Automobile Catalysts are used for the reduction of atmospheric emissions due to the emissions of pollutants from the vehicles to the atmosphere. The Automobile catalysts are divided into Diesel and Gasoline based on the type of engine. Due to the government initiatives regarding the emission of pollutants, the demand for automobile catalysts is rising and automobile companies are producing cars equipped with emission control technology.
The Global Automobile Catalyst market size was valued at US$ XX billion in 2020 and a growth in market size is expected resulting in a market size worth US$ XX billion by 2028, growing at a CAGR of 5.5% during the forecast period (2022-2029).
The major factors driving the Global Automobile Catalyst market are government schemes and initiatives for the reduction of emissions, growth in the automobile sector, and increasing production of cars. The use of nanotechnology in catalyst converters is also driving the market growth.
The government schemes and initiatives for the reduction of emissions are driving the market growth of automobile catalyst
The government initiatives for the reduction of emissions from vehicles and other sources are driving the market growth of automobile catalysts. Due to the strict rules and regulations regarding emissions in different parts of the world automobile companies and manufacturers are focusing on vehicle production equipped with emission control technologies. Many companies in India are also focusing on emission control in July 2019, Mahindra Cars announced that Mahindra Alturas SUV will get a BS6-Ready Engine. Many developed countries have also developed their emission control standards to control the release of pollutants from vehicles European Emission Standards are followed by the European Economic Area (EEA) and European Union nations. These are established to limit climate change and pollution in Europe. Many climate change effects are happening in different parts of the world recently in Canada many people died due to heatwaves when the temperature of Lytton increased to 49.6 degrees Celsius. The emission of nitrogen oxides, hydrocarbons, carbon monoxide, and particulate matter are regulated for vehicles in the European Union. It is expected that EURO 7 will come into the following by 2025.
The growth in the automobile sector and increasing use of nanotechnology in the catalyst converters are driving the market growth of Automobile Catalyst
The Automobile sector is also growing in Asia-pacific as there is an increase in production and investments in the countries like India, Japan, China, Indonesia, and Thailand. According to the International Organization of motor vehicles manufacturers (OICA) report, the Asia Pacific countries like China, Japan, India, and South Korea were ranked 1, 3, 5, and 9 with 25.225 million, 8.06 million, 3.39 million, and 3.5 million motor vehicles produced respectively in 2020. In 2020, the total number of motor vehicles produced in the world was 77 million units. The USA was ranked 2nd in terms of production of motor vehicles with a total of 8.8 million vehicles produced in 2020. According to the reports, the vehicles produced during the covid-19 pandemic declined as the total number of motor vehicles produced in the world declined from 91.7 million units in 2019 to 77 million units in 2020. The total number of vehicles produced in China, the USA, Japan, Germany, and India were 25.7 million, 10.88 million, 9.68 million, 4.66 million, and 4.5 million respectively in 2019 and 25.225 million, 8.8 million, 8.067 million, 3.7 million and 4.5 million in 2020. The increasing use of nanotechnology in automobile catalyst converters is also increasing the market growth.
The high cost of automotive catalysts and the growth of electric vehicles are hampering the market growth of Automobile Catalyst
COVID-19 Impact Analysis
The COVID-19 pandemic has affected many industries due to the disruption in the supply chain, as there were full or partial lockdowns in many countries of the world, and restrictions across borders and closure of airports hampered world trade. The automobile sector was also severely affected due to covid-19 as there was disruption of the supply chain and people preferred health over their jobs. Companies couldn’t operate with proper covid norms. It was also difficult for staff and workers to work with social distancing norms. According to the reports, the vehicles produced during the covid-19 pandemic declined as the total number of motor vehicles produced in the world declined from 91.7 million units in 2019 to 77 million units in 2020. The total number of vehicles produced in China, the USA, Japan, Germany, and India were 25.7 million, 10.88 million, 9.68 million, 4.66 million, and 4.5 million respectively in 2019 and 25.225 million, 8.8 million, 8.067 million, 3.7 million and 4.5 million in 2020. The decline in the number of vehicles produced during the covid-19 pandemic is hampering the market growth of automobile catalysts.
The Global Automobile Catalyst Market is segmented based on the Engine Type, Vehicle Type, Metal Type, and Region.
Based on the Engine Type, the Global Automobile Catalyst market is segmented into Diesel and Gasoline.
The Gasoline segment within Global Automobile Catalyst Market was valued at US$ XX billion in 2020 and a growth in market size is predicted leading to a market size worth US$ XX billion by 2028, growing at a CAGR of XX% during the forecast period (2021-2028). The demand for the gasoline catalyst is rising due to the increasing adoption of gasoline-powered vehicles. The large production of gasoline-powered vehicles leads to more research and development of automobile catalysts which is also driving the market for Automobile catalysts.
The diesel segment is divided into diesel oxidation catalyst (DOC), diesel particulate filter (DPF), and selective catalytic reduction (SCR). Many new technologies are developed nowadays such as adopting engines based on a mixture of fuels like gasoline and ethanol as ethanol in gasoline helps in the reduction of Carbon monoxide emissions but ethanol can damage the engine and fuel pump of the vehicle. The United States and Brazil are the biggest producers of fuel ethanol with 13800 million gallons and 7930 million gallons produced in 2020. Brazil has the world’s largest cars which can run on ethanol with around 78% of total vehicles using the mixture of 27% ethanol with gasoline.
Based on the Vehicle Type, the Global Automobile Catalyst market is segmented into Passenger vehicles and Commercial vehicles. Commercial vehicles are subdivided into Light & Medium vehicles and Heavy vehicles.
Based on the Metal Type, the Global Automobile Catalyst market is segmented into Rhodium, Platinium, and Palladium.
Based on the Region, Global Automobile Catalyst Market is segmented as - North America, Europe, Asia-Pacific, The Middle East, Africa, and South America.
The North-American region had a market share of XX% in 2020 and is expected to hold XX% by 2028. The North American region has the highest market share among all the regions due to an increase in the production of automobiles and strict rules and regulations regarding emissions from the vehicles. According to the International Organization of motor vehicles manufacturers (OICA) report, the USA was ranked 2nd in terms of the total number of vehicles produced which were 10.88 million in 2019 and 8.8 million in 2020. An increase in the investments and mergers by the American companies with foreign competitors and the establishment of new production facilities in this region are driving the market growth for Automobile Catalyst. General Motors and Ford group and Fiat Chrysler are the biggest automobiles producing companies in this region with 6.76 million, 4.05 million, 3.97 million vehicles produced in 2020. There are around 3000 automobile companies in the United States of America. Emission standards in the US are managed by the Environmental Protection Agency (EPA). California is the only state which is given the right to develop the emission standards itself.
The Global Automobile Catalyst market is fragmented with key global players in the market and there are many large companies in the market. Some of the major companies contributing to the market's growth are- BASF SE, CDTi Advanced Materials, Inc, Ecocat India Pvt. Ltd, Tenneco Inc, Johnson Matthey, Klarius Products Ltd, Clariant, Eberspächer, Umicore, Cummins Inc, and many others.
Mergers and Acquisitions, agreements, expansions, joint ventures, etc increase competition in the market BASF announced the expansion of the mobile emissions catalysts production plant in Chennai, India in July 2021 which is to be completed by 2022.
New Innovations, New products, and services launched also increase competition between companies and many companies are developing innovative technologies like BASF launched the tri-metal catalyst technology in March 2020 which is very useful as it can substitute costly palladium with low-priced platinum in gasoline vehicles. Partnerships and Collaborations between companies are also making the market more competitive. Divestments and investments by the company and splits of companies are also making the market quite competitive.
BASF SE (Badische Anilin-und Sodafabrik)
BASF SE is a chemical company which is headquartered in Ludwigshafen, Germany. It is the largest chemical public company in the world. The full form of BASF is Badische Anilin-und SodaFabrik (Baden Aniline and Soda Factory). BASF acquired Cognis and Ciba in December 2010 and April 2009 respectively. The company has joint ventures in over 80 countries. The company is also listed on several stock exchanges like the Zurich stock exchange, frankfurt stock exchange, and London stock exchange. The company deals with many products like resins, amines, plastics, crude oil exploration, industrial starch, etc. It is ranked 143 according to the fortune 500. The company has various segments of operations like Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions, and Oil and Gas. The company introduced the Colors & Effects brand in 2016 to the market. The market value of the company as of 20 January 2021 is USD 75 billion.
Blackrock has more than 5% market shares, and Institutional Inventors has around 75% market shares. Germany, the U.K, US has market shares of 36%, 11%, and 17%. The company was ranked 143 rd among fortune 500 companies. The market value of the company as of 20 January 2021 is USD 75 billion. According to CNN business, some of the major stockholders/owners of the company are Todd Asset Management LLC, Parametric Portfolio Associates, and Silvercrest Asset Management group with market shares of 0.03%, 0.08%, and 0.01% respectively. It is ranked 143 according to the fortune 500.
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