Auto Catalyst Market Size, Share, Growth & Industry Analysis, By Material Type (Palladium, Platinum, Rhodium), By Vehicle Type (Light-duty Vehicles, Heavy-duty Vehicles, Passenger Cars) and Regional Analysis, 2023-2030

Auto Catalyst Market Size

The global Auto Catalyst Market size was valued at USD 30.21 billion in 2022 and is projected to reach USD 47.78 billion by 2030, growing at a CAGR of 6.05% from 2023 to 2030. In the scope of work, the report includes solutions offered by companies such as Robert Bosch GmbH, Heraeus Holding, Ecocat India Pvt. Ltd., Johnson Matthey, Tenneco Inc., Klarius Products Ltd., Eberspächer, CDTi Advanced Materials Inc., INTERKAT Catalyst GmbH, BASF SE and Others.

The global market for automobile catalysts is expected to exhibit positive growth, primarily driven by increasing regulatory demands for cleaner vehicle emissions, and the growth of hybrid and electric-powered vehicles worldwide, along with surging automobile production demands. The market employs noble metals, such as platinum and palladium, in catalysts to achieve a cleaner combustion process while reducing carbon emissions from automobiles. In this competitive market, companies innovate to enhance the efficiency and cost-effectiveness of their products while adjusting to meet evolving regulatory standards and consumer preferences.

However, the global market is observed to face challenging or restraining factors such as fluctuations in the prices of catalyst materials could have significant impacts on the automotive industry's cost structure. In addition, the adoption of alternative technologies that do not require catalysts could dampen demand. Additionally, the possibility of alternative fuel types, such as hydrogen fuel cells, could pose a significant threat to the market, ultimately displacing the use of traditional automotive catalysts.

Market Definition

The auto catalyst market refers to the catalytic converters, which regulate the emission of pollutants like nitrogen oxides, hydrocarbons, and carbon dioxide generated by vehicles. Auto catalysts are made from metals such as rhodium, platinum, and palladium, among others, and their effectiveness is influenced by the engine exhaust's composition and the car's operating conditions. A catalyst is a substance that is used to convert harmful exhaust gases released by automobiles into less dangerous gases. In addition, it has the added benefit of reducing noise, improving engine performance, and reducing fuel consumption. The automotive catalyst is extensively used in various types of vehicles to optimize their performance.

The market has undergone significant developments with manufacturers striving to improve their performance while keeping up with the evolving regulatory standards, leading to innovations like 3-way catalytic converters, diesel oxidation catalysts, and so forth. The market is essential in promoting cleaner and sustainable transportation.

Auto Catalyst Market Dynamics

The soaring demand for more sustainable transportation options is observed to be a major driver fostering the auto catalyst market outlook. Thus, regulatory demands for cleaner emissions and the growth of hybrid and electric-powered vehicles create a need for catalysts, boosting the demand for automotive catalysts in the market. As the demand for more sustainable transportation options continues to rise, the adoption of automotive catalysts is expected to grow simultaneously.

Regulatory implications for emission control are observed to further boost the need for advanced and efficient catalysts. Improving and stringent regulations by governments of numerous countries are directly propelling the demand for auto catalysts. For instance, India implemented stringent BS-VI norms for controlling the gas emission from vehicles. The norms state reduced permissions for pollution. This has resulted in the development of catalysts with the highest efficiencies in the country.

The increasing demand for electric vehicles is expected to pose a hindrance to the growth of the market. This demand stems from growing public awareness of climate change and the need for more sustainable transportation options. While automotive catalysts are essential for reducing harmful emissions from traditional combustion engines, electric vehicles do not produce emissions and thus do not require catalysts to reduce toxic emissions. Therefore, the adoption of electric vehicles is expected to decrease the demand for automotive catalysts, hindering the growth of the market.

Segmentation Analysis

The global market is segmented based on material type, vehicle type, and geography.

By Material Type

Based on material type, the auto catalyst market is further categorized into palladium, platinum, and rhodium. In 2022, palladium dominated the material type segment owing to the high rate of converting harmful gases from the exhausts of automobiles. Palladium converts 90% of the harmful gases due to its chemically reacting properties. This rate is found to be the highest amongst other metals used in catalytic converters. Palladium accrued USD 18.62 billion in revenue in 2022 and is estimated to continue its dominance over 2023-2030.

By Vehicle Type

Based on vehicle type, the auto catalyst market is further categorized into light-duty vehicles, heavy-duty vehicles, and passenger cars. Light-duty cars dominated the vehicle type segment in 2022 and are anticipated to reach a revenue share of USD 11.89 billion in 2023. The rise in commercial activities and applications, along with the uptick in fuel economy standards for light-duty vehicles, can be largely attributed to several key factors, which are driving a surge in demand for this category. However, over 2023-2030, heavy-duty vehicles are estimated to experience a higher growth rate.

Auto Catalyst Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The Asia-Pacific Auto Catalyst Market share stood around 45.98% in 2022 in the global market, with a valuation of USD 13.89 billion. Increasing awareness regarding the importance of automotive catalysts and heightened emphasis on low vehicle emissions are presenting significant business opportunities. However, a prominent factor driving the market growth in the region is observed to be the presence of established manufacturing plants in China, Japan, and India. Asia-Pacific is anticipated to experience fastest growth rate of 7.29% during 2023-2030.

Europe was the second largest region in 2022, constituting 24.49% of the global value in terms of revenue. This share is attributed to the presence of top automobile manufacturers in the region and the implementation of stringent regulations on emissions by the European Commission to achieve carbon neutrality. Germany accounted for the largest revenue in the region by accruing USD 2.91 billion in 2022 with the highest growth rate anticipated over 2023-2030.

Competitive Landscape

The global auto catalyst industry study report will provide valuable insight with an emphasis on the global market and market is highly fragmented. Major players are focusing on a few of the strategies such as partnership, mergers and acquisition, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve investments in R&D, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Auto Catalyst Market

• Robert Bosch GmbH
• Heraeus Holding
• Ecocat India Pvt. Ltd.
• Johnson Matthey
• Tenneco Inc.
• Klarius Products Ltd.
• Eberspächer
• CDTi Advanced Materials Inc.
• INTERKAT Catalyst GmbH
• BASF SE

Key Industry Developments

• July 2021 (Acquisition) – BASF SE acquired a Texas-based company Zodiac Enterprises LLC. with the aim of expanding production capacities of recycling catalysts.

The global Auto Catalyst Market is segmented as:

By Material Type

• Palladium
• Platinum
• Rhodium

By Vehicle Type

• Light-duty Vehicles
• Heavy-duty Vehicles
• Passenger Cars

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America