According to a recent report from BCC Research, U.S. and European emission control market was valued at nearly $14.1 billion in 2014 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% to reach a forecast value of nearly $18.9 billion by 2019. This reflects a five-year CAGR of 6.1%. Filters, the fastest-growing product segment, is forecast to grow at a 6.2% CAGR, leading to a market value of $7.3 billion in 2019. The market for replacement filters, the largest product segment, should remain strong. The introduction of new heavy-duty diesel legislation in Europe should boost the total market.

 

Between 2004 and 2014, the demand for emission control products climbed by almost 70% in the U.S. and Europe collectively. In the U.S., the market totaled $6 billion in 2014, up from $3.5 billion in 2004. The European market reached $8.1 billion in 2014, up from $4.8 billion in 2004. During their decade of overall growth, both markets experienced dips in the recession years of 2007-2008, and the early part of 2009. Since then, both markets have experienced a slow-to-moderate return to pre-recession production and sales levels.

 

The European market is similar to the U.S. market, but the degree of political uncertainty and financial crisis in certain European regions is higher than in the U.S. Although moderate growth is forecast in both regions, Europe’s CAGRs will be slightly lower than its U.S. counterparts. Demand for emission control products in Europe is projected to increase 5.9% annually through 2019, leading to a market value of $10.8 billion. Filters should remain the leading product segment, reaching a market value of nearly $4.2 billion in 2019. Stricter EU legislations and regulations on air pollution, particularly the Euro 6, will boost demand for a variety of emission control products.

 

Government policies and environment regulations, production of vehicles, sales and usage, continuous modernization and technological expansion, high investment in research and development will influence industry dynamics significantly. “In the foreseeable future, all these factors will put the exhaust systems industry globally on a promising growth track,” said Pinggui Wu, analyst.

 

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