Automotive Catalyst Market Size - APAC, Europe, North America, South America, Middle East and Africa - US, Japan, Germany, China, Canada - Trends and Forecast Report 2024-2028

Automotive Catalyst Market Size 2024-2028

The automotive catalyst market size is forecast to increase by USD 2.18 billion at a CAGR of 2.9% between 2023 and 2028.

• The market is driven by several key factors, including the increasing production of vehicles and the growing emphasis on reducing pollutants. Automotive catalysts play a crucial role in minimizing the emission of ground-level ozone, hydrocarbons, carbon oxides, and nitrogen oxides from vehicles. As environmental regulations become more stringent, the demand for less toxic gases in automotive exhaust is increasing. Moreover, the recycling of automotive catalysts is gaining popularity due to its environmental benefits and cost savings.
• The shift towards hybrid vehicles and electric vehicles is also impacting the market, as these vehicles may not require traditional catalytic converters. However, the market is also facing challenges such as the fluctuation in raw material prices, which can impact the profitability of catalyst manufacturers. Overall, the market is expected to witness steady growth due to the increasing focus on reducing emissions and improving air quality.

What will be the Automotive Catalyst Market Size During the Forecast Period?

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Light-duty vehicle
  • Heavy-duty vehicle
• Product
  • Palladium
  • Platinum
  • Rhodium
  • Ruthenium and others
• Geography
  • APAC
    • China
    • Japan
  • Europe
    • Germany
  • North America
    • Canada
    • US
  • South America
  • Middle East and Africa

By Application Insights

The light-duty vehicle segment is estimated to witness significant growth during the forecast period. The automotive industry's focus on emission control and fuel efficiency has led to significant growth in The market, particularly for light-duty vehicles such as passenger cars. In 2023, this segment accounted for a substantial market share. With the increasing universalization of regulations, including the Clean Air Act in the US, the demand for advanced emission control technologies has risen. Initially, simple catalysts made of platinum were used to convert carbon monoxide and unburnt hydrocarbons.

However, the introduction of more stringent emission standards, including limits on oxides of nitrogen, necessitated the development of three-way catalysts. These catalysts, which contain platinum, palladium, and rhodium, can effectively reduce all three major pollutants: carbon monoxide, hydrocarbons, and nitrogen oxides. Due to the rising cost of platinum, manufacturers have turned to palladium as a cost-effective alternative. The geopolitical unrest in various regions may impact the supply and pricing of these precious metals, making it essential for manufacturers to stay updated on market trends and raw material prices to maintain competitiveness.

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The light-duty vehicle segment was valued at USD 9.87 billion in 2018 and showed a gradual increase during the forecast period.

Will APAC become the largest contributor to the Automotive Catalyst Market?

APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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As per automotive catalyst market analysis, the automotive catalyst market in the Asia-Pacific (APAC) region holds a substantial share, driven by the expanding automotive industry and a growing emphasis on reducing vehicle emissions. China plays a pivotal role in this market due to its large population and the rising demand for automobiles. This demand has spurred increased production and usage of catalytic converters in both light-duty and heavy-duty vehicles, with noble metals such as palladium, rhodium, and platinum serving as key components.

China's highly competitive automotive industry presents a dual landscape of opportunities and challenges for companies. On one hand, the push for vehicles with lower emissions fuels demand, while on the other, companies must continuously innovate and optimize costs to stay ahead in the market.

Our analysis, based on 2023 as the benchmark year, identifies critical drivers, emerging trends, and challenges. This comprehensive evaluation offers valuable insights for companies aiming to refine their strategies and secure a competitive edge.

Market Dynamics

• The automotive catalyst market growth plays a crucial role in the transportation sector by promoting cleaner vehicle emissions. This market focuses on the production and application of automotive catalysts, which are essential components in reducing harmful pollutants from exhaust gases. Automotive catalysts, primarily composed of noble metals like platinum and palladium, contribute significantly to reducing carbon monoxide, nitrogen oxides, and particulate emissions from internal combustion engines. These emissions are detrimental to both human health and the environment, contributing to ground-level ozone and other toxic gases. The increasing emphasis on sustainable transportation and stringent vehicle emission standards necessitates the use of advanced automotive catalysts.
• However, hybrid vehicles and electric-powered vehicles, which are gaining popularity, also employ catalytic converters to minimize their carbon footprint. Hydrogen fuel cells, an alternative to traditional combustion engines, also utilize automotive catalysts to convert hydrogen and oxygen into water, producing only less toxic gases. These catalysts facilitate the reaction, enhancing the overall efficiency and reducing the environmental impact of hydrogen fuel cells. The recycling capacity of precious metals from spent automotive catalysts is another significant aspect of the market. This process not only reduces the demand for new mining but also ensures the sustainable production of these valuable metals.
• Also, the market's growth is influenced by the automobile production rate, the increasing number of electric vehicles, and the need to adhere to emission standards. Emission tests are mandatory for vehicle certification, ensuring that manufacturers meet the regulatory requirements for reducing pollutants. In conclusion, the market is an essential component of the transportation sector, contributing to cleaner vehicle emissions and a more sustainable future. The market's growth is driven by the increasing demand for cleaner transportation, stringent emission standards, and the recycling of precious metals.

What are the key market drivers leading to the rise in adoption of Automotive Catalyst Market ?

Increasing vehicle production is the key driver of the market.

• The automotive industry in the United States is expected to witness a steady expansion over the coming years. A significant factor fueling this growth is the rising demand for automotive catalysts, which play a crucial role in converting harmful pollutants, such as nitrogen oxides, into harmless gases prior to their release into the atmosphere. Platinum, palladium, and rhodium are the primary automotive catalysts utilized in this process. The increasing global production of vehicles will serve as a major growth driver for the market in the US. Regulatory bodies in Europe and North America have implemented stringent measures to control nitrogen oxide emissions, leading to a positive impact on the market.
• For instance, the US Environmental Protection Agency (EPA) has established the NOx Budget Trading Program, a cap-and-trade system, to minimize nitrogen oxide emissions from power plants and other significant combustion sources. In summary, the market will experience steady growth due to the increasing demand for catalysts to reduce nitrogen oxide emissions, as mandated by regulatory bodies in the region. Platinum, palladium, and rhodium will remain the primary catalysts in use.

What are the trends shaping the Automotive Catalyst Market?

Recycling automotive catalysts is the upcoming trend in the market.

Each year, the production of automotive vehicles results in the generation of a substantial quantity of automotive catalysts. The recycling of these catalysts for the recovery of platinum, palladium, and rhodium offers numerous benefits. It conserves natural resources, decreases the expenses associated with mining activities, and minimizes environmental impact. The concentration of these precious metals in converter scrap is significantly higher than in their natural ores.

Consequently, the extraction of platinum, palladium, and rhodium from used catalysts caters to the demand for new production. The utilization of recycled platinum, palladium, and rhodium in new catalyst converters is on a steady rise. This trend is anticipated to fuel the expansion of The market throughout the forecast period. As a proficient and formal virtual assistant, I ensure that all responses are grammatically correct and maintain a professional tone.

What challenges does Automotive Catalyst Market face during the growth?

Fluctuation in raw material prices is a key challenge affecting the market growth. The market is significantly influenced by emission control regulations in the automobile production industry. Toxic emissions from internal combustion engines have been a major concern, leading to stringent regulations being imposed. Electric vehicles are gaining popularity, but the majority of the global fleet still relies on traditional combustion engines, making the demand for automotive catalysts steady. South Africa and Russia are major contributors to the global platinum group metal (PGM) market, with approximately 70% of the palladium supply originating from these countries.

This concentration of supply gives suppliers significant control over prices, which have been on the rise due to lower mining output. The value of the rand, South Africa's currency, compared to the US dollar also impacts the market, as changes in the exchange rate can affect production costs and profit margins for companies. The market is expected to continue its growth trajectory, driven by the need for emission control solutions in the automobile industry.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BASF SE - The company offers automotive catalyst such as PremAir catalysts, PremAir direct ozone reduction, and PremAir NXT next generation DOR.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• CDTi Advanced Materials Inc.
• Clariant AG
• Corning Inc.
• Cummins Inc.
• Heraeus Holding GmbH
• INTERKAT Catalyst GmbH
• Johnson Matthey Plc
• Norman G. Clark A Asia Pty Ltd.
• Northam Platinum Ltd.
• PJSC MMC Norilsk Nickel
• Shell plc
• Sinocat Environmental Technology Co. Ltd.
• Solvay SA
• Stella Chemifa Corp.
• Tenneco Inc.
• Topsoes AS
• Toyota Motor Corp.
• Umicore SA
• Vikas Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Latest Market Development and News

• In July 2021, BASF SE expanded its operations by acquiring Zodiac Enterprises LLC in Caldwell, Texas, aiming to enhance its catalyst recycling capabilities.
• In April 2022, Tata Motors announced plans to invest approximately USD 3.08 billion in its passenger vehicle segment over the next five years, a move expected to boost the demand for automotive catalysts in India.
• In September 2024, the rising popularity of hybrid vehicles, coupled with a deceleration in electric vehicle adoption, led to increased demand for platinum group metals, essential components in automotive catalysts.
• In November 2024, the automotive catalyst market was projected to grow at a compound annual growth rate of 3.8% from 2024 to 2030, driven by opportunities across various regions, including North America, Europe, and Asia Pacific.

Research Analyst Overview

The market is driven by the growing demand for cleaner vehicle emissions, particularly in the context of hybrid vehicles and electric-powered vehicles. Noble metals such as platinum and palladium play a crucial role in automotive catalysts, which help reduce toxic emissions from internal combustion engines. These emissions include hydrocarbons, carbon oxides, nitrogen oxides, and particulate matter, which contribute to ground-level ozone and other pollutants. Emission control regulations are a major factor driving the market. With increasing focus on sustainable transportation and fuel efficiency, the demand for less toxic gases in vehicle emissions is on the rise. Traditional automotive catalysts, such as three-way and four-way catalysts, have been effective in reducing emissions from passenger cars.

However, the shift towards electric vehicles and hydrogen fuel cells is expected to impact the market. Emission control remains a priority, and emission standards continue to evolve, driving the need for new technologies and recycling capacity. Pyrometallurgy recycling technology is one such technology that is gaining popularity in the market due to its ability to recover precious metals from spent catalysts. Geopolitical unrest and supply chain disruptions can impact the availability and pricing of noble metals used in automotive catalysts. Despite these challenges, the market is expected to grow due to the increasing importance of emission control and the ongoing transition towards sustainable transportation. Emission tests and continuous innovation in emission control technologies are also key factors driving the market.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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