- Summary
- Table Of Content
- Methodology
Automotive Exhaust System Market Size:
Automotive Exhaust System Market Size is estimated to reach over USD 79.09 Billion by 2032 from a value of USD 47.13 Billion in 2024 and is projected to grow by USD 49.46 Billion in 2025, growing at a CAGR of 7.3% from 2025 to 2032.
Automotive Exhaust System Market Scope & Overview:
The automotive exhaust system collects the exhaust gases from the cylinders, reduces the noise, eliminate harmful substances, and carry out the purified exhaust gases from the vehicle. Consumers increasingly prioritize vehicles with improved fuel economy and reduced environmental impact, prompting automakers to invest in lightweight materials, aerodynamic designs, and advanced exhaust system technologies to enhance efficiency and emissions performance. Furthermore, consumer preferences for quieter and more refined driving experiences are propelling the need for exhaust systems that effectively reduce noise and vibration, while leading to the development of innovative acoustic solutions.
Automotive Exhaust System Market Dynamics - (DRO):
Key Drivers:
Rising demand for fuel efficiency is driving the automotive exhaust system market expansion
The major factors driving the need for fuel efficiency includes increasing awareness of environmental concerns and the need to reduce greenhouse gas emissions. Emission control devices such as catalytic converters, diesel particulate filters (DPF), and selective catalytic reduction (SCR) systems play a crucial role in minimizing harmful pollutants emitted by internal combustion engines, thereby contributing to cleaner air and environmental sustainability. Further, the rising cost of fuel and the volatility of global oil markets have incentivized consumers to prioritize fuel efficiency when choosing vehicles. Emission control devices that enhance engine combustion efficiency, reduce exhaust emissions, and optimize fuel-air mixture ratios, contribute to improved fuel economy and reduced operating costs over the vehicle's lifespan. This increased fuel efficiency not only benefits consumers in terms of lower fuel expenses but also aligns with corporate sustainability goals and regulatory requirements.
- For instance, in September 2022, Mangla Tubes announced the partnership with Cornagalia SpA, to design, develop, and manufacture advanced emission exhaust systems. In addition to this, the collaboration ensures an advanced design capabilities for Trim IV and Trim V exhaust systems.
Thus, according to the automotive exhaust system market analysis, the rising need for fuel efficiency in all types of vehicles is driving the automotive exhaust system market size and trends.
Key Restraints:
Market saturation is affecting the automotive exhaust system market demand
With numerous suppliers competing for market share, competition becomes fierce, leading to price wars, shrinking profit margins, and reduced innovation incentives. The key market companies may struggle to differentiate their products from competitors, while new entrants face barriers to entry due to high competition and established brand loyalty among consumers. Further, market saturation also hampers product innovation and technological advancement. With limited growth, manufacturers prioritize cost-cutting measures over research and development initiatives, stifling innovation and inhibiting the introduction of new and improved exhaust system technologies. As a result, the market may become stagnant, lacking the dynamism and innovation necessary for sustained development and competitiveness. Thus, the aforementioned factors would further hamper the automotive exhaust system market size.
Future Opportunities:
Growing focus on green technology solutions is expected to create potential growth for automotive exhaust system market opportunities
The green technology solutions include exhaust analyzers, which utilize advanced sensor technologies, catalytic converters, and filtration systems to reduce environmental footprints, while precisely measuring vehicle emissions. Green technology solutions in exhaust gas analysis focus on energy efficiency and resource conservation. For instance, the integration of renewable energy sources such as solar power or kinetic energy harvesting into exhaust analyzer systems can reduce reliance on conventional energy sources and minimize environmental impact. Similarly, the use of recycled materials in analyzer construction, coupled with eco-friendly manufacturing processes, further enhances the sustainability credentials of these solutions.
- For instance, in March 2022, Sensors Inc. launched the SEMTECH Nox measurement solution, a portable emission measurement system. The analyser complies with all the Environmental Protection Agency (EPA) and Real Driving Emissions (RDE) regulatory requirements.
Thus, based on the above automotive exhaust system market analysis, the growing focus on green energy solutions in the automotive sector is expected to drive the automotive exhaust system market opportunities.
Automotive Exhaust System Market Segmental Analysis :
By Component:
Based on component, the market is segmented into exhaust manifold, muffler, catalytic converter, oxygen sensor, and exhaust pipes.
Trends in component:
- By upgrading to high-performance exhaust systems, vehicle owners can achieve better mileage and reduce their carbon footprint. Additionally, the exhaust components often incorporate advanced materials and technologies that enhance durability and reduce weight, further contributing to improved vehicle performance and handling.
- As emissions norms became stricter, OEMs started focusing on incorporating efficient exhaust systems and components to reduce noise pollution and toxic emissions.
- Thus, the above developments and trends are driving the automotive exhaust system market demand and share.
The exhaust manifold segment accounted for the largest revenue share of 41.28% in the year 2024.
- The exhaust manifold is the first point of contact for exhaust gases exiting the engine, collecting them from the engine's cylinders and directing them into the exhaust system.
- This component is essential for optimizing the flow of exhaust gases and improving engine efficiency.
- Consumers and regulatory agencies are pushing for improved fuel efficiency. This leads to development of manifolds that optimize exhaust gas flows, reduce backpressure, and improve engine performance.
- For instance, in January 2024, Dorman Products unveiled new gasket repair kits and exhaust manifold hardware. The aim of these repair kits is to cater variety of commercial and passenger vehicles and are ideal for automotive professionals, which enable both operational performance and service time of the exhaust.
- Thus, based on the above analysis, these developments and trends are further driving the automotive exhaust system market growth.
The catalytic converter segment is anticipated to register the fastest CAGR during the forecast period.
- Technological advancements have led to the development of innovative muffler designs that not only minimize noise but also enhance engine performance and fuel efficiency. This has further fuelled segment growth, as automakers strive to meet consumer expectations for quieter and more environmentally friendly vehicles.
- The shift towards electric and hybrid vehicles has prompted manufacturers to develop muffler systems tailored to the unique characteristics of these alternative powertrains. For instance, electric vehicles require mufflers that can effectively mitigate the sound generated by components such as cooling fans and electric motors, which operate differently from traditional internal combustion engines.
- Materials such as high-strength steel, aluminum alloys, and composite materials are increasingly being used in muffler construction to achieve weight reduction without compromising structural integrity. This not only enhances vehicle dynamics but also facilitates compliance with stringent emissions regulations by reducing the overall vehicle weight and improving fuel economy.
- Thus, above factors are expected to drive the automotive exhaust system market share during the forecast period.
By Technology:
Based on technology, the market is segmented into diesel oxidation catalyst (DOC), diesel particulate filter (DPF), selective catalytic reduction (SCR), exhaust gas recirculation (EGR), gasoline particulate filter (GPF), and others.
Trends in technology:
- Due to stringent pollution regulations, technology for particulate filters, such as exhaust stream regeneration mechanisms and emission after-treatment solutions has developed quickly. These developments are expected to increase industry growth.
- Manufacturers are developing gasoline exhaust fumes technologies that reduce Nox emissions to meet vehicle quality rules.
The exhaust gas recirculation (EGR) segment accounted for the largest revenue in the year 2024.
- The development of EGR systems with advanced features, such as improved thermal management, enhanced durability, and integration with other emission control technologies has expanded their capabilities in both gasoline and diesel engines.
- Manufacturers are developing advanced EGR system designs, incorporating features such as electronic controls, variable valve timing, and optimized cooling systems to improve efficiency and emission reduction capabilities.
- For instance, in August 2024, Rheinmetall received an order for EGR valves for commercial and passenger vehicles. With the valves, the recirculation of exhaust gases reduces pollutants in both diesel and petrol engines. With this strategic agreement, the company expanded its product portfolio in global vehicle construction.
- These developments in the EGR segment are driving the automotive exhaust system market growth.
The selective catalytic reduction (SCR) segment is anticipated to register the fastest CAGR during the forecast period.
- SCR technology, which utilizes a catalyst and a reductant (urea) to convert harmful NOx into harmless nitrogen and water vapor, has emerged as a crucial solution for meeting stringent emission standards set by governments worldwide. As industries strive to comply with these regulations and enhance their sustainability efforts, the adoption of SCR systems is expected to rise, driving the future of emission control technologies.
- For instance, in December 2021, Incitec Pivot developed AdBlue, a urea-based additive used in diesel vehicles, to reduce harmful emissions. The Australian government along with manufacturer are working to address the issues, such as urea supplies, boosting local manufacturing, and implementation of technical solutions at the vehicle level.
- The advancements in electric powertrains and battery technologies are accelerating the shift towards EVs, in turn creating lucrative opportunities in the segment.
- These developments in the SCR segment is anticipated to further drive the automotive exhaust system market trends during the forecast period.
By Vehicle Type:
Based on vehicle type, the automotive exhaust system market is segmented into passenger vehicles and commercial vehicles.
Trends in vehicle type:
- Consumers are increasingly opting for EVs due to their lower environmental impact, reduced fuel costs, and improved performance. This transition is also supported by governments worldwide, which are introducing stricter emission standards and offering incentives for electric car buyers.
- The growth of the global automotive sector directly influences the need for advanced automotive products and solutions. The rise in vehicle production across all segments leads to an increased need for original equipment and replacement parts, including exhaust systems.
The passenger vehicle segment accounted for the largest revenue in the year 2024.
- Passenger vehicles dominate the market due to the higher volume of vehicles on the road and stricter emission standards in several regions. These vehicles are subject to rigorous emissions testing and monitoring, driving the need for advanced exhaust analyzers.
- The passenger vehicle segment has witnessed a significant shift towards electric vehicles (EVs), as part of the broader transition to cleaner, and more sustainable energy sources.
- For instance, in January 2024, Toyota launched its new electric vehicle (EV) line, the Toyota bZ4X, to increase its footprint in the growing EV segment of the passenger vehicle market. This move aims to meet the increasing demand for sustainable transport options while supporting the company's commitment to net-zero emissions by 2050.
- These developments in the passenger vehicle segment are driving the global market.
The commercial vehicle segment is anticipated to register the fastest CAGR during the forecast period.
- Governments around the world are implementing increasingly stringent emissions standards, such as Euro VI in Europe and EPA regulations in the United States, to curb air pollution and mitigate the environmental impact of commercial vehicles. These regulations mandate the adoption of cleaner engine technologies, advanced brake systems, better exhaust after treatment systems, and alternative fuels to reduce emissions of harmful pollutants such as particulate matter (PM), nitrogen oxides (NOx), and greenhouse gases (GHGs).
- Manufacturers are investing in research and development to develop and commercialize electric vehicles, hybrid drivetrains, natural gas engines, and hydrogen fuel cell technologies to comply with emissions regulations and meet customer needs for cleaner and sustainable transportation solutions.
- For instance, according to Society of Indian Automobile Manufacturers (SIAM), the commercial vehicle sales in India increased from 9,62,468 units to 9,67,878 units. In addition to this, the sales of medium and heavy commercial vehicles increased from 3,59,000 units to 3,73,000 units while sales of light commercial vehicles decreased from 6,03,000 units to 5,95,000 units in fiscal year 2023-24.
- Thus, above analysis and factors are expected to drive the automotive exhaust system market trends during the forecast period.
By Fuel Type:
Based on fuel type, the market is segmented into gasoline and diesel.
Trends in fuel type:
- Petrol vehicles are traditionally favoured for their balance of performance, fuel efficiency, and relatively lower upfront costs compared to other fuel types. Despite increasing concerns regarding environmental sustainability, petrol vehicles continue to be a popular choice in many regions due to their extensive infrastructure and ease of maintenance.
- Hybrid vehicles combine an ICE with an electric motor, offering a compromise between fuel efficiency and reduced emissions. These vehicles appeal to consumers intending to transition toward greener options without completely eradicating traditional fuelling methods.
The gasoline segment accounted for the largest revenue in the year 2024.
- Gasoline engines are predominant in passenger vehicles and light-duty vehicles. They require exhaust components that effectively manage and reduce emissions while enhancing engine performance and fuel efficiency.
- To reduce the effect of emissions from vehicles, the regulatory organizations have mandated the use of gasoline variations. As a result, enhancements in petrol engines have been developed, such as gasoline fuel infusion engines, which offer better fuel efficiency and reduce pollution.
- Thus, the above factors and developments would further drive the global market.
The diesel segment is anticipated to register the fastest CAGR during the forecast period.
- Diesel engines produce higher levels of nitrogen oxides (NOx) and particulate matter, necessitating the use of specialized components such as diesel particulate filters (DPFs) and selective catalytic reduction (SCR) systems in the exhaust systems.
- The use of lightweight materials, such as high-strength alloys and composites, is increasing to reduce vehicle weight and fuel efficiency.
- These trends in the diesel segment are driving the global market share during the forecast period.
Regional Analysis:
The global market has been classified by region into North America, Europe, Asia-Pacific, MEA, and Latin America.
Asia Pacific automotive exhaust system market expansion is estimated to reach over USD 45.75 billion by 2032 from a value of USD 26.69 billion in 2024 and is projected to grow by USD 28.06 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 40.54%. Asia Pacific emerges as a lucrative market for automotive exhaust systems, fueled by rapid industrialization, urbanization, and the growing automotive sector in countries such as China, Japan, and India. The region's expanding automotive fleet and increasing environmental concerns drive the need for emission monitoring solutions to address air quality challenges and regulatory requirements. These factors would further drive the regional automotive exhaust system market share during the forecast period.
- For instance, in October 2023, Purem by Eberspaecher announced the joint venture with AAPICO Hitech, to open a new manufacturing facility in Rayong, Thailand. The facility will deliver exhaust systems for pick-up trucks of a leading U.S. automotive manufacturer. The exhaust systems will be served to local and international markets, with strict emission legislation norms.
North America market is estimated to reach over USD 15.30 billion by 2032 from a value of USD 9.02 billion in 2024 and is projected to grow by USD 9.47 billion in 2025. North America is a significant market for automotive exhaust components, driven by stringent emissions regulations and a strong culture of vehicle maintenance and customization. The region's well-established automotive sector and high vehicle ownership rates contribute to steady demand for aftermarket exhaust components, including advanced catalytic converters, mufflers, and oxygen sensors. Further, consumers in the region often seek performance upgrades and replacements to enhance their vehicles' efficiency and compliance with environmental standards.
- For instance, in in November 2022, Apollo Funds announced the acquisition of Tenneco, a designer, manufacturer, and marketer of automotive products for OEMs and aftermarket customers. Tenneco Inc., a US-based firm focused on manufacturing automotive components and aftermarket ride control solutions, notably features products like idler arm and exhaust systems in its portfolio. This acquisition supports Apollo's strategic goals of fostering innovation and strengthening Tenneco's position in the automotive sector.
According to the analysis, the automotive exhaust system industry in Europe is projected to witness significant development during the forecast period. In Europe, the automotive sector is at the forefront of adopting cutting-edge exhaust gas analysis technologies. With initiatives such as Euro 6 regulations mandating low emissions, there is a high demand for accurate and reliable exhaust analyzers for vehicle certification and compliance testing. Additionally, in Latin America, the growing focus on sustainability and innovation drives the need for high-quality aftermarket components that improve fuel efficiency and reduce emissions. Additionally, the presence of leading automotive manufacturers and a strong aftermarket industry further supports market growth in the region. Further, in the Middle East & Africa, the increasing vehicle production, rising disposable incomes, and urbanization fuel the demand for vehicles equipped with efficient and compliant exhaust systems. Moreover, government initiatives to curb air pollution and promote clean energy adoption is further propelling market in the region.
Top Key Players & Market Share Insights:
The global automotive exhaust system market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the automotive exhaust system industry include-
- Yutaka Giken Company Limited (Japan)
- Umicore (Belgium)
- Faurecia S.A. (France)
- Eberspacher Climate Control Systems GmbH & Co. KG (Germany)
- Continental AG (Germany)
- Bosal International N.V. (Belgium)
- Benteler International AG (Germany)
- BASF SE (Germany)
- Tenneco, Inc. (U.S.)
- Sejong Industrial Co., Ltd. (South Korea)
- Sango Co., Ltd. (Japan)
- Klarius Products Ltd (U.K.)
- Johnson Matthey (U.K.)
- Harbin Airui Automotive Exhaust Systems Co. Ltd. (China)
- Futaba Industrial Co. Ltd. (Japan)
- Friedrich Boysen GmbH & Co. KG (Germany)
Recent Industry Developments :
Merger & Acquisition:
- In October 2023, Cummins Emission Solutions announced the acquisition of two Faurecia commercial vehicle manufacturing plants, to strengthen the presence in commercial vehicle exhaust system sector in U.S. and Netherlands. This acquisition provides the prospects for Cummins to ensure continued access to technology and meet current and future requirements for low-emission products.
Automotive Exhaust System Market Report Insights:
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 79.09 Billion |
| CAGR (2025-2032) | 7.3% |
| By Component |
|
| By Technology |
|
| By Vehicle Type |
|
| By Fuel Type |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Automotive Exhaust System market? +
Automotive Exhaust System Market Size is estimated to reach over USD 79.09 Billion by 2032 from a value of USD 47.13 Billion in 2024 and is projected to grow by USD 49.46 Billion in 2025, growing at a CAGR of 7.3% from 2025 to 2032.
Which is the fastest-growing region in the Automotive Exhaust System market? +
Asia-Pacific is the region experiencing the most rapid growth in the market. The region's expanding automotive fleet and increasing environmental concerns drive the need for emission monitoring solutions to address air quality challenges and regulatory requirements.
What specific segmentation details are covered in the Automotive Exhaust System report? +
The automotive exhaust system report includes specific segmentation details for component, technology, vehicle type, fuel type, and region.
Who are the major players in the Automotive Exhaust System market? +
The key participants in the market are Yutaka Giken Company Limited (Japan), Umicore (Belgium), Tenneco, Inc. (U.S.), Sejong Industrial Co., Ltd. (South Korea), Sango Co., Ltd. (Japan), Klarius Products Ltd (U.K.), Johnson Matthey (U.K.), Harbin Airui Automotive Exhaust Systems Co. Ltd. (China), Futaba Industrial Co. Ltd. (Japan), Friedrich Boysen GmbH & Co. KG (Germany), Faurecia S.A. (France), Eberspacher Climate Control Systems GmbH & Co. KG (Germany), Continental AG (Germany), Bosal International N.V. (Belgium), Benteler International AG (Germany), BASF SE (Germany), and others.
