Catalytic Converter Market Size

Catalytic Converter Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global catalytic convertor market is expected to be worth about US$55.76 billion in 2023, and is projected to reach US$80 billion by 2032, at a CAGR of 4.09 percent between 2024 and 2032. The steady rise in demand for catalytic convertors is mainly driven by increasing vehicle production and tighter emissions regulations in many regions. The implementation of the most stringent emissions standards in the world is putting a lot of pressure on the exhaust system to reduce harmful emissions, driving the market. The design and materials of catalytic convertors have also been developed, which is also a major factor in driving the market. The development of more effective catalysts and the introduction of advanced production methods have improved the performance and service life of catalytic convertors. These are all factors that are driving the market. The main companies in the industry, such as Johnson Matthey, BASF, and Umicore, are all making huge investments in R & D to develop more effective catalytic convertors. Strategic initiatives such as technology sharing and sustainable development will also strengthen the competitiveness of these companies and help them seize the opportunity of the increasing demand for clean vehicles.

Regional Market Size

Regional Deep Dive

The Catalytic Converter Market is experiencing dynamic growth in different regions, driven by the rising demand for cleaner automobiles and the growing demand for a cleaner environment. In North America, the shift towards electric vehicles is changing the market. Europe is seeing a surge in innovation, with the development of advanced catalytic conversions to meet the EU’s ambitious climate goals. In Asia-Pacific, the rapid industrialization and urbanization is driving the demand for automobile components such as catalytic conversions. Middle East and Africa are slowly adopting emission control technology, while Latin America is focusing on improving air quality, which will have a significant effect on the catalytic conversion market.

North America

• Stricter regulations on exhaust gas emissions were imposed by the American EPA, and this forced the automobile manufacturers to invest in the development of catalytic converters.
• In recent years, companies such as Johnson Matthey and BASF have developed the catalytic materials used in catalytic converters, focusing on platinum group metals to increase their efficiency and reduce emissions.
• Electric cars are gaining in popularity, which is why the car companies are rethinking their catalytic conversion strategies. They may also be rethinking their plans for conventional vehicles.

Europe

• By 2050, the Green Deal is aiming to make Europe climate-neutral, which is why it is encouraging the development of catalytic converters to meet strict CO2 emission standards.
• Companies like Umicore and Continental are leading the way in the development of lightweight materials and hybrid catalytic converters. These developments enhance performance and reduce the burden on the environment.
• The new regulations, such as the EURO 7, are to further tighten the limits of permissible emissions. These regulations are expected to force manufacturers to use more advanced catalytic solutions.

Asia-Pacific

• CATL and Baidu have been investing heavily in R&D.
• Catalytic convertors are gaining in importance in the Indian automobile industry, because of the implementation of Bharat VI, which is similar to Euro VI.
• As a result of the growing urbanization and rise of car-sharing services in Southeast Asia, the number of vehicles on the road has increased, driving demand for highly efficient catalytic convertors.

MEA

• As part of its Vision 2021 initiative, the UAE is investing in sustainable energy technology, including catalytic convertors, to reduce air pollution and reduce emissions.
• Local companies have begun to cooperate with foreign firms to improve their catalytic-converter technology.
• Regulations in countries like South Africa are gradually evolving, and it is expected that catalytic converters will become more widely used in the automobile industry.

Latin America

• Brazil is imposing more severe limits on the emissions of exhaust gases, and this is driving the demand for catalytic convertors in the automobile industry, especially for flex-fuel cars.
• The Government of Mexico is promoting the use of cleaner technology, including catalytic converters, as part of its commitment to reduce air pollution.
• Catalytic converters are already being manufactured locally, but they need to be improved technologically by the help of international players.

Did You Know?

“The catalytic converter reduces harmful emissions by up to ninety per cent.” — U.S. Environmental Protection Agency (EPA)

Segmental Market Size

The catalytic converter market is an important part of the automobile industry, mainly concerned with exhaust gas control. This market is currently growing as a result of increased regulatory requirements for lower exhaust emissions and rising consumer demand for cleaner cars. A major factor driving this demand is the growing trend towards electric vehicles, which, even if they are hybrids, still frequently use catalytic converters.

In Europe, the use of advanced catalytic converters is at a mature stage. Companies like Johnson Matthey and BASF lead in their development and implementation. These catalytic devices are primarily used in passenger cars, commercial trucks and off-road equipment. They play a vital role in reducing harmful emissions. These products are experiencing rapid growth as a result of the drive towards sustainability and the government’s drive for cleaner air. Future developments in materials science, such as the development of more efficient catalysts, will ensure that the future of catalytic devices is in line with future standards.

Future Outlook

The catalytic converter market is set to show considerable growth from 2023 to 2032, with a CAGR of 4.09%. This growth is being driven by the increasing demand for emission-control technology, which is in turn being driven by the tightening of environmental regulations and the increasing demand for sustainable mobility solutions. In future, governments will be introducing stricter emissions standards, which will lead to the increasing use of catalytic converters in both new and used vehicles, thus boosting their penetration of the automotive industry. By 2032, it is expected that over 90% of new vehicles will be equipped with the latest generation of catalytic converters.

It is hoped that the development of new catalytic materials and the introduction of electric and hybrid vehicles will change the nature of the market. The use of precious metals, such as platinum, palladium and rhodium, in the catalysts, will increase the performance and life of the catalytic converters, making them more attractive to car manufacturers. Furthermore, the increasing electrification of vehicles will create new opportunities for catalytic converter manufacturers, as hybrid and electric cars will still need to have effective emissions control. The recovery of precious metals from used catalytic converters will also help the market grow. This will also contribute to the circular economy, and reduce the carbon footprint of the automobile industry.

The development of alternative fuels and the growth of the aftermarket will also play a major role in the future of the catalytic converter market. The increasing demand for biofuels and hydrogen will require the catalytic converter to be adapted to meet new emission standards. The aftermarket is also expected to grow due to the replacement and repair of catalytic converters in older cars. In general, the catalytic converter market is expected to grow strongly, driven by regulatory frameworks, technological developments and changing consumer preferences.