Global Exhaust Gas Recirculation System Market in Commercial Vehicles 2016-2020

Overview of the exhaust gas recirculation (EGR) system market in commercial vehicles

According to the market research analysts at Technavio, the global exhaust gas recirculation (EGR) system market in commercial vehicles is anticipated to witness impressive growth and will post a CAGR of more than 8% over the forecast period. With the increasing penetration of diesel engines in medium and heavy-duty vehicles, the market for EGR system in commercial vehicles is expected to have a positive outlook in the coming years. Heavy-duty and medium-duty vehicles require huge amounts of torque to transport heavy cargo, which is provided by diesel engines. These engines are installed with EGR technology to maintain control over their nitrogen oxide emission levels. EGR system controls NOx emissions by recirculating the exhaust gas back into the combustion process. This lowers the heat, thereby curbing harmful NOx emissions. Moreover, rising fuel prices have led to an augmented demand for fuel-efficiency in vehicles. The EGR system increases the fuel efficiency of vehicles by engine compression, which will also contribute to this market’s growth over the next four years.

One of the recent trends gaining significant traction in the market is the proliferation of advanced Euro emission standards such as Euro 5 and Euro 6 in emerging countries. Besides the members of the European Union, emerging nations such as Brazil, China, India, and Russia have also adopted Euro emission standards and are expected to regulate them with stricter norms by 2020. However, as far as following the Euro standards is concerned, the developing countries are lagging behind as they are still following the older versions of Euro standards. Highly-polluted countries like India and China looking to implement Euro 5 and Euro 6 emission standards in next few years, which will boost adoption of EGR system in commercial vehicles.

Competitive landscape and key vendors

The global EGR system market in commercial vehicles is highly competitive owing to the presence of limited number of well-established vendors. The competitive environemnt is expected to intensify with advances in technology and government regulations. OEMs are expected to enter long-term collaborations with EGR vendors as the quality of materials used and the designs that are crucial factors in decreasing exhaust back pressure and cost are unique for each vendor.

Key vendors in this market are -

• Tenneco
• Faurecia
• BorgWarner
• Cummins
• KSPG

Segmentation by application and analysis of the EGR system market in commercial vehicles

• Heavy-duty
• Medium-duty
• Light-duty

During 2015, the light-duty vehicle segment was the highest revenue contributor in the market and will continue to dominate the market in the future. The light-duty commercial vehicles have a higher volume in the EGR system market as they have more vehicles compared with heavy-duty and medium-duty commercial vehicles.

Geographical segmentation and analysis of the EGR system market in commercial vehicles

• Americas
• APAC
• EMEA

In terms of geography, the APAC region led the global EGR system market in commercial vehicles and will continue its dominance until the end of 2020. The growth of this market in the region is attributed to a large number of heavy-duty and light-duty diesel vehicles used in the region. Moreover, the increasing investments on infrastructural development and subsequent requirement of additional commercial vehicles by construction companies will also aid in this market’s growth in the region.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global EGR system market in commercial vehicles?
• What are the key market trends impacting the growth of the global EGR system market in commercial vehicles?
• What are the challenges to market growth?
• Who are the key vendors in the global EGR system market in commercial vehicles?
• What are the market opportunities and threats faced by the vendors in the global EGR system market in commercial vehicles?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the global EGR system market in commercial vehicles?

Technavio also offers customization on reports based on specific client requirement.

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