Automotive Exhaust System Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,Japan,South Korea,Germany - Size and Forecast 2023-2027

Automotive Exhaust System Market Forecast 2023-2027

The automotive exhaust system market size is estimated to grow by USD 23.51 billion at a CAGR of 7.42% between 2022 and 2027. The market's growth is contingent upon several key factors. Firstly, there is a significant increase in the utilization of lightweight and advanced alloys in automotive manufacturing, driven by the need to reduce vehicle weight and improve fuel efficiency. Secondly, stringent emissions regulations are pushing automakers to adopt cleaner technologies, such as electric and hybrid vehicles. Thirdly, the rising consumer preference for eco-friendly vehicles is fueling the demand for hybrid electric vehicles (HEVs), contributing to market growth. These factors collectively indicate a shift towards more sustainable and efficient automotive solutions, highlighting the market's reliance on innovative materials and technologies to meet evolving industry standards and consumer demands.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This 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).

By Application

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. 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 market.

By Region

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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 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 market in APAC.

Market Dynamics and Customer Landscape

The market is experiencing significant growth driven by concerns over carbon emissions and toxic gases. Manufacturers are focusing on reducing nitrogen oxide emissions through the use of diesel particulate filters (DPFs). With rapid urbanization, the demand for metropolitan buses, cabs, and utility trucks is increasing, leading to a higher adoption of alternative fuels such as LPG and CNG, as well as hybrid and electric vehicles. Tailpipes are crucial components in various vehicle types, including sedans, hatchbacks, SUVs, luxury vehicles, trucks, and buses, highlighting the broad scope of the market.

The market plays a crucial role in the manufacturing and automobile industries, serving various sectors including heavy-duty trucks and gasoline-powered vehicles. As the industry embraces alternative fuels such as LPG and CNG, the market is witnessing significant growth. The rise of hydrogen-powered vehicles and the impact of e-commerce are also driving factors. With a focus on tailpipes and resonators, manufacturers are innovating to meet the demands of the automotive sector. Additionally, exhaust systems contribute to reducing emissions and improving vehicle performance, making them essential components in the automotive production process. 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.

Key Market Driver

The increasing use of lightweight and advanced alloys is driving the growth of the 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 indeed increasingly using advanced high-strength steels like austenitic and ferritic stainless steels in exhaust manifolds. These steels offer excellent strength and corrosion resistance, making them ideal for this application. Additionally, there is interest in these materials across various vehicle types, including light commercial vehicles, hatchbacks, hybrid vehicles, heavy commercial vehicles, and utility trucks, due to their beneficial properties.

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 market.

Significant Market Trends

Developments in the field of automotive catalytic converters are the major trend shaping the 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 companies 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.

Major Market Challenge

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 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 market.

Key Market Customer Landscape

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 Market Customer Landscape

Who are the Major Automotive Exhaust System Market Companies?

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.

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 companies, including:

• 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
• Tenneco Inc.

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.

Segment Overview

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. 

• Application Outlook 
  • Passenger vehicles
  • Commercial vehicles

• Fuel Type Outlook 
  • Gasoline
  • Diesel

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

The market is a critical component of the manufacturing and automobile industries, catering to various segments such as buses and coaches, utility vehicles, and heavy-duty trucks. As the demand for alternative fuels like LPG and CNG rises, there's a growing need for efficient exhaust systems to reduce carbon emissions. The market is also influenced by factors like vehicle electrification, Hydrogen powered vehicles, and the development of charging infrastructure. Additionally, advancements in battery technology and the integration of oxygen sensors are driving innovations in exhaust pipe design, contributing to the overall reduction of noise pollution and improvement in vehicle architectures.

Moreover, the market is a critical component of the Manufacturing industry and automobile Industry, serving various sectors including motorcycles, Heavy duty trucks, and gasoline-powered vehicles. As demand for Alternative fuels (LPG, CNG) grows, the market is experiencing significant expansion. The rise of hydrogen-powered vehicles and the influence of E commerce are also driving forces. With a focus on raw materials and exhaust pipe design, the industry is adapting to meet transportation demands. Additionally, integrating exhaust systems in vehicles helps reduce emissions and enhance overall vehicle performance.

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 companies, Market Positioning of companies, 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 forecasting, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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