Automotive ThreeWay Catalytic Converter Market

Automotive Three-Way Catalytic Converter Market Size

The automotive three-way catalytic converter market size was valued at USD 11.2 billion in 2024 and is estimated to register a CAGR of 6.2% between 2025 and 2034. The global market for the automotive industry is drastically increasing due to the rise in sales and production of vehicles as the demand for automotive components grows. The combination of vehicle ownership and the expanding development of personal mobility and transport services caters to an even higher demand for the market. Furthermore, there are emissions and environmental standards that need to be met, and the use of advanced emission systems via ICE vehicles makes meeting these standards easier.

In March 2024, the International Organization of Motor Vehicle Manufacturers (OICA) reported a 5% increase in global automotive production for Q1 2024, reflecting growing demand for automotive systems. Trends regarding urbanization and economic advancement only point towards a higher need and use of vehicles equipped with three-way catalytic converters in the future.

The three-way catalytic converter market's outbreak growth in recent years can be owed to stricter worldwide emission regulations. Governments have begun recognizing the pressing concern of air pollution and GHG emissions and have started implementing stricter environmental standards. Almost all regions’ regulations target decreasing emissions of carbon monoxide, nitrogen oxides, and unburned hydrocarbons, for example. The variations in regulations highly push for more advanced, durable, and efficient technologies due to the rising environmental standards that need to be met.

Automotive Three-Way Catalytic Converter Market Trends

• The factor boosting the market considerably is the increasing consumption of vehicles that use less fuel. Since both consumers and manufacturers are concerned about the reduction of fuel use and maximizing fuel efficiency, automotive companies are turning to the latest emission control technologies.
  
• Three-way catalytic converters are fundamental to fuel efficiency optimization by improving the combustion process and minimizing the otherwise by-products of burning fuel. Fuel price increases, an increase in environmental protection consciousness, and the relevant policy support for energy-saving vehicles are the main drivers for this trend.
  
• The trend towards hybrids and advanced ICEs has resulted in demand for high-performance catalytic converters to be able to meet stringent emission regulations. This fuel-efficient solution market is likely to escalate further.
  
• The most important drawback of the market is its dependence on power-train technology developments, such as the increasing interest in EVs. Since EVs no longer use internal combustion engines, catalytic converters become irrelevant, and therefore the market for them is expected to decline over time. This transition could be a major constraint to the growth of the market, especially as nations across the globe seek to impose higher emission standards and encourage people to purchase EVs.
  

Automotive Three-Way Catalytic Converter Market Analysis

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Based on material, the market is divided into platinum-based, palladium-based, and rhodium-based. In 2024, the platinum-based segment held a market share of over 40% and is expected to cross USD 7 billion by 2034.

• The expansion of the platinum-based segment is attributed to the rise in the need for high-performance emission control systems. Platinum is considered one of the base metals of the tri-metal used in catalytic converters since it can enhance chemical processes.
  
• There has been a growing demand for platinum-based converters because governments in many countries, especially developed ones, including Europe and North America, have been imposing stricter emission standards and requiring converters to comply with them.
  
• The high performance of platinum in exhaust gas as a converter makes it an ideal metal to use in automotive manufacturing in order to comply with the set global standards.

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Based on vehicle, the automotive three-way catalytic converter market is categorized into passenger vehicle and commercial vehicle. The passenger segment held a market share of around 74% in 2024.

• One of the key elements fueling development in the passenger car market is the increasing opportunities for trade in eco-friendly cars. As people become more aware of the environment, they also tend to look for low-emission, fuel-saving cars. This modification in consumers' perception leads to the adaptation of regulations aimed at the designing of eco-friendly automobiles alongside performance ones.
  
• One of the primary requirements of these consumers is having cleaner gasoline passenger vehicles; thus, three-way catalytic converters play a fundamental role in environmental control.
  
• Also, the adoption of hybrid and advanced internal combustion (ICE) vehicles has led to emission control systems being needed, which is assisting in the growth of automotive three-way catalytic converters.

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U.S. dominated the North America automotive three-way catalytic converter market with a major share of around 80% in 2024.

• As competition within the automotive industry increases, companies in U.S. are looking to comply with harsher emission regulations by investing in the production of more robust catalytic converters, which, in turn, will allow them to cut emissions significantly.
  
• Automakers have begun using improved platinum-based catalysts, new substrate systems, and advanced heat shielding, all of which boost the effectiveness of three-way catalysts or TACs when it comes to emission reduction. Increased conversions provided by automakers enable them to meet the US goal of achieving lower emissions of NOx and CO2 and their concentration levels in the atmosphere. Due to the increasing demand for cleaner cars that meet emission standards, the automotive aftermarket for high-performance catalytic converters in North America has been growing substantially.
  
• The European market population is growing and is now at an income level that facilitates the purchase of vehicles both for personal and commercial use. Due to the increased demand for the purchase of vehicles, there is a surge in the need for newer emission control technology, such as three-way catalytic converters, at both local as well as international levels.
  
• Moreover, urbanization and changing lifestyle patterns are aiding in increasing the rate of ownership of vehicles in developing regions of the world where the demand for transport is increasing rapidly. An increase in the number of vehicles is directly proportional to the demand for devices to curb toxic emissions, thus catalyzing the demand for catalytic converters.
  
• The alarming levels of air pollution and environmental degradation have motivated India, Japan, and China, along with a few other nations, to pass more aggressive emission norms regulations.
  
• For example, China VI standards and BS-VI standards in India both cross the limits of acceptable harmful exhaust emissions, hence forcing different automobile manufacturers to widely scale the use of cutting-edge emission control technology, whereby the three-way catalytic converters are included. These devices assist the transporting vehicles in being within compliance with the more stringent regulations. The passing of the laws where the regulations are stringent is leading the automakers to use more efficient catalytic converters in their vehicles.
  

Automotive Three-Way Catalytic Converter Market Share

Faurecia, Magna, and Tenneco hold a market share of around 20% in the automotive three-way catalytic converter industry in 2024.

• Faurecia places a strong emphasis on sustainability and innovation measures and thus continues to enhance its reliance on emission control technology to ensure it complies with international regulations.
  
• Substantial investments are made every financial period, enabling the company to improve the performance and efficiency of the catalytic converter. Furthermore, Faurecia works alongside full-fledged vehicle manufacturers to foster better solutions pertaining to low-emission vehicles.
  
• Magna works on improving its elements of core manufacturing and its own presence with regard to the location and production of advanced emission systems, given the increasing global demand associated with emission systems.
  
• Eco-friendly solutions are also put in place alongside lightweight materials to help automobile manufacturers reduce a vehicle’s emissions, meaning that the overall fuel efficiency can be increased substantially.
  

Automotive Three-Way Catalytic Converter Market Companies

Major players operating in the automotive three-way catalytic converter industry include:

• Bosal
• Corning
• Denso
• Faurecia
• Johnson Matthey
• Magna
• Marelli
• Tenneco
• Umicore
• Yutaka
  

With strict environmental imperatives, the emissions control systems have received the technological innovations boost they required. The makers of the automotive three-way catalytic converter are competing with one another due to this innovation. The emphasis now is on enhancing the fuel economy of passenger cars, commercial vehicles, and high-end engines through upgraded technology.

High-end technologies such as palladium, rhodium, and platinum, which are some of the rare earth metals, improve the conversion efficiency and durability of the controls. Continuous R&D efforts are being made by manufacturers to develop lightweight, compact, yet high-tech vehicles and performance, but without hampering the emission controls. These days, the automotive industry is also encouraging hybrid technology vehicles, and so, innovations are also taking place in the existing catalytic converters worldwide to keep up with the emission regulations. Thus, they are still relevant in the market despite the shift in focus to electric vehicles.

Automotive Three-Way Catalytic Converter Industry News

• In October 2023, Cummins purchased certain aspects of Faurecia’s commercial vehicle exhaust after-treatment business in Europe and the US. This acquisition enables Cummins Emission Solutions to guarantee that it has the necessary resources and equipment to fulfill the ever-growing demand for low-emission products in the future.
  

• In January 2023, BM Catalysts extended its product range to provide new references for the DPF, a catalytic converter, and a pipe. Additionally, the company also launched three new catalytic converters, five new front pipes, and two pressure pipes.
  

The automotive three-way catalytic converter market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and volume (units) from 2021 to 2034, for the following segments:

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Market, By Material

• Platinum-based
• Palladium-based
• Rhodium-based

Market, By Vehicle

• Passenger vehicles     
  • Hatchback
  • Sedan
  • SUVs 
• Commercial vehicles
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)

Market, By Propulsion

• Gasoline
• Diesel
• Others

Market, By Distribution Channel

• OEM
• Aftermarket

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

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