PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603823
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603823
According to Stratistics MRC, the Global Automotive Selective Catalytic Reduction (SCR) Market is accounted for $15.4 billion in 2024 and is expected to reach $24.9 billion by 2030 growing at a CAGR of 8.3% during the forecast period. Automotive Selective Catalytic Reduction (SCR) is a technology used in modern vehicles to reduce harmful nitrogen oxide (NOx) emissions, which are a major contributor to air pollution. SCR works by injecting a urea-based solution, commonly known as Diesel Exhaust Fluid (DEF), into the exhaust stream. This fluid reacts with the NOx gases in the presence of a catalyst, typically made from a combination of precious metals like platinum, to convert the harmful NOx into nitrogen (N2) and water vapor (H2O), both of which are harmless.
Adoption of electrification and hybridization
The adoption of electrification and hybridization in the automotive sector is playing a crucial role in enhancing Selective Catalytic Reduction (SCR) systems, which are used to reduce nitrogen oxide (NOx) emissions from internal combustion engines. Electrified and hybrid vehicles typically have more advanced powertrains, which allow for better optimization of engine operating conditions. These vehicles can switch between electric and internal combustion modes, providing the flexibility to maintain lower engine loads and more consistent exhaust temperatures, which are critical for SCR efficiency.
High initial cost of SCR systems
The high initial cost of Selective Catalytic Reduction (SCR) systems is a significant barrier to their widespread adoption in the automotive industry. SCR technology, designed to reduce nitrogen oxide (NOx) emissions from diesel engines, requires complex components, including the catalytic converter, urea injection system, and associated sensors and controls. These components are expensive to manufacture, especially in small volumes, and require advanced materials to withstand high temperatures and harsh operating conditions. The system demands regular maintenance, such as replenishing the urea solution, which further adds to the cost over the vehicle's lifespan. The high upfront investment is particularly challenging for automakers, especially when considering the price sensitivity of consumers and the ongoing push for cost-effective solutions in the face of stricter environmental regulations.
Increasing focus on fuel efficiency
SCR is an essential aftertreatment process used to reduce nitrogen oxide (NOx) emissions from diesel engines, ensuring compliance with stringent environmental regulations. By injecting a urea-based solution, known as Diesel Exhaust Fluid (DEF), into the exhaust stream, SCR systems break down harmful NOx gases into nitrogen and water vapor, significantly lowering emissions. As automakers strive for better fuel efficiency, SCR systems are being optimized to function more effectively at lower temperatures, reduce DEF consumption, and minimize the impact on engine performance. These improvements are crucial for achieving higher fuel economy without compromising on emission control.
Scrapping and disposal challenges
The Automotive Selective Catalytic Reduction (SCR) system, which is crucial for reducing nitrogen oxide (NOx) emissions in diesel engines, faces several challenges related to scrapping and disposal. As vehicles with SCR systems reach the end of their lifecycle, proper disposal of these components becomes increasingly complex. The catalysts used in SCR systems often contain precious metals like platinum, palladium, and rhodium, which are expensive and require careful recycling to recover their value. However, the extraction and processing of these metals pose environmental and logistical difficulties. The disposal of SCR systems involves handling toxic substances, such as urea-based fluids, which are used in the reduction process, and the environmental risks associated with improper disposal are significant.
The COVID-19 pandemic significantly impacted the automotive industry's production and supply chains, with cascading effects on technologies like Selective Catalytic Reduction (SCR), used to reduce nitrogen oxide (NOx) emissions in diesel engines. With factory shutdowns, labor shortages, and disruptions to global supply chains, the production of SCR components, including urea tanks and catalysts, faced delays. Reduced vehicle demand during the pandemic led to slower adoption of newer emission control technologies, as automakers focused on adjusting to the immediate market conditions.
The Injector segment is expected to be the largest during the forecast period
Injector segment is expected to dominate the largest share over the estimated period, which are used to reduce nitrogen oxide (NOx) emissions from diesel engines. The injector is responsible for precisely injecting a urea-based solution, often referred to as Diesel Exhaust Fluid (DEF), into the exhaust stream. This solution reacts with NOx gases in the SCR catalyst, converting them into harmless nitrogen and water vapor. Advances in injector technology, including improved atomization, better spray patterns, and enhanced flow control, ensure that the urea is effectively distributed across the exhaust gas stream.
The Commercial Vehicle segment is expected to have the highest CAGR during the forecast period
Commercial Vehicle segment is estimated to grow at a rapid pace during the forecast period as it meets stricter emissions regulations and improve fuel efficiency. SCR is a key technology used to reduce nitrogen oxide (NOx) emissions from diesel engines by injecting a urea-based solution (DEF - Diesel Exhaust Fluid) into the exhaust stream. This chemical reaction converts NOx into harmless nitrogen and water. As environmental standards become more stringent globally, manufacturers are optimizing SCR systems for better performance, durability, and integration with engine management systems.
North America region is poised to hold the largest share of the market throughout the extrapolated period. As countries in Asia, Latin America, and Africa urbanize, vehicle ownership and industrial activities are rising, leading to increased emissions that necessitate stricter environmental regulations. In response, automakers and industrial operators are adopting SCR technology, which reduces nitrogen oxide (NOx) emissions from diesel engines. North America, with its advanced regulatory framework and automotive industry, is experiencing a surge in demand for SCR systems as automakers comply with stringent environmental standards like Euro 6 and EPA regulations. The region's focus on sustainability, coupled with the increasing number of diesel vehicles and industrial activities, is propelling the growth of SCR technologies.
Europe region is estimated to witness the highest CAGR during the projected time frame. SCR is a crucial emissions-control system used in diesel engines to reduce nitrogen oxide (NOx) emissions, helping vehicles meet stringent European Union (EU) environmental standards. With the EU's commitment to reducing carbon emissions and achieving climate neutrality by 2050, there has been an increased focus on improving the environmental performance of internal combustion engine (ICE) vehicles. SCR systems are vital in this shift, as they enable automakers to meet Euro 6d-TEMP and Euro 7 standards, which are some of the most demanding in the world.
Key players in the market
Some of the key players in Automotive Selective Catalytic Reduction (SCR) market include BorgWarner Inc, Caterpillar Inc, Continental AG, Daimler AG, Delphi Technologies, Eaton Corporation, Ford Motor Company, Magna International Inc, Sanden Corporation, Schaeffler AG, Tenneco Inc, Toyota Motor Corporation and Volkswagen Group.
In November 2022, Walker(R) replacement selective catalytic reduction (SCR) systems announced the availability of over 1400,000 passenger cars operating in Europe, according to Tenneco's DRiVTM Motorparts division. Tenneco is a top provider of clean air technology, including SCR systems, to international producers of light- and commercial vehicles as well as machinery for rail, marine, and industrial uses.
In January 2022, Large trucks and modern diesels, cars and four-wheelers won't be stuck after a USD 30 million federal grant to a Brisbane company ensures an uninterrupted supply of Ad Blue emissions treatment fluid.