Two-Wheeler Catalytic Converter Market Analysis APAC, North America, Europe, South America, Middle East and Africa - India, China, Indonesia, Pakistan, Viet Nam - Size and Forecast 2024-2028

Two-Wheeler Catalytic Converter Market Size and Trends

The two-wheeler catalytic converter market size is forecast to increase by USD 560.7 million, at a CAGR of 5.6% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The increasing stringency of emission norms for two-wheelers is driving the demand for more efficient exhaust systems, thereby boosting market growth. Another trend is the emergence of dual-sport motorcycles, which require advanced catalytic converters to meet emission standards while providing optimal performance on and off-road. Additionally, the high penetration of low-cost bikes in developing countries is expanding the market base. Despite these growth factors, challenges such as high production costs and complex regulatory requirements pose significant hurdles for market participants. Overall, the two-wheeler catalytic converter market is expected to witness steady growth in the coming years due to these trends and challenges.

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The two-wheeler catalytic converter market is witnessing significant growth due to increasing emission norms and consumer awareness towards environmental pollution. Selective Catalytic Reduction (SCR) and Lean NOx Catalysts (LNC) are the primary technologies used in two-wheeler catalytic converters for controlling emissions from Internal Combustion Engines (ICE). SCR technology uses ammonia to reduce nitrogen oxides (NOx) emissions, while LNC technology uses a lean exhaust gas stream to reduce NOx emissions. Lean NOx traps, a type of catalytic converter, are gaining popularity due to their ability to reduce NOx emissions effectively in lean-burn engines. The catalyst chamber in the exhaust system plays a crucial role in the conversion process, using palladium, platinum, and rhodium as catalysts to convert toxic gases like carbon monoxide, hydrocarbons, and NOx into harmless gases. Economic conditions and infrastructure development also influence market growth. Economic growth leads to increased vehicle sales, while infrastructure development facilitates the establishment of manufacturing units and research centers. The market is expected to continue growing as emission norms become stricter and consumer awareness towards environmental pollution increases.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook
  • Entry level
  • Mid-size
  • Full size
• Product Outlook
  • Palladium
  • Platinum
  • Others
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • 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

By Application Insights

The market share growth by the entry-level segment will be significant during the forecast period. The Two-Wheeler Catalytic Converter Market is driven by stringent emission norms and the need for effective emissions control in internal combustion engines. Selective Catalytic Reduction (SCR) and Lean NOx Catalysts (LNC) are two primary technologies used to reduce toxic gases, including nitrogen oxides (NOx) and carbon monoxide (CO), in the exhaust system of two-wheelers. Lean NOx Traps (LNT) and Three-way catalytic converters are other emission control devices used to minimize hydrocarbon emissions. These catalytic converters contain precious metals such as palladium, platinum, and rhodium, which make them expensive. However, the increasing focus on air quality and environmental pollution has led to the implementation of stricter vehicle pollution standards.

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The entry-level segment was valued at USD 1.56 billion in 2018. As a result, automotive manufacturers are investing heavily in research and development to improve the efficiency of catalytic converters and reduce their cost. Moreover, the economic conditions and the aftermarket for catalytic converters have also influenced the market's growth. Emission monitoring and recycling of precious metals from spent catalytic converters, also known as urban mining or green metals, have emerged as potential opportunities for market expansion. The recycling of these metals not only reduces the environmental impact but also makes the catalytic converters more cost-effective. Heavy-duty two-wheelers and diesel engines require specialized catalytic converters, such as diesel oxidation catalysts, to meet emission norms. The market for these converters is expected to grow significantly due to the increasing demand for fuel-efficient and environmentally friendly two-wheelers. Overall, the Two-Wheeler Catalytic Converter Market is poised for growth due to the need for effective emissions control, increasing environmental standards, and the potential for recycling precious metals.

Regional Analysis

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APAC is estimated to contribute 94% 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 Two-Wheeler Catalytic Converter Market is witnessing significant growth due to the increasing emphasis on Emission Control in the Internal Combustion Engine sector. Emission Norms, both in developed and developing economies, are becoming stricter, necessitating the use of advanced Emission Control Devices such as Selective Catalytic Reduction (SCR), Lean NOx Catalysts, and Lean NOx Traps. These technologies help reduce toxic gases like carbon monoxide, nitrogen oxides, and hydrocarbons from the exhaust system. Three-way and Four-way catalytic converters, which use precious metals like palladium, platinum, and rhodium, are widely used in the automotive industry for emissions control. SCR technology, specifically, uses ammonia to reduce nitrogen oxides, making it a popular choice for heavy-duty vehicles. The recycling of precious metals from spent catalytic converters, also known as Urban Mining or Green Metals, is gaining traction due to its environmental benefits. Emission monitoring and vehicle pollution standards are driving the demand for aftermarket catalytic converters. Automotive manufacturers are continuously innovating to meet these standards, ensuring the production of cleaner vehicles. The economic conditions, however, may impact the market growth as consumers may postpone vehicle purchases due to financial constraints. Despite this, the long-term outlook for the Two-Wheeler Catalytic Converter Market remains positive, with a focus on improving air quality and adhering to environmental standards.

Our researchers analyzed the data with 2023 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

Increasing stringency of emission norms for two-wheelers is notably driving market growth. The two-wheeler catalytic converter market is witnessing significant growth due to the increasing stringency of emission norms for two-wheelers. Governments worldwide are implementing stricter regulations on vehicle emissions, including two-wheelers, to mitigate the negative impact of toxic gases on human health and the environment. These regulations have led to the development of advanced emission control technologies, such as Selective Catalytic Reduction (SCR), Lean NOx Catalysts, and Lean NOx Trap. Three-way and four-way catalytic converters, which contain precious metals like palladium, platinum, and rhodium, are commonly used in two-wheelers to reduce emissions of carbon monoxide, nitrogen oxides, and hydrocarbons. The exhaust system, which houses the catalyst chamber, plays a crucial role in emission control.

Further, emission monitoring and vehicle pollution standards are essential for automotive manufacturers to ensure compliance with environmental standards. The aftermarket for emission control device is also growing, as vehicle owners seek to upgrade their vehicles to meet the latest emission norms. The recycling of precious metals from catalytic converters, also known as urban mining or green metals, is an emerging trend in the two-wheeler catalytic converter market. Heavy-duty two-wheelers, particularly those used in commercial applications, are also subject to emission norms, further driving the market growth. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The emergence of dual-sport motorcycles is one of the key trends in the market. The increasing competition in the global two-wheeler industry is driving the launch of new models across segments. In the past few years, the two-wheeler industry has witnessed the emergence of sub-segments. Dual-sport motorcycles are increasingly gaining popularity among motorcycle enthusiasts. These motorcycles offer broad capabilities, making them ideal for use as sports motorcycles while riding through streets or off-roading. Often known as street versions of enduro-type off-road motorcycles, they are equipped with large displacement multicylinder engines and effective catalytic converters for adequate performance across both on-road and off-road conditions.

Besides, some of these motorcycles also come with saddlebags. Some of the prominent dual-sport motorcycle manufacturers include Honda Motor, Kawasaki, and Yamaha Motor are some of the prominent. This motorcycle segment is witnessing a year-over-year increase in sales in regions such as North America, Europe, and some APAC economies. Hence, the emergence of dual-spot motorcycles is expected to boost the growth of the global two-wheeler catalytic converter market during the forecast period.

Key Market Challenge

The high penetration of low-cost bikes may impede market growth. In the global motorcycle market, developing countries such as China and India account for the largest share in terms of volume sales. In these countries, the motorcycle market is dominated by commuter-class motorcycles, mostly less than 125 ccs, for which the installation of a catalytic converter is not mandatory. Moreover, motorcycle producers in these countries focus on offering economical and efficient vehicles for short-distance travel.

Furthermore, apart from the legislation on motorcycle exhaust systems, the cost of including catalytic converters in the commuter segment motorcycles is posing a challenge for the two-wheeler catalytic converter market. For instance, BS 6 motorcycles and scooters cost significantly higher compared to their BS 4 counterparts. Hence, the growing penetration of entry-level commuter motorcycles is posing a barrier for the two-wheeler catalytic converter market in China and India, which are major two-wheel markets. The global two-wheeler catalytic converter market will, hence, reflect the impact on these countries during the forecast period.

Exclusive Customer Landscape

The market forecasting 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

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.

• ACAT Global LLC: The company offers two-wheeler catalytic converters such as direct-fit catalytic converters, and universal-fit catalytic converters.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Akrapovic d.d.
• BASF SE
• Continental AG
• Munjal Auto Industries Ltd.
• Scorpion Exhausts Ltd.
• Shilpa Enterprises
• Varroc Engineering Ltd.

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 two-wheeler catalytic converter market is witnessing significant growth due to the increasing emphasis on emission control in internal combustion engines. Selective Catalytic Reduction (SCR) and Lean NOX Catalysts are the primary technologies used in two-wheeler catalytic converters for reducing toxic gases, including carbon monoxide, nitrogen oxides, and hydrocarbons. Lean NOX trap (LNT), a type of catalytic converter, are gaining popularity due to their ability to meet stringent emission norms. The catalytic converter's core component is the catalyst chamber, which contains precious metals such as palladium, platinum, and rhodium. These metals facilitate the conversion of harmful emissions into less harmful ones. The exhaust system plays a crucial role in the proper functioning of the catalytic converter. Economic conditions and environmental pollution concerns are driving the demand for emission control devices in two-wheelers. The automotive industry is responding by developing advanced catalytic converters, including three-way and four-way catalytic converters and diesel oxidation catalysts. The aftermarket for catalytic converters is also growing, with an increasing number of consumers opting for emission monitoring and upgrading their vehicles to meet stricter vehicle pollution standards. The recycling of precious metals from used catalytic converters, also known as urban mining, is gaining traction as a sustainable solution for reducing the environmental impact of catalytic converter production. The use of green metals and recycling is expected to become more prevalent in the future as environmental standards continue to evolve. Heavy-duty vehicles are also adopting catalytic converters to reduce their emissions.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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