Industry: Automotive
Published Date: January-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 188
Report ID: PMRREP35049
The global automotive catalytic converter market is estimated to reach a size of US$ 121.74 Bn in 2025. It is predicted to rise at a CAGR of 7.2% through the assessment period to reach a value of US$ 198.06 Bn by 2032.
The demand for vehicle catalytic converters is expected to rise because of new technology, increased automobile manufacturing in developing nations, and strict emission control laws. Catalytic converters are essential for lowering dangerous exhaust gases including CO, NOx, and hydrocarbons since transportation is responsible for 29% of global greenhouse gas emissions.
Automakers like Toyota and Volkswagen are focusing on developing low-emission vehicles with efficient catalytic converters. The growing need for performance enhancements is driving growth in the aftermarket industry.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Automotive Catalytic Converter Market Size (2025E) |
US$ 121.74 Bn |
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Projected Market Value (2032F) |
US$ 198.06 Bn |
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Global Market Growth Rate (CAGR 2025 to 2032) |
7.2% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
6.5% |
The automatic catalytic converter market in Europe is projected to hold a 35.2% share in 2024, with a forecast CAGR of 6.3% from 2025 to 2032. The region's focus on sustainable mobility is driving a surge in demand for eco-friendly automotive components due to its research and development initiatives.
Europe continues to dominate the global automotive market, primarily driven by major companies like Volkswagen, BMW, and Mercedes-Benz. The region's significant presence in premium and luxury vehicle production has led to an increase in automotive ancillaries, including catalytic converters.
The implementation of Euro 7 emissions regulations by 2025 is driving manufacturers to adopt advanced emission control technologies. The regulatory push has led to Daimler's 2024 hybrid vehicle launch, featuring next-generation catalytic converters, enhancing fuel efficiency and meeting strict environmental standards.
The automobile industry in Asia Pacific is projected to experience growth due to rising living standards, increased vehicle ownership, and stricter emissions regulations in developing nations. The region is expected to dominate 37.4% of the global automotive market in 2024, due to the growth of middle-class populations and government incentives for clean transportation.
China VI and Bharat Stage VI emissions standards have accelerated the adoption of advanced emission control systems, including catalytic converters.
China's BYD and Geely are innovating in hybrid and electric vehicles with cutting-edge exhaust management systems. Asia Pacific catalytic converter market is expected to report a CAGR of 6.9% from 2025 to 2032, underscoring the region's pivotal role in advancing sustainable mobility solutions.
In 2024, palladium material accumulated a market share of 49.8%, reflecting slight competition from alternative materials. Palladium dominates catalytic converter market due to superior hydrocarbon oxidation activity, thermal stability, affordability, and superior performance compared to platinum and rhodium.
Palladium's resistance to sulfur and lead poisons in vehicular emissions poses challenges for its widespread use in certain automotive components.
The automotive industry is implementing innovative emission control systems to meet global emission standards, particularly in Europe and North America.
The three-way oxidation-reduction catalytic converter is a widely used technology in gasoline-powered vehicles. This type of catalytic converter controls emissions of nitrogen oxides, carbon monoxide, and hydrocarbons, converting harmful emissions into nitrogen, carbon dioxide, and water.
The segment's dominance is attributed to advancements in material science, particularly in the use of high-performance palladium and rhodium coatings, which improve catalytic efficiency. In 2024, the demand for three-way oxidation-reduction catalytic converters reached a 46.8% market share due to the marginal impact of electric vehicles on internal combustion engine components.
The demand for automotive catalytic converters is expanding due to improved pollution control technology and increased regulatory pressure. Stringent emission standards, such as Euro VI and China 6b, have compelled automakers to incorporate advanced catalytic converters to curb harmful emissions. In 2023, global sales of vehicles equipped with Euro VI-compliant catalytic converters rose by 18%, reflecting the demand for eco-friendly automotive technologies.
Emerging nations like India and Brazil are witnessing rapid adoption due to rising gasoline and diesel vehicle production. India implemented Bharat Stage VI norms in April 2023. In February 2024, Johnson Matthey introduced a lightweight, high-efficiency catalytic converter that reduced precious metal usage by 15% through technological advancements.
North America's aging vehicle fleet presents opportunities for retrofitting, while sustainable manufacturing processes drive demand for recyclable components. The growth of the electric vehicle market is driven by the demand for advanced materials and coating technologies in the catalytic converter industry.
The global automotive catalytic converter market recorded a CAGR of 6.5% in the historical period from 2019 to 2023. The COVID-19 pandemic impacted the automotive catalytic converter market, resulting in a decrease in new passenger and commercial vehicles sold worldwide. However, the market is expected to recover post-pandemic due to increased preference for individual mobility.
Key manufacturers in the region and increasing vehicle production have contributed to rapid market growth. Countries like China, Japan, and India are planning to implement vehicle emission norms, equivalent to Euro VI, in 2020. Demand for catalytic converters for automotive is estimated to record a considerable CAGR of 7.2% during the forecast period between 2025 and 2032.
Increasing Production of Gasoline and Diesel in Emerging Nations
The manufacturing of gasoline and diesel vehicles is booming in emerging nations due to urbanization, economic expansion, and growing middle-class earnings. For example, vehicle production in India and Indonesia grew by 10% and 7%, respectively, in 2023, contributing to global automobile output.
The increasing number of vehicular emissions has highlighted the need for advanced emission control technologies to mitigate their environmental impact. Countries such as China and India have adopted stringent emission norms to combat pollution, with India implementing Bharat Stage VI (BS-VI) standards in April 2020, comparable to Euro VI regulations.
The regulations mandate the use of catalytic converters in all vehicles to decrease pollutants like nitrogen oxides and carbon monoxide. In October 2024, China announced investments in research for low-cost catalytic converter technologies, aligning with its "Blue Sky" initiative.
Toyota and Hyundai are enhancing their aftertreatment systems to ensure compliance and sustainability in the rapidly growing markets.
Use of Advanced Materials and Coating Technologies
Advanced materials and coating technologies are altering the automobile catalytic converter business by increasing durability, efficiency, and decreasing reliance on precious metals. Consequently, allowing converters to endure great temperatures and enhance pollution conversion rates.
Researchers at MIT have combined materials science and environmental control to create a ceramic substrate material that minimizes heat deterioration by 25%, changing the worldwide catalytic converter industry.
Popularity of EVs over Traditional Combustion Engines Challenges the Expansion
The global automobile catalytic converter market is a derived sector closely linked to the sales of passenger and commercial vehicles. In 2023, over 85 million vehicles were sold globally, with internal combustion engine (ICE) vehicles constituting 72% of the sales number.
Catalytic converters are mandatory in all ICE vehicles, playing a crucial role in treating hazardous emissions like carbon monoxide, nitrogen oxides, and hydrocarbons. However, the growing adoption of EVs presents a significant challenge to the market.
EV sales surged to over 10.2 million units in 2023, marking a 35% year-on-year growth, driven by stricter emission policies and government incentives. For instance, the European Union's Euro 7 regulations, set to be implemented in July 2025, aim to limit emissions, bolstering catalytic converter demand in the short term.
Automakers like Tesla and BYD are planning to increase production capacities for EVs in 2024, potentially altering the market dynamics for catalytic converters.
Sales of Passenger Cars Boost the Adoption of Catalytic Converters
The passenger car is the primary global market for catalytic converters, driven by the increasing production and sales of cars in key regions. In 2024, passenger cars held a 68.2% of the market share, driven by stringent emissions regulations and advancements in automotive technologies.
The region's adoption rate for aftertreatment devices is lower than Europe and North America due to its greater reliance on gasoline engines with lower emissions. Passenger car adoption of catalytic converters is expected to grow as governments tighten emission standards globally, with heavy-duty vehicles like trucks and buses adopting these systems more frequently.
Trend of Eco-consciousness in Auto industry to Open the Door to Innovation
The increasing concern for environmental issues, particularly air pollution and its negative impacts on human health, has led to a rise in the demand for catalytic converters. Cleaner technologies are receiving greater attention as people and governments become more aware of the risks posed by car emissions.
The demand for catalytic converters is benefiting from these changes in consumer preferences as well as new regulations aimed at reducing emissions. Innovation and investment in better emission control systems are being stimulated by the need for sustainability and cleaner air. This is advantageous to the environment as well as the industry.
The global Automotive Catalytic Converter Market is dominated by large corporations, which also significantly influence industry trends. The market is driven by large investments in research and development, which enhance existing product offerings and foster innovation.
Several companies are seeking to establish partnerships and alliances with other organizations and research centers in order to stay competitive in the face of shifting market conditions. They intend to use collective expertise to further technological advancements and diversify their product lines through cooperative research projects.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2025 to 2032 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Product Type
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By Vehicle Type
By Region
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The market size is set to reach US$ 198.06 Bn by 2032.
Automotive catalytic converters are used in passenger cars, light and heavy-duty vehicles to reduce emissions.
In 2024, Asia Pacific attained a market share of 37.4%.
In 2025, the market is estimated to be valued at US$ 121.74 Bn.
Faurecia SA, Magneti Marelli S.P.A., Eberspaecher GmbH Holding & Co. KG, Tenneco Inc., Benteler International AG, and BASF SE, are a few key players.
