Auto Catalyst Market is Expected to Reach USD 47.78 Billion by 2030
As per the report published by Kings Research, the global Auto Catalyst Market 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.
The global market for automobile catalysts is expected to grow due to the increasing demand for more sustainable transportation options. Increasing awareness regarding the adverse effects of automobile gases on the environment has propelled the importance and demand for efficient auto catalysts. The development of stringent laws and regulations by regulatory organizations for the emission of harmless gases is observed to be the prominent driving factor for the market.
North America, Asia Pacific, and Europe are the prominent regions that are anticipated to attribute significant growth factors and offer lucrative opportunities owing to the presence of the majority of manufacturers, exponential demand for automobiles, and increasing investments in R&D for better products. Key market players in the region are observed to be expanding their businesses through collaborations, and acquisitions.
- Based on the material type, the palladium segment held the largest share of USD 18.62 billion in 2022.
- Based on vehicle type, the light-duty vehicles segment generated the highest revenue in 2022 accounting for USD 11.89 billion
- On the basis of region, Asia Pacific accounted for the largest market share of USD 13.89 billion in 2022.
Expansion of Business Lines by BASF SE
December 2021 – BASF SE announced the establishment of a separate business entity named BASF Automotive Catalysts and Recycling with an investment of over USD 4.5 billion. The newly formed entity is aimed at focusing on automotive catalysts recycling and associated precious metal services.
Developing Regions to Offer Lucrative Opportunities for Market Growth and Expansion
Emerging markets are observed to provide expansion opportunities for the market due to the potential growth of the automobile industry that in turn will increase the demand for catalyst products. This presents opportunities for sustained growth in the market, as manufacturers seek to develop solutions to meet the growing demand for automotive technology in these emerging markets.
Increasing attention to improving vehicle efficiency and reducing toxic emissions is a crucial driver of growth in the auto catalyst market. The use of noble metals such as platinum and palladium in catalysts allows for a cleaner combustion process, resulting in reduced carbon emissions from automobiles. In addition, regulatory demands for clean emissions and the adoption of hybrid and electric-powered vehicles contribute to the need for catalysts, creating opportunities for growth in the market.
Development of Manufacturing Hubs in Emerging Countries to Support the Growth of Asia-Pacific
Asia Pacific is estimated to reach a market value of USD 24.00 billion by 2030 with the highest growth rate among other regions. Asia Pacific is anticipated to observe a CAGR of 7.29% throughout the forecast period. The presence of emerging countries such as India would support the growth of the region during 2023-2030. China and Japan are the prominent countries in the region owing to established manufacturing hubs along with the highest rate of exports for auto catalysts.
Rising demand for Automobiles Offer Lucrative Opportunities for Europe and North America
Europe and North America held significant shares in terms of revenues in 2022 and would continue expanding the market with immense opportunities owing to increasing demand majorly from the automobile industry. Europe accrued USD 7.39 billion while North America accounted for 22.57% of the global share in 2022. The market in these regions is estimated to augment owing to developing products and an increasing number of automobile manufacturers in the region. However, an increasing shift towards hydrogen fuel cell vehicles and other alternative fuels could restrain the market up to a certain limit.
Rising Investment in Product Innovations to Support Sustained Growth for the Market
The market is fragmented with significant players in the market, such as Robert Bosch GmbH, BASF SE, Heraeus Holding, Ecocat India Pvt. Ltd., CDTi Advanced Materials Inc., Johnson Matthey, INTERKAT Catalyst GmbH, Tenneco Inc., Klarius Products Ltd., Eberspächer, and others, are concentrated on expanding their business through collaboration and partnership strategies.