Automotive & Transportation

Automotive Selective Catalytic Reduction (SCR) Market Analysis by Type (Copper Zeolite, Iron Zeolite, and Others); by Component (Urea Pump, Urea Tank, Engine Control Unit, and Injector); and by Vehicle Type (Light Commercial Vehicle, Heavy Commercial Vehicle, and Passenger Car) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Report ID: 4654 | Published On: Jan 30, 2023

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.


In The News

  • Cummins Inc., signed an agreement with IndianOil for bulk dispensing of IndianOil's Diesel Exhaust Fluid (DEF), branded as IOC ClearBlue, in their advanced engines with SCR (Selective Catalytic Reduction) systems.

  • Robert Bosch GmbH’s, sensor range is complemented with exhaust-gas temperature sensors and nitrogen-oxide sensors. These sensors are highly efficient in measuring the amount of nitrogen oxide (NOx) downstream of SCR catalytic converter.


Global Automotive Selective Catalytic Reduction (SCR) Market Definition

Selective catalytic reduction (SCR) is a cutting-edge active emissions control technology system that decreases tailpipe nitrogen oxide (NOx) emissions to almost zero levels in current-generation diesel-powered equipment and cars. It is one of the most affordable and fuel-efficient techniques for eliminating diesel engine emissions. For decades, all heavy-duty diesel truck engines have been using SCR technology to meet the most recent EPA emissions criteria. An SCR system may extract more than 90% of the nitrogen oxides from the exhaust gas. The SCR system consists of several apparatuses that are assembled with other emissions control system components. The type and arrangement of various system components differ from manufacturer to manufacturer.

In the working methodology of SCR, hot exhaust gases depart the engine and enter the SCR system, where aqueous urea (also recognized as Diesel Exhaust Fluid, or DEF) is poured onto a specific catalyst. The DEF triggers a chemical reaction in the exhaust that turns nitrogen oxides into nitrogen, water, and trace amounts of carbon dioxide (CO2), all of which are natural components of the air we breathe. The emissions are also routed through a particle filter within the system before passing through the vehicle's tailpipe. SCR technology is created in such a manner that nitrogen oxide (NOx) reduction processes can occur in an oxidizing environment. It is termed as "selective" since it reduces NOx levels within a catalyst system by utilizing ammonia as a reductant. The chemical reaction is referred to as "reduction," and the DEF works as a reducing agent, transforming the pollutants into nitrogen, water, and traces of CO2. The DEF is swiftly split down into oxidizing ammonia in the exhaust system.

SCR has been utilized as a key control approach for decreasing industrial static source emissions throughout the decades. Apart from on-highway commercial trucks, some off-road engines and equipment, such as those used in construction and farming, marine, rail, and power generation, also use SCR systems to meet the EPA's Tier 4 emissions criteria. These regulations demand NOx, PM, and other pollution reductions comparable to those required for on-highway vehicles. 


Global Automotive Selective Catalytic Reduction (SCR) Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

~10%

Base Year Market Size (2022)

~ USD 9 Billion

Forecast Year Market Size (2033)

~ USD 15 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

 


Global Automotive Selective Catalytic Reduction (SCR) Market Size, Forecast, and Trend Highlights Over 2023 - 2033

The global automotive selective catalytic reduction (SCR) market is estimated to garner a revenue of ~USD 15 billion by the end of 2033 by growing at a CAGR of ~10% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 9 billion in the year 2022. The growth of the market can primarily be attributed to the increasing number of vehicles throughout the world, as well as the worldwide growing emission of nitrogen oxide (NOx) compounds that have generated enormous prospects for market growth. For instance, the emission of nitrogen oxide (NOx) in the United States was found to be about 7.5 million tons in 2021.

/Automotive-Selective-Catalytic-Reduction%20(SCR)%20Market-overview-imageGet more information on this report:Download Sample PDF

Get more information on this report:Download Sample PDFIn addition to these, factors that are believed to fuel the market growth of the global selective catalytic reduction (SCR) market include the rise in government rules and regulations to control the expanding ratio of emissions. Moreover, there has been a dynamically rising awareness regarding the notable benefits of automotive SCR in decreasing various sort of emissions level, that is estimated to create lucrative opportunities for the expansion of the automotive SCR market in the coming years. For instance, automotive SCR can reduce NOx emissions by up to 91% while also cutting HC and CO emission levels by around 52% to 88% and PM emission levels by 35% to 54%. Additionally, the worldwide expanding advancement in transportation infrastructure is also predicted to present the potential for market expansion over the projected period.


/Automotive-Selective-Catalytic-Reduction%20(SCR)%20Market-overview-image
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Global Automotive Selective Catalytic Reduction (SCR) Market: Growth Drivers and Challenges

Growth Drivers

  • Growing Cost of Congestion – The design of SCR technology is such that it allows NOx reduction reactions to take place in an oxidizing atmosphere. As it reduces the levels of NOx using ammonia as a reductant within a catalyst system, it is called selective. It is expected that, to reduce the cost of congestion, the demand for automotive SCR will boost in the forecasted period. It was found that road traffic congestion costs over 1.1 % of the European Union’s GDP.

  • Growing Concern About Air Pollution –As of the growing count of vehicles and industrialization, the proportion of pollutants in the air has massively increased, which also lowered the air quality. Such air pollution has been damaging the environment. Recent scientific research has revealed that some pollutants can indeed be harmful to public health and welfare even at very low levels. Therefore, the government of nations is now highly concerned regarding air quality and pollution to save the environment, and this factor is anticipated to drive market growth. For instance, it was found that global life expectancy is reduced by an average of ~1.8 years per person owing to fossil fuel-induced air pollution.

  • Rising Penetration of Heavy-Duty Vehicles – It was found that heavy-duty vehicles that run on diesel are responsible for more than 25% of global warming emissions.

  • Increasing Carbon Dioxide (CO2) Emissions from Passenger Vehicle – As it was found that, an average passenger vehicle emits around 400 grams of Carbon Dioxide (CO2) per mile.

  • Increasing Urban Traffic – For instance, increased traffic in urban areas was responsible for about 25% of urban ambient air pollution from fine particulate matter (PM2.5) in 2019.

Challenges

  • High Price of Automotive SCR The high price of SCR technology, followed by the lack of emission-related regulations in emerging nations, is the major factor that is estimated to push manufacturers to seek alternative emission control techniques for vehicles. Hence, this factor is estimated to hamper the growth of the market during the projected time frame. 
  • High Cost of Maintenance & Repairs
  • Stringent Norms for Product Performance


Market Segmentation

The global automotive selective catalytic reduction (SCR) market is segmented and analyzed for demand and supply by vehicle type into light commercial vehicle, heavy commercial vehicle, and passenger car. Out of the three types of vehicle type, the passenger car segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the widespread increasing count of passenger cars throughout the world, coupled with expanding production of these cars. For instance, the worldwide production of passenger cars was expanded from nearly 56 million in 2020 to over 58 million in 2021. Such a booming ratio of passenger cars is estimated to push the market growth further in the coming years, as people are now splurging more on their lifestyle and comfort. Moreover, spiking growth in per capita income along with surge in urbanization are some further factors that are estimated to drive the market growth during the forecast period.

Besides this, the light commercial vehicle segment is also projected to grasp a noticeable market share over the forecast period on the back of the increasing proportion of off-road activities among people, such as trekking, sports, racing, and so on.

The global automotive selective catalytic reduction market is also segmented and analyzed for demand and supply by type into copper zeolite, iron zeolite, and others. Amongst these three segments, the copper zeolite segment is expected to garner a significant share. The growth of this segment is owing to its outstanding capacity to operate at extreme high temperature ranging from 180 to nearly 600 degrees Celsius, coupled with its high competency to convert the nitrogen oxide.  On the other hand, the iron zeolite segment is also anticipated to generate good market growth during the projected time frame on the back of its excellent properties, such as extreme thermal constancy. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global automotive selective catalytic reduction market includes the following segments:

          By Type

  • Copper Zeolite
  • Iron Zeolite
  • Others

         By Component

  • Urea Pump
  • Urea Tank
  • Engine Control Unit
  • Injector

         By Vehicle Type

  • Light Commercial Vehicle
  • Heavy Commercial Vehicle
  • Passenger Car


Global Automotive Selective Catalytic Reduction (SCR) Market Regional Synopsis

The Asia Pacific automotive selective catalytic reduction (SCR) 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 vehicle network in the region, and the growing number of manufacturing units. For instance, China is known to have the largest fleet of motor vehicles in the world as of 2022, with 305 million motor vehicles, exclusive of two-wheelers. Further, the rising penetration of vehicles along with the surging demand for passenger cars, and the rise in the awareness of vehicle emission amongst the populace are some other key factors that are estimated to fuel the growth of the automotive SCR in the region.

Furthermore, the Europe automotive selective catalytic reduction (SCR) market is also estimated to display notable market growth by the end of 2033. The growth of the market can be attributed to the increase in the strict and improvised regulatory rules regarding emission, followed by the latest advancements in SCR technology which is further anticipated to boost the growth of the market during the coming years in the region.Automotive-Selective-Catalytic-Reduction%20(SCR)-Market-share-image.

Automotive-Selective-Catalytic-Reduction%20(SCR)-Market-share-image.
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Top Featured Companies Dominating the Global Automotive Selective Catalytic Reduction (SCR) Market

    • Cummins Inc.

      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Robert Bosch GmbH
    • Compagnie Plastic Omnium SE
    • Faurecia
    • Friedrich Boysen GmbH & Co. KG
    • Eberspächer Gruppe GmbH & Co. KG
    • Textron Inc.
    • Röchling SE & Co. KG
    • Tenneco Inc.
    • Marelli Holdings Co., Ltd. 

Key Questions Answered in the Report

1) What are the major factors driving the growth of the selective catalytic reduction market?

Ans: Growing cost of congestion, rising concern about air pollution, as well as rising penetration of heavy-duty vehicles are some of the major factors anticipated to drive the growth of the market.

2) What would be the CAGR of selective catalytic reduction market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2033

3) What are the challenges affecting the selective catalytic reduction market growth?

Ans: High price of automotive SCR, stringent government emission norms & exhaust system policy, and stringent norms for product performance are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of selective catalytic reduction market in future?

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.

5) Who are the major players dominating the selective catalytic reduction market?

Ans: The major players in the market are Cummins Inc., Compagnie Plastic Omnium SE, Faurecia, Friedrich Boysen GmbH & Co., KG, Eberspächer Gruppe GmbH & Co. KG, Textron Inc., and others

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the automotive SCR market?

Ans: The market is segmented by type, component, vehicle type, and by region.

8) Which segment captures the largest market size in the application segment in the automotive SCR market?

Ans: The passenger car segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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