Automotive Catalytic Converter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Automotive Catalytic Converter Market was valued at USD 12 Billion in 2020 and is expected to reach USD 18 Billion by 2026, registering a CAGR of more than 7% during the forecast period.
The Covid-19 pandemic had a huge impact on the market, owing to the decrease in the number of new passenger and commercial vehicles sold across the world. With different restrictions implemented, even the aftermarket sales of the catalytic converter did not account for good business in 2020. But with the projected increase in preference for individual mobility, the market expects to grow back to normal economic conditions post-pandemic.
Some of the major factors driving the growth of the market are the enactment of stringent emission norms, and the growing automotive industry in the Asia-Pacific region, especially in countries, such as India, China, Thailand, and Japan. However, the growing penetration of electric vehicles is expected to hinder the growth of the market.
The demand for and adoption of catalytic converters in the automotive industry has been consistently increasing. With the growing environmental and health concerns and, the government across the world are enacting stringent emission norms to control and reduce carbon emission.
For instance, the United States EPA and NHTSA are taking initiatives to support the production of environmental-friendly vehicles, (both passenger vehicles and commercial vehicles) to ensure improved fuel economy and reduced carbon emissions. Through these initiatives, the government is planning to reduce about 3,100 million metric tons of CO2 emission and save about 6 billion barrels of oil by 2025. Also, manufacturers are coming up with various technological advancements, in favour of these emission regulations. For instance,
The EU passed updated regulations, which hindered the market for naturally aspirated engines. The regulation demanded an average CO2 emission of 130 g/km for every car market for the 2012-2015 models. Presently, the EU is directing that CO2 emission, for each car company's fleet average, should be reduced to 95 g/km, between the period 2020-2024 and achieve 15% CO2 emission reduction by 2025 and 37.5% reduction by 2030, especially for passenger cars in the region. Individual countries, like the Netherlands, made more stringent emission standards, demanding 80g/km.
Asia-Pacific region is also expected to grow at a fast pace due to the sheer volume of cars being sold. For instance, China and India together reported a total of 22 Million units of passenger cars sold in 2020. China is expected to occupy a significantly high market share by the end of 2025 in the Asia-Pacific market. China is expected to overtake the United States as the world's largest market for passenger cars, creating a huge potential for the growth of the automotive catalytic converter market.
The improving economic conditions of the region and rising individual disposable income are driving people to buy new vehicles. The stringent emission regulations in the region and the expected increase in automobile sales, point towards great growth potential for the Catalytic Converter Market.
The global Automotive Catalytic Converter Market is a consolidated market. Some of the major players dominating the market are Faurecia SA, Marelli S.P.A, Tenneco Inc, BASF, amongst others. The automotive catalytic converter market is driven by investments made by major manufacturers and research and development along with product innovation in the market. For instance,