Automotive Exhaust Aftertreatment Systems Market

Increasing Vehicle Production to Drive Automotive Exhaust Aftertreatment Systems Market

COVID-19 pandemic has affected almost every region in the world. The automotive exhaust aftertreatment systems manufacturers are facing short term demand and supply challenges.

China controls ~80% of the world’s auto supply chain which has resulted in production shortfalls in the initial months of 2020.

The automotive exhaust aftertreatment systems market is dominated by the passenger cars segment. The demand for automotive exhaust aftertreatment system is expected to accelerate as various governments across the world have to compulsorily install exhaust systems in modern vehicles.

Over the forecast period, it is anticipated that, by the beginning of quarter 4, the demand will be higher for passenger cars, in turn, creating significant opportunities for automotive exhaust aftertreatment systems players.

In Fact. MR’s report, it is projected that the automotive exhaust aftertreatment system which is used in passenger cars will hold ~70% market share in terms of value and is anticipated to grow at a CAGR of ~4.3% by the end of the forecast period 2020-2030.

Diesel Particulate Filter (DPF) to Garner Significant Traction

A diesel particulate filter (DPF) is a device designed to remove diesel particulate matter or soot from the exhaust gas of a diesel engine. These filters remove nearly 85% of the particles from the exhaust and ensures efficiency and fuel economy of the vehicles. The rising environmental safety awareness and stringent emission norms is expected to drive the growth of diesel particulate filters.

In addition, rapid urbanization in the future will create new retail and e-commerce platforms which require efficient logistics, in return creating demand for light commercial vehicles.

This is therefore anticipated to create significant demand for diesel particulate filters as they are highly operated on diesel engines. Owing to the above mentioned facts, the global diesel particulate filter (DPF) is estimated to create an absolute $ opportunity of more than US$ ~14.8 Bn during the forecast period (2020-2030).

East Asia to Outperform Other Regions in Automotive Exhaust Aftertreatment Systems Market

East Asia has dominated the automotive exhaust aftertreatment systems market in 2019 accounting for more than 32% of the market share. However, in the current scenario, outbreak of COVID-19 has adversely impacted the automotive exhaust aftertreatment systems market thus showing a negative growth rate.

With the situation getting better in China and automotive parts suppliers resuming their production, it is anticipated to have a positive impact on automotive exhaust aftertreatment systems market by the end of 2020.

In addition, global production of automotive vehicles will start showing an upward trend in sales exhaust aftertreatment systems owing to the demand for passenger cars in developing economies like China, India, and South Korea.

Furthermore, the favorable working circumstances and low-cost labor will foster OEMs to increase the production of automotive exhaust aftertreatment systems in these countries. Under optimistic scenario, East Asia is expected to control the market with nearly 38% share over the forecast period.

Key Players to Account for Majority Share

The market is highly fragmented with presence of a large number of local and regional players. The existing players like Bosal Group, Friedrich Boysen GmbH & Co. KG, and Magneti Marelli S.p.A. have been expanding their manufacturing capacities in the recent past.

Owing to these efforts by existing players to increase production, automotive exhaust aftertreatment systems market is expected to observe notable growth during the forecast period.

COVID-19 Impact on Global Automotive Exhaust Aftertreatment Systems Market

Amid the coronavirus outbreak, automotive industry is a highly affected sector due to the statewide lockdown causing decline in the global demand for automotive vehicles.

Despite the restart of manufacturing operations in China, there is continued supply chain and production disruption as majority of the EU and US OEMs have temporarily closed plants. This is resulting in weakening demand of automotive exhaust aftertreatment systems.

For instance, in EU the factory shutdown has resulted in the production loss of more than 1.4 Mn vehicles which has directly impeded the sales of automotive exhaust aftertreatment systems.

As per the recent report published by Fact.MR, under the optimistic scenario, more than 300 automotive part suppliers in China have resumed their productions and are moving towards a recovery phase which is foreseen to stabilize the automotive exhaust aftertreatment systems market.

Further, it is estimated that automotive exhaust aftertreatment systems market demand curve will start showing positive signs by the third quarter.

Key Segments of the Automotive Exhaust Aftertreatment Systems Market

Fact.MR’s study on the automotive exhaust aftertreatment systems market offers information divided into three key segments— product, vehicle, sales channel, and region. This report offers comprehensive data and information about important market dynamics and growth parameters associated with these categories.

Product	Three Way Catalytic Convertor Diesel Particulate Filter (DPF) Diesel Oxidation Catalyst (DOC) Selective Catalytic Reduction (SCR) Gasoline Particulate Filter (GPF) Lean NOx Trap (LNT) Others
Vehicle	Passenger Car Light Commercial Vehicle Heavy Commercial Vehicle Off-highway Vehicle Forestry Vehicle Agriculture Machinery Construction Machinery Forklift
Sales Channel	OEM Aftermarket
Region	North America Latin America Europe South Asia & Oceania East Asia Middle East & Africa (MEA)