Automotive Selective Catalytic Reduction (SCR) Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, and Heavy Commercial Vehicle), By Catalyst Type (Copper Zeolite, Iron Zeolite, and Others), By Sales Channel (OEM and Aftermarket), and Regional Forecasts, 2023-2030

The global automotive Selective Catalytic Reduction (SCR) market size was valued at USD 13.14 billion in 2022. The market is projected to grow from USD 13.85 billion in 2023 to USD 20.90 billion by 2030, exhibiting a CAGR of 6.1% during the forecast period.

SCR systems enable diesel engines to achieve better fuel efficiency and performance while reducing emissions. By injecting a urea-based solution, such as Ad Blue, into the exhaust system, this system converts NOx into harmless Nitrogen and water vapor. This process allows automakers to optimize engine performance without compromising emission levels. These systems have become more efficient, compact, and reliable. Advances in catalyst formulations and design have led to improved conversion rates and reduced system size, making it easier for automakers to integrate catalytic reduction technology into their vehicles.

The automotive Selective Catalytic Reduction system has experienced significant demand in the automotive industry over the past decade. Catalytic reduction technology is primarily used to reduce harmful emissions from diesel engines, particularly carbon dioxide and nitrogen oxides (NOx), major contributors to air pollution and smog formation. Stringent emission regulations globally have been a major driving force behind adopting catalytic reduction systems. Governing bodies, such as the Environmental Protection Agency (EPA) in the U.S. and the European Union, have implemented stringent emission standards for vehicles, requiring automakers to reduce NOx emissions. These systems have proven to be an effective solution for meeting these regulations.

Additionally, the development of onboard diagnostics and control systems has enhanced the effectiveness of SCR systems and their compliance with emission standards. Growing public awareness of environmental issues and the negative impact of vehicle emissions has put pressure on automakers to develop cleaner technologies. Consumers are increasingly concerned about air quality and are more likely to choose vehicles equipped with systems or other advanced emission control technologies.

COVID 19 IMPACT

Pandemic Impacted the Market Negatively Due to Supply Chain Disruptions

The impact of the COVID-19 crisis has been severe on the automobile industry. Most automakers in various regions, including Europe and other regions, have halted sales and production activities. The pandemic forced several automakers to close their plant SCR systems and halted the supply chain, severely impacting this market. To support the smooth and swift restart of the automobile industry, the ACEA (the European Automobile Manufacturers Association) and the CLEPA (the European Automotive Suppliers Association) have conjointly implemented the Business Code of Conduct. This code of conduct contains safety and health regulations to be followed in the workplace, contractual supplies, well-timed communication networks, and synchronization of the entire restart process. All these factors associated with business restart are likely to propel the growth of the automotive industry. 

LATEST TRENDS

Increasing Adoption of Catalytic Reduction System in Passenger Vehicles and Development of Advanced SCR Catalysts to Boost the Market Growth

While SCR technology has been predominantly used in commercial vehicles, there is a growing trend of adopting catalytic reduction systems in passenger vehicles as well. This is driven by stricter emission regulations and the need for automakers to reduce NOx emissions from diesel engines. Catalytic reduction systems offer an effective solution to meet these regulations while maintaining vehicle performance and fuel efficiency.

Manufacturers are continuously investing in research & development to enhance the performance of SCR catalysts. This includes optimizing catalyst formulations, improving durability, and increasing conversion efficiency. Advanced catalysts help to achieve higher NOx reduction rates and reduce the dependency on urea consumption, resulting in improved overall automotive Selective Catalytic Reduction system efficiency. The combination of catalytic reduction with Exhaust Gas Recirculation (EGR) systems is gaining traction in the automotive industry. EGR helps reduce NOx emissions by recirculating some exhaust gas back into the combustion chamber. By integrating catalytic reduction with EGR, automakers can achieve even higher levels of NOx reduction, leading to better compliance with stringent emission regulations.

DRIVING FACTORS

Strict Government Regulations to Boost the Market Growth

The automotive Selective Catalytic Reduction market growth is attributed to strict government regulations related to vehicle emission. The EU has implemented stringent emission standards known as Euro standards. These standards set limits on various pollutants, including nitrogen oxides (NOx) emitted by vehicles. The Euro 6 standard, which came into effect in 2014, imposes strict limits on NOx emissions from diesel vehicles. To comply with these regulations, automakers have widely adopted catalytic reduction systems in their vehicles. Also, the EPA has implemented emission regulations for vehicles in the U.S. For example, the EPA's Heavy-Duty Engine and Vehicle Standards set limits on NOx emissions from heavy-duty vehicles. The regulations require the use of advanced emission control technologies, such as automotive selective catalytic reduction systems, to meet the standards. The increasing awareness regarding the environment and increasing government norms to control pollution levels is anticipated to boost market growth. Government regulations have been contributory in driving the demand for catalytic reduction systems in vehicles. The regulations impose strict limits on NOx emissions, pushing automakers to adopt advanced emission control technologies such as catalytic reduction systems to meet the requirements and ensure compliance.

RESTRAINING FACTORS

Limited Availability of AdBlue Infrastructures and Increasing Demand for Electric Vehicles May Restrain the Market Growth

The SCR systems require a dedicated infrastructure for the storage and distribution of the Urea-based solution (AdBlue). This infrastructure includes AdBlue filling stations, which may not be as widely available as conventional fuel stations. The limited availability of AdBlue infrastructure can pose challenges, particularly in rural areas or regions with less developed infrastructure. Moreover, the rapid increase in demand for electric vehicles is one of the major factors restraining the market growth.

However, despite these limitations, catalytic reduction systems remain a crucial technology for reducing NOx emissions and complying with stringent emission regulations. Automakers and catalytic reduction technology providers continue to work on addressing these limitations through technological advancements and improved system integration to ensure the optimal performance of catalytic reduction systems in vehicles.

SEGMENTATION

By Vehicle Type Analysis

Heavy Commercial Vehicles Segment Dominates the Market Owing to Increasing Environmental Norms by Different Governments

The market is segmented based on vehicle type into passenger vehicle, light commercial vehicle, and heavy commercial vehicle.

The heavy commercial vehicles segment is expected to dominate the market during the forecast period. The demand for automotive selective catalytic reduction systems in heavy commercial vehicles, such as trucks and buses, has been significant. Heavy commercial vehicles are subject to strict emission regulations imposed by governments and regulatory bodies globally. These regulations aim to reduce the environmental impact of diesel engines, particularly nitrogen oxide (NOx) emissions. These systems are highly effective in reducing NOx emissions, making them a preferred choice for heavy commercial vehicle manufacturers to ensure compliance with emission standards.

The growth of the passenger vehicles segment is also propelling the Selective Catalytic Reduction market growth. These systems enable automakers to optimize passenger vehicles' performance and fuel efficiency. Automakers can fine-tune engine parameters by effectively reducing NOx emissions to improve power output and torque characteristics without compromising emission levels. This allows for better performance and fuel economy for diesel passenger vehicles, which is anticipated to boost the segment growth in the market.

By Catalyst Type Analysis

Copper Zeolite’s Capability to Withstand in High Temperature is expected to drive the Segment’s Growth

Based on catalyst type, the market is segmented into copper zeolite, iron zeolite, and others (vanadium, titanium,).

The copper zeolite segment accounts for the major share in the global market owing to its capability to operate at high temperatures ranging from 180 degrees Celsius to 600 degrees Celsius and superior efficiency to convert nitrogen oxide.

The iron zeolite segment is also expected to show good growth in the market over the forecast period owing to its superior properties, such as high thermal stability coupled with control over wider operation conditions.

By Sales Channel Analysis

Growing Demand for Diesel-fueled Vehicles is Supporting the Demand for OEM Segment 

Based on sales channel, the market is divided into OEM and aftermarket.

The OEM segment is expected to grow over the forecast period. Diesel engines, known for their higher NOx emissions than gasoline engines, are still prevalent in many regions and industries. SCR systems are commonly used in diesel vehicles to achieve the required emission reductions. As the demand for diesel vehicles persists, the OEM-fitted automotive selective catalytic reduction market continues to grow. OEMs often collaborate with catalytic reduction system suppliers to develop and integrate into their vehicles. These partnerships allow for exchanging expertise, resources, and technology, enabling efficient development and integration of catalytic reduction systems. Strong supplier networks help OEMs access reliable and high-quality system components, further facilitating the growth of OEM-fitted SCR systems in vehicles.

The demand for aftermarket is also surging. With the growing demand for aftermarket SCR systems, there is a corresponding increase in the availability of retrofit solutions in the market. Various manufacturers and suppliers offer aftermarket catalytic reduction systems designed for retrofitting purposes. This expanding market provides more options and choices for vehicle owners looking to reduce emissions through retrofitting.

REGIONAL INSIGHTS

Asia Pacific Holds the Highest Market Share Owing to Increasing Awareness Regarding Road Safety among Vehicle Buyers 

Asia Pacific is anticipated to dominate the automotive Selective Catalytic Reduction market share throughout the forecast period. Asia Pacific is a rapidly growing market for automotive sales, with a significant increase in vehicle ownership in recent years. The rise in vehicle sales, particularly in China and India, contributed to the increased adoption of catalytic reduction systems. As more vehicles enter the market, the demand for emission control technologies, including catalytic reduction systems, has grown. Asia Pacific has a significant commercial vehicle market, including trucks and buses used for transportation, logistics, and public transportation. These systems are commonly used in commercial vehicles, especially diesel-powered ones, to reduce NOx emissions. The growth of the commercial vehicle market in the region has driven the demand for these systems.

Also, the demand for catalytic reduction systems is anticipated to grow at a healthy growth rate in the North American market. Governments in North America have implemented various policies and incentives to encourage the adoption of cleaner and more efficient vehicle technologies. Original Equipment Manufacturers (OEMs) in North America increasingly integrate catalytic reduction systems into their vehicle models. They recognize the demand for advanced safety features and aim to differentiate their vehicles by offering catalytic reduction as a standard or optional feature. Market competition among OEMs further drives the demand for these systems in the region.

KEY INDUSTRY PLAYERS

Tenneco Inc. Spearheads the Automotive Selective Catalytic Reduction Market with Advanced Technology Solutions

Tenneco Inc. is a leading global manufacturer, designer, and marketer of automobile products for aftermarket and original equipment customers. Its four business groups, Ride Performance, Motor Parts, Powertrain, and Clean Air, serve customers globally with advanced technology solutions.

Another key player is Faurecia, which is a global leader in automotive technologies. It has four strategic business groups - Faurecia Interiors, Faurecia Seating, Faurecia Clean Mobility, and Faurecia Clarion Electronics- that provide pioneering solutions to automotive industry challenges.

LIST OF KEY COMPANIES PROFILED:

• Envirotherm GmbH (Germany)


• Cormetech (U.S.)


• Johnson Matthey (U.K.)


• BASF (Germany)


• Ceram-Ibiden (Austria)


• BOSCH (Germany)


• Bosal (Belgium)


• Faurecia (France)


• Magneti Marelli SPA (Italy)


• Haldor Topsoe (Denmark)


• Tenneco Inc. (U.S.)


• Röchling Group (Germany)


• Plastic Omnium (France)

KEY INDUSTRY DEVELOPMENTS

• January 2022 - Large trucks and modern diesels, cars and four-wheelers won't be stuck after a USD 30 million federal grant to a Brisbane company ensures an uninterrupted supply of Ad Blue emissions treatment fluid.


• December 2021 - BMW Australia secured a supply of AdBlue for its diesel vehicle customers for its dealer network, as a shortage of the emissions-reducing additive fluid emerged nationwide.


• April 2020 - Mahindra, a well-known auto manufacturer, announced the adoption of the selective catalytic reduction system of exhaust treatment for its mHAWK 2.2-liter diesel engine to meet the Bs6 emissions norms. The Mahindra’s bestselling vehicles, Scorpio, new Thar, and XUV 500, use this engine.


• August 2019 - Volkswagen, a leading vehicle manufacturer, developed a new SCR system with ‘twin-dosing.’ This new technology is available in its Passat 2.0 TDI Evo, which meets Euro 6d emission Norms.


• 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 India market.

REPORT COVERAGE

The report provides detailed market analysis and focuses on key aspects such as leading companies, services, and product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation