Global Automotive Exhaust System Market; By Component (Exhaust Manifold, Oxygen Sensor, Exhaust Pipes); By Fuel Type (Gasoline, Diesel); By Vehicle Type (Passenger Car, Commercial Vehicles); as well as By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast: 2023-2032

Report Overview

The Global Automotive Exhaust System Market size is expected to be worth around USD 89.54 billion by 2032 from USD 47.70 billion in 2022, growing at a CAGR of 6.5% during the forecast period 2022 to 2032.

The demand for exhaust systems directly depends on automotive production and sales. The demand for exhaust systems is increasing globally due to rising passenger car sales as well as increased commercial vehicle sales in both developed and developing countries. This automotive exhaust system market will be driven primarily by strict government standards regarding carbon emissions. Both diesel and gasoline engines emit harmful gases and particles into the atmosphere.

Market Dynamics:

To reduce the environmental impact of the automobile industry, governments around the world are tightening regulations regarding vehicle emissions. These regulations force component suppliers to create high-efficiency, environment-friendly exhaust systems for domestic as well as international markets.

In Europe’s developed economies, like France, Italy, and the Netherlands, there has been a significant increase in disposable incomes. In regions like the Asia Pacific, Middle East, Africa, and Latin America, passenger, and commercial vehicle demand is expected to increase. This will boost the automotive exhaust system market for automotive exhaust systems in process.

In 2020, the COVID-19 pandemic had a significant impact on the demand for automotive exhaust systems. Global lockdowns and social disruptions caused by the spread of the virus led to significant losses in industries like manufacturing, automotive, entertainment, as well as restaurant and hospitality. This slumped business environment is expected to have a negative impact on automotive components production and the demand for exhaust systems in the years to come. Globally, automotive production volumes fell year-over-year due to lower production volumes in North America, Europe, and other regions. OICA reports that global automotive production fell by more than 15% year-over-year to 77.6 million units. This automotive exhaust system market can still expect some relief in the near term as governments relax their lockdown rules and allow businesses to comply with social distancing mandates.

Trends

In the coming years, the market for Automotive exhausts equipment will grow due to strict regulations and increased producer spending on R&D for more efficient exhaust systems. The automotive exhaust system market will continue to grow due to an expanding automotive industry in emerging markets and environmental degradation caused by harmful toxic gases. In the future, the industry will be supported by higher car production, improvements in automotive catalysts, and technical alliances between OEMs and Tier 1 firms. There may be limitations or difficulties that could prevent the industry’s growth. Automotive Exhaust System Market limitations can be caused by the high cost of automotive catalysts and the growing electric car market.

Drivers

Using combined after-treatment equipment

With stricter global emission standards, it is becoming more important to reduce exhaust stream emissions. SCR and DPF are the most popular after-treatment equipment combinations.

Together, they can eliminate more than 70% of particulate and gaseous pollution. This is driving the demand for exhaust systems.

Technology for exhaust systems is developing quickly

The rapid development of particulate filter technology has been due to stringent government pollution regulations. These technologies will be expected to help boost industry growth.

Automobile makers are developing gasoline exhaust fumes technologies in order to reduce NOx emissions and meet future vehicle quality standards

There is a growing demand for zero-emission cars

Rapid urbanization and rising household discretion income have caused countries like India and China to experience a boom in automobile manufacturing. As more efficient diesel engines become available, the industry will grow.

Manufacturers are using more eco-friendly technologies to produce low-emission vehicles. This will increase demand for low-emission vehicles.

Global Automotive Exhaust System Market Scope:

Component Analysis

This automotive exhaust system market is segmented on the basis of Components, with the exhaust manifold segment accounting for 40.5% of the total automotive exhaust system market share in 2021. This industry is expected to grow at a substantial CAGR over the forecast period, due to its high cost in comparison to other components.

Over the forecast period, the highest projected CAGR is slated to be indexed by the muffler segment, at over 7.5%. this segment will account for the majority of sales of automotive exhaust system parts by 2028. Automotive OEMs are working to improve the efficiency of exhaust systems in order to reduce noise pollution and toxic emissions as stricter emission standards become more common. Hyundai introduced Creta mid-SUV in 2020 with dual exhaust mufflers.

Fuel Type Analysis

This automotive exhaust system market is segmented on the basis of fuel type into gasoline and diesel. In 2021, the gasoline segment was responsible for around 80.5% of this automotive exhaust system market’s revenue and is expected to continue its dominance in the future. 9 out of 10 cars in emerging countries are powered by an internal combustion engine. Despite electric vehicles becoming more popular in Europe and North America, the limited infrastructure for electric vehicles in these emerging economies continues to support the growth of gasoline-driven vehicles.

However, governments all over the globe are planning to ban the sale of ICE vehicles and encourage EV adoption. France and the U.K. announced plans in 2017 to ban diesel and petrol cars and vans by 2040. This ban’s deadline was however retracted to 2035. The country will ban new petrol and diesel car sales starting in 2035. Paris has a plan to eliminate all diesel cars by 2024, and all petrol cars by 2030.

Vehicle Type Analysis

In 2021, the passenger car segment was responsible for 70% of total revenues and is expected to continue its dominance in the future. This segment is expected to grow at a CAGR exceeding 5.0% over the forecast period. The majority of vehicle production in 2020 was dominated by passenger cars, accounting for 71%. According to the European Automobile Manufacturers Association (ACEA), vehicle per capita in Europe was 569 per 1,000 inhabitants in 2019. In addition, emerging economies like India and China are expected to accelerate automotive exhaust system market growth prospects over the forecast period.

From 2023 to 2032, the highest CAGR for commercial vehicles is expected to be 8.5%. This growth can be attributed largely to the increasing demand for heavy trucks in the transportation and logistics sectors. One of the most important end-use industries in which commercial vehicles are used is logistics. It is growing rapidly, so much so that trucks and trailers are now being used for transporting goods. People are more inclined to have their goods and products delivered because of increasing urbanization levels and changing lifestyles.

Key Market Segments:

By Component

• Exhaust Manifold
• Muffler
• Catalytic Converter
• Oxygen Sensor
• Exhaust Pipes

By Fuel Type

• Gasoline
• Diesel

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Regional Analysis

The Asia Pacific accounted for 60.5% of global automotive exhaust system demand in 2021, and these markets are expected to grow at a CAGR exceeding 7.1% between 2023 and 2032. This is due to growing technological awareness and increased spending power of customers in the region. This automotive exhaust system market’s growth is also expected to be driven by the developing automotive industry in emerging countries like China and India. As India has many advantages, including low labor costs and lower prices for raw materials, the ‘Make In India’ campaign will likely attract substantial investments in the sector. India and China have large supply chains and logistics networks and are among the fastest growing economies worldwide. In the future, the growing e-Commerce sector in this region is slated to also boost the demand for commercial vehicles.

Over the forecast period, the region of Latin America is expected to grow with the second-highest CAGR of 6.5%. The growth of this region’s markets is expected to be supported by the increasing production and sales of automobiles in countries like Brazil and Mexico. Brazil is the biggest automotive producer in South America, accounting for nearly half of all vehicles sold in the region. It is also ranked eighth for automobile production in the world. The country’s automotive industry contributes more than BRL 266 billion (US$51.9) to its overall GDP. Mexico is also the country with the highest number of passenger cars and the fifth largest producer of auto parts.

Key Regions and Countries Covered in This Report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

With the presence of many global and regional players, the automotive exhaust system market is somewhat consolidated. Faurecia; Boysen, BENTELER International Inc., and Continental AG were the dominant players in 2021. Organic growth is the main strategy of this industry. This includes product launches that expand product offerings and satisfy consumer demand. Tenneco Inc.’s Walker Emissions Control, for example, announced in February 2020 the launch of Walker CalCat, a replacement catalytic converter, and Walker Ultra, a North American muffler.

Market players also invest in expansion prospects to grow their reach into untapped markets. Eberspacher, for example, announced in March 2021 the opening of a new exhaust technology plant in Ramos Arizpe near Saltillo, Mexico. This new plant is part of the company’s North American expansion strategy. These are some of the most prominent players in the global market for automotive exhaust systems:

Market Key Players:

• Benteler International AG
• BOSAL
• Continental AG
• The Eberspächer Group
• Faurecia SE
• Futaba Industrial Co., Ltd.
• Friedrich Boysen
• Sejong Industrial Co. Ltd.
• Other Key Players

For the Automotive Exhaust Systems Market research study, the following years have been considered to estimate the market size: