Automotive Catalytic Converter Market: Current Analysis and Forecast (2023-2030)

The automotive catalytic converter is a system that is installed in a car's exhaust system to get rid of dangerous pollutants like carbon monoxide, nitrogen oxide, and hydrocarbons. By stimulating the conversion of poisonous gases into less dangerous gases through a redox reaction, various types of catalytic converter devices are used to reduce emissions. By means of a chemical reaction including oxidation and reduction, they change nitrogen oxide, carbon monoxide, and hydrocarbons into nitrogen, oxygen, carbon dioxide, and water. The catalytic converter also helps to increase a vehicle's efficiency. The improvements in exhaust systems in the worldwide automotive industry include catalytic converters, pipes, mufflers, manifolds, and monolithic designs. By using sound absorbers and catalytic converters, these designs assist in decreasing the noise produced by the exhaust system. This reduces vehicle emissions, which benefits the environment and slows the rate of global warming.

The Automotive Catalytic Converter Market is expected to grow at a steady rate of around 9% owing to the Upgradation of Emission Norms and Standards coupled with High Volume of Production and Sales of Automobiles. Major companies in the market offer Catalytic Converter for multiple automotive applications with technologically advanced features. For instance, in January 2023, Fortegra Group, Inc. announced the launch of a Catalytic Converter Theft Deterrent Product under the company's Smart AutoCare brand. This limited warranty, which is designed to protect U.S. car owners against the rising threat of catalytic converter thefts, is already available at dozens of auto dealers across the country, with new dealers joining daily.

Based on type, the market is segmented into two-way catalytic, three-way catalytic, and others. The three-way catalytic is expected to have a significant share of the market over the forecasted period. The three-way catalytic are mainly used in vehicle emission control systems across the world. Automobiles frequently utilize three-way oxidation-reduction catalytic converters, whereas two-way oxidation catalytic converters are less effective since they cannot handle nitrogen oxide. Because there are more IC engine vehicles on the road, which is increasing the demand for three-way catalytic converters which in turn is increasing the market for automotive catalytic converter.

Based on material, the market is segmented into platinum, palladium, and rhodium. Rhodium is expected to grow with a robust CAGR during the forecasted period. Rhodium is a popular material for recycling vehicle catalytic converters because it is more effective at removing dangerous exhaust emissions by breaking down nitrogen oxides in exhaust gases and releasing harmless oxygen and nitrogen gases. The majority of the demand for rhodium catalysts comes from the automobile industry which in turn is increasing the market around the world.

Based on vehicle, the market is segmented into passenger cars and commercial. Passenger Cars are expected to hold a significant share during the forecasted period. Because of the higher number of sales and manufacturing of passenger automobiles around the world. The rapid growth in the number of passenger automobiles is due to increased urbanization, an improvement in the standard of living, the construction of road infrastructure, and an increase in disposable money, particularly in countries such as India, China, Japan, and portions of Europe.

For a better understanding of the market adoption of automotive catalytic converter, the market is analyzed based on its worldwide presence in countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Spain and Rest of Europe), Asia-Pacific (China, Japan, India, Rest of APAC), and Rest of World. Asia Pacific is expected to grow with a considerable CAGR during the forecast period. This is mainly owing to the increasing demand for eco-friendly vehicles, the growing middle class in APAC countries, and the government's efforts to reduce air pollution. The demand for eco-friendly vehicles is increasing in APAC, as consumers become more aware of the impact of their vehicles on the environment. This has led to a rise in the production of hybrid and electric vehicles, which require automotive catalytic converter to reduce emissions.

Some of the major players operating in the market include: Faurecia SA, Magneti Marelli S.P.A Tofurky, Tenneco Inc., Eberspaecher GmbH Holding & Co., Benteler International AG, Calsonic Kansei Corporation etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.