there's a parallel demand surge for exhaust systems due to regulatory requirements and environmental concerns across the Asia Pacific region. With a growing middle class and urbanization, more people are opting for personal vehicles, while industries expand their fleets to meet logistical demands in the region. Furthermore, this trend fuels the need for efficient and environmentally compliant exhaust systems, stimulating innovation and investment in the regional market.

Region with highest CAGR:

Asia Pacific region is poised to hold profitable growth during the extrapolated period. Stringent emission standards imposed by governments are compelling automotive manufacturers to adopt advanced exhaust systems with better pollution control technologies in the region. Regulations such as China VI and Bharat Stage VI in India are pushing for cleaner emissions, thereby driving the regional demand for innovative exhaust systems with features like selective catalytic reduction (SCR) and diesel particulate filters (DPF). Additionally, regulations promoting electric vehicles (EVs) are influencing exhaust system manufacturers to diversify into developing components for hybrid and electric vehicles across the Asia Pacific region.

Key players in the market

Some of the key players in Exhaust System market include Bosal, Continental AG, Eberspächer, Faurecia, Friedrich Boysen GmbH & Co, Futaba Industrial Co., Ltd, Sango Co., Ltd, Sejong Industrial Co., Ltd, Tenneco Inc and Yutaka Giken Company Limited.

Key Developments:

In May2024, Continental AG acquires mold specialist EMT for commercial and specialty tires. The tire manufacturer had entered into a respective agreement with EMT’s shareholders, Dynamic Design (Romania) being the majority shareholder.

Vehicles Covered:
• Buses
• Passenger Cars
• Trucks
• Other Vehicles

After-Treatment Devices Covered:
• Selective Catalytic Reduction
• Diesel Particulate Filter
• Diesel Oxidation Catalyst
• Other After-Treatment Devices

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 2022, 2023, 2024, 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