Selective Catalytic Reduction (SCR) Catalyst Market

Demand for Emission Control Solutions Propelling Selective Catalytic Reduction (SCR) Catalyst Market Growth

The global selective catalytic reduction (SCR) catalyst market is estimated to be valued at US$ 2 billion in 2022 and further expand at a CAGR of 8.6% to reach US$ 4.7 billion by the end of 2032.

Sales of SCR catalysts accounted for 4.3% share of the global catalysts market at the end of 2021.

SCR catalysts are a cost-effective technology and the preferred option among end users due to their effectiveness in reducing NOx emissions from power-generating machineries such as boilers, turbines, furnaces, heaters, and reciprocating engines.

Report Attributes	Details
SCR Catalyst Market Size (2021A)	US$ 1.8 Billion
Catalysts Market Size (Parent)	US$ 42.4 Billion
Estimated Market Value (2022E)	US$ 2 Billion
Forecasted Market Value (2032F)	US$ 4.7 Billion
Global Market Growth Rate (2022-2032)	8.6% CAGR
North America Market Share (2021)	~19%
East Asia Market Growth Rate (2022-2032)	~9.4% CAGR
United States Market Growth Rate (2022-2032)	~7.2% CAGR
Market Share of Top 3 Countries	~40%
Key Companies Profiled	BASF Ceram-Ibiden Cormetech Envirotherm GmbH Fengye Group Hailiang Haldor Topsoe Hitachi Zosen JGC C&C Johnson Matthey Seshin Electronics Tuna Corporation

Evolution of SCR Catalyst Demand

The growing demand for diesel engines and their high prevalence in developed nations has surged the demand for SCR catalysts. The penetration of diesel engines in heavy-duty and light-duty vehicles is growing due to their fuel efficiency aspect.

SCR technology is the most economical and fuel-efficient method of reducing emissions. When compared to alternative NOx removal technologies, selective catalytic reduction catalyst technology is more affordable. The necessity for energy emission control technology has been characterized by several improvements to emission standards in recent years that are relevant to emission control.

• Short-Term Growth Factors (2022 Q2 to 2025): Expanding application and incorporation of SCR catalysts in power plants and petroleum refineries to positively benefit market growth trajectory.
• Medium-Term Growth Aspects (2025-2028): Asia Pacific is anticipated to witness high- demand due to the high presence of manufacturing plants and various government regulations on emissions limits.
• Long-Term Growth Opportunity (2028-2032): Burgeoning applications of SCR catalysts in various end-use industries such as cement plants, steel plants, and marine industry will drive long-term demand.

According to Fact.MR, a market research and competitive intelligence provider, the market for SCR catalysts is projected to surge ahead at 8.6% CAGR between 2022 and 2032.

Market share analysis of SCR catalysts based on type and region. Under the type segment, DeNOx dominates with 83.4% market share in 2022.

Why is the World Seeing Rapidly Rising Demand for SCR Catalysts?

“Coal-fired Power Plants Escalating Electricity Demand”

Quickly expanding economies are uplifting millions of people and the need for energy continues to rise globally. Lack of conventional energy sources to generate electricity, such as natural gas, oil, and limited nuclear power use, is presenting a profitable expansion opportunity for coal-fired thermal power plants.

There is the substantial deployment of Nox control systems due to stringent nitrogen oxide (Nox) emission regulations in a majority of nations. This is having a favorable effect on the market for SCR catalysts.

• According to the International Energy Agency (IEA), higher gas prices in the United States and Europe and increased economic activity in China have increased coal-fired power generation.
• For the first six months of 2021, there was 15% rise in coal generation compared to the first half of 2020. It is anticipated that coal-fired generation will increase in China (+21%), India (+13%), and the United States (+35%), over the coming years.

The high dependability of Asian economies on coal-fired thermal power plants to fulfil their growing electricity demand is anticipated to boost the market.

“Growth in Petroleum Production to Generate Potential Demand for SCR Catalysts”

One of the important applications of SCR catalysts is in petroleum refineries. Increasing demand for denitrification in petroleum refineries across the world owing to stringent emission control regulations has resulted in high demand. SCR catalysts enjoy higher application in East Asia and North America as compared to other regions.

The high demand for energy in the region resulted in the sustained growth of productivity. Production in this region is expected to exhibit continued growth in the near future.

Growing demand for DeNOx and DeSOx in petroleum refineries would contribute to the growth of the global market. Also, increasing petroleum demand across the Asia Pacific region will create opportunities for SCR catalyst suppliers. This ultimately leads to a wide adoption base for SCR systems across the region. Increasing production in China will also fuel market growth over the forecast period.

How Can Market Expansion Be Stalled?

“Shift towards Renewable Power Generation Poses Major Threat”

An increasing preference for renewable energy sources has renewed attention on solar, wind, biomass, and hydroelectric power sources as traditional power plants come under fire due to safety and environmental concerns. Developing nations are now more committed than ever before to boosting the deployment of renewable energy.

Renewable energy sources are now at the center of the world's energy transformation plans due to technological advancements, relevant laws, and a resolve to combat climate change.

• According to IRENA, global energy generation increased from 2.8 TW in 2020 to 3.06 TW in 2021. Solar power generation increased from 846.23 TWh in 2020 to 1032.50 TWh in 2021. In the EU, the annual addition of new renewable power capacity increased almost by 30% (36 GW) in 2021.

Growing inclination towards clean energy and high carbon emissions from conventional power plants will create some challenges for SCR catalyst manufacturers to accelerate their growth in the global market.

Country-wise Insights

Which Factors Drive High Demand for SCR Catalysts in India and ASEAN Region?

Emerging countries/regions such as India and ASEAN are likely to witness amplification in the overall demand for SCR catalysts in the near future. Increasing awareness of the green environment in emerging countries is expected to drive the market. In India, after the Paris agreement, the country is focusing on reducing environmental pollution from vehicles by imposing emission norms.

The South Asia market is anticipated to expand over the forecast period due to suitable manufacturing facilities, advanced technologies, and the increasing business footprint of key manufacturers in India and ASEAN countries.

A high number of manufacturing companies along with high demand from power plants, automobile plants, and steel plants are some of the prominent factors propelling regional market growth.

Why is China Expected to Be a Highly Profitable Market for SCR Catalyst Manufacturers?

• According to the Centre for Research on Energy and Clean Air (CREA), China accounted for over half of the additional new coal-based power plants in 2021.

SCR technology may become more rampant in China as both, heavy-duty and light-duty engine manufacturers work to meet future emission reduction standards. Manufacturers are looking for an extremely efficient carbon-reducing emission control catalyst owing to the tightening of vehicular CO regulations.

SCR catalyst sales in China are anticipated to grow due to efforts taken by the government to reduce the number of vehicles running on gasoline engines, which will impact the demand for SCR catalysts positively over the long-term period.

China held 69.6% share of East Asia’s SCR catalyst production in 2021. The China market for SCR catalysts is valued at US$ 418.8 million in 2022.

Category-wise Analysis

Why are DeNOx Types Most Widely Preferred?

DeNOx is extensively utilized in end-use plants due to its high performance, high-temperature corrosion properties, and high emission reduction capability. It is mainly used for the conversion of CO and HC; high conversion rates of HC and CO are realized through the usage of diesel oxidation catalysts and diesel particulate filters. The growing usage of diesel-based engine vehicles in developed regions is one of the prominent reasons driving the market growth of emission control catalysts.

Pollutants such as Nox and hydrocarbons are regulated by government norms; hence, setting emission limits by using catalysts and reducing harm is the main reason behind market growth. Nitrogen oxide (Nox) emission limitations are often strict, and therefore Nox control (DeNOx) is widely used.

Why is SCR Catalyst Usage Highest in Power Plants?

SCR systems have become the main choice for numerous end-use industries to reduce NOx; hydrocarbons such as ethanol or diesel. Revenue from power plants is projected to expand over the forecast period due to increasing installations of gas turbines, diesel generators, engines, and greenfield establishment of coal power plants across the world. This is attributed to the strong demand for SCR catalysts in power generation plants to reduce the emission of gases.

SCR eliminates nitrogen oxides (NOx) from flue gas that is released by boilers and other combustion sources of power plants. The catalyst is the crucial constituent of SCR systems. It also neutralizes SO and other harmful contaminants that contribute to acid rain.

Key Approach of Market Players

Prominent manufacturers of SCR catalysts are BASF, Ceram-Ibiden, Cormetech, Envirotherm GmbH, Fengye Group, Hailiang, Haldor Topsoe, Hitachi Zosen, JGC C&C, Johnson Matthey, Seshin Electronics, and Tuna Corporation.

Manufacturers are expanding their research and development facilities to develop technologically innovative products. Market titans are maintaining a good balance between organic and inorganic growth strategies. Investments and channel partner integration are key to success in this market. Prominent market players are also observed to be involved in sustainability marketing and partnerships.

• In 2021, Johnson Matthey announced a partnership with Kebotix to develop the next iteration of catalytic converter coatings. The partnership will look for novel ways to boost the effectiveness of tests that lead to the formulation optimization of coatings for catalytic converters.
• In Feb 2020, Haldor Topsoe launched the TITAN steam reforming catalyst series with boosted reliability and efficiency.

Fact.MR has provided detailed information about the price points of key manufacturers of SCR catalysts positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of SCR Catalyst Industry Research

• By Type :

  • DeNOx
  • DeSOx
  • Others

• By Application :

  • Automotive
  • Power Plants
  • Cement Plants
  • Refinery Plants
  • Steel Plants
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA