Automotive Exhaust Systems Demand to Remain Concentrated in Emerging Markets—Future Market Insights

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Automotive Exhaus

Automotive exhaust systems, being an integral part of the overall functioning of the entire automotive system, have come a long way from their conception—improving on various fronts including, Noise Vibration, Harshness (NVH) Levels, performance enhancements, and exhaust levels. With increased advancements in technology and growing levels of global warming, governments have reduced emission allowance and have forced automotive companies to employ novel, more efficient technologies.

As per an in-depth analysis by Future Market Insights (FMI), the global automotive exhaust systems market is estimated to reach a whopping valuation of approximately US$ 36 Billion, by 2027-end. Prominent trends in the global automotive manufacturing landscape such as shift towards selective catalytic reduction technology and several ongoing on-going efforts to reduce Green House Gas (GHG) emissions by United Nations and IPCC among other environmental protection agencies, have pushed the automotive exhaust systems manufactures to make increased investments in material selection considering the operational requirements.

According to the study, manufactures in the automotive exhaust systems market have made a seamless shift form conventional carbon steel automotive exhaust systems to Ferritic stainless steel variants containing chromium as the main alloying element. While Ferritic stainless steel automotive exhaust systems excels over all properties of high fatigue strength, fracture toughness, high resistance to corrosion, and low fabrication characteristics, its high pricing point could remain a major restrainer, the FMI study opines.

The FMI study, while bullish on future prospects of automotive exhaust systems, projects that India and China will account for a major share in the global automotive exhaust systems market, given the high automobile production and concentrated manufacturing activities in the regions.

FMI offers key insights on the global automotive exhaust systems market, on the basis of its various component such as exhaust manifold, muffler box, and tail pipe.

Automotive Exhaust Manifold Manufacturers Focus Material Advancements to Remain Competitive

The global exhaust manifold market—of the approximately US$ 24.8 Billion global automotive exhaust system landscape, contributes a revenue share of nearly US$ 8 Billion, as per the FMI study. The global demand for automotive exhaust manifold is projected to expand at a moderate year-on-year growth rate of just over 3.5 percent, in 2019, driven by increasing adoption of energy conservation regulations such as Euro 6C, China National Standard V and VI, Bharat Stage VI and adoption of advanced material technology enhance the component’s load-bearing capacity and resistance against corrosion and high temperature.

The FMI study, however, also indicates that the expanding electric vehicles industry could restrict the sales of automotive exhaust manifold, in the coming years, posing significant challenges for the manufacturers in the global automotive exhaust manifold landscape. The top companies such as Faurecia S.A., Tenneco Inc., Eberspächer Group, Benteler International AG, FUTABA INDUSTRIAL CO., LTD., SANGO Co., Ltd. are estimated to contribute approximately 60-70 percent to the global automotive exhaust manifold market, as per the competitive landscape analysis by FMI.

Automotive exhaust manifold manufactures, to remain competitive are making substantial investments in research, development, and innovation. Product innovations and material advancements is projected to witness an upward trend among manufactures. Post 2022, in terms of materials used, stainless steel is projected to gain a substantial market share considering its favorable properties such as corrosion resistance, good strength and aesthetics.

The FMI study offers several actionable insights on the companies operating in the automotive exhaust manifold market along with detailed assessment of some key opportunities in the market. Click here for more details.