Global Catalytic Converter Market Overview

Catalytic Converter Market Size Was Valued at USD 166.4 Billion in 2023 and is Projected to Reach USD 337.94 Billion by 2032, Growing at a CAGR of 8.19% From 2024-2032

Eugene Houdry invented the catalytic converter, he was a French mechanical engineer, skilled in catalytic oil refining. The innovation of catalytic converters holds a major role in controlling harmful emissions. Houdry first manufactured catalytic converters for smokestacks and then developed catalytic converters for warehouse forklifts that use low-grade non-leaded gasoline. Furthermore, he began his research to make advancements in catalytic converters for gasoline engines that became used on cars in the mid-1950s.

A catalytic converter is a device used to decrease the harmful emissions from an internal combustion engine mostly used in modern-day vehicles and automobiles. Additionally, less amount of oxygen is available in these engines for oxidization of carbon fuel completely into carbon dioxide and water thus, toxic by-products are generated. Moreover, catalytic converters are used in exhaust systems to provide a site for the oxidation and reduction of toxic substances such as nitrogen oxides, carbon monoxide, and hydrocarbons into less hazardous by-products such as carbon dioxide, and water vapor. Catalyst is a chemical substance that enhances the rate of a chemical reaction by taking part in it and remains unchanged at the end of the reaction. Additionally, the growing concern of governments and individuals regarding the air and noise pollution created by automobiles is supporting the growth of the Catalytic Converter Market in the period of forecast. Catalytic converters were first widely incorporated in American cars in 1975 due to EPA regulations on harmful emissions reductions. Catalytic Converter also helps in enhancing the efficiency and life span of vehicles. The major catalysts used in the converter are mostly precious metals such as platinum, palladium, and rhodium. The reactions involved in the catalytic converter are oxidation reactions and reduction reactions. Moreover, both these reactions in combination help in reducing the harmful emission from automobiles. 

Market Dynamics and Key Factors in Catalytic Converter Market

Drivers:

During the combustion process inside the cylinder of the engine, the air-fuel mixture never burns completely which results in the production of harmful poisonous gases. These gases are not only harmful to the environment but also for humans when they inhale them, to reduce the emission the use of a catalytic converter is very advantageous, thus propelling the Catalytic Converter Market growth in the period of forecast. Moreover, almost every year, the emission regulations prescribed by government authorities are becoming stricter than the year before, as more and more people and governments are becoming environmentally conscious thus strengthening the Catalytic Converter Market expansion in the period of forecast.

Harmful pollutants like nitrous oxide and carbon monoxide are tremendously decreased in the car's net emissions after installing a catalytic converter. The carbon monoxide emission can be cut down by as much as 85 percent, and the emission of nitrous oxide by as much as 62 percent. All these factors are boosting the market growth in the span of the forecast. Moreover, many companies have invested in the research and development of catalytic converters to enhance their overall performance. The growing sales of automobiles globally owing to rising disposable income and the comfort and convenience automobiles offer is boosting the growth of the Catalytic Converter Market during the period of forecast.

Restraints:

Catalytic converters help in reducing the emission of carbon monoxide and nitrous oxide yet, they do not reduce the emission of carbon dioxide which is generated when fossil fuels are burnt hence restricting the market growth in the period of forecast. Moreover, owing to their efficiency in reducing pollution the catalytic converters, however, are expensive to get replaced. With the growing population trend towards electric cars and other automobiles the demand for cars running on fossil fuels is decreasing, thus hindering the Catalytic Converter Market growth throughout the forecast. Furthermore, when a vehicle starts it takes five minutes for the Catalytic Converter to start its functioning this is known as a cold start, during this period there is the emission of harmful gases.

Additionally, platinum is the widespread used metallic catalyst in Catalytic Converter as it is a very active catalyst. The cost of platinum is very expensive, thus hampering the growth of the Catalytic Converter Market during the period of forecast. Moreover, governments of various countries are imposing strict laws to eliminate the pollution caused by fuel combustion. Many countries are making efforts to strive for zero-emission goals, and thus are promoting customers to use electric vehicles. All these factors are hindering the Catalytic Converter Market growth throughout the forecast.

Challenges:

The catalytic converter uses precious metals such as platinum, palladium, and rhodium for the manufacturing of catalyst beds. The price of platinum, palladium, and rhodium keeps fluctuating strongly, depending on the supply, demand, and speculation. These variations in supply and demand, as well as the increase in severity of emission legislation, had a direct correlation on the composition of the catalysts which has resulted in high pricing of these elements. To overcome this high pricing and provide catalytic converters at affordable prices are the biggest challenge for the market players.

Market Segmentation

Segmentation Analysis of Catalytic Converter Market:

Depending upon the Type, the three-way oxidation-reduction catalytic converter (TWORCC) is anticipated to dominate the market. TWORCC is efficient in reducing the harmful emission by 98% thus promoting the growth of this segment. Moreover, oxidation and reduction take place simultaneously in this catalytic converter which eliminates the need for separate equipment for reduction reactions required in a two-way oxidation catalytic converter. The diesel oxidation catalyst is forecasted to have the second-highest share in the market owing to its efficiency in reducing harmful emissions in compression-ignition such as diesel engines. Moreover, they can perform at 90% efficiency and helps in removing diesel odor and reducing visible particulates.

Depending on Engine Type, the gasoline segment is expected to dominate the Catalytic Converter market in the period of forecast. Individuals prefer gasoline engine cars owing to their low pricing. Moreover, the maintenance cost associated with a gasoline engine is also low as compared to a diesel engine, thus promoting the growth of the gasoline segment. 
Depending on Monoliths, ceramic is anticipated to dominate the Catalytic Converter market. Ceramic honeycomb monoliths increase the efficiency of catalysts to eliminate or reduce the pollution caused by combustion.
Depending on Application, the passenger segment is forecasted to have the highest growth in Catalytic Converter Market. The increasing number of individuals buying cars for personal use, the development of road infrastructure, and the rising disposable income are boosting the growth of this segment.

Regional Analysis of Catalytic Converter Market:

Asia-Pacific region is anticipated to dominate the region owing to the huge number of individuals purchasing automobiles in countries such as India, and China. The rising disposable income and the growth in the infrastructure development of roadways are promoting the growth of the Catalytic Converter Market in this region.
Europe region is forecasted to have the second-highest share in Catalytic Converter Market. The increasing number of automobile purchasers and supportive government policies is promoting the growth of the Catalytic Converter Market in this region. The growing research and development to enhance automotive development are further promoting market growth.

Players Covered in Catalytic Converter Market are:

• BASF SE (Germany)
• CDTi Advanced Materials Inc. (U. S)
• Continental AG (Germany)
• Eberspächer (Germany)
• Faurecia (France)
• BOSAL (Belgium)
• Yutaka Giken Company Limited (Japan)
• Sejong Industrial Co. Ltd (Korea)
• Marelli Europe S.p.A (Italy)
• Sango Co. Ltd (Japan)
• Tenneco Inc (U. S) and other major players.

Key Industry Development in Catalytic Converter Market

• In December 2023, BASF Environmental Catalyst and Metal Solutions (ECMS) signed an agreement to purchase the assets of Arc Metal AB in Hofors, Sweden. The company currently conducts toll smelting and processing of spent automotive catalysts, among other services, and will further complement ECMS’s existing global precious metal recycling operations in Cinderford, UK, Seneca and Spartanburg, South Carolina, and Caldwell, Texas, USA
• In October 2023, Cummins Inc. announced that Cummins Emission Solutions completed its acquisition of two Faurecia commercial vehicle manufacturing plants and their related activities, one in Columbus, Indiana (U.S.), and one in Roermond, Netherlands. Faurecia is a global automotive technology leader and company of the FORVIA Group.