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The automotive catalyst market size is estimated to increase by USD 2,469.21 million between 2022 and 2027. The market size is forecast to grow at a CAGR of 3.3%. The growth of the market depends on several factors such as increasing vehicle production, rising demand for platinum group metals (PGMs), and stringent government regulations.
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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.
Increasing vehicle production is the key factor driving the growth. The global automotive industry will experience moderate growth in the future. There is a growing demand for autocatalysts that convert pollutants such as nitrogen oxides into harmless gases before they are released into the environment. Platinum, palladium, and rhodium are the most important autocatalysts.
Moreover, as automobile production increases worldwide, the demand for autocatalysts will increase. Stringent regulations to control nitrogen oxide emissions in Europe and North America are having a positive impact on the auto catalyst market. The US Environmental Protection Agency's NOx Limits and Allowances Trading Program regulates nitrogen oxide emissions. Regulations are becoming more and more stringent in these regions, which is expected to boost the demand for autocatalysts during the forecast period.
Recycling automotive catalysts is the primary trend in the market. Thousands of cars are built each year, and different automotive catalytic converters are developed. Recycling autocatalysts to recover platinum, palladium, and rhodium helps to conserve natural resources and reduce the costs of mining operations while protecting the environment. The proportion of platinum, palladium, and rhodium in this converter scrap is much higher than in the ore.
Moreover, recovery of platinum, palladium, and rhodium from spent catalysts can also meet new production needs. The proportion of recycled platinum, palladium, and rhodium in new catalytic converters is steadily increasing. This is expected to propel the growth of the market during the forecast period.
Increasing demand for electric vehicles is a challenge that affects the growth of the market. Changes in car-buying behavior create a threat to conventional mechanically steered, gasoline-powered vehicles. End users prefer powerful and eco-friendly vehicles. The electrification of cars is due in part to breakthrough battery technology. Companies like Tesla, BMW, Nissan, and Ford are making electric vehicles that could offer strong competition to the traditional car segment.
Furthermore, in China, BYD, Beijing Electric Automobile, Zhidao, Shanghai Automotive Industry, and Zotye are the country's largest EV manufacturers, and their EV consumers are among the top in the world. Germany, the US, and Japan are also major manufacturers of electric vehicles. Increasing demand for electric vehicles across the globe leads to reduced production of conventional internal combustion engines in the automotive industry, which will impede the global autocatalyst market during the forecast period.
The market research 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 Market Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The light-duty vehicle segment is estimated to witness significant growth during the forecast period. Light-duty commercial vehicles include passenger cars, light commercial vehicles, two-wheelers, and three-wheelers. The Clean Air Act will make the rules and regulations for light commercial vehicle emissions stricter and more universal. Simple conventional platinum and palladium oxidation catalysts have been used to convert carbon monoxide and unburned hydrocarbons.
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The light-duty vehicle segment was the largest segment and was valued at USD 9,765.73 million in 2017. Platinum is a suitable material for the catalysts. However, as commodity prices rise, manufacturers are turning to palladium as a cost-effective alternative to platinum. Most companies use palladium-rhodium combinations as catalysts, and some continue to use platinum-palladium-rhodium catalysts. Increasing production of light-duty commercial vehicles across the globe is expected to boost the demand for autocatalysts during the forecast period.
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APAC is estimated to contribute 60% 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. The rising population and growing demand for automobiles will drive the growth of the market in the region. China has the largest market share in the regional auto catalyst market. Large companies such as BASF, Johnson Matthey, and Umicore have production facilities in China.
Furthermore, Japan also contributed a large share of the market in 2022. Large companies like Umicore have a strong presence in the Japanese market. Joint ventures help companies compete locally. Such strategies help companies to gain a large market share in the country. Hence, such factors are expected to drive market growth in this region during the forecast period.
The 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.
The Market is witnessing significant growth driven by stringent regulations aimed at reducing harmful emissions such as CO (carbon monoxide), HC (hydrocarbons), NOx (nitrogen oxides), and ground-level ozone. The International Organization of Motor Vehicle Manufacturers (OICA) plays a pivotal role in setting industry standards, while the Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP) ensures compliance. Catalysts, often employing semiconductors, facilitate chemical reactions to convert harmful emissions into less harmful substances, thus mitigating environmental impact. This demand is further fueled by rising concerns over CO2 emissions and the need for cleaner transportation solutions. Raw materials crucial for catalyst production are in high demand, reflecting the market's growth trajectory as automotive manufacturers strive to meet emission standards and embrace sustainable practices.
Automotive Catalyst Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.3% |
Market growth 2023-2027 |
USD 2,469.21 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.6 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, CDTi Advanced Materials Inc., Clariant International Ltd., Corning Inc., Cummins Inc., Heraeus Holding GmbH, INTERKAT Catalyst GmbH, Johnson Matthey Plc, Norman G. Clark A Asia Pty Ltd., Northam Platinum Ltd., PJSC MMC Norilsk Nickel, Shell plc, Sinocat Environmental Technology Co. Ltd., Solvay SA, Stella Chemifa Corp., Tenneco Inc., Topsoes AS, Toyota Motor Corp., Umicore SA, and Vikas Group |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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