The emission control catalyst market is evaluated at US$12.843 billion for the year 2020 and is projected to grow at a CAGR of 10.75% to reach the market size of US$26.253 billion by the year 2027.
An emission control catalyst breaks down solid particulates in a vehicle's or industrial machinery's engine exhaust systems in order to reduce the number of harmful pollutants in the environment. Stringent environmental regulations and emission standards are significantly driving the demand for emission control catalysts across different industries. The booming global automotive industry is another major driver projected to propel the growth of the emission control catalyst market during the forecast period. Global automakers such as Ford Motors, BMW, and General Motors are increasingly investing in emission control catalysts such that automobiles manufactured by them strictly adhere to strict emission norms across different regions. However, the rising popularity of electric vehicles is likely to hamper the market growth during the assessment period.
The recent outbreak of the novel coronavirus diseases had a negative impact on the emission control catalyst market. The lockdowns implemented by governments all around the world during the pandemic, especially during the initial months of the outbreak, led to a halt in activities and a massive reduction of vehicles on the road. The demand for vehicles declined, which resulted in decreased demand for emission control catalysts and hence led to a decline in the market growth of emission control catalysts. However, as the activities have been restarted and the consumer demand for vehicles is gaining its usual pace, the market is expected to recover and continue at its normal pace from the second half of 2021 onwards.
The growing automotive industry
One of the prominent factors anticipated to drive the growth of the market during the forecast period is the growing automotive industry, as emission control catalysts are used in vehicles to reduce harmful emissions, and hence the demand for emission control catalysts has been increasing with the increasing production of automobiles. According to ANFAVEA, Brazil, the production of automobiles in Brazil has increased from around 2.18 million units in 2016 to 2.94 million units in 2019. As investment continues to percolate through the Brazilian economy with major global automobile manufacturers such as General Motors and Toyota setting up production facilities in the country, the demand for emission control catalysts is projected to grow. Another example of the rise in production and sales of automobiles in India. Between 2016-2020, domestic automobile production increased at a CAGR of 2.36%, with 26.36 million vehicles being manufactured in the country in FY20. Also, domestic sales of vehicles increased at a CAGR of 1.29% between FY16 and FY20 with 21.55 million vehicles sold in FY20. Furthermore, some countries, like Argentina, are building strategies to increase their automotive production to compete globally. The rising production and sales of automobiles are expected to stimulate the growth of the emission control catalyst market during the forecast period.
The growing concerns regarding climate change
One of the key factors supplementing the emission control catalyst market growth includes growing concerns regarding climate change and greenhouse emissions around the globe. Many countries around the world have become increasingly aware of the threats posed by pollution and greenhouse emissions, and as a result, various agendas and policies have been developed by governments to implement various measures to address pollution and climate change issues. The positive impact of using the emission control catalyst market, like reducing harmful emissions, has made the development of advanced emission control catalysts one of the many contributors to reducing environmental pollution and climate change. Additionally, with severe limitations on vehicular emissions and government backing and motivators for the advancement of emission control catalysts, the worldwide emission control catalyst market is anticipated to grow during the forecast period.
The growing popularity of electric vehicles can have a negative impact.
Electric vehicles are gaining a significant amount of popularity as an alternative to traditional fossil fuel vehicles. The prices of electric cars have been reduced by the companies, making electric cars more popular and hence contributing to their market growth. The governments of various countries are providing subsidies for electric vehicles, and announcements have been made by major vehicle companies to produce more electric vehicles. Various countries like China have been investing heavily in electric vehicle infrastructure. Hence, the popularisation of the electric vehicle market could slow the growth of the emission control catalyst market in the coming five years.
Asia Pacific is witnessing the fastest growth
Geographically, Asia Pacific is projected to witness the fastest regional market growth during the forecast period on account of the rising manufacturing of automobiles coupled with the setting up of various industries in the region.
|Market size value in 2020||US$12.843 billion|
|Market size value in 2027||US$26.253 billion|
|Growth Rate||CAGR of 10.75% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Metal Type, Catalytic Convertor Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||BASF SE, Corning Incorporated, Solvay, Johnson Matthey, Umicore, Clariant, Cataler Corporation, Hitachi Zosen Corporation, Heraeus, Bosal|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the emission control catalyst market size by 2027?
A1. The emission control catalyst market is expected to reach a total market size of US$26.253 billion in 2027.
Q2. What are the growth prospects for the emission control catalyst market?
A2. The global emission control catalyst market is expected to grow at a CAGR of 10.75% over the forecast period.
Q3. What is the size of the global emission control catalyst market?
A3. Emission Control Catalyst Market was valued at US$12.843 billion in 2020.
Q4. What factors are anticipated to drive the emission control catalyst market growth?
A4. The booming global automotive industry is another major driver projected to propel the emission control catalyst market growth.
Q5. Which region holds the largest market share in the emission control catalyst market?
A5. Geographically, Asia Pacific is projected to witness the fastest growth in the emission control catalyst market during the forecast period on account of the rising manufacturing of automobiles coupled with the setting up of various industries in the region.
Hitachi Zosen Corporation
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