Stringent Emission Norms Expected to Drive the Market
With consistently rising global emission levels and increasing health concerns, governments and regulatory authorities, such as the US EPA, are enacting stringent emission norms to control and reduce carbon emissions, especially for the automotive industry. These norms require vehicles to have CO emission levels of less than 1 g/km, NOx levels of less than 0.080 g/km, and PM levels of less than 0.005 g/km, thus forcing both the automobile and component manufacturers to focus on the exhaust systems of vehicles.
A catalytic converter helps reduce emissions and allows manufacturers to meet the standards set worldwide. As the demand for vehicles is anticipated to continue to increase over the next few years, the demand for automotive catalytic converters is also expected to register healthy growth.
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Increasing Penetration of Electric Vehicles Poses a Serious Threat
The electric vehicle market has registered a healthy growth in the recent years, with about 2,447,807 vehicles sold in 2016, when compared to 890,470 in 2012. This spike in sales can be attributed to the rollout of stringent regulatory norms by various organizations and governments, to control emission levels and propagate zero-emission vehicles.
As electric vehicles do not comprise of catalytic converters, the increasing demand for such vehicles poses a major challenge for the catalytic converter manufacturers and suppliers.
Electric Vehicle Sales in unit, Global, 2011-2016
Asia-Pacific Expected to Remain the Market Leader
As more than 50% of vehicles are produced in Asia-Pacific, the region accounts for the largest share, in terms of the demand for catalytic converters across the globe. China is the largest producer of vehicles, Japan is the home of major automakers, and India accounts for about 17% of the global population, thus contributing to Asia-Pacific being the global leader in the automotive industry. However, Asia-Pacific has also been witnessing a robust growth rate in the demand for electric vehicles, which is expected to prove to be a major challenge for converter suppliers. Nevertheless, Asia-Pacific is expected to remain the leader of the global automotive Catalytic Converter Market, during the forecast period.
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