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Automotive Catalytic Converters Market - New Revenue Pockets
The market for catalytic converters is directly linked to the automobile sales and production and stringent emission norms. Globally, the automobile production is estimated to grow at a CAGR of 6.17% during the next five years. This justifies the upcoming demand for catalytic converters in the future. Technological advancements in the catalytic converters industry has been propelled by upcoming emission norms.
Asia-Oceania & North America Would Be Potential Markets In Near Future
Asia-Oceania has become a major hub for the automotive industry The primary reason for this is increased vehicle production in this region, as a result of increased domestic demand and increased exports. In the coming years, high demand is estimated from countries such as China and India for passenger cars, as purchasing power of consumers has increased. Increasing infrastructure in this region has triggered the demand for LCVs and HCVs. Automobile giants such as Volkswagen, Fiat Chrysler Automobiles, General Motors, and Ford Motor Company, have already set up manufacturing plants in different parts of this region. Along with these OEMs, there are Tier I and Tier II suppliers that have started setting up their manufacturing plants in this region. Various catalytic converter manufacturers such as Yutaka (Japan), Sango Co. Ltd (Japan), and Futaba Industrial Co. Ltd (Japan) are based in the Asia-Oceania region. Several Tier-I and Tier-II companies are also planning to expand their manufacturing facilities in this region. Upcoming emission norms in developing countries such as India and China and increasing number of diesel vehicles in the Asia-Oceania could play a crucial role in the growth of catalytic converter market in this region.
The North American region has a highly sophisticated market, in terms of technology and other emission regulations. Most of the automobile manufacturers such as Volkswagen, Ford Motor Company, and BMW AG have their manufacturing plants in this region. The market has recently shown a potential growth in automobile production. The vehicle production in U.S. has increased by 5.4% from 2013 to 2014, whereas the same in Mexico has shown a growth of 10.2% over the same period. This has indicated that North American automotive market has started its recovery path after the economic downturn and according to industry experts; the same is projected to continue in the near future. This is estimated to benefit the catalytic converter market for the next five years.
Europe: Modest Growth in Automotive Catalytic Converter Market
Europe, unlike North America, is still struggling to come out of its slump in vehicle production. The vehicle production in Germany has grown 3.3% from 2013 to 2014, whereas in France and U.K. this growth is registered as 4.4% & 0.1% respectively. Owing to such steady growth, the demand for catalytic converters in European region is projected to remain steady for next five years. However, with introduction of Euro-VI regulations, the automotive industry can expect more investments pouring in for R&D in emission control systems.
Automotive Catalytic Converter Market by Type (TWC, SCR, DOC, LNT and LNC), by Region (North America, Europe, Asia-Oceania, and RoW), by Material (Platinum, Palladium, Rhodium, & Others) - Global Forecast & Analysis to 2019
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