The automotive exhaust system market is expected to grow at a CAGR of 5.52%, reaching a market size of US$41.116 billion in 2029 from US$31.43 billion in 2024.
An automotive exhaust system is used to guide the harmful exhaust gases away from controlled combustion that goes inside an engine to avoid any harmful effect on the driver. It is carefully designed to carry toxic or noxious gases away from the drivers of the automobile. Depending upon the type of engine and its intended use, these automobile exhaust systems come in many varieties. These exhausts have different varieties based on the type of vehicle like motorcycles, trucks, and passenger cars.
The exhaust system is made mainly of pipes in several different shapes, each designed to connect and conform to a particular part of the underside of the car. The exhaust flows through each particular pipe, and every pipe is responsible for moving the exhaust gases toward the back. The exhaust system is made up of several components that work together to reduce exhaust noise and remove harmful gases.
These components include an exhaust manifold that collects exhaust gases from each cylinder from the combustion chamber of the engine and takes them to the exhaust pipe, a catalytic converter that converts the harmful emissions from the engine’s combustion chamber into water vapor, muffler which muffles sound that is produced by the engine, resonator that can organize and tune vibration sounds but also plays a big role in improving exhaust flow effectiveness, and tailpipe which extends past the rear bumper of most vehicles and direct the exhaust gases away.
The automotive exhaust system market is driven majorly by the increasing demand for emissions vehicles and growing awareness for environment-friendly alternatives to reduce emissions and carbon footprint globally. There is a major shift among the general public due to this awareness towards the low emissions vehicles, which require automotive exhaust systems to make these efficient and low emission vehicles. The rise in demand for these low-emission vehicles has made many automobile manufacturers go towards research and development to enhance efficiency and reduce emissions using these automotive exhaust systems, and the market is anticipated to grow.
The growth in sales of passenger and commercial vehicles globally has also contributed to growing the market, as without these exhaust systems, the construction of vehicles is incomplete. These exhaust systems help provide a way for exhaust gases to exit the engine by making their way out beneath the vehicle and keep harmful gases from entering the vehicle and affecting the driver's health. The advancement in exhaust technology like EGR systems and exhaust after-treatment systems due to government regulations for reduced emissions are also contributing to market growth over the forecast period.
The demand and sales for vehicles have seen rapid market growth for commercial purposes such as business operations and passenger vehicles for personal use with the growing global population. This is due to the rise in urbanization and growing industrialization in several countries the need for commercial vehicles has grown for logistics, transport, and daily business operations.
The growth in disposable incomes in growing economies among the general public is also a contributing factor in raising the sales of vehicles globally. This rise in demand and sales for vehicles is directly proportional to the automotive exhaust systems market growth, as it is a necessary part of manufacturing the vehicle, and therefore, the automotive exhaust systems market is anticipated to grow.
The automotive exhaust system plays a major role in controlling and managing the harmful gases that are produced during the use of vehicles. Therefore, significant technological advancements are being made due to growing awareness of environmental health to reduce emissions and the government-making policies regarding reducing emissions led many major manufacturers to do intense research and development in exhaust technology and improve the automotive exhaust system. For instance, exhaust after-treatment systems and EGR systems or exhaust gas recirculation systems are such innovations and are anticipated to fuel the market over the forecast period.
The growing popularity of electric vehicles among the general public and several governments making significant investments to enhance infrastructure to make electric vehicles more convenient to use in developing countries is predicted to hinder market growth.
Governments across the globe are providing tax exemptions and subsidies on electric vehicles as these vehicles are more eco-friendly and fuel-efficient to use. With the growing awareness of environmental impact worldwide, it is necessary to control harmful emissions and provide an alternative to the general public over traditional combustion engine vehicles, which need exhaust systems in the near future, the adoption of electric vehicles in public transport like buses, taxi, and others will be prominent. Hence, the market will be affected negatively.
Prominent growth is projected in the Asia Pacific region.
Asia Pacific region is expected to show major growth in the automotive market. The rapid growth in the automobile industry in the region, with its growing population and production of vehicles, is contributing to the region’s market growth. The rising urbanization and industrialization in several developing countries are rapidly increasing the demand for commercial purposes vehicles and passenger vehicles that are necessary for meeting the rising demand for business operations and personal use.
The availability of labor and resources at much cheaper rates in this region is a major contributing factor in increasing the manufacturing of automobiles, and with it, automotive exhaust systems and many major automobile manufacturers are setting up manufacturing units. The rise of GDP in several countries across the Asia Pacific region and growth in disposable incomes has raised the sales of automobiles in the region, and therefore, the market of automotive exhaust systems is anticipated to be boosted significantly.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
|
| Companies Covered |
|
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |