Automotive SCR System Market Growth Analysis (2018-2023)

Market Insights

"The global automotive SCR system market is projected to grow at an impressive CAGR of 1.8% over the next five years to reach USD 3.2 billion in 2023."

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An automotive SCR system is mainly an active emission control system that inserts a redundant fluid in the diesel engine's exhaust stream. This fluid starts a reaction as a result of which nitrogen oxides get converted into nitrogen, a small amount of carbon dioxide, and water. An automotive SCR system is important because it is helpful in reducing emissions from diesel engines in a fuel-efficient and cost-effective way. The system is capable of reducing NOx emissions by up to 90 percent

There has been an incessant increase in emissions of polluting substances including carbon dioxide (CO2) and nitrogen oxide (NOx) particles from vehicles into the environment. In diesel engines, the level of NOx emissions is very high, whereas, in petrol engines, the emission of NOx particles is merely 5% that of emission from diesel engines.  Hence, there is a dire need for a proficient de-pollution system that can curb the NOx particles emitted from diesel vehicles. At present, there are two de-pollution systems available for reducing NOx particle emissions from diesel engine vehicles: the SCR system (Selective Catalytic System) and the Lean NOx-Trap (LNT) system.

Of the two de-pollution systems available for diesel engine vehicles, the SCR system is expensive and complex but is also more efficient than the LNT system as it converts nitrogen oxide into diatomic nitrogen and water vapor by injecting aqueous urea solution into the exhaust system. The SCR System has a maximum efficiency of 90-95% (NOx reduction of 90-95%), whereas the LNT system is a relatively less efficient system and offers a maximum efficiency of 70%. The SCR system is capable of handling a higher volume of exhaust fumes and can reduce NOx emissions by up to 90 percent, while simultaneously reducing HC (hydrocarbon) and CO (carbon monoxide) emissions by 50-90 percent, and PM (particulate matter) emissions by 30-50 percent.

Despite the high cost of the SCR system, it is expeditiously gaining market traction, driven by its higher efficiency. Another factor giving an impetus to the demand for SCR systems over the LNT system is that there is a problem of clogging associated with the LNT system that results in the blockage of the EGR (exhaust gas recirculation) valve. Due to this, automakers cannot reduce the number of recirculation processes, which leads to an increase in temperature and a rise in the rate of NOx particles exceeding the amount of NOx that the LNT system can handle.

Market Dynamics

Market Drivers

An excessive increase in the penetration of SCR systems in diesel vehicles to address the stringent regulations regarding NOx emission reductions and fuel efficiency enhancements is the prime growth driver of the market.

The development of innovative SCR systems is an indispensable focus area of the SCR system suppliers based on the requirements of auto OEMs. The market for SCR systems is marked by major global automotive tier players including Faurecia, Plastic Omnium, and Tenneco. Also, it is expected that the excellent growth of the SCR system may entice other players to enter the market to tap the growth potential.

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Key Players

The supply chain of this market comprises raw material suppliers, SCR system suppliers, distributors, automotive OEMs, and dealers.

Key automotive SCR system manufacturers are-

• Tenneco Inc.
• Faurecia SA
• Plastic Omnium SA
• Rochling Group.

Major automotive OEMs in the industry, which currently rely on the SCR systems, are-

• Ford
• BMW
• Renault
• Citroen
• Audi

The development of integrated SCR systems and the formation of strategic alliances with automakers are the key strategies adopted by the major players to gain a competitive edge in the market.

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By Vehicle Type

"The passenger car segment accounted for the largest market share."

The automotive SCR system market is segmented based on the vehicle type as passenger car, LCV (light commercial vehicle), and M&HCV (medium- and heavy-duty commercial vehicle). The passenger car segment is expected to remain the growth engine of the market during the forecast period of 2018-2023. Increasing production of passenger cars coupled with increasing penetration of SCR systems in diesel engine-based passenger car models is likely to elevate the demand for SCR systems in the segment in the foreseeable future.

By Catalyst Type

"The copper zeolite segment accounted for the largest market share."

The market is segmented as copper zeolite, iron zeolite, and others (platinum, palladium, rhodium, etc.). Copper zeolite is expected to remain the most dominant catalyst type in the global market during the forecast period, owing to its better ammonia storage capabilities. Both, Iron Zeolite as well as other segments, are also likely to witness healthy growth rates over the next five years.

By Catalyst Structure Type

"The honeycomb catalyst structure segment accounted for the largest market share."

The market is segmented as honeycomb catalyst structure and others (plate and corrugated type). The honeycomb structure is expected to remain the most dominant type in the global market during the forecast period, owing to its better surface coverage and regular flow.

Regional Insights

"Europe accounted for the largest market share."

Europe is expected to remain the largest automotive SCR system market during the forecast period. Stricter emission norms of the European Commission have led to a faster adoption of the SCR System into European vehicles. Ford Focus & Fusion, BMW 5 Series & 7 Series, Renault Twingo & Talisman, Citroen C4 Picasso, and Audi Q7 are some of the key European models that rely on SCR systems to reduce the level of emissions. Asia-Pacific is likely to depict the highest growth during the forecast period with China and India being the key sources of growth.

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Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects automotive SCR system market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive SCR system market is segmented in the following ways:

By Vehicle Type

• Passenger Car
• Light Commercial Vehicles
• Medium- & Heavy-Duty Vehicles

By Catalyst Type

• Copper Zeolite
• Iron Zeolite
• Others

By Catalyst Structure Type

• Honeycomb
• Others

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, The UK, Russia, Italy, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, South Korea, India, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Argentina, and Others)

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Company Profiling

• Detailed profiling of additional market players (up to 3 players)
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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