Automotive Exhaust System Market Size - By Component (Exhaust Manifold, Catalytic Converter, Muffler, Resonator, Tailpipe), Vehicle (Passenger Cars, Commercial Vehicles), Fuel Type (Gasoline, Diesel, Alternative Fuels), Technology & Forecast, 2024 - 2032

Automotive Exhaust System Market Size

Automotive Exhaust System Market size was valued at USD 36.9 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 and 2032. The increase in vehicle production, especially in emerging economies, contributes to the demand for advanced exhaust systems. It also translates to a larger market for replacement exhaust system components as vehicles age and require repairs or upgrades. The automotive industry is currently experiencing a resurgence in production, driven by recovering consumer demand and a shift toward higher vehicle output. This trend is prompting automakers to enhance their manufacturing capabilities and scale up operations.
 

For instance, according to a report by the International Organization of Motor Vehicle Manufacturers (OICA), the global vehicle production increased by 5% in the first quarter of 2024 compared to the same period in 2023. This translates to an increased demand for exhaust systems. As automakers ramp up production to meet market demands, the demand for exhaust systems from Original Equipment Manufacturers (OEMs) also increases.
 

The automotive industry is increasingly focusing on sustainability and fuel efficiency, driven by both consumer demand and regulatory requirements. Innovations in vehicle technology are at the forefront of this shift, with hybrid vehicles gaining significant traction in the market. For instance, a report from the U.S. Department of Energy in May 2024 highlighted a 10% increase in hybrid vehicle sales. These vehicles, which combine a gasoline engine with an electric motor, require more advanced exhaust systems to efficiently manage emissions. This trend indicates a growing demand for fuel-efficient vehicles, driving the automotive exhaust system market.
 

The automotive industry is sensitive to economic conditions. During economic downturns, consumers might delay or reduce vehicle purchases, impacting the demand for new exhaust systems. This can have ripple effects throughout the market and affect production volumes and sales for both OEM suppliers and aftermarket parts manufacturers. The growing popularity of EVs poses a significant challenge to the traditional exhaust system market. They do not have combustion engines and therefore do not require traditional exhaust systems. This could lead to a decline in the demand for some exhaust system components in the long run. Meeting the ever-evolving emission standards can be challenging and expensive for manufacturers.
 

Automotive Exhaust System Market Trends

Innovations, such as the development of Selective Catalytic Reduction (SCR) systems, Gasoline Particulate Filters (GPF), and advanced Exhaust Gas Recirculation (EGR) systems are driving market growth. Stricter emission regulations are pushing manufacturers to develop innovative exhaust system technologies. New catalyst formulations and designs enhance their effectiveness in converting harmful pollutants such as NOx and particulate matter into less harmful substances. Utilizing lightweight materials, such as high-strength alloys or composites, in exhaust system components reduces vehicle weight.
 

As the automotive industry prioritizes vehicle efficiency and emission reduction, leading companies are investing in innovative solutions to improve exhaust system performance. This focus on technological advancement is essential for complying with stringent regulatory standards and addressing the growing consumer demand for cleaner, more efficient vehicles. For instance, in January 2024, Tenneco, a key player in the market, announced the development of a new integrated thermal management system. It was designed to enhance the efficiency of exhaust systems in hybrid and conventional vehicles. It maintains optimal temperatures for efficient operation and emission control.
 

Growing concerns about air pollution and its impact on the environment are driving a positive shift in the automotive exhaust system market. The automotive sector is experiencing a major shift due to increasingly stringent environmental regulations targeting the reduction of vehicle emissions. Governments and regulatory bodies globally are enforcing tougher standards to combat pollution and encourage sustainable practices within the industry. For instance, in July 2023, the European Union (EU) implemented Euro 7, the most stringent emission regulations yet. This regulation mandates significant reductions in nitrogen oxide (NOx) and Particulate Matter (PM) emissions from vehicles. 
 

Automotive Exhaust System Market Analysis

Based on components, the market is divided into exhaust manifold, catalytic converter, muffler, resonator, and tailpipe. In 2023, exhaust manifold accounted for a market share of over 31%. The market is experiencing growth due to a focus on fuel efficiency and the need for compliance with stringent emission standards. Stricter regulations mandate cleaner vehicle emissions, pushing manufacturers to develop more efficient exhaust systems. This exhaust achieves optimal exhaust flow and prepares the exhaust gases for further treatment by the catalytic converter. The use of lightweight materials such as high-strength aluminum alloys in exhaust manifolds reduces vehicle weight.
 

To enhance vehicle performance and comply with evolving environmental standards, automotive companies are consistently innovating with advanced materials and components. These advancements are key to reducing vehicle weight, improving fuel efficiency, and ensuring durability, which are vital for meeting consumer demands and regulatory requirements. For instance, in February 2024, Faurecia, a leading automotive technology company, announced the development of a new lightweight exhaust manifold made from a high-strength aluminum alloy. This innovation aimed to reduce the overall weight of the vehicle while maintaining high durability. It leads to fuel efficiency and handling.
 

Based on vehicle type, the automotive exhaust system market is categorized into passenger cars and commercial vehicles, which are further divided into light commercial vehicles, heavy commercial vehicles, and buses & coaches. The passenger cars segment is expected to hold over USD 51 billion by 2032. The rising sales of passenger vehicles globally are driving the demand for exhaust systems. Governments worldwide are implementing stricter emission standards for passenger vehicles. This pushes manufacturers to develop and integrate advanced exhaust systems into these vehicles that effectively reduce pollutants.
 

Consumers increasingly prioritize fuel efficiency and eco-friendly vehicles, making high-performance exhaust systems a key feature. As the automotive industry continues to innovate, the adoption of exhaust systems becomes crucial for delivering environmentally sustainable and technologically advanced passenger vehicles. The replacement and aftermarket for exhaust systems in passenger vehicles remain robust. It is driven by wear and tear and the need to meet updated emission standards.
 

North America had a significant share in the automotive exhaust system market with around 30% in 2023. There is a strong focus on developing new technologies, such as Selective Catalytic Reduction (SCR), Diesel Particulate Filters (DPF), and Gasoline Particulate Filters (GPF), to meet emission standards in the region. The automotive industry in the region is robust, with consistent growth in the production of both passenger and commercial vehicles. It boosts the demand for exhaust systems.
 

As environmental concerns continue to drive regulatory changes, the automotive industry is facing new emission standards aimed at significantly reducing pollutants. These regulations require automakers to develop and implement advanced technologies to meet stricter guidelines and minimize their environmental impact. For instance, in June 2024, the U.S. EPA announced new emission standards for light-duty vehicles, which will take effect in 2025. These standards aim to reduce NOx emissions by 50% and particulate matter by 40%. It necessitates the development of more advanced exhaust systems.
 

In Europe, conventional exhaust systems become less necessary as Electric Vehicles (EVs) grow increasingly common. Since EVs do not emit any tailpipe emissions, there is less of a need for parts such as mufflers and catalytic converters. The demand for innovative technologies that cater to the needs of hybrid and plug-in hybrid vehicles is rising, even as traditional exhaust systems may become less necessary. One such technology is sophisticated thermal management systems, which are designed to maximize efficiency and performance.
 

The Chinese government has enacted stringent emission standards, including the China VI regulations, necessitating the adoption of advanced exhaust systems to mitigate pollutants. In India, the rapid expansion of vehicle production and sales is driving the demand for exhaust systems as manufacturers focus on improving vehicle performance and ensuring compliance with regulatory requirements.
 

In UAE, continued investments in transportation infrastructure, such as road networks and urban development, are driving increased vehicle usage, increasing the demand for efficient exhaust systems in the region. Furthermore, initiatives, such as UAE Vision 2021, are focused on promoting sustainable development, encouraging automotive manufacturers to integrate eco-friendly technologies into their vehicles, including advanced exhaust systems.
 

Automotive Exhaust System Market Share

Tenneco Inc. and Friedrich Boysen dominate the market with around 14% market share. Tenneco Inc. is a major player in the automotive industry, specializing in parts for both Original Equipment Manufacturers (OEMs) and the aftermarket. Its focus on emission control technologies positions it as a leader in the automotive exhaust system market. The company operates through two main segments, clean air and powertrain. The company’s commitment to research and development positions it well to navigate the challenges of stricter emission standards and the growing consumer preference for fuel-efficient vehicles.
 

Friedrich Boysen, a major automotive technology company, is a leader in several areas including seating, interiors, and most importantly for this discussion, emission control systems. Its focus on innovation and integration positions it as a key player in developing advanced exhaust systems for cleaner vehicles. The company designs and manufactures various crucial components including pollution control technologies, exhaust technologies, and fuel cells.
 

Automotive Exhaust System Market Companies

Major players operating in the automotive exhaust system industry are:

• Faurecia
• Friedrich Boysen
• BENTELER International
• Tenneco Inc.
• Continental AG
• Sejong Industrial
• BOSAL
• Yutaka Giken Company Limited
• Eberspacher
• MagnaFlow
   

Automotive Exhaust System Industry News

• In February 2024, the Indian Ministry of Road Transport and Highways (MoRTH) announced the implementation of Bharat Stage VI (BS-VI) emission standards, similar to Euro 6. This led to the increased demand for advanced exhaust systems from local and international manufacturers.
   
• In October 2023, Purem AAPICO, a joint venture between Eberspaecher and AAPICOHitech, officially inaugurated its new facility in Rayong, Thailand. Positioned 100km southeast of Bangkok, this production site was set to manufacture exhaust systems for pickup trucks.
   

The automotive exhaust system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Exhaust manifold
• Catalytic converter
• Muffler
• Resonator
• Tailpipe
• Others

Market, By Vehicle

• Passenger cars
• Commercial vehicles
  • Light commercial vehicles
  • Heavy commercial vehicles
  • Buses & coaches

Market, By Fuel type

• Gasoline
• Diesel
• Alternative fuels

Market, By Technology

• Diesel Particulate Filter (DPF)
• Selective catalytic reduction (SCR)
• Exhaust gas recirculation (EGR)
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA