Asia-Pacific Automotive Exhaust System Market Assessment, By Product Type, By Components, By Vehicle Type, By Technology, By Country, Opportunities and Forecast, 2017-2031F

Asia-Pacific automotive exhaust system market is projected to witness a CAGR of 7.21% during the forecast period 2024-2031, growing from USD 27.12 billion in 2023 to USD 47.34 billion in 2031. Innovations in exhaust systems, increasing production and sales of vehicles in emerging markets, and surge in strict regulations concerning carbon emissions, contribute to the growth of the Asia-Pacific automotive exhaust system market. Exhaust systems are essential because these systems collect exhaust gases from cylinders, decrease the noise level, remove harmful substances, and release purified exhaust gases. These applications of exhaust systems drive the demand for exhaust systems. The rise in technological innovations, growing negative effects of air pollution, surge in demand for commercial vehicles, expansion of automotive industries, and rising purchasing power of consumers drive the growth of the Asia-Pacific automotive exhaust system market.

In addition, government regulations and standards in emerging countries and the growing demand for personal vehicles propels the demand for automotive exhaust systems in Asia-Pacific. Rising awareness among consumers concerning the negative effects of carbon emissions and vehicle pollution increases the demand for the Asia-Pacific automotive exhaust system market. Furthermore, key participants are significantly functioning to enhance the compatibility and reliability of exhaust systems coupled with investing in establishing new manufacturing facilities to expand its consumer base and footprint. However, the integration of nanotechnology in catalytic converters is projected to propel market growth and introduce new growth opportunities for market participants. However, the increase in electric vehicle production and the high cost of automotive catalysts are restricting factors for the automotive exhaust system market growth. Innovations in automotive catalysts and government initiatives in emerging countries focused on decreasing emissions and installation of efficient exhaust systems, presenting significant growth opportunities for leading market players.

For instance, in December 2023, the Australian government set exhaust emission limits for new petrol passenger cars in Australia. Noxious emissions from vehicle exhausts can cause smog, heart and lung disease, and cancer. To minimize these impacts, Australia has noxious emission standards. These standards set maximum limits for noxious emissions from vehicle exhausts for new road vehicles supplied to Australia.

Increase in the Production of Vehicles and Innovations in Exhaust System Fuels the Market Growth

Increasing sales and production of vehicles is one of the key drivers propelling the demand for Asia-Pacific exhaust systems. Enhancing living standards, growing disposable incomes, and rapid urbanization in emerging countries of Asia-Pacific have increased the need for automobiles such as passenger cars, commercial vehicles, and others. Moreover, a rapid trend of personalization and customization coupled with replacing old automotive components contributes to increased sales of exhaust systems. Furthermore, the market revenue is projected to rise due to innovations in exhaust system technologies, including exhaust gas recirculation systems and exhaust after-treatment systems, which are propelled by vigorous government emission regulations. Manufacturers in the market are also actively introducing innovative exhaust systems and sensors to enhance the functioning of a vehicle and limit vehicle emissions.

For instance, in April 2022, Continental AG announced the expansion of its product range, including exhaust gas temperature sensors for the Volkswagen Group brands Audi, Seat, Skoda, and others. The new sensors are accessible for ordering and delivery across Asia-Pacific and other countries.

Innovations in Lightweight Emission Systems Drive Market Growth

In the automotive industry, advancements in automotive components are continuously rising. The governments of different emerging countries are setting up different regulations, including innovations in lightweight emission systems and the introduction of lighter vehicles. Also, advanced materials play an important role in improving vehicle fuel effectiveness while preserving safety and performance. The lighter object requires less effort to move than a heavier movement; lighter vehicles use less fuel and require less power for propulsion. This results in beating less inertia and significantly decreasing carbon emissions. Manufacturers in the Asia-Pacific automotive exhaust system market is actively involved in producing lightweight exhaust systems from composite metals with high-temperature resistance to reduce carbon emissions.

For instance, in February 2024, Tenneco Inc., a leading participant in the Asia-Pacific automotive exhaust system market, received a grant for a vehicle exhaust system with a pre-heating burner assembly to decrease emissions during start-up. The design of the exhaust system focuses on enhancing air quality by decreasing harmful pollutant discharges during engine start-up.

Government Regulations and Reducing Carbon Emission Standards Pushes Market Growth

Strict regulations on carbon emissions are projected to drive the market in the forecast period due to the harmful gases and particle discharges by gasoline and diesel engines, which are projected to be significant environmental risks. Governments across emerging countries are introducing strict regulations for vehicle emissions to mitigate the environmental impacts of the automotive industry. These regulations are forcing component suppliers to introduce high-efficiency, eco-friendly automotive exhaust systems for both international and domestic markets. In addition, rapid advancements in exhaust system technology, comprising exhaust gas recirculation and exhaust after-treatment systems, have emerged due to strict government pollution regulations. These innovations are projected to drive the sales of automotive exhaust systems in Asia-Pacific.

For instance, in January 2023, the Government of India announced new legislation for carbon reduction across the country. From 1 April 2023, the government implemented strict new fuel economy norms for every type of vehicle. In addition, the long-awaited 2022 Energy Conservation Act has been passed to ensure speedier decarbonization of the Indian economy.

Passenger Vehicles Dominate the Asia-Pacific Automotive Exhaust System Market

The passenger vehicle segment dominates the market growth because it is the most preferred mode of transportation and the rapid trend of personalization. An increase in disposable income, rising urbanization, and improving living standards in emerging countries have led to a rise in personal vehicle ownership, further driving the requirement for passenger car exhaust systems. In addition, strict carbon emission standards by legal organizations have a considerable impact on the demand for the passenger car segment because it contributes to carbon emissions. Manufacturers of exhaust systems are investing heavily in continuous advancements, setting up new manufacturing plants, enhancing the fuel efficiency of passenger cars, and driving the adoption of cutting-edge exhaust systems.

For instance, in October 2023, Eberspacher Gruppe GmbH & Co. KG announced a collaboration with AAPICO Hitech Public Company Limited to open its new plant in Rayong, Thailand, to produce passenger car exhaust systems. This new plant in Thailand will impact the growth of Asia-Pacific automotive exhaust systems as the products will serve the domestic and international markets.

China Dominates Market Growth in Asia-Pacific Automotive Exhaust System Market

In Asia-Pacific, China registers the largest market revenue share due to high production of passenger cars and significant technological advancements in automotive. High demand for vehicles, the presence of giant market players, and continuous advancement in exhaust systems are propelling the growth of the China automotive exhaust system market. Strict regulations by the government concerning carbon emissions and rising awareness among consumers concerning the release of harmful gases accelerate the Asia-Pacific automotive exhaust system market demand in the forecast period and hold remarkable market growth opportunities for the key players functioning in the market. In addition, key participants in the market are working on enhancing exhaust system efficiency and expanding their consumer base shortly.

For instance, in November 2023, Purem by Eberspaecher announced the establishment of a plant in Xuchang, China, to produce exhaust technology for commercial vehicles and passenger cars and offer solutions for clean mobility in the middle of China.

Future Market Scenario (2024-2031F)

A significant advancement in exhaust system technology, including exhaust gas recirculation systems and others, has increased due to strict government regulations concerning pollution, predicted to propel the sales of automotive exhaust systems.

In emerging countries, rapid urbanization, and an increase in disposable income are fueling the demand for automobiles in emerging countries, including India and China, which further accelerates the Asia-Pacific automotive exhaust system market growth.

Heavy investments by companies to advance the efficiency and compatibility of exhaust systems are increasing demand from automakers for exhaust systems.

The rapid adoption of nanotechnology in catalytic converters is projected to drive the Asia-Pacific automotive exhaust system market growth.

Key Players Landscape and Outlook

Key companies in the Asia-Pacific automotive exhaust system market are efficiently investing in different research and development activities to improve the fuel efficiency and reliability of exhaust systems. Key participants in the market are announcing new growth strategies, including joint ventures, new product launches, partnerships, collaborations, mergers and acquisitions, and others to expand the food print and product portfolio. In addition, to survive in the Asia-Pacific market and enlarge its competitive edge, the players are offering cost-effective products. The giant market players are working to enhance the productivity of exhaust systems and benefit clients by offering cost-effective products.

Futaba Industrial Co., LTD. is a leading company in the Asia-Pacific automotive exhaust system market that produces car body parts and exhaust system parts for key automakers.

Sango Co., Ltd. offers a wide variety of exhaust system products, including newly developed products with applications for catalytic converters, exhaust manifolds, spinning and heat utilization, heat collectors, and mufflers.