Automotive exhaust systems are an essential part of a vehicle as they expel harmful combustion gases from the engine and reduce pollution. The exhaust system consists of manifolds, catalytic converters, mufflers, resonators, and tailpipes that ensure clean emissions. Automotive exhaust systems play a vital role in managing engine performance and complying with stringent emission standards. The growing automotive production and rising demand for highly efficient vehicles with minimal emissions are fueling the automotive exhaust systems market.
The Global Automotive Exhaust Systems Market is estimated to be valued at US$ 71.10 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Automotive Exhaust Systems are BENTELER International Aktiengesellschaft, BOSAL, Continental AG, Eberspächer, FORVIA Faurecia, FUTABA INDUSTRIAL CO. LTD, Boysen, Sejong Industrial Co.Ltd., Tenneco Inc., Yutaka Giken Company Limited, Johnson Matthey, BASF SE, Umicore, Klarius Products Ltd, and Cummins Inc. The key players are focusing on expanding their production capacity and global footprint to tap the growing demand.
The global automotive production is increasing at a significant rate creating huge demand for automobile parts and components including Automotive Exhaust Systems Market Demand. The growing demand for passenger and commercial vehicles is driving the automotive exhaust systems market.
The key players are focusing on expanding their reach globally especially in developing regions to leverage the market opportunities. All major players have widened their geographical presence across Asia Pacific, Europe, North America, Middle East & Africa, and Latin America to boost sales. Stringent emission regulations across countries will accelerate the demand for advanced emission control technologies.
Market Key Trends
Lightweight exhaust system materials is one of the key trends in the automotive exhaust systems market. The key players are focusing on developing lighter weight exhaust components using advanced materials like stainless steel, titanium and Inconel to reduce the overall vehicle weight and improve fuel efficiency. Reduced weight also lowers the production cost of exhaust systems. Growing electrification of vehicles and hybrid technologies will further propel the demand for efficient exhaust systems catering to the evolving powertrain technologies. Stringent emission norms will also push the demand for efficient after-treatment devices like catalytic converters and particulate filters.
Porter’s Analysis
Threat of new entrants: The automotive exhaust systems market requires high R&D investments and well-established supplier relationships which create barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternatives and focus on price and quality.
Bargaining power of suppliers: Key suppliers like manufacturers of catalytic converters have significant influence over buyers due to their technological expertise and patented products.
Threat of new substitutes: There exists a low threat from substitutes as exhaust systems are essential for emission treatment in vehicles and they do not have close alternatives.
Competitive rivalry: The market is highly competitive with prominent global players. Companies focus on product innovation, lowering costs and expanding geographic reach to gain market share.
Geographical Regions
Asia Pacific accounts for the largest share of the automotive exhaust systems market in terms of value due to strong vehicle production in major countries like China, India and Japan. Growing demand for passenger and commercial vehicles along with stringent emission norms drive the demand for advanced exhaust components in the region.
Western Europe is expected to witness the fastest growth during the forecast period owing to significant investments by auto manufacturers in electric vehicles and hybrid technologies. Countries like Germany, UK, France and Italy are focusing on developing zero-emissions vehicles which is accelerating the adoption of innovative exhaust aftertreatment devices to meet stringent emission standards.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.