GLOBAL AUTOMOTIVE CATALYST MARKET

INTRODUCTION

The catalytic converters (catalysts) play a crucial role in exhaust system of vehicles by controlling the HC, CO and NOx gases. The need to attain cleaner environment and strict regulations in every region has propelled the market. These catalysts are mostly made of Palladium, Platinum and Rhodium which increases the final price of the product.

MARKET SEGMENTATION

By Metal Type

• Palladium
• Platinum
• Rhodium

By Technology

• Diesel Oxidation Catalyst (DOC)
• NOx Catalyst
• Selective Catalytic Reduction Catalyst
• Ammonia Slip Catalyst
• Two Way Catalyst
• Three Way Catalyst
• Four Way Catalyst
• Others

By Type of Engine

• Gasoline
• Diesel
• Hybrid

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Two Wheelers

By Geography

• US
• Europe
• China
• India
• ROW

MARKET DYNAMICS

The Gasoline Direct Injection engines are ruling the market and the rapid increase of this number has led to development of advanced after treatment systems to counter the NOx emissions from these engines.

BY TECHNOLOGY

DOC for diesel engines and three way catalysts in case of gasoline engines are the leading technologies in the automotive catalysts range. The efficiency of these catalysts to control HC, CO and Particulate Matter (PM) makes them most commonly used ones. In addition to this Lean NOx Traps (LNT) has witnessed a rise in installation of these to control NOx emissions due to stringent regulations worldwide.

The three way catalysts along with the NOx traps are the most frequently found catalytic technology in the diesel engines.

The four way catalysts for gasoline engines can remove all four major pollutants NOX, HC, CO and PM in single technology.

BY TYPE OF ENGINE

The diesel powered engines contribute higher to the catalyst market due to its higher emission rate. This has led to development of more number of catalyst technologies for diesel engines. The diesel powered engines require larger Palladium Group Metals (PGM) to convert the exhaust gases into less toxic gases. Since the PGMs are expensive it increases the price of the catalysts.

BY VEHICLE TYPE

Light-duty and heavy-duty commercial vehicles are the two main consumers of automotive catalyst. The lower penetration of EVs in the heavy duty vehicles segment is one of the factors driving the catalytic converter in this segment. Normally the emission standards are slight lenient in case of heavy duty vehicles. The heavy duty vehicles account for 40% of the NOx emission in the European Union region.

The below chart shows the catalysts market share:

US AUTOMOTIVE CATALYST MARKET

The California’s goal to achieve 90% reduction i.e. 0.02 g/bhp-hr of NOx emissions of a heavy duty vehicle in the state and across the country by 2027 will be the turning point in the market.

EUROPE AUTOMOTIVE CATALYST MARKET

SCR was made mandatory for all the diesel vehicles above 2L engine which has increased the SCR demand in the region. The upcoming Euro 6d emission standards are expected to stringent the rules further and thus propelling the catalyst and overall exhaust market.

CHINA AUTOMOTIVE CATALYST MARKET

Due to the ongoing pandemic China has delayed the implementation of particulate number limits till January 2021 and allowed the sales of China V standard cars. The China 6 standards will be implemented in 2 stages 6a and 6b 6 months apart. The 6b being stringent regulations, the automakers are now able to time tweak to be launched vehicle to the emission standards.

BASF by investing 34 million Euros on the Catalysis R&D center in Shanghai has enhanced the regional innovation capabilities.

INDIA AUTOMOTIVE CATALYST MARKET

The changes in emission standards such as reduced sulphur content from diesel vehicles, reduced NOx emission limits for all classes of vehicles after implementation Bharath Stage-VI will boost the diesel catalytic technologies immensely.

The mandate to incorporate three way catalytic converters for petrol engines has led to surge in demand for catalytic converters.

MARKET SIZE AND FORECAST

There have been continuous efforts by the manufacturers to develop an alternative material to reduce the cost of the catalytic production. Currently there is 3 times more demand for palladium than platinum in automotive industry. To balance the structural deficit in the palladium market platinum is being used to develop these catalysts.

BASF has recently developed tri-metal catalyst which substitutes high priced palladium by low priced platinum. This catalyst is extensively made for light duty gasoline vehicles.

RECENT MARKET TREND

• BASF has launched Fluid Catalytic Cracking (FCC) catalyst product for biodiesel engines. It is optimised to deliver superior butylene over propylene.
• Aether Catalysts is developing low cost non PGM group catalytic converter which reduces the production cost by 90%.
• BASF has inaugurated a new research center in Ludwigshafen, Germany which focuses on efficient process development and testing of new process catalysts.

COMPETITIVE LANDSCAPE

The leading catalytic converter manufacturers are BASF (Germany), Umicore (Belgium), Johnson Mathey (UK), Faurecia (France) and Tenneco (US). Some of the Japanese manufacturers are Cataler Corporation, Sango Co Ltd and Yutuka Giken.

COMPANY PROFILE

1. BASF
2. Umicore
3. Johnson Matthey
4. Cataler Corporation
5. Tenneco
6. Faurecia
7. Bosal
8. Interkat
9. Harbin Emissary Green Automobile Exhaust Systems
10. Chongqing Height Environment Group
11. Sango Co Ltd
12. Yutuka Giken