Market Trends of Automotive Catalytic Converter Industry
This section covers the major market trends shaping the Automotive Catalytic Converter Market according to our research experts:
Three-way Catalytic Converters Likely to Grow Significantly During the Forecast Period
Automobiles commonly use three-way oxidation-reduction catalytic converters, but two-way oxidation catalytic converters are inefficient since they cannot treat nitrogen oxide. Due to the increased number of IC engine vehicles on the road, the three-way oxidation-reduction catalytic converter segment is expected to maintain its dominance during the projected period. Furthermore, heavy-duty commercial vehicles like tractors and trucks are expected to take longer to be replaced by electric cars.
In addition, better emission reductions offered by three-way catalytic converters are a driving factor for the major usage of three-way catalytic converters. The reduction, oxidation, and particulate nitrogen filter offered by this catalytic converter is an advantage over just the oxidation and reduction provided by the two-way converter. These Three-way catalytic converters are more efficient than two-way converters and are found mainly in vehicles driven by diesel engines.
Owing to such advantages and factors, the demand for three-way catalytic converters for vehicles is anticipated to pick up pace over the forecast period and is expected to hold a significant share in the market over the forecasted period.
Europe is Expected to Hold Major Market Share During the Forecast Period
Stringent emission limits, such as Euro V and Euro VI, are the key factor driving demand in the European region. For instance, Currently, 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 a 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.
Furthermore, prominent manufacturers' presence in countries like Germany and the United Kingdom has driven the area to the forefront of the global automotive catalytic converters market. Furthermore, the automotive catalytic converter market in South America, Asia Pacific, the Middle East, and Africa has grown due to the rise of the automotive sector in these regions. Increased demand for better and more environmentally friendly electric vehicles as a result of rising environmental concerns is also expected to create an indirect positive impact on the market.
The market in Asia-Pacific is also expected to grow at a fast pace due to the sheer volume of cars being sold. . China is expected to occupy a significantly high market share and 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 during the forecast period.
