The global Auto Catalyst Market was valued at USD 11.40 billion in 2015. Implementation of stringent rules, regulations, and test control procedures pertaining to emission control limits coupled with the growing automotive ancillary market is anticipated to remain a key driving factor for global Auto Catalyst Market.
Auto catalysts help convert harmful pollutants such as hydrocarbons, nitrogen oxides, carbon oxides, and other particulate matter into harmless gases such as carbon dioxide, nitrogen, and water. Increasing environmental concerns related to vehicle emission is one of the major factors that is expected to drive the demand for auto catalysts.
The major demand for auto catalysts has been experienced from countries such as China, Japan, Germany, and India. Favorable government regulations in emerging economies of Asia Pacific is also expected to have a positive influence on the market.
According to Alan Batey, the President of General Motors North America, as of 2015, “the average age of a vehicle on road reached an all-time high of 10 years”. This also means an increase in repair and maintenance activities, which is expected to have a positive impact on the global Auto Catalyst Market.
The growing automobile industry and automobile aftermath industry is expected to drive the demand for auto catalysts across the world. Implementation of stringent regulations particularly in North America and Europe and implementation of new rules & regulations governing vehicle emission in emerging countries of Asia Pacific are the factors that are projected to augment the Auto Catalyst Market over the forecast period. The increase in per capita ownership of vehicles is another factor which is projected to boost the demand for auto catalysts.
U.S. Auto Catalyst Market revenue by application, 2014 - 2024 (USD Million)
Light duty vehicles (LDV)-gasoline was the leading application segment with volume exceeding 75 million units in 2014. The application segment’s growth is driven by increasing purchase of gasoline driven vehicles in China and the North America region.
The light duty vehicles (LDV)-diesel segment and heavy duty vehicles (HDV) segment are expected to witness significant growth particularly in Asia Pacific and Europe. The European automobile market is dominated by diesel-powered engines. The high prices of auto catalysts used in diesel-powered vehicles are expected to boost the revenue growth in this region.
HDV’s such as trucks, coaches, and buses are expected to account for a major share in the greenhouse gas emissions. The EURO Commissions has implemented stringent regulatory policies related to emission control limits for heavy duty vehicles which will boost the demand for auto catalysts in this segment. Though the volume of heavy duty vehicles on road is comparatively low as compared to light duty vehicles, the price of auto catalysts that caters to this segment is relatively high. This factor is expected to significantly contribute to the growth in revenue in this segment.
In terms of volume, Asia Pacific Auto Catalyst Market led the global industry with demand share exceeding 50% in 2015. The growth in this region is driven by growing automobile production in China, India, Thailand, Indonesia, and South Korea and increasing environmental concerns regarding vehicle emissions in developing countries such as China and India. The implementation of the China 5/V vehicle emission standards which are considered to be more stringent than the Euro standards is projected to drive the market growth over the forecast period.
China and Japan are the largest producers of automobiles in Asia Pacific. The increasing production of diesel-powered vehicles in these countries is expected to drive the revenue growth for Asia Pacific. In terms of value, Europe is expected account for the largest share in the Auto Catalyst Market. Stronger emission control regulations and test guidelines implemented by regulatory authorities in this region are expected to contribute to the growth in this industry.
The North American Auto Catalyst Market is also expected to witness significant growth on account of increasing average life of vehicles on road and growing production of automobiles in the U.S. and Mexico.
The global Auto Catalyst Market is highly competitive with major companies involved in constant product innovation and research activities in order to boost their product offerings. Manufacturing products that are compliant with Euro, EPA, and CRAB regulations provides a competitive edge to companies operating in this industry. Key companies in the industry include BASF SE, Johnson Matthey PLC, Solvay SA, Umicore SA, Corning Incorporated, Cataler Corporation, Faurecia SA, Heraeus Holding GmbH, IBIDEN Co., Ltd., Tenneco, Inc., and Cummins Emission Solutions, Inc.
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