Automotive Catalytic Converter Market Size, Share & COVID-19 Impact Analysis, By Product Type (Two Way Oxidation, Three-Way Oxidation-Reduction, Diesel Oxidation Catalyst), By Material Type (Platinum, Palladium, and Rhodium) and By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) and Regional Forecasts, 2020-2032

The global automotive catalytic converter market size was valued at USD 73.80 billion in 2019 and is projected to reach USD 105.2 billion by 2032, exhibiting a CAGR of 3% during the forecast period. The Asia Pacific dominated the automotive catalytic converter market with a share of 73.17% in 2019. 

The automotive catalytic converter is a system used in the exhaust system of the vehicle to eliminate unwanted harmful gases such as nitrogen oxide, carbon monoxide, and hydrocarbons from it. There are various types of catalytic converters, such as two-way oxidation converters, three-way oxidation-reduction converter, and diesel oxidation catalyst. These devices control the emission by catalyzing the toxic gases into less harmful gases by a redox reaction. They convert nitrogen oxide, carbon monoxide, and hydrocarbons into nitrogen, oxygen, carbon dioxide, and water by the process of a chemical reaction through oxidation and reduction. The catalytic converter also assists in enhancing the efficiency of vehicles. In the global automotive industry, developments in the exhaust systems consist of catalytic converters, pipes, mufflers, manifolds, and monolith designs. 

These designs help in reducing the noise generated by the exhaust system by using sound absorbers along with catalytic converters. This reduces vehicular emission, thus positively impacting the environment and minimizing global warming. Automotive manufacturing companies are taking immense efforts to develop vehicles that would eliminate harmful emissions, thereby enhancing vehicle efficiency. Also, they are working towards achieving expertise in the global norms and regulations compliance, cost-effective solutions, and optimal vehicle performance, thus propelling the automotive catalytic converter market growth.

COVID-19 Impact on Market

The outbreak of COVID-19 originally in Wuhan, China and later on its spread all over the world, has deeply affected the global economy. This pandemic situation, rapid multiplying of infected patients, and the overall lockdown have enforced the manufacturing operations, as well as the service sector across the world to shut down. This condition has affected the manufacturing supply chain worldwide, largely those companies that are majorly reliant on China and the other affected nations for various goods and services.

COVID-19 is projected to have a significant impact on the supply chain and product demand in the automotive industry. The demand for commercial vehicles is expected to drop down with the shutdown of all non-essential services. Moreover, the changes in consumer buying behavior owing to the uncertainty encircling the pandemic may have severe implications on the near future growth of the industry. Meanwhile, cash crunch and shortage of liquidity have already impacted the sales of fleet operatives, which are further estimated to extend over the next few months. All these factors are likely to impact the production and sales of automobiles, thereby affecting the market across the globe.

MARKET TRENDS

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Advancement in Nano Technologies to Accelerate the Market

Automotive catalytic converters use precious metals as catalysts help to reduce the emission of harmful gases released from the engine. These metals mainly include platinum, rhodium, and palladium and they are few of the world’s rarest and most precious metals. As these metals are so expensive, automakers want to make the maximum and effective use of them. Scientists have innovated nanotechnology which is one of the solutions to increase the effectiveness of the converter. The initial step in making this new system is to load titanium dioxide nanofibers along with platinum nanoparticles. This makes the platinum catalyst highly active by providing additional electrons for detoxifying reactions. The key process is to then cover these metals with a layer of porous silica. Owing to its weak interaction with metals, the silica layer provides an energy barrier that holds these metals in place through very high operating temperatures, preventing accumulation and maintaining the catalytic activity.

• In 2007, Mazda Motor Corporation launched the world’s first automotive catalytic converter with nanoparticles. The application of nanotechnology significantly reduced the use of large particles of noble metals. Since then, numerous OEM companies have made alterations and modifications in nanoparticles to attain highly efficient gas emission.

MARKET DRIVERS 

Upgradation of Emission Norms and Standards are Anticipated to Drive Growth

Over the past decade, regions such as Asia Pacific and Europe have emerged as the major automotive manufacturing hubs. Along with the growth, the industry has also been dealing with few challenges. Automobiles are major contributors to environmental pollution. The exhaust emission released during combustion in conventional fuel vehicles has led to air pollution and is a major contributor of the global warming crisis. Highly visible signs of pollution such as low visibility, smog, and respiratory diseases have given a sense of urgency to the need to control vehicular emissions. To overcome these environmental issues, the government has imposed stringent norms and regulations to curb the increasing fuel emission.

Also, the rising numbers of road fatalities, rapid growth in pollution levels, and the necessity to reduce dependence on fossil fuels have made the government active in designing various policies, as well as emission control devices to address these issues. Amongst all these challenges, compliance with the regulatory requirements has become an essential area of concern for all the automotive manufacturers. To overcome these challenges, the automakers are integrating automotive catalytic converters in their vehicle’s exhaust system and are also developing new technologies to control the fuel emissions. Moreover, the upgrading regulatory requirements make it essential for the automakers to be aware of the new rules that would govern the automotive industry, as well as take suitable decisions to keep themselves ready for future challenges.

• Taking the severe pollution issue into consideration, the government of India has shifted to Bharat Stage VI (equivalent to Euro VI) emission standard for various vehicle classes by 2020. This is a great move and commitment shown by the government of India to curb air pollution. The government has directly leaped from BS IV emission norm for diesel and petrol to BS VI standards. This norm is expected to be implemented for new vehicles by April 2020 and for the existing vehicles by April 2021.

High Volume of Production and Sales of Automobiles to Boost Growth

Over the past few years, the volume of automobiles has seen a tremendous rise. The high demographic rate, growing urbanization, upgradation in the standard of living, expansion in industrialization, and developing road infrastructures are the foremost factors that are playing a significant role in the emergence of the automotive industry. Moreover, a rise in disposable income, as well as the car culture has propelled people to buy new vehicles. Also, the rising trend for fuel-efficient and high-performance vehicles is attracting the attention of the young population, thereby creating a high demand for automobiles. To fulfill the changing demand of customers, as well as to comply with the regulatory emission norms and standards set by the government, the automotive manufacturing companies across the world are taking additional efforts to develop and innovate advanced technologies to match up with the evolving requirements. Besides, they are also adopting emission control devices to curb the ever-rising environmental pollution. These converters have become one of the vital components of the vehicle which assist in reducing the exhaust emission of vehicles to a large extent. Furthermore, the government has also not only imposed stringent emission regulations to reduce environmental pollution but is also promoting the use of automotive catalytic converters to develop environment-friendly vehicles and increase their sales across the world.

MARKET RESTRAINT 

 Electrification of Vehicles is Likely to Obstruct Growth

Globally, there has been a massive transformation in the automotive industry. The catalytic converter manufacturers are shifting from conventional fuel vehicles to the electrification of vehicles, owing to the rapid growth in the fuel emission produced by the conventional engine which is leading to air pollution and global warming crises. Automotive manufacturers are inclining more towards the usage of sustainable sources of energy and are developing advanced technologies owing to increasing demand for zero-emission and highly efficient vehicles. The internal combustion engines require a catalytic converter for treating the harmful exhaust gases released during combustion, whereas the electric motor propels the electric vehicle. Hence, the electric vehicles are not equipped with exhaust systems or automotive catalytic converters. Moreover, the governments of various regions are imposing stringent norms to curb fuel emission, as well as are taking several initiatives to promote the use of electric vehicles. Therefore, the increasing ownership of electric vehicles over internal combustion vehicles is likely to restrain the growth of the market.

SEGMENTATION

By Product Type Analysis

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Three-Way Oxidation-Reduction Catalytic Converter is Projected to Hold the Largest Market Share

Based on product type, the market is segmented into two way oxidation catalytic converter (TWOCC), three way oxidation-reduction catalytic converter (TWORCC), and diesel oxidation catalyst (DOC). Three way oxidation-reduction device is a type that is used in the vehicle emission control system in most parts of the world. The stringent emission norms have made it mandatory for all automotive manufacturers to integrate TWORCC in gasoline-powered vehicles.

The TWORCC segment is expected to uphold its dominance over the forecast period. TWORCC is a value-added version of TWOCC as it performs three simultaneous chemical conversions by using the reduction and oxidation catalysts. The reduction catalyst is made of rhodium and platinum, whereas the oxidation catalyst is made of palladium and platinum. Both these catalysts come with a ceramic honeycomb structure and are placed in a muffler-like compact unit which is integrated into the exhaust pipe. TWORCC carries out the reduction process of nitrogen oxide which removes the nitrogen and releases oxygen, whereas the oxidation of unburnt hydrocarbons and carbon monoxide gives out carbon dioxide and water. These catalysts must have an operating temperature above 300 degrees Celsius. This is the reason they are fitted next to the engine.

Diesel oxidation catalyst (DOC) converters are exclusively used in diesel engines across various vehicle segments and the segment is expected to exhibit stable growth in the forecast period. These converters consist of a stainless steel canister with a honeycomb structure substrate. The interior surface areas are coated with palladium and platinum catalysts. These catalysts are known as oxidation catalysts as they convert the exhaust emission into harmless gases utilizing chemical oxidation. Diesel fuel exhausts contain particulate matter, such as metallic abrasion particles, ashes, sulfates and silicates. The diesel particulate filters in the DOC converters eliminate particulate matter from the exhaust emissions, thus releasing exhaust-free matter. The automotive manufacturers and several associations are working towards developing new and innovative products such as the four way catalytic converters.

By Material Type Analysis

Rhodium Segment is Anticipated to Dominate the Market over the Forecast Period

Based on material type, the market is segmented into platinum, palladium and rhodium. Rhodium, along with platinum acts as a reduction catalyst during the first catalyst stage (reduction stage) which removes the nitrogen and releases oxygen from nitrogen oxide. A catalyst is basically a chemical that enables the chemical to react faster without changing itself in the process. Rhodium is a widely used material in automotive catalytic converter recycling owing to its greater efficiency towards eliminating the toxic exhaust emissions by breaking down the nitrogen oxides in exhaust gases, thereby giving out harmless oxygen and nitrogen gases. Rhodium catalyst accounts for the majority of the automotive industry demand and this segment is expected to continue its dominance over a long period.

Palladium is the next widely used material in catalytic converters. It acts as an oxidation catalyst in the second catalyst stage (oxidation stage) where the hydrocarbons and carbon monoxide are oxidized. During this stage, these harmful gases are converted into less harmful carbon dioxide gases and water vapors. It is highly preferable over platinum owing to its high thermal stability, robust nature, as well as low cost. Rhodium and palladium materials are widely used as catalysts in a three way oxidation-reduction catalytic converter (TWORCC). The gasoline vehicles are integrated with TWORCC which, in turn, drives the growth of the market.

By Vehicle Type Analysis

Passenger Cars Segment is Expected to Hold the Largest Market Share

In terms of vehicle type, the automotive electronics market is segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment holds the largest share of the market owing to the higher volume of sales and production of passenger cars across the globe. The increasing urbanization, improvement in the standard of living, development in the road infrastructures, and a rise in the disposable income are the foremost reason for the rapid growth in the number of passenger cars, especially in countries such as India, China, Japan, and some parts of Europe. Passenger cars majorly consist of a gasoline engine. Thus, the gasoline-powered vehicles are mostly integrated with TWORCC which assists in controlling fuel emission. The stringent emission norms imposed by the government to curb the rising fuel emission, improve fuel efficiency, and also various measures taken to enhance the safety of drivers, as well as passengers are fuelling the growth of the segment.

Moreover, the new emission norms such as BS VI, China VI and Euro VI imposed by India, China and Europe have made it mandatory for all the automotive manufacturers to implement catalytic converters to comply with the upgraded environmental standards. All these factors have thus propelled the growth of catalytic converter recycling in passenger cars.

Furthermore, the commercial vehicle segment is also showing exponential growth in the market. The commercial fleet owners prefer diesel engine vehicles for transportations and logistics as they are more robust, require low maintenance, and can generate greater drive force as compared to gasoline engines. The heavy and light commercial vehicles consisting of diesel combustion engines generate high amounts of torque at low Revolutions per Minute (RPM). This has increased the penetration of catalytic converters in diesel engines of commercial vehicles which is ultimately creating a positive impact on the growth of the market.

The majority of the automotive manufacturers are using after-treatment technologies such as selective catalytic reduction (SCR), and diesel oxidation catalyst (DOC) to prevent and reduce the excessive amount of Nitrogen oxide emission and particulate substance from diesel engines. Additionally, the growing demand for light and heavy commercial vehicles, owing to the growing demand from end use industries, such as logistics and transportation, mining, and construction is anticipated to boost the growth of the market in the forecast period.

REGIONAL ANALYSIS

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Asia Pacific holds the largest global catalytic converter market share and is expected to uphold its dominant position during the forecast period. The foremost reason for the high volume of vehicles in this region is the increasing urbanization, high demographic growth, improvement in the standard of living, expansion of the industrial sector, and a rise in the income level of people. With the increasing vehicle production, vehicular emissions have also increased significantly which is leading to a high rate of air pollution and global warming. Considering this situation, the governments of few developing and developed economies such as India, China, and Japan have implemented stringent vehicle emission norms. For instance, India and China are shifting towards implementing BS VI and China VI by 2020 which is equivalent to Euro VI emission norm in Europe. Such significant movements towards strict emission norms are expected to create a massive demand for several after-treatment devices. Countries such as China and Japan are the leaders in the after-treatment device in this region.

Europe holds the second-largest share in the global market owing to the high presence of prominent automotive manufacturing companies in this region. Also, the rapid research and development activities, coupled with the implementation of stringent emission norms such as Euro-VI is creating high demand for catalytic converters in the European market. The mandate of Euro VI emission norm on the automotive manufacturers is compelling them to integrate catalytic converters in all the vehicles so as to fulfill the environmental standards. All these factors are expected to leverage the growth of the market in this region.

KEY INDUSTRY PLAYERS

BASF Catalysts LLC is One of the Top Players in the Global Market

BASF Catalysts LLC is the world’s leading supplier of automobile emission catalysts. The company has excellent expertise in the development of emission control technologies for an extensive range of market applications that protect the atmosphere we breathe. The expertise enabled the company to innovate the development of the world’s first catalytic converter for automobiles in the year 1970 and it upholds the line of emission catalysts even today. The emission professionals are providing their customers with innovative and cost-effective solutions to meet the stringent emission control regulations.

However, FUTABA INDUSTRIAL CO., LTD. and Benteler International AG have upheld their significant positions in the competitive landscape along with the other prominent companies. This is anticipated to positively influence the global market as these companies are expected to drive market innovation and development during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Marelli Holdings Co., Ltd. 


• FUTABA INDUSTRIAL CO., LTD.


• Benteler International AG 


• Tenneco Inc. 


• HJS Emission Technology GmbH & Co. KG


• Yutaka Giken Company Limited.


• BOSAL


• Eberspächer


• Jetex Exhausts Ltd 


• Sango Co., Ltd 


• BASF Catalysts LLC


• Standard Motor Products Europe Ltd.

KEY INDUSTRY DEVELOPMENTS 

• November 2017 – Faurecia innovates new electrically heated catalytic converter which debuted in 2019. The key feature of the new catalytic converter is an electric heating system that enhances the efficiency of the catalyst even though the engine is cold or idling in traffic.


• January 2017 – Tenneco Automotive India proclaimed an investment of Rs 50 crore in the new Sanand plant. The company established its first high-level sub-assembly plant at Sanand to manufacture exhaust systems and deliver service to Ford India at a cost of Rs 20 crore.

REPORT COVERAGE

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The automotive catalytic converter market report provides a detailed analysis of the market and focuses on key aspects such as the leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation