Automotive SCR System Market Growth Analysis | 2018-2023

Market Insights

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

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Market Highlights

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.

What is an automotive SCR system?

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

Market Dynamics

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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Segments Analysis

By Vehicle Type

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 to 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

Based on the catalyst type, 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

Based on the catalyst structure type, 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

Based on regions, 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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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 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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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.

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are 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.

We leverage a multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentations, white papers, and articles to gather the data.

More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain both qualitative and quantitative insights.

Report Features

This report, from Stratview Research, studies the automotive selective catalytic reduction system market over the trend period 2012 to 2017 and the forecast period 2018 to 2023 both in terms of value and units. 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.

What Deliverables Will You Get in this Report?

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the vehicle types by catalyst structure type.

Competitive Benchmarking

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

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.