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2020

Automotive Selective Catalytic Reduction (SCR) Market

Automotive Selective Catalytic Reduction (SCR) Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, Vehicle Type and Fuel Type : Global Opportunity Analysis and Industry Forecast, 2019-2026

AT : Automotive systems and accessories

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Author's: Abhay Singh and Lalit Katare | Lalit Janardhan Katare
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Automotive Selective Catalytic Reduction Market Statistics - 2026

The global automotive selective catalytic reduction (SCR) market was valued at $6.05 billion in 2018, and is projected to reach $15.05 billion by 2026, registering a CAGR of 12.0%. Asia-Pacific was the highest revenue contributor, accounting for $3.16 billion in 2018, and is estimated to reach $9.88 million by 2026, with a CAGR of 15.1%. Asia-Pacific and Europe collectively accounted for around 72.6% share in 2018, with the former constituting around 52.3% share. Asia-Pacific and Europe are expected to witness considerable CAGRs of 15.1% and 9.0%, respectively, during the forecast period. The cumulative share of these two segments was 72.6% in 2018, and is anticipated to reach 82.1% by 2026.                                

Selective catalytic reduction is an advanced active emission control technology in which a liquid-reductant agent is injected into exhaust stream of a diesel engine through a special catalyst. The reducing agent is usually urea of automotive grade also known as diesel exhaust fluid (DEF), which starts a chemical reaction to convert nitrogen oxide into water, nitrogen, and minute amount of carbon dioxide (CO2). Selective catalytic reduction system for automobiles is designed to carry out the nitrogen oxide (NOx) reduction reaction to take place in an oxidized environment. It is called selective as it reduces levels of NOx using ammonia as a reductant within a catalyst system.

Automotive Selective Catalytic Reduction Market

An exhaust system in a vehicle provides low emission from the vehicle, thereby causing less damage to the environment. Implementation of various government regulations across the globe for emission reduction has enabled vehicle manufacturers to develop better and advanced emission reduction systems, thereby supplementing the automotive selective catalytic reduction market growth. 

Factors such as surge in emission control regulations by government and increase in automobile production drive the automotive selective catalytic reduction market growth. However, surge in production of electric vehicles and high cost of catalysts hamper the growth of the market. On the contrary, innovations in emission control catalysts and government initiatives for emission reduction in developing nations are expected to offer remunerative opportunities for market expansion.

Automotive Selective Catalytic Reduction (SCR) Market
By Component
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Injector is projected as the most lucrative segments

The global automotive selective catalytic reduction (scr) market is segmented into component, vehicle type, fuel type, and region. By component, the market is categorized into urea tank, urea pump, ECU, and injector. Depending on vehicle type, it is bifurcated into passenger vehicle and commercial vehicle. On the basis of fuel type, it is categorized into gasoline and diesel. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Automotive Selective Catalytic Reduction (SCR) Market
By Fuel Type
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Gasoline is projected as the most lucrative segment

Key players include Bosal, Faurecia, Friedrich Boysen GmbH & Co., KG., Johnson Matthey, Kautex Textron GmbH & Co., KG, Magneti Marelli SPA, Plastic Omnium SA, Robert Bosch GmbH, Rochling Group, and Tenneco Inc., which account for a major automotive selective catalytic reduction market share.

Automotive Selective Catalytic Reduction (SCR) Market
By Vehicle Type
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Commercial Vehicle is projected as the most lucrative segments

Implementation of Emission Control Regulations by Government

Government has established stringent regulations for emission of pollutants from vehicles owing to combustion of fuels such as diesel fuel, fuel oil, petrol, gasoline, and biodiesel, and others. Euro 6 is a latest emission regulation set by the European Union Directive to reduce the release of harmful gases such as carbon monoxide(CO), nitrogen oxide (NOx), and hydrocarbons from exhaust system of the vehicle. Similarly, automotive catalyst is equipped in catalyst converters, an emission control device, which is used to convert toxic and harmful gases from engines into less toxic pollutants and help to meet the government emission standards. Thus, enforcement of stringent government regulations toward emission control boost the demand for automotive selective catalytic reduction technology, which fuels the growth of the global market.

Increase in Automobile Production

Developing nations have witnessed rise in demand and production of automobile. For instance, in 2018, India became the fourth largest automobile industry in the world with increase in sale by 9.5% year-on-year to 4.2 million units. This rise in automobile production in developing nations has led to increase in production in demand for automotive catalysts system for emission control devices in automobile exhaust systems. Therefore, increase in automobile production is anticipated to boost the growth of the global automotive selective catalytic reduction (scr) market.

Automotive Selective Catalytic Reduction (SCR) Market
By Region
2026
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit the highest CAGR of 15.1% during 2019-2026.

High Cost of Catalysts

Price of metals such as vanadium and titanium used as catalysts in automotive catalyst converters is on a rise. For instance, cost of titanium increased to approximately $30.00 per lb. in February 2018, which negatively impacted the automotive selective catalytic reduction (scr) market. Considering such rise in price of automotive catalysts, manufacturers of catalytic converters may change the mixture of metals in their products, which results in quality degradation of automotive catalyst converters. Therefore, high cost of automotive catalysts restrains the market.

Innovations in Emission Control Catalysts

Key players of the emission reduction technology market are investing in improvement and development of catalysts. For instance, Johnson Matthey Inc., a leading automotive catalyst producer, is focusing on the development of three-way catalyst for future vehicle, which improves fuel efficiency and reduces carbon dioxide (CO2) emission substantially at lower operating temperature. A three-way catalyst can reduce the emitted pollutant from vehicle at 100% conversion efficiency at its operational temperature, above 400ºC, which is considerably higher. Such innovations in automotive catalysts are anticipated to provide future growth opportunity for the market.

Key Benefits for Stakeholders:

  • This study presents the analytical depiction of the global automotive selective catalytic reduction (scr) market analysis along with the current trends and future estimations to depict imminent investment pockets.
  • The overall automotive selective catalytic reduction market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the global automotive selective catalytic reduction (scr) market with a detailed impact analysis.
  • The current automotive selective catalytic reduction market is quantitatively analyzed from 2018 to 2026 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Automotive Selective Catalytic Reduction (SCR) Market Report Highlights

Aspects Details
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By COMPONENT
  • Urea Tank
  • Urea Pump
  • Engine control unit (ECU)
  • Injector
  • Others
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By VEHICLE TYPE
  • PASSENGER VEHICLE
  • COMMERCIAL VEHICLE
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By FUEL TYPE
  • Gasoline
  • Diesel
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By Region
  • NORTH AMERICA  (US, CANADA, MEXICO)
  • EUROPE  (GERMANY, FRANCE, UK, SPAIN, RUSSIA, Rest of Europe)
  • ASIA-PACIFIC  (CHINA, JAPAN, INDIA, SOUTH KOREA, REST OF ASIA-PACIFIC)
  • LAMEA  (LATIN AMERICA, MIDDLE EAST, AFRICA)
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Key Market Players

Röchling, Tenneco Inc, ROBERT BOSCH GmbH, KAUTEX TEXTRON GMBH & CO. KG, Magneti Marelli S.p.A (subsidiary of FCA), BOYSEN, Faurecia, Bosal, PLASTIC OMNIUM, Johnson Matthey

Analyst Review

Selective catalytic reduction installed in vehicles is used to reduce the emission of harmful gases such as nitrogen oxides from the exhaust system of the vehicle. This involves a liquid-reductant agent, which is injected into exhaust stream of a diesel engine through a special catalyst, and is responsible to carry out the catalytic reaction within the exhaust system and converting nitrogen oxides to water, nitrogen, and minute amount of carbon dioxide (CO2). As per the market trend and advancement in vehicle production across the globe along with strict emission norms made by governments, the demand for superior and efficient selective catalytic reduction technology for automobiles has increased, which supplements the growth of the market across the globe. Numerous developments have been carried out by top manufacturers related to emission reduction system for vehicles, which further augment the market growth. For instance, leading vehicle exhaust system manufacturer, Faurecia entered into a strategic partnership to develop the advanced system for future vehicles, which includes zero emission and air quality technologies for commercial and passenger vehicles.  Similar developments carried across the globe drive the growth of automotive selective catalytic reduction system for vehicles.

 Factors such as implementation of emission control regulations by government and increase in automobile production are the key drivers of the global automotive selective catalytic reduction market. However, surge in production of electric vehicles and high cost of catalysts restrain the growth of the global market. On the contrary, innovations in emission control catalysts and government initiatives for emission reduction in developing nations are expected to offer remunerative opportunities for market expansion during the forecast period.

Asia-Pacific is the highest revenue contributor, followed by Europe, LAMEA and North America, and is expected to maintain its lead during the forecast period.

Author Name(s) : Abhay Singh and Lalit Katare | Lalit Janardhan Katare

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Automotive Selective Catalytic Reduction (SCR) Market

Global Opportunity Analysis and Industry Forecast, 2019-2026