Automotive Exhaust Systems Market Size, Share & Trends Analysis Report By Component, By Fuel Type (Gasoline, Diesel), By Vehicle Type, (Passenger Car, Commercial Vehicles) By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive exhaust systems market size was exhibited at USD 46.55 billion in 2023 and is projected to hit around USD 98.65 billion by 2033, growing at a CAGR of 7.8% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific dominated the market, accounted for the largest revenue share of 62.0% in 2023, and is expected to register the highest CAGR over the forecast period.
• The exhaust manifold segment accounted for the largest revenue share of 38.8% in 2023.
• The gasoline segment accounted for the largest revenue share of 83.9% in 2023 and is estimated to register the fastest CAGR over the forecast period.
• The passenger car segment accounted for the largest revenue share at 72.0% in 2023.

Automotive Exhaust Systems Market: Overview 

The automotive industry is continually evolving, driven by technological advancements, environmental regulations, and consumer preferences.Among the critical components shaping this landscape is the exhaust system. This article provides an insightful overview of the automotive exhaust systems market, highlighting its significance, key players, trends, and future outlook.

Automotive Exhaust Systems Market Growth

The growth of the automotive exhaust systems market is fueled by several key factors.Firstly, stringent emission regulations worldwide are compelling automakers to adopt advanced exhaust technologies to meet compliance standards. Additionally, the increasing adoption of electric and hybrid vehicles is driving the development of alternative exhaust solutions. Moreover, the integration of lightweight materials and advanced manufacturing processes is enhancing fuel efficiency and reducing vehicle emissions. Furthermore, the rising demand for modular and customizable exhaust systems to accommodate diverse vehicle architectures and consumer preferences is driving market growth. Overall, these factors are propelling the automotive exhaust systems market forward, presenting lucrative opportunities for industry players.

Automotive Exhaust Systems Market Report Scope

Automotive Exhaust Systems Market Dynamics

• Technological Advancements:

The automotive industry is witnessing rapid technological advancements in exhaust system design and functionality. Manufacturers are investing in research and development to integrate advanced technologies such as selective catalytic reduction (SCR), diesel particulate filters (DPF), and gasoline particulate filters (GPF). These technologies enable vehicles to achieve compliance with stringent emission norms while enhancing performance and fuel efficiency. Additionally, the adoption of digitalization and connectivity solutions is enabling real-time monitoring and optimization of exhaust system performance, further driving market growth.

• Regulatory Policies:

Regulatory policies and emission standards imposed by governments and international organizations play a pivotal role in shaping the automotive exhaust systems market. Stringent emission regulations require automakers to develop and implement innovative exhaust solutions to reduce harmful pollutants and greenhouse gas emissions. These regulations drive the demand for advanced exhaust technologies and catalyze industry investments in emission control systems. Moreover, evolving regulatory frameworks and emission standards across different regions create a dynamic market landscape, influencing product development strategies and market expansion efforts of industry players.

Automotive Exhaust Systems Market Restraint

• Cost Constraints:

Despite the growing demand for advanced exhaust technologies, cost constraints pose a significant challenge for market growth. The development and integration of innovative exhaust systems with advanced materials and technologies entail substantial research and development expenses. Additionally, stringent quality and performance standards further elevate manufacturing costs. As a result, automakers face pressure to balance the integration of advanced exhaust solutions with cost-effective manufacturing processes to maintain competitiveness in the market. Moreover, price sensitivity among consumers and the presence of low-cost alternatives in the aftermarket segment further exacerbate cost-related challenges for industry players.

• Supply Chain Disruptions:

The automotive exhaust systems market is susceptible to supply chain disruptions, which can arise due to various factors such as raw material shortages, transportation delays, and geopolitical tensions. Interruptions in the supply chain can lead to production delays, inventory shortages, and increased manufacturing costs for industry players. Moreover, the global COVID-19 pandemic highlighted the vulnerabilities of automotive supply chains, disrupting production activities and impacting market dynamics. As automotive manufacturers strive to mitigate supply chain risks and ensure business continuity, they face challenges in maintaining stable and efficient supply chain operations, thereby restraining market growth.

Automotive Exhaust Systems Market Opportunity

• Growing Demand for Electric and Hybrid Vehicles:

The increasing adoption of electric and hybrid vehicles presents a significant opportunity for the automotive exhaust systems market. While these vehicles offer a cleaner alternative to traditional internal combustion engines, they still require exhaust systems for emission control and thermal management. Manufacturers can capitalize on this trend by developing specialized exhaust solutions tailored to the unique requirements of electric and hybrid powertrains. This includes the integration of systems for battery cooling, thermal management, and cabin heating, as well as solutions for capturing and processing emissions from range extenders or internal combustion engine generators in hybrid vehicles.

• Focus on Sustainable and Lightweight Materials:

There is a growing focus on sustainable and lightweight materials within the automotive industry, presenting an opportunity for innovation in exhaust system design and manufacturing. Manufacturers can leverage materials such as aluminum, stainless steel, titanium, and advanced composites to develop lightweight and durable exhaust systems that enhance vehicle performance and fuel efficiency while reducing emissions. Additionally, the adoption of sustainable manufacturing practices, such as recycling and waste reduction, can further enhance the environmental credentials of exhaust system components. By aligning with the industry's sustainability goals and addressing consumer preferences for eco-friendly products, manufacturers can differentiate their offerings and gain a competitive edge in the market.

Automotive Exhaust Systems Market Challenges

• Complexity of Emission Regulations:

One of the major challenges in the automotive exhaust systems market is the complexity of emission regulations imposed by governments and regulatory bodies worldwide. Compliance with stringent emission standards requires continuous innovation and investment in advanced exhaust technologies, which can significantly increase development and manufacturing costs for industry players. Moreover, the diverse and evolving nature of emission regulations across different regions adds complexity to product development and market strategies. Manufacturers must navigate this regulatory landscape effectively to ensure compliance while maintaining competitiveness in the market.

• Rapid Technological Advancements:

The automotive industry is experiencing rapid technological advancements, particularly in the areas of powertrain electrification and alternative fuels. While these advancements offer opportunities for innovation and market growth, they also present challenges for traditional exhaust system manufacturers. The shift towards electric and hybrid vehicles, for example, may reduce the demand for conventional exhaust systems, requiring manufacturers to adapt their product offerings and diversify into new markets. Additionally, the integration of advanced technologies such as selective catalytic reduction (SCR) and gasoline particulate filters (GPF) requires significant investment in research and development, testing, and manufacturing capabilities. Keeping pace with these technological advancements while ensuring cost-effectiveness and competitiveness poses a considerable challenge for industry players.

Segments Insights:

Component Insights

Based on component, the market is segmented into exhaust manifolds, mufflers, catalytic converters, oxygen sensors, and exhaust pipes. The exhaust manifold segment accounted for the largest revenue share of 38.8% in 2023. The growing demand for vehicles, particularly in emerging economies, has expanded the market. As more people acquire cars, the need for exhaust systems that offer superior performance, durability, and noise reduction becomes paramount. It led to increased investments in research and development by exhaust manifold manufacturers to develop technologically advanced products that cater to evolving consumer preferences.

The muffler segment is estimated to register the fastest CAGR of 8.6% over the forecast period, accounting for most automotive exhaust system components sales by 2028. As emission norms get stricter, automotive OEMs focus on incorporating efficient exhaust systems to curb noise pollution and reduce toxic emissions. In 2020, Hyundai launched Creta mid-SUV equipped with a dual-exhaust muffler system.

Fuel Type Insights

Based on fuel type, the market is segmented into gasoline and diesel. The gasoline segment accounted for the largest revenue share of 83.9% in 2023 and is estimated to register the fastest CAGR over the forecast period. In emerging economies, 9 out of 10 vehicles have an internal combustion engine. While the popularity of electric vehicles in regions such as North America and Europe has dwindled ICE vehicle sales, limited electric vehicle infrastructure in emerging countries continues to contribute to the growing sales of gasoline-driven vehicles.

The diesel segment is estimated to register a significant growth of 3.3% over the forecast period. The increasing focus on fuel economy and the pursuit of higher engine performance have contributed to the growth of the diesel segment and, consequently, the automotive exhaust systems market. Diesel engines have superior fuel efficiency to gasoline engines, making them a preferred choice in certain applications.

Vehicle Type Insights

Based on vehicle type, the market is segmented into passenger car and commercial vehicles. The passenger car segment accounted for the largest revenue share of 72.0% in 2023. In Europe, according to European Automobile Manufacturers' Association (ACEA), vehicles per capita were recorded at 569 vehicles per 1,000 inhabitants in 2019. Besides, emerging economies such as China and India are expected to accelerate market growth over the forecast period.

The commercial vehicles segment is estimated to register the fastest CAGR of 9.4% over the forecast period. The growth can be attributed to the increasing demand for heavy trucks across the logistics and transportation sectors. Logistics is one of the key end-use industries for commercial vehicles. The use of trailers and trucks for the transportation of goods is increasing rapidly. With changing lifestyles and urbanization, people are more inclined toward getting the goods and products delivered to them.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 62.0% in 2023 and is expected to register the highest CAGR over the forecast period. This can be attributed to the increasing technological awareness and spending capacity of customers in the region. Moreover, the evolving automotive industry in emerging economies such as China and India is expected to drive market growth. The Make In India campaign is expected to draw substantial investments in the automotive sector as India offers several benefits, such as low-cost labor and cheaper raw materials. India and China comprise large supply chains & logistics networks and are among the fastest-growing economies globally. The growing e-commerce industry in the region is also anticipated to boost the demand for commercial vehicles over the coming years.

Latin America is projected to expand significantly at a CAGR of 7.7% over the forecast period. The increasing automotive production and sales across countries such as Brazil and Mexico are expected to support the regional market's growth. Brazil is the largest automotive producer in South America, accounting for almost 50% of vehicles sold in the region. The country also ranks eighth in the world for automotive production. Its automotive industry comprises over 5.5% of the overall GDP of the country, contributing over BRL 266 (USD 52.5) billion. Meanwhile, Mexico is the sixth-largest passenger car manufacturing country globally and the fifth-largest auto parts producer.

Recent Developments

• In July 2023, Proton AG and AAPICO Hitech Public Company Limited formed a strategic partnership through a joint venture, Purem Aapico. This collaboration aims to supply exhaust emission control systems to Proton and other vehicle manufacturers in Thailand and the ASEAN market. The newly constructed plant in Amata City Rayong, Thailand, will manufacture exhaust systems and components for commercial vehicles and passenger cars.
• In May 2023, Cummins Inc. announced the acquisition of FORVIA Faurecia's commercial automotive exhaust business in Europe and the U.S. The manufacturing plants in Columbus, Indiana, and Roermond are included in this acquisition. This proposed deal aims to help both companies achieve their long-term strategic objectives. By doing so, they intend to safeguard the operations and jobs of skilled employees in these two plants and associated technology centers, all while generating value for customers and suppliers throughout the entire supply chain.
• In March 2023, Milltek Sport Ltd launched a new lineup of upgraded performance exhaust systems for the BMW M3 Touring. These exhaust systems are meticulously designed, developed, and manufactured at Milltek Sport's state-of-the-art advanced facility. Furthermore, additional testing has been conducted at Milltek Sport's German R&D Centre, where the standard production BMW M3 Touring achieved the fastest lap time for an estate car in 2023, clocking in at 7 minutes and 35.06 seconds.
• In March 2023, Vance & Hines announced a Vance & Hines HoleShot Series Cat-Back Performance Exhaust Systems for U.S. most popular truck models. The HoleShot Series offers exhaust systems designed to replace the original stock exhaust systems from the catalytic converter to the exhaust tips. These systems retain all the emissions-control equipment while providing a richer exhaust sound through a turbo-chambered muffler design. Additionally, the muffler is engineered to eliminate any unpleasant in-cabin resonances.
• In September 2023, Mangla Tubes and Cornaglia SpA announced a strategic partnership to establish a three-way partnership firm called Mangla Cor-Tubi Pvt Ltd. This collaboration aims to focus on designing, developing, and producing advanced emission technology exhaust systems. The joint venture will operate a state-of-the-art research and development center in Palwal, Haryana, along with Palwal, Pantnager, and Zaheerabad manufacturing facilities. By collaborating with Mangla Tubes, Cornaglia will benefit from enhanced design capabilities, enabling the production of Trim IV and Trim V exhaust systems for their customers at competitive prices.
• In May 2023 , Allied Distribution, a wholesale distributor specializing in exhaust, performance, and accessories, acquired Indy Exhaust Products, Incorporated, a distributor of automotive exhaust components. This strategic acquisition by Allied Distribution aims to capitalize on new opportunities, allowing them to expand their market reach and enhance their level of service even further.

Some of the prominent players in the Automotive exhaust systems market include:

• BENTELER International Aktiengesellschaft
• BOSAL
• Continental AG
• Eberspächer
• FORVIA Faurecia
• FUTABA INDUSTRIAL CO., LTD
• Boysen
• Sejong Industrial Co., Ltd
• Tenneco Inc.
• Yutaka Giken Company Limited

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive exhaust systems market.

Component

• Exhaust Manifold
• Muffler
• Catalytic Converter
• Oxygen Sensor
• Exhaust Pipes

Fuel Type

• Gasoline
• Diesel

Vehicle Type

• Passenger Car
• Commercial Vehicles

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)