Analysis by Product Type {Four-way Catalytic Converter (FWCC), Three-way Oxidation-Reduction Catalytic Converter, Two-way Oxidation Catalytic Converter, and Diesel Oxidation Catalyst}; by Material (Palladium, Platinum, and Rhodium); and by Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive catalytic converter market is estimated to garner a revenue of USD 200 billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 95 billion in the year 2022. The growth of the market can be attributed to the increasing awareness related to the rising traffic pollution caused by the harmful emission of toxic gases from vehicles. The main form of pollution caused by vehicles is air pollution, which triggers several severe health issues such as asthma, cancer, heart & lung diseases, and others. For instance, air pollution caused by traffic accounts for approximately 100,000 deaths every year solely in the USA.
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The growing production of vehicles along with the rising automotive industry and harmful emissions of hydrocarbons, carbon monoxide, and nitrogen oxides that damages the atmosphere if released into the air are estimated to hike the market growth over the forecast period. For instance, it is forecasted that the automotive industry worldwide will generate ~USD 3.5 trillion from auto sales by 2030. An automotive catalytic converter considerably reduces the number of harmful pollutants by taking these gases and converting them into water vapor and less harmful gases via a series of chemical reactions. With the rising pollution caused by the transport sector as well as greenhouse gas emissions, the demand for the catalytic converter is on the rise amongst petrol car users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive catalytic converter market during the forecast period. For instance, it was found that in 2020, the transportation sector held the largest share of greenhouse gas (GHG) emissions, with almost 25% of greenhouse gas emissions around the world.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 95 Billion |
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Forecast Year Market Size (2033) |
~ USD 200 Billion |
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Regional Scope |
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Growth Drivers
Growing Awareness of the Poor Air Quality Index – It was found that, owing to poor air quality, more than 6 million people die annually worldwide.
The catalytic converter along with the oxygen sensor and ECU work together to help to achieve the lowest possible output of dangerous and polluting gases. The falling air quality index and growing concern about the rising incidences is expected to escalate the automotive catalytic converter market in the projected period.
Surge in the Sales Volume of Vehicles – Up-surged sales volume of vehicles has caused an escalated demand for the installation of automotive catalytic converters across the globe. As of 2021, approximately 80 million units of vehicles were sold out across the globe.
Significant Growth in the NOx Emissions – According to the most recent data, it was found about 7.5 million tons of nitrogen oxide (NOx) were emitted in the United States in 2021.
Escalation in the Number of Gasoline Vehicle Registrations – For instance, it was observed that out of ~22 million vehicles registered in the United States in 2018, around 94% of vehicles had gas powertrains.
Rising Cases of Heart & Lung Diseases – In 2019, more than 18 million people died from cardiovascular diseases (CVDs) around the globe.
Challenges
To control the emission of harmful pollutants, an automotive catalytic converter requires three main metals to create the chemical reaction that is platinum, palladium, and rhodium. These metals attract thieves to steal the automotive catalytic converter. Hence, this factor may limit the market’s growth over the forecast period.
The global automotive catalytic converter market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light commercial vehicles, and heavy commercial vehicles. Out of the three types of vehicles, the heavy commercial vehicle segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing production volume of heavy commercial vehicles coupled with higher utilization in transportation. As of 2021, approximately 22 million units of commercial vehicles were produced across the globe. Additionally, around USD 2 trillion was generated by the global automotive industry in a similar year. The demand for heavy commercial vehicles is also up-surged by the growing transportation of goods across nations. Trucks are one of the most common mediums of transportation and a great example of HCVs. For instance, in 2020, the trucking industry generated nearly USD 700 billion around the globe.
Furthermore, the passenger cars segment is expected to garner the second-largest share in the global automotive catalytic converter market after heavy commercial vehicles. Passenger cars are multi-track vehicles that comprise around two axles that can further extend to nearly 9 seats and are mainly used for passenger transportation. A passenger car has the capacity to weigh around 3 tons. To drive a passenger car on the road, a person requires vehicle registration and a driver’s license. For instance, in 2021, nearly 55 million units of passenger cars were manufactured worldwide.
Our in-depth analysis of the global automotive catalytic converter market includes the following segments:
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By Product Type |
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By Material |
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By Vehicle Type |
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The Asia Pacific automotive catalytic converter market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of a strong mobility network in the region backed by a growing number of vehicles. Asia Pacific is known to dominate the global automotive industry with China accounting for approximately 30% of global vehicle production. According to the International Trade Administration, it is projected that China will produce around 32 million vehicles by 2025 while in 2020 around 20 million passenger vehicles were sold out in China. The production of vehicles in China and India also increased since the tariff barriers on vehicles, imported from the USA were very high. Furthermore, rising awareness amongst the populace and governments for increasing air pollution incidences and costs to gross domestic product (GDP) is expected to boost market’s growth in the region. For instance, according to the ‘Health and Economic Impact of Air Pollution in India’, around 18% of all deaths in 2020 could be attributed to air pollution, resulting in a loss of over 1% of gross domestic product (GDP).
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In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Growing awareness of the poor air quality index and escalation in the number of gasoline vehicle registration are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: Concern associated with the theft of an automotive catalytic converter is estimated to be the growth hindering factor for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are DRiV Incorporated, Tenneco Inc., Yutaka Giken Company Limited, Sango Co. Ltd, Futaba Industrial Co. Ltd., Hanwoo Industrial Co. Ltd, Eberspächer Gruppe GmbH & Co. KG, Marelli Holdings Co., Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product type, material, vehicle type, and by region.
Ans: The heavy commercial vehicles segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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