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The automotive exhaust system market size is estimated to grow at a CAGR of 7.42% between 2022 and 2027. The market size is forecast to increase by USD 23.51 billion. The growth of the market depends on several factors, including the increasing use of lightweight and advanced alloys, stringent regulations to control emissions, and the increasing demand for hybrid electric vehicles (HEVs).
This automotive exhaust system market report extensively covers market segmentation by application (passenger vehicles and commercial vehicles), fuel type (gasoline and diesel), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing use of lightweight and advanced alloys is notably driving the market growth, although factors such as the high cost associated with exhaust systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of lightweight and advanced alloys is driving the growth of the global automotive exhaust system market. Automakers are increasingly using tubular steel exhaust manifolds in their entry-level vehicles, helping to improve the overall efficiency of the exhaust system. Automotive exhaust manifolds collect exhaust gases after the combustion process in the engine. Therefore, the type of material used to manufacture the exhaust manifold is of utmost importance as it determines the reliability and durability of the exhaust system. Automakers are increasingly using advanced high-strength steels such as austenitic and ferritic stainless steels in exhaust manifolds.
In addition, various aluminized steel materials with a high coefficient of thermal expansion and excellent durability are used. The most common elements in stainless steel used for exhaust manifolds include nickel, chromium, manganese, aluminum, and nitrogen. Stainless steel grades used in various automotive exhaust manifold applications include SUS 304 and SUS 309. Such stainless steel grades are more expensive than cast iron exhaust manifolds due to their better mechanical properties. Therefore, the use of stainless steel in mass-produced vehicles such as automobiles is increasing, which is driving the growth of the global automotive exhaust system market.
Developments in the field of automotive catalytic converters are the major trend shaping the automotive exhaust system market. Developments are being made in terms of structural design, materials used, and functionality of automotive catalytic converters. These trends in automotive catalytic converters are helping to improve the efficiency and effectiveness of automotive exhaust systems. A new prototype of an advanced catalytic converter is currently under development. A new prototype design is under development that could use less metal to reduce fuel consumption and manufacturing costs. Rare metals such as palladium, rhodium, and platinum are very expensive, so reducing the consumption of these metals can significantly reduce the cost of manufacturing catalytic converters.
In addition, the newly developed catalyst is less prone to decomposition than conventional catalysts. Similarly, notable vendors operating in the market, such as Johnson Matthey, Corning Inc., Tenneco Inc., Umicore SA, and Clean Diesel Technologies, use advanced lithography to improve the structure of monoliths and increase the surface area more efficiently. Such developments are positively influencing the growth of the global automotive exhaust system market.
The high cost associated with exhaust systems may impede the growth of the market. The global automotive industry is witnessing the integration of electronics in the design, development, and manufacturing of vehicles, increasing the use of advanced materials, and introducing advanced processes and machinery. As the introduction of these changes has progressed, modern automobiles have become safer, more energy efficient, and more fuel efficient. However, these trends in the global automotive industry are also leading to rising vehicle costs.
The same applies to the global market for automotive exhaust systems, evolving in terms of design and components used. Prices for exhaust system components such as catalytic converters and mufflers vary by vehicle. The limited availability of rare metals and the increasing demand for such metals in many industries, including the automotive exhaust system market, have driven platinum and palladium prices higher. Also, the increased use of three-way catalytic converters and the use of advanced selective catalytic reduction (SCR) further increase the overall cost of modern exhaust systems. All these factors will challenge the growth of the global automotive exhaust system market.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Exhaust System Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Akrapovic d.d.: The company offers automotive exhaust systems such as Slip On Line and Evolution Line.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger vehicles segment will be significant during the forecast period. The expansion of passenger cars in emerging and developing countries such as India, China, and ASEAN countries (Association of Southeast Asian Nations) is a key driver of the dominance of the passenger car segment in the global automotive exhaust system industry. Rising demand for passenger cars in the global automotive market is driving the market in this sector significantly.
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The passenger vehicles was valued at USD 40.59 billion in 2017 and continued to grow until 2021. Stringent regulations on vehicle emissions in the global automotive market are driving the introduction of more effective exhaust systems. This is because automobile emissions standards require that automobile manufacturers install catalytic converters in the automobile exhaust system. Additionally, increasing demand for high-performance passenger cars with multiple catalytic converters continues to drive revenue growth of the passenger car segment in the global automotive exhaust systems market.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Increasing market penetration of automobiles in countries such as China, Japan, South Korea, ASEAN, and India is the major market driving factor for this market. Automakers in the region offer vehicles with advanced exhaust systems that minimize the emission of pollutants into the atmosphere. In addition, many economies in the APAC region are also revising emissions standards to keep pace with advanced automotive countries. Such emission standards are driving the growth of the automotive exhaust system market. The region includes advanced automotive markets such as Japan, South Korea, and Australia as compared to other countries in the region. The rapid economic development of the emerging economies in the Asia-Pacific region has led to an increase in per capita income in recent years, which has increased the purchasing power of consumers and led to an increase in automobile sales.
Increased manufacturing activity, increased logistics flows, and increased spending on infrastructure development are driving demand for automobiles in the region. Additionally, the growth of the e-commerce industry in India has created an immediate market for commercial vehicles, facilitating timely parcel delivery. This will be positive for the automotive exhaust system market in APAC.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In 2020, the outbreak of the novel coronavirus disease (COVID-19) restricted the operations of auto and auto parts manufacturers, limiting the growth of the automotive exhaust system market in APAC. However, developed countries in APAC such as Japan, South Korea, and Australia were able to control the COVID-19 epidemic. China has also managed to contain the spread of the virus and resume production of cars, auto parts, and accessories. Such factors are expected to increase the demand for automotive exhaust systems and propel the market growth in APAC during the forecast period.
The automotive exhaust system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global automotive exhaust system market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Automotive Exhaust System Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.42% |
Market growth 2023-2027 |
USD 23.51 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.3 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 62% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akrapovic d.d., Benteler International AG, Berkshire Hathaway Inc., Bosal Nederland BV, Eberspacher Gruppe GmbH and Co.KG, Eisenmann Exhaust Systems GmbH, Faurecia, Friedrich Boysen GmbH and Co. KG, Futaba Industrial Co. Ltd., Hexadex Ltd., Hirotec Corp., Honda Motor Co. Ltd., Klarius Products Ltd., Marelli Holdings Co. Ltd., Munjal Auto Industries Ltd., REMUS Innovation GmbH, Sango Co. Ltd., Sejong Industrial Co. Ltd., Thunder Exhaust System Co. Ltd, and Tenneco Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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