- The exhaust systems aftermarket is dominated by the heady-duty vehicles (HDVs) by after-treatment device and vehicle type.
- Light-duty vehicle (LDV) is estimated to be the fastest growing aftermarket during the forecast period.
- The agricultural tractor is projected to be the fastest growing exhaust system market by off-highway vehicle.
The Exhaust System Market is estimated to be $84.8 billion in 2018 and is projected to reach $128.2 billion by 2025, at a CAGR of 6.08%. Increasing vehicle production, continuous upgrades in emission regulation, upcoming emission-related regulatory compliances in developing countries, and technological partnerships between OEMs and Tier I players are projected to drive the global exhaust system market.
Some of the key players in the exhaust system market are Faurecia (France), Tenneco (US), Continental (Germany), Eberspächer (Germany), Futaba Industrial (Japan), Benteler International (Austria), Friedrich Boysen (Germany), Yutaka Giken (Japan), Sejong Industrial (South Korea), and Bosal (Belgium).
- Advanced Exhaust Heat Recovery Systems
- Increase in Use of Gasoline Particulate Filter (GPF) With the Advancement in GDI Engine
- Introduction of Real Drive Emission (RDE) Tests
Exhaust system manufacturers need to focus on high-performance after-treatment devices. For instance, Continental announced the development of a product to support exhaust after-treatment in trucks more efficiently. The primary aim is to ensure more efficient conversion of the nitrogen oxides (NOx) into harmless emissions for heavy-duty long-haul trucks, urban light trucks, or municipal vehicles.
Also, a wide array of ongoing and upcoming regulations would significantly drive the exhaust system and after-treatment device market. In Europe, as of 2015, Euro VI emissions standards are followed. As per these standards, heavy-duty vehicles are required to reduce NOx exhaust emissions by 80% and particulate matter (PM) exhaust emissions by 50%. Similar upgrading is followed in the North American and Asia Oceania regions. This would create an opportunity for the exhaust system and after-treatment device suppliers for heavy commercial vehicles
Truck segment is expected to be the second-largest market in the global exhaust system market by vehicle type during the forecast period
Most of the heavy trucks are usually equipped with DOCs and DPFs, and the upcoming regulatory compliances along with rising truck production would boost the market for SCR devices in heavy trucks in the coming years. The market is estimated to be dominated by Asia Oceania as this region is the largest contributor to the world truck production in recent years.
As per OICA statistics, Asia Oceania had almost 70-74% market share in the truck production for 2017. From 2014 to 2017, truck production increased by almost 20% globally with almost 14% in Asia Oceania. As trucks are equipped with larger engines and emit more emissions, regulatory authorities are tightening the norms for heavy vehicles. This will force the OEMs to deploy after-treatment devices. Moreover, in 2018, Bosch announced development in a diesel engine using artificial intelligence which would reduce emissions of NOx drastically which will help the truck manufacturer to comply future NOX limits.
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The SCR segment is expected to be the largest contributor in the exhaust system market, by after-treatment device, during the forecast period
Selective catalyst reduction (SCR) is the fastest growing exhaust market by the after-treatment device. SCR is one of the latest emission control devices that breaks down the hydrocarbons and NOx into water and nitrogen. SCR technology reduces NOx emissions by nearly 90%.
Therefore, its usage in most of the diesel vehicles across the globe is mandated under the new emission norms. SCRs trap NOx more efficiently compared to LNTs in vehicles with large engine capacities. Hence, passenger cars and LCVs with engine capacity of above 2.0 liters are generally equipped with SCRs. Exhaust system manufacturers can focus on more refined SCR technologies that can have a huge demand from the developing countries of Asia Oceania along with North America and Europe owing to their stringent emission norms.
Asia Oceania is expected to account for the largest market size during the forecast period
Asia Oceania has the largest market share of vehicle production with about 54–56% of the total vehicle production. China, India, and Japan are the largest vehicle production hubs because of rising urbanization, increasing GDP, and industrialization among others. With the growing vehicle production, vehicle emissions have also increased significantly. Considering this, few countries such as China, Japan, and India have implemented vehicle emission norms.
For instance, China and India is currently running on China IV and BS-IV. However, they are planning to implement China VI and BS-VI by 2020 which is equivalent to Euro VI. Moving toward strict emission norms will create a huge demand for various after-treatment devices. In Asia Oceania, China and Japan are the leading countries for the exhaust system market, by the after-treatment devices.