Automotive Exhaust System Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Fuel Type (Gasoline, Diesel, Alternative Fuels (LPG, CNG, Others)), By Component Type (Manifold, Connector, Exhaust Pipe, Muffler), and Regional Forecast, 2019-2032

The global automotive exhaust system market size was valued at USD 11.35 billion in 2018 and is projected to reach USD 14.7 billion by 2032, exhibiting a CAGR of 2.0% during the forecast period.

The stringent vehicle emission regulations are enforcing automotive manufacturers to introduce technologies to lower emissions from the conventional fuel vehicles. This is expected to reduce the severe health problems caused by vehicle emissions on people. The vehicles in developed regions with emission standards have become cleaner. However, an increasing number of vehicles in China and India is accounting for almost 65% of early deaths, globally. Furthermore, on-road heavy-duty vehicles account majorly for the emission of  nitrogen oxide and fine particles. Automakers are developing  advanced exhaust systems to curb and lower vehicle emissions. The advanced components, such as selective catalytic reduction (SCR) and diesel particulate filters (DPFs), have reduced NOx emission and fine particulates from heavy diesel engines. These factors are likely to propel the automotive exhaust system market growth and Size.  

MARKET TRENDS

 Shift of People Towards Low Emission Vehicles  to Fuel the Market Revenue

By European legislation EURO VI, new passenger cars are required to emit no more than 168 milligrams of nitrogen oxide per kilometer. Further, the regulations expected to get more stringent and the maximum emission standard would lower 120 milligrams per kilometer in the coming years, to tackle environmental hazards. Many exhaust manufacturers are spending rigorously on R&D to develop and design  exhaust systems compatible with these limits, which is one of the leading  market trends. Also, growing awareness among the consumers regarding vehicle pollution is likely to drive the demand for the low emission vehicles having and advanced exhaust systems. 

MARKET DRIVERS

Advancements in Exhaust Systems  to Drive the Market

Rising advancements in  exhaust system technologies such as exhaust after-treatment systems and exhaust gas recirculation (EGR) systems, owing to stringent government emission regulations are anticipated to drive the market revenue. Automotive manufacturers are developing  exhaust systems for diesel engines to reduce  NOx emission to meet future limits of vehicle emissions. All these factors associated with the development and advancement in the automotive exhaust system are projected to propel the demand for advanced exhaust systems for vehicles.

Increasing Sales and Production of Vehicles in  Developing Countries  to Propel the Growth of the Market 

 Rapid urbanization and rising disposable income of  individuals are propelling the sales and production of the vehicles in developing countries such as China and India.  Increasing sales and production of vehicles having  efficient exhaust systems are expected to drive the market’s growth. The emergence of  automakers  utilizing eco-friendly and advanced technologies for the manufacture of low emission vehicles is  likely to drive the growth of the market. Furthermore, increased awareness of  consumers regarding the adverse effects of pollution on health and the environment is also likely to drive the demand for the low emission vehicles equipped with an advanced exhaust system.

MARKET RESTRAINT

Increasing Adoption of Electric Vehicles  to Limit the Growth of the  Market

 Growing awareness amongst the people regarding the impact of the vehicle air pollution on the environment is creating  demand for electric vehicles. Furthermore, the rising adoption of electric vehicles globally owing to government subsidies and tax exemption policies is anticipated to be a limitation for the automotive exhaust system market's growth over the forecast period.

The global trends show various vehicles such as metropolitan buses, cabs, utility trucks, and other vehicles with limited drive range to go electric in the coming years. The electric vehicle comes with a heavy initial cost compared to the conventional fuel vehicle. However, the operational costs of these vehicles are much less than the diesel or gasoline-fueled vehicle making them an attractive investment for administrative bodies. These factors are expected to negatively impact the market for exhaust systems.

SEGMENTATION

By Vehicle Type Analysis

Passenger Car Segment  to Hold the Largest Market Share

Based on  vehicle type, the  market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment accounts for the major market share  and is estimated to dominate the market over the forecast period.  Rising sales of passenger cars in developing countries is expected to drive the growth of this segment in the market.

The light and  heavy commercial vehicle segments are also expected to show good growth in the market over the forecast period.  Advancements in the exhaust system of diesel engines to reduce the fine particles and NOx emission by the automotive manufacturers are expected to drive the growth of this segment in the market over the forecast period.

By Fuel Type Analysis

Gasoline Fuel Type Segment  to Dominate the Market

Based on  fuel type, the  market is segmented into gasoline, diesel, and alternative fuels (LPG, CNG, and others). The gasoline fuel type segment is projected to dominate the market over the forecast period owing to the increasing inclination of the consumers towards gasoline over the diesel as a result of the stringent emission regulations.

The diesel fuel type segment is estimated to show steady growth in the market over the forecast period. The stringent government emission regulations and increasing pollution by diesel engines are affecting the growth of this segment in the market.

The alternative fuel type segment is anticipated to show significant growth in the automotive exhaust system market over the forecast period. The clean and emission-less property of the fuel is the main factor responsible for the growth of this segment in the market.

By Component Type Analysis

Muffler Component Type Segment  to Show Significant Growth

Based on  component type, the  market is segmented into  manifold, connector, exhaust pipe, and muffler. The muffler component type segment is estimated to show significant growth in the market over the forecast period owing to rising advancements in  muffler components to lower noise and emission of the vehicle.

Connector, exhaust pipe, and manifold component type segments are estimated to show good growth in the automotive exhaust system market over the forecast period. The increasing sales and production of passenger vehicles are projected to propel the growth of these segments in the market.

REGIONAL ANALYSIS

Asia-Pacific is projected to dominate the automotive exhaust system market share over the forecast period. The Rising disposable income of individuals,  increasing GDP, and growing urbanization are factors associated with the growth of the market in this region. Furthermore, the availability of labor and resources at lower cost are attracting many industries to install manufacturing plants in this region, and this factor is likely to boost the growth of the market in the region.

Europe is the second-largest region in this market and is projected to show significant growth  over the forecast period.  Stringent government emission regulations in this region are driving automotive manufacturers to develop  advanced exhaust systems. This, coupled with the rising adoption of the low emission vehicles in this region, are factors likely to drive the growth of this market in the region.

North America is also expected to show good growth in the automotive exhaust system market.  Increasing demand for  low emission vehicles in this region owing to stringent government vehicle emission regulations is estimated to drive the growth of the market. 

KEY INDUSTRY PLAYERS

Core Focus on Technological Enhancement and Diverse Portfolio of Continental AG to Propel the Company to a Prominent Position

The competitive landscape of the automotive exhaust system market depicts that major leading companies are  dominating the  market. A differentiated product portfolio of exhaust systems, along with persistent innovations by the companies leading to innovative device introductions, are prominent factors responsible for the dominance of these companies. This is projected to positively influence the global market as these companies are expected to gain market share during the forecast period.

LIST OF KEY PLAYERS PROFILED:

• Continental AG


• Faurecia


• Tenneco Inc.


• Sejong Industrial Co., Ltd.


• BOSAL


• Yutaka Giken Company Limited


• Eberspaecher


• BENTELER International

KEY INDUSTRY DEVELOPMENTS:

• May 2023: Cummins' €142 million acquisition of Faurecia's manufacturing plants in the US and Netherlands will strengthen its presence in the commercial vehicle exhaust systems sector, enabling global expansion and enhanced industry capabilities.


• May 2019:  Eberspaecher Exhaust Technology International is investing in building an exhaust component plant in Mexico. This plant is expected to produce exhaust components for the NAFTA market, and these components will be used for commercial vehicles and passenger cars. This plant will also strengthen the Eberspaecher’s production network in North America and will allow the company to supply exhaust components to local customers directly.


•  February 2019:  Eberspaecher Exhaust Technology International and Sharda Motor Industries Ltd. went into an agreement for a  joint venture. Under this joint venture, the companies will develop, manufacture, and sell exhaust systems for commercial vehicle manufacturers for the Indian market.

REPORT COVERAGE

The automotive exhaust system market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, product types, and leading applications of the product.

Besides this, the report offers insights into the market trends and highlights vital exhaust system industry developments. In addition to the factors mentioned earlier, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation