Stringent regulations aimed at minimizing vehicle emissions have spurred the global emission control catalyst market, led by Johnson Matthey, BASF and Umicore in the mobile segment, and Cormetech in the stationary segment, according to Frost & Sullivan.
The market earned revenue of more than $6.70 billion in 2012 and is forecast to reach $14.22 billion in 2019, growing at a CAGR of 11.3 percent, the analysis says.
The mobile emission control catalysts segment accounts for 82 percent of the total market revenue and is expected to grow at a CAGR of 11 percent through 2019.
Meanwhile the stationary emission control catalysts segment constitutes 18 percent of the total emission control catalysts market with power plants, gas turbines and industrial processing units as major end-users. Frost & Sullivan forecasts this segment will grow faster, with a CAGR of 12.7 percent through 2019. The stationary emission control catalysts segment was worth $1,206.3 million in 2012 and is expected to grow to $2,788.5 million by 2019.
The emission control catalyst market will also grow in tandem with the automotive and energy segments in Asia-Pacific, as rising vehicle sales and escalating demand for power add to the need for emission control catalysts. Frost & Sullivan says over the forecast period the market will see technology advancements as companies strive to deliver efficient products while remaining cost-competitive.
Frost & Sullivan analyst Soundarya Shankar says while Asian countries’ adoption of Europe’s emissions standards has fuelled market growth, the relaxed enforcement of these regulations, especially in China and India, has dissuaded potential investors from taking advantage of Asia-Pacific’s potential opportunities, restraining overall market value.
The market’s prospects have further taken a hit due to the high and volatile prices of platinum group metals (PGM), which have forced catalyst manufacturers to reduce PGM quantities, in turn, affecting system performance. High costs have curbed unit shipment volumes, too.
To decrease PGM quantities in catalysts without compromising on performance, catalyst manufacturers are focusing on innovation in substrate and wash-coat technology. They are also creating customized solutions for different regions based on regulatory trends, fuel quality, and driving conditions to appeal to a larger consumer base.
Earlier this month, BMW chairman Norbert Reithofer called the European Union’s strict vehicle emissions standards are “impossible to meet.” The EU plan would cut CO2 emission outputs to 95g/km by 2020, followed by a further 25 percent reduction by 2025.