Automotive Exhaust Aftertreatment Systems Market Growth 14.38% CAGR

Automotive Exhaust Aftertreatment Systems Market Growth and Import & Export Analysis

According to market projections, the automotive exhaust aftertreatment systems sector is expected to grow from USD 184.54 billion in 2024 to USD 491.41 billion by 2034, reflecting a CAGR of 14.38%. The COVID-19 pandemic led to a decline in global vehicle sales, reducing demand for post-treatment care. However, as restrictions ease and governments enforce stricter emission rules, market prospects improve. Technical challenges remain, but the auto industry's revival and new facilities in Mexico and India offer growth opportunities by 2032.

Last Updated: 11 February 2025 Category: Automotive Components Insight Code: 1024 Format: PDF / PPT / Excel

Reviewed By

Aditi Shivarkar

The automotive exhaust aftertreatment systems market is expected to grow from USD 203.53 billion in 2025 to USD 491.41 billion by 2034, with a CAGR of 14.38% throughout the forecast period from 2025 to 2034.

Automotive Exhaust Aftertreatment Systems Market Size 2023 - 2034

The COVID-19 pandemic has significantly impacted the market, with global passenger and vehicle sales declining. This decline had a significant impact on the demand for post-treatment care and the post-marketing decline due to quarantines and social security measures. However, with restrictions gradually decreasing and increasing focus on reducing vehicle emissions and complying with stricter government regulations worldwide, the prospects of commercial copying appear to be successful.

Technical challenges include the high-pressure filtration system required to push exhaust gas, limited biodiesel systems, passive regeneration systems requiring highway driving to clear accumulated soot, and the system's complexity. Urea injection hindered economic growth. However, the revival of the global automotive industry and the emergence of new production facilities in developing countries such as Mexico and India have created new opportunities for the economy to expand by 2032.

This section summarizes the key market trends identified by our researchers as affecting the automotive industry's aftermarket emissions:

Emissions Regulations are Driving Current Energy Market Growth:

Demand for diesel engines is forecast to be driven by increasing business expansion and growth, especially the positive impact of sales in the auto market due to the increase in e-commerce.

Emission standards for diesel engines are becoming increasingly stringent, forcing companies to improve emissions after refining.

For example,

  • The Indian government's decision in April 2020 to bypass BS-V and move directly to BS-VI emission standards has created new opportunities for after-sales improvement.

Strong economic growth in the Asia-Pacific region has increased consumer spending and accelerated business growth.

Diesel engines typically convert 40% to 46% of fuel into thrust, with the remainder lost as heat through exhaust emissions.

Use of Euro VI emission standards Engine weight is increasing for automobile manufacturers. Therefore, companies are looking for the best filters installed in the electric generator after treatment, designed to reduce or eliminate the relevant problem and meet the emission standards set by various governments.

Asia-Pacific Market Growing at a Faster Pace

Automotive Exhaust Aftertreatment Systems Market NA, EU, APAC, LA, MEA Share

In 2021, the Asia-Pacific region will become a significant force in the global automotive industry. China is essential as a central automotive hub, making it easier for OEMs to set up factories within its borders. The Chinese government has played an essential role in promoting electric vehicles (EVs) to prevent carbon emissions and reduce dependence on non-renewable energy sources. Many countries in the region have implemented strategies to encourage the development of electric vehicles, provide financial support for companies to establish new factories, and encourage consumers to purchase electric vehicles. Despite these efforts, demand for gasoline-powered cars continues, especially in industrial sectors such as public transportation and mining.

China is the world's largest automobile market, accounting for more than 35% of the global automobile market. It constitutes 15% of international passenger car sales and foreign vehicle sales. Due to the large number of vehicles on the roads, the Chinese government has implemented strategies to reduce emissions. For example, according to China's VI emission standards, the main target is to reduce hydrocarbons, nitrogen oxides (NOx), and other minor pollutants by 50%, 40%, and 33%, respectively. New petrol vehicles must comply with these regulations. The sale of cars with the National 5 emissions standard will be banned from January 2021 in preparation for compliance with the National 6 standard.

India has also implemented stringent emission standards encouraging growth in the aftermarket maintenance market. India's growing automobile industry further fuels this growth.

The exhaust after-treatment market will witness significant growth in the years leading up to the forecast period, given the stringent emission standards in the region.

Automotive Exhaust Aftertreatment Systems Industry Overview

Some of the key players include Delphi Technologies PLC, Continental Reifen Deutschland GmbH, Tenneco Inc., CDTi Advanced Materials Inc.,  and Donaldson Company Inc. It is located. These companies are preparing to take advantage of the market by introducing new products or expanding their existing products. Increasing pressure from emissions regulators is forcing companies to innovate and develop new technologies to reduce the amount of pollutants in vehicles. Therefore, manufacturers have increased their R&D investments to create a more effective finishing technology.

For example:

  • In March 2021, Eaton and Tenneco announced a partnership to create an integrated control system to help the automotive industry comply with strict guidelines. The system reduces pollutant emissions by sending heat directly to the after-treatment system.

The increase in post-purification gas suppliers and collaborations with local partners have expanded production and overall business.

Automotive Exhaust Aftertreatment Systems Market Companies

Automotive Exhaust Aftertreatment Systems Market Leaders

  • CDTi Advances Inc.
  • Tenneco Inc.ed Materials Inc.
  • Continental Reifen Deutschland GmbH
  • Cummins Inc.
  • DCL International Inc.
  • Delphi Technologies PLC
  • Dinex
  • Donaldson Company Inc.
  • ESW Group
  • European Exhaust and Catalyst Ltd
  • Nett Technologi

Automotive Exhaust Aftertreatment Systems Market News

  • In May 2022, engineers at Southwest Research Institute demonstrated the effectiveness of new technology in reducing diesel engine emissions. This achievement successfully reduces nitrogen oxide (NOx) emissions from heavy-duty diesel engines to meet CARB 2027 standards.
  • In October 2020, Bosch announced that the ride quality of commercial vehicles using diesel has been improved. Products include engine and air conditioning, fuel supply, and exhaust aftermarket.

Automotive Exhaust Aftertreatment Systems Industry Segmentation

The automotive aftermarket is segmented by fuel type (gasoline and diesel), vehicle type (cars and commercial vehicles), and region (North America, Europe, Asia Pacific, and other worlds). The report provides market size and estimates, both volume and value (in billions of USD), for Automotive Exhaust Gas treatment for all the above segments.

Market Segmentation

By Fuel Type 

  • Gasoline
  • Diesel

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

By Geography

  • North America
    • United States
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle-East and Africa
    • South Africa
    • Rest of Middle-East and Africa
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FAQ's

Automotive Exhaust Aftertreatment Systems play a crucial role in reducing greenhouse gas emissions by minimizing the release of carbon dioxide (CO2) and other pollutants from vehicle exhaust. By controlling emissions of NOx, PM, CO, and HC, these systems help mitigate the environmental impact of transportation and contribute to global efforts to address climate change.

Innovations in Automotive Exhaust Aftertreatment Systems technology include the development of advanced catalyst formulations with improved efficiency and durability, the integration of sensor technologies for real-time monitoring and control of emissions, the use of predictive analytics and machine learning algorithms for optimizing aftertreatment performance, and the exploration of alternative fuels and sustainable materials for reducing environmental impact.

Automotive Exhaust Aftertreatment Systems can impact vehicle performance and fuel economy by introducing backpressure in the exhaust system, which may reduce engine efficiency and power output. However, advancements in aftertreatment technology aim to minimize these effects while optimizing emissions control, resulting in vehicles that meet emissions standards without significant compromises in performance or fuel efficiency.

Maintenance requirements for Automotive Exhaust Aftertreatment Systems typically include periodic inspections, cleaning or replacing components such as catalytic converters and particulate filters, and replenishing consumables such as diesel exhaust fluid (DEF) for SCR systems. While maintenance costs may vary depending on vehicle usage and environmental conditions, properly maintained aftertreatment systems can help prevent costly repairs and ensure compliance with emissions regulations over the vehicles lifespan.

Market trends such as the electrification of vehicles, increasing adoption of hybrid powertrains, and the shift towards stricter emissions standards and zero-emission mandates drive innovation and investment in Automotive Exhaust Aftertreatment Systems. Regulatory developments, including emissions standards and testing procedure updates, shape the industry direction and drive demand for advanced after treatment solutions that meet evolving regulatory requirements.

EPA, NCBI, Energy.gov., Southwest Research Institute, ETDE Web, Fleet Maintenance.

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