Passenger Cars Exhaust System Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fuel Type, By After Treatment Type, By Component Type, By Region & Competition, 2021-2031F

Description

The Global Passenger Cars Exhaust System Market is projected to expand from USD 26.69 Billion in 2025 to USD 37.92 Billion by 2031, reflecting a compound annual growth rate of 6.03%. This industry focuses on the engineering and manufacturing of components-such as manifolds, catalytic converters, mufflers, and tailpipes-that channel exhaust gases away from internal combustion engines while reducing noise and mitigating harmful emissions. The market's growth is primarily driven by strict government emission mandates that require advanced after-treatment technologies, as well as sustained vehicle production in emerging economies where traditional engines continue to dominate.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 26.69 Billion
Market Size 2031	USD 37.92 Billion
CAGR 2026-2031	6.03%
Fastest Growing Segment	Tailpipe
Largest Market	Asia Pacific

According to data from the China Association of Automobile Manufacturers, passenger vehicle sales in China hit 27.56 million units in 2024, highlighting the strong demand for conventional automotive components in major regions. However, the sector faces a significant obstacle due to the global shift toward battery electric vehicles, which do not require exhaust infrastructure. As the transition to electric powertrains accelerates and eliminates the need for traditional engine components, it presents a substantial long-term challenge to the continued expansion of the exhaust system market.

Market Driver

The continuous growth of global passenger vehicle production acts as a fundamental driver for the market, as every internal combustion engine vehicle requires a corresponding exhaust system. Despite the rapid shift toward electrification, the sheer volume of conventional and hybrid vehicles being manufactured remains high, especially in developing nations where charging networks are still expanding. This sustained manufacturing output guarantees a steady baseline demand for essential components like catalytic converters and mufflers. For instance, the European Automobile Manufacturers' Association (ACEA) reported in March 2025 that global passenger car sales rose by 2.5% to 74.6 million units in 2024, confirming that the absolute market for exhaust parts continues to grow alongside economic recovery and fleet renewal cycles.

Simultaneously, the rising adoption of Hybrid Electric Vehicles (HEVs) is generating high-value opportunities for advanced exhaust technologies, as these vehicles retain internal combustion engines that require sophisticated architectures to manage intermittent operation and thermal efficiency. This trend is prominent in major markets where consumers desire fuel efficiency without the range limitations of fully electric vehicles. According to the China Association of Automobile Manufacturers, plug-in hybrid sales in China surged by 17.8% year-on-year to 4.61 million units between January and October 2025. This segment's financial impact is underscored by Forvia's July 2025 report, which revealed that its Clean Mobility division achieved sales of €2,043.1 million in the first half of the year, driven by the complexity and higher price points of these systems.

Market Challenge

The global transition toward battery electric vehicles (BEVs) represents a fundamental structural barrier to the growth of the Global Passenger Cars Exhaust System Market. Unlike internal combustion engines, which rely on complex assemblies of manifolds, catalytic converters, and mufflers to manage emissions, electric powertrains operate without any exhaust infrastructure. This technological shift results in a direct loss of volume for component manufacturers, as every electric vehicle sold signifies a unit of lost revenue potential. As automakers increasingly redirect R&D budgets and production capacity toward electrification, the total addressable market for exhaust systems inevitably contracts, limiting the sector's long-term expansion.

This displacement effect is clearly measurable in major automotive hubs where the uptake of non-ICE vehicles is accelerating. Data from the China Association of Automobile Manufacturers indicates that in 2024, sales of new energy vehicles comprised 40.9% of total new car sales in China, demonstrating a significant market share for vehicles devoid of exhaust hardware. Consequently, the rising penetration of electric mobility directly reduces the demand for traditional after-treatment technologies, effectively countering the gains derived from general growth in vehicle production.

Market Trends

To adhere to stricter particle number limits under regulations such as Euro 6d and China VI, original equipment manufacturers are standardizing the use of particulate filters on gasoline direct-injection engines, following trends established in diesel powertrains. This regulatory pressure necessitates the integration of advanced filtration hardware to capture fine particulate matter, ensuring compliance with tightening global standards for tailpipe pollutants. As highlighted by Applus IDIADA in May 2024, the European Union's adoption of Regulation (EU) 2024/1257 enforces rigorous limits on particle emissions and mandates continuous onboard monitoring, compelling exhaust manufacturers to embed sophisticated filtration and sensor technologies into their gasoline architectures.

Concurrently, as hybrid vehicle sales increase, exhaust systems are being redesigned with specialized thermal management capabilities to handle frequent engine start-stop cycles and lower exhaust gas temperatures. Engineers are focusing on lightweight, insulated designs that effectively retain heat to keep catalytic converters at optimal operating temperatures during electric-only driving phases. The commercial viability of this shift is evident in Forvia's October 2025 press release, which reported an 8.7% year-on-year sales growth for its Clean Mobility division in the third quarter of 2025, underscoring the sustained demand for advanced exhaust solutions compatible with electrified platforms despite broader market challenges.

Key Market Players

Faurecia
Tenneco Inc.
Continental AG
Eberspacher
Futaba Industrial Co., Ltd.
Bosal
Magna International
Sango Co., Ltd.
Sejong Industrial Co., Ltd.
Yutaka Giken Co., Ltd.

Report Scope

In this report, the Global Passenger Cars Exhaust System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Passenger Cars Exhaust System Market, By Fuel Type

Gasoline
Diesel

Passenger Cars Exhaust System Market, By After Treatment Type

Diesel Oxidation Catalyst
Selective Catalytic Reduction
Gasoline Particulate filter

Passenger Cars Exhaust System Market, By Component Type

Catalytic Converter
Tailpipe
Mufflers

Passenger Cars Exhaust System Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Cars Exhaust System Market.

Available Customizations:

Global Passenger Cars Exhaust System Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Passenger Cars Exhaust System Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Fuel Type (Gasoline, Diesel)
- 5.2.2. By After Treatment Type (Diesel Oxidation Catalyst, Selective Catalytic Reduction, Gasoline Particulate filter)
- 5.2.3. By Component Type (Catalytic Converter, Tailpipe, Mufflers)
- 5.2.4. By Region
- 5.2.5. By Company (2025)
5.3. Market Map

6. North America Passenger Cars Exhaust System Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Fuel Type
- 6.2.2. By After Treatment Type
- 6.2.3. By Component Type
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Passenger Cars Exhaust System Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Fuel Type
    - 6.3.1.2.2. By After Treatment Type
    - 6.3.1.2.3. By Component Type
- 6.3.2. Canada Passenger Cars Exhaust System Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Fuel Type
    - 6.3.2.2.2. By After Treatment Type
    - 6.3.2.2.3. By Component Type
- 6.3.3. Mexico Passenger Cars Exhaust System Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Fuel Type
    - 6.3.3.2.2. By After Treatment Type
    - 6.3.3.2.3. By Component Type

7. Europe Passenger Cars Exhaust System Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Fuel Type
- 7.2.2. By After Treatment Type
- 7.2.3. By Component Type
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Passenger Cars Exhaust System Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Fuel Type
    - 7.3.1.2.2. By After Treatment Type
    - 7.3.1.2.3. By Component Type
- 7.3.2. France Passenger Cars Exhaust System Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Fuel Type
    - 7.3.2.2.2. By After Treatment Type
    - 7.3.2.2.3. By Component Type
- 7.3.3. United Kingdom Passenger Cars Exhaust System Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Fuel Type
    - 7.3.3.2.2. By After Treatment Type
    - 7.3.3.2.3. By Component Type
- 7.3.4. Italy Passenger Cars Exhaust System Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Fuel Type
    - 7.3.4.2.2. By After Treatment Type
    - 7.3.4.2.3. By Component Type
- 7.3.5. Spain Passenger Cars Exhaust System Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Fuel Type
    - 7.3.5.2.2. By After Treatment Type
    - 7.3.5.2.3. By Component Type

8. Asia Pacific Passenger Cars Exhaust System Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Fuel Type
- 8.2.2. By After Treatment Type
- 8.2.3. By Component Type
- 8.2.4. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Passenger Cars Exhaust System Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Fuel Type
    - 8.3.1.2.2. By After Treatment Type
    - 8.3.1.2.3. By Component Type
- 8.3.2. India Passenger Cars Exhaust System Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Fuel Type
    - 8.3.2.2.2. By After Treatment Type
    - 8.3.2.2.3. By Component Type
- 8.3.3. Japan Passenger Cars Exhaust System Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Fuel Type
    - 8.3.3.2.2. By After Treatment Type
    - 8.3.3.2.3. By Component Type
- 8.3.4. South Korea Passenger Cars Exhaust System Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Fuel Type
    - 8.3.4.2.2. By After Treatment Type
    - 8.3.4.2.3. By Component Type
- 8.3.5. Australia Passenger Cars Exhaust System Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Fuel Type
    - 8.3.5.2.2. By After Treatment Type
    - 8.3.5.2.3. By Component Type

9. Middle East & Africa Passenger Cars Exhaust System Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Fuel Type
- 9.2.2. By After Treatment Type
- 9.2.3. By Component Type
- 9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Passenger Cars Exhaust System Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Fuel Type
    - 9.3.1.2.2. By After Treatment Type
    - 9.3.1.2.3. By Component Type
- 9.3.2. UAE Passenger Cars Exhaust System Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Fuel Type
    - 9.3.2.2.2. By After Treatment Type
    - 9.3.2.2.3. By Component Type
- 9.3.3. South Africa Passenger Cars Exhaust System Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Fuel Type
    - 9.3.3.2.2. By After Treatment Type
    - 9.3.3.2.3. By Component Type

10. South America Passenger Cars Exhaust System Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Fuel Type
- 10.2.2. By After Treatment Type
- 10.2.3. By Component Type
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Passenger Cars Exhaust System Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Fuel Type
    - 10.3.1.2.2. By After Treatment Type
    - 10.3.1.2.3. By Component Type
- 10.3.2. Colombia Passenger Cars Exhaust System Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Fuel Type
    - 10.3.2.2.2. By After Treatment Type
    - 10.3.2.2.3. By Component Type
- 10.3.3. Argentina Passenger Cars Exhaust System Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Fuel Type
    - 10.3.3.2.2. By After Treatment Type
    - 10.3.3.2.3. By Component Type

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Passenger Cars Exhaust System Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Faurecia
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. Tenneco Inc.
15.3. Continental AG
15.4. Eberspacher
15.5. Futaba Industrial Co., Ltd.
15.6. Bosal
15.7. Magna International
15.8. Sango Co., Ltd.
15.9. Sejong Industrial Co., Ltd.
15.10. Yutaka Giken Co., Ltd.