Automotive Exhaust System Market - By Component (Exhaust Manifold, Catalytic Converter, Muffler, Resonator, Tailpipe), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Fuel Type (Gasoline, Diesel, Alternative Fuels), Forecast, 2023 - 2032

Automotive Exhaust System Market Size

Automotive Exhaust System Market size was valued at USD 37.8 billion in 2022 and is estimated to register a CAGR of over 7% between 2023 and 2032, driven by increasing vehicle production and sales.
 

According to the National Automobile Dealers Association (NADA), in 2022, new light-vehicle sales concluded at 13.7 million units, and there is an expectation of new-vehicle sales reaching 14.6 million units in 2023, reflecting a 6.6% increase compared to 2022. The exceptional growth in the automotive industry, with increasing vehicle production and sales globally, directly influences the demand for automotive exhaust systems. As more vehicles are manufactured and sold, there is a parallel need for exhaust systems to be installed in these vehicles.
 

Stringent emission standards and regulations imposed by governments are a significant driver for the market. Mandates requiring reduced pollutants drive innovation, pushing manufacturers to develop systems that effectively curb harmful emissions. Quoting an instance, in April 2023, the EPA revealed its intention to introduce more ambitious standards aimed at significantly decreasing harmful air pollutant emissions from light-duty and medium-duty vehicles, commencing with the model year 2027.
 

This proposal extends and builds upon the EPA's previously established standards for federal greenhouse gas emissions in passenger cars and light trucks for the model years 2023 through 2026. It capitalizes on advancements in clean car technology to deliver a range of benefits to the American populace, encompassing the reduction of climate pollution, enhancement of public health, and economic advantages for drivers through decreased fuel and maintenance expenses. These proposed standards are anticipated to be implemented gradually over the model years spanning from 2027 to 2032.
 

However, economic downturns and automotive industry fluctuations resulting in reduced consumer spending on vehicles may limit the adoption of automotive exhaust systems. During periods of economic uncertainty, consumers may delay or reduce vehicle purchases, affecting the overall demand for automotive exhaust systems. The automotive industry's sensitivity to economic conditions can create challenges for the exhaust system market, influencing production volumes and sales.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the automotive exhaust system market, causing disruptions in global supply chains, production slowdowns, and a decline in consumer demand for vehicles. Factory closures, workforce limitations, and logistical challenges hindered manufacturing processes, leading to reduced production outputs. The economic uncertainty prompted consumers to delay vehicle purchases, affecting the overall market demand for exhaust systems. These challenges underscored the industry's vulnerability to external shocks and emphasized the need for resilience in the face of unforeseen global crises.
 

Automotive Exhaust System Market Trends

Integration of advanced materials will significantly boost the automotive exhaust system industry forecast over the next ten years. The automotive industry is continually exploring advanced materials to enhance performance and reduce weight. In the exhaust system market, there is a growing trend towards integrating lightweight and durable materials, such as high-strength alloys and composite materials. This helps improve fuel efficiency and overall vehicle performance.
 

For an instance, in September 2023, Milltek unveiled an exhaust system crafted for the Ineos Grenadier, utilizing aircraft-grade stainless steel pipes to deliver a unique and distinctive sound for the 4x4 vehicle. Constructed from T304L stainless steel, the system is not only durable but is expected to endure almost indefinitely, a crucial attribute considering the intended robust use of the Grenadier. The exhaust system attaches using original fixtures, ensuring convenient installation while preserving the off-road capability by avoiding any elements that might compromise its performance.
 

Automotive Exhaust System Market Analysis

Based on the component, the market is divided into Exhaust Manifold, Catalytic Converter, Muffler, Resonator and Tailpipe. In 2022, The exhaust manifold will generate a high market share for 2022. The demand for exhaust manifold components in the automotive exhaust system industry is primarily driven by the need for efficient emissions control and enhanced engine performance. Stricter environmental regulations necessitate advanced exhaust systems, including manifold components, to reduce harmful emissions. Additionally, as automotive manufacturers focus on optimizing fuel efficiency and overall engine efficiency, high-quality exhaust manifold components become integral for effective exhaust gas management. This demand is further fueled by the constant pursuit of innovative technologies to meet evolving industry standards and consumer expectations.
 

Based on the vehicle type, the automotive exhaust system market is categorized into passenger cars and commercial vehicle which is furtherly divided into Light Commercial Vehicles, Heavy Commercial Vehicles and Buses & Coaches . In 2022, the passenger cars segment accounted for a market share of around 68% and is projected to grow by 2032. The adoption of automotive exhaust systems in passenger cars is propelled by stringent global emissions standards that necessitate effective pollution control. Regulatory pressures drive manufacturers to integrate advanced exhaust technologies to reduce harmful emissions, ensuring compliance with environmental regulations.
 

Additionally, 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 cars.
 

North America led the automotive exhaust system market with a major share of over 30% in 2022. North America market is expanding due to a combination of factors. Stringent emissions regulations in the region are driving the need for advanced exhaust technologies to meet environmental standards. The increasing consumer awareness of environmental sustainability and a growing preference for fuel-efficient vehicles contribute to the demand for innovative exhaust systems. Furthermore, the rise in electric vehicle adoption prompts manufacturers to explore new exhaust technologies for hybrid and plug-in hybrid vehicles.
 

Automotive Exhaust System Market Share

Major players operating in the automotive exhaust system industry are:

• BENTELER International
• Continental AG
• Eberspacher
• Faurecia
• Friedrich Boysen
• Katcon Global
• Tenneco Inc.
   

Tenneco Inc. holds the largest market share, the company offers product portfolio catering to various vehicle types, strategic partnerships, and acquisitions further solidify Tenneco's market dominance. The company's adaptability to regulatory changes, focus on sustainability, strong customer relationships, and cost-effective manufacturing processes contribute to its competitive advantage.
 

Automotive Exhaust System Industry News

• In October 2023, Purem AAPICO, a joint venture between Eberspaecher and AAPICO Hitech, officially inaugurated its new facility in Rayong, Thailand. Positioned 100km southeast of Bangkok, this production site is set to manufacture exhaust systems for a prominent U.S. automotive manufacturer's pickup truck.
   

The automotive exhaust system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component, 2018 – 2032

• Exhaust Manifold
• Catalytic Converter
• Muffler
• Resonator
• Tailpipe
• Others

By Vehicle Type, 2018 – 2032

• Passenger Cars
• Commercial Vehicles
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Buses & Coaches

By Fuel Type, 2018 – 2032

• Gasoline
• Diesel
• Alternative Fuels

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

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