"Market Intelligence for High-Geared Performance"
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.
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.
Request a Free sample to learn more about this report.
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.
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
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.
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.
Asia Pacific Automotive Selective Catalytic Reduction Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
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.
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.
An Infographic Representation of Automotive Selective Catalytic Reduction (SCR) Market
To get information on various segments, share your queries with us
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.
CAGR of 6.1% from 2023 to 2030
Value (USD Billion)
By Vehicle Type
By Catalyst Type
By Sales Channel
Fortune Business Insights states that according to their report, the market was valued at USD 13.14 billion in 2022 and is projected to reach USD 20.90 billion by 2030.
The market is expected to register a CAGR of 6.1% during the forecast period.
Increasing government regulation regarding vehicle emissions is one of the significant factors propelling the market growth.
Asia Pacific led the market in 2022.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry