Emission Control Catalyst Market

Key data points: Market size in 2027 = $13.6 billion and 2035 = $17.1 billion, growth forecast = 2.3% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in emission control catalyst market to 2035 by metal type (palladium, platinum, rhodium, and others), vehicle type (high-duty and heavy-duty), mobility (mobility emission control catalysts and stationary emission control catalysts), application (transportation, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Emission Control Catalyst Market The future of the global emission control catalyst market looks promising with opportunities in the transportation and industrial markets. The global emission control catalyst market is expected to reach an estimated $17.1 billion by 2035 from $13.6 billion in 2027 with a CAGR of 2.3% from 2027 to 2035. The major drivers for this market are the rising demand for cleaner fuels & low emission technologies, the growing demand for catalytic converters in passenger-commercial vehicles, and the increasing demand for sustainable & green manufacturing practices. • Lucintel forecasts that, within the metal type category, palladium is expected to witness the highest growth over the forecast period due to the superior conductivity and corrosion resistance properties. • Within the application category, transportation is expected to witness the highest growth over the forecast period due to the increasing electric vehicle production demand. • In terms of regions, APAC will remain the largest region over the forecast period due to the strong electronics and automotive manufacturing ecosystem. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Emission Control Catalyst Market Evolution in the emission control catalyst market is anticipated between 2025 and 2027 with enhancements in catalyst technologies, evolving regulations and the growing focus on reducing carbon emissions in the industry. Lucintel analyses the market with focus on technologies related to durability, precious metal catalysts and catalysts for use with alternative fuels. • Sustainability: From 2025 with the introduction of Euro 7, the automobile industry would need to develop more efficient catalysts to reduce the amount of precious metals and increase durability. Platinum group metals are precious, volatile and subject to market risks. With stringent regulations for reduction in emissions, automobile manufacturers are focusing on end-to-end supply chain and life cycle emissions. • Hybridization: With the increasing demand for electric vehicles (expected to reach 20 billion by 2025), the sale of vehicles powered by traditional combustion engines would remain. This would continue the need for the use of catalysts to reduce emissions. Within the time period, varying combinations of traditional and electric powertrains would require different emission control catalysts. • Precious Metal Efficiency: Platinum group metals would continue to dominate catalysts; however, developments in catalyst design would reduce the loading of precious metals. • Localized Supply Networks: Canada, the U.S. and Mexico, the EU and UK, and India are all moving toward more localized supply chains to minimize reliance on refineries. The European Commission is targeting 10% of their own supply of CRMs by 2030. More stringent regional supply requirements will lead to restructuring of supply chain networks. • Industrial Emissions: The market for emission control catalysts is expected to grow with the introduction of more stringent regulations on heavy duty on-road, marine and off-road vehicles. Other industries such as petrochemicals and power will also spur catalyst demand. The marine industry is expected to further strengthen the SCR catalyst market as it meets the requirements of IMO Tier III. Development of after treatment systems to control emissions will grow in heavy duty vehicles and other off-road, marine and industrial applications. Improvements in catalyst and filter technology will enable lighter systems and better control of emissions. Legal requirements and the economic case for integrating after treatment systems will drive the market through 2030. Recent Developments in the Emission Control Catalyst Market The procurement of emission control catalysts is anticipated to increase during the years 2025 to 2027 due to the introduction of more stringent regulations as well as changes in the type of vehicles produced. According to Lucintel, there will be a more even demand and supply situation for catalysts for light duty vehicles due to decreasing volumes, higher catalyst loading, and better durability as well as increasing demand for catalysts for heavy duty vehicles and other industrial applications. • Increasing Regulations: The first type approval for the emission standard Euro 7 is anticipated to commence in November 2026. More stringent standards on particulate matter will result in greater catalysts loading and after-treatment systems with longer service life. • Hybrid Systems: For catalytic converters to effectively treat exhaust from hybrid and electric vehicles, the catalysts must be light-off at very low exhaust temperatures. Close-coupled systems are of special interest for catalysts used in plug-in hybrid vehicles. • Recycling: With the increasing demand for the platinum group metals, more and more spent catalysts are being reprocessed. Higher recovery rates will shift more catalyst suppliers to closed-loop supply systems. • Heavy-duty Compliance Investment: The U.S. Environmental Protection Agency (EPA) has regulatory standards for NOx emissions from heavy-duty engines for the years 2021 and beyond. EPA heavy-duty standards require better NOx emissions standards and broaden the operating conditions for emissions testing. Trucks equipped with EPA 2021 and beyond emissions systems will require advanced selective catalytic reduction systems (SCR) and a diesel oxidation catalyst (DOC). Flexible, technology-enabled SCR systems, DOCs, and support will continue to create aftermarket opportunities for the commercial truck and transport industry for the foreseeable future. • Diversification in Industry: The aftermarket catalyst suppliers have shifted their focus on the capital goods industry. This shift has been primarily due to the revised Industrial Emissions Directive (IED) by the European Commission. The IED will broaden the scope of emission reduction beyond the road transport sector in various member states of the European Union (EU). The member states of the EU will also have to enforce the IED from 2025 to 2027. There will be a focus on more stringent diesel emissions standards and a shift toward technologies that allow recovery of the precious metals bound to the catalysts for the period 2025 to 2027. The catalysts industry should improve its pricing practices to gain better control of its supplies and remain profitable for the period 2020 to 2025. The focus should remain on the more profitable segments of the industry. Strategic Growth Opportunities in the Emission Control Catalyst Market The demand for catalytic systems has increased for hybrid and heavy-duty vehicles, industrial catalysts, and hydrogen-related equipment. From 2024 to 2026, further reduction in regulations for vehicle emissions, transformation of the heavy-duty vehicle fleet, and reshoring of manufacturing will create an evolving business environment. Lucintel predicts more market opportunities for catalyst suppliers that improve the rare metal catalysts for various applications. • Hybrid Powertrains: The catalysts for hybrid and electric vehicles must be able to work with repeated engine cycles and reduce exhaust emissions at lower temperatures. In April 2025, Toyota announced 43.3% of all vehicles sold were electrified. Between now and 2030, further reduction in emissions from the transportation sector will create continued demand for catalysts for vehicle exhaust. • Heavy-duty and Off-Road Equipment: Catalysts for NOx and other exhaust emissions for heavy-duty equipment will be similar to those for light-duty vehicles. The requirements of Euro 7 Heavy-Duty will take effect in 2028. • NOx and VOCs Control in Process Industries: U.S.E.P.A.’s new standards for stationary sources of combustion emitants are expected to increase the demand for NOx and VOCs control in the coming years. Cement, chemical, steel and Waste-to-Energy industries are expected to be the main beneficiaries of the new standards. With U.S.E.P.A.’s new combustion emission standards, an increase in the demand for catalysts in industries such as cement, steel and chemicals for NOx and VOCs control is anticipated, especially considering that the new standards allow for the use of catalysts for NOx and other emissions control. • Precious Metal Catalysts: The volatility in prices of Platinum Group Metals (PGMs) as well as focus on environmental, social and governance (ESG) goals has led many manufacturers to implement improvements in wash coats, increase the use of less noble metals, and improve the recyclability of catalysts. Johnson Matthey, one of the PGM producers, has reported an estimated PGM demand of 7.3 billion ounces for year 2024. With ongoing focus on ESG, the catalysts that offer high conversion, with the use of less noble metals, are expected to gain more popularity in the future. • Recycling and Manufacturing: The U.S., Canada, India, China and Southeast Asia have started local production of catalysts to reduce their dependence on imports. The goal of the E.U.'s Critical Raw Materials Act is to ensure that 25% of the raw materials are recycled by 2030. The emphasis on recycling, especially in the E.U., will lead to the establishment of local recycling networks, thus providing a more secure supply of raw materials. While several opportunities exist for catalyst and precious metal (PM) refiners as a result of changing business environments and increased regulatory compliance, the best opportunities lie in specializing in a particular area of the PM cycle. Understanding operating conditions and integrating precious metal recovery services to complement catalyst cycling will allow firms to gain and maintain competitive edge. Emission Control Catalyst Market Drivers and Challenges The industry for emission control catalysts is based on several factors including technologies, the market and regulations. The market is focused on reducing emissions from vehicles; however, there is growing uncertainty regarding the demand for emission control catalysts with increasing vehicle electrification. According to Lucintel, the market is focused on introducing new catalysts while keeping costs low and promoting catalyst recovery and reuse. Growth in the market will be dependent on the catalysts used in vehicles as well as the catalysts used in other industrial applications. The factors responsible for driving this market include: • Stringent Emission Norms: Various countries have imposed more stringent emission norms to control emissions from vehicles. In the European Union, stringent emission standards have been set for various pollutants like NOx, particulate matter, and CO and hydrocarbons. From 2026, all new passenger vehicles sold in the EU would comply with the Euro 7 standard. This will increase the demand for a variety of emission control catalysts including three-way catalysts, diesel oxidation catalysts, and selective catalytic reduction catalysts. In addition, other vehicle classes such as buses and trucks will also be required to comply with these emission norms. • Buses, Taxis, Delivery Vehicles, Personal Cars: Rising urbanization, retail and logistics transportation, and the replacement cycle of private and commercial vehicles, particularly of those propelled by internal combustion engines or by a combination of an internal combustion engine with an electric motor, creates a sizeable demand for catalysts. A record 90 billion vehicles were manufactured in 2023. The need for catalysts in diesel or gasoline-powered vehicles, including hybrids and electric vehicles with a gasoline engine for range extension, will diminish over the next decades, although catalysts will be necessary for the transition. In the meantime, particularly in the next five years, catalysts will be required for the transport and logistics vehicles operated in high-growth markets. • Innovations in Catalysts: Utilization of precious metals in catalysts will be further reduced and other improvements in the durability of the catalyst and the wash coat will be achieved in the next five years. Simultaneously, major advances in the design of the exhaust after treatment systems and sensors integrated in the vehicles' electronic control systems will be integrated. These systems, in combination with other improvements, will allow the catalysts to be always active and significantly reduce the volume of the catalysts needed for compliance with more stringent emissions standards. • Hybrid and Heavier Ends of The Market: While hybrid vehicles have reduced the requirement for new IC engines, the power generation and marine sectors, as well as the off-road and oil refining and petrochemical sectors, have required various emissions control systems. According to the International Energy Agency, 2024 was a record-breaking year for the sales of electric vehicles. However, the global transition to electric vehicles is anticipated to be slow and uneven. The demand for automotive catalysts will be met in the short term by the rise in hybrid vehicles, while long-term challenges for the industry will be met by increased focus on air quality and decarbonization. • Manufacturing and Recycling: Recent advancements in the manufacturing of catalysts have reduced costs and improved supply. Recycling is particularly beneficial because platinum, palladium, and rhodium constitute a significant portion of the cost of the catalysts. Effective materials management ensures that the automotive industry remains one of the largest markets for platinum group metals. Improved quality and lower metal contents of catalysts will increase competitiveness of the catalyst manufacturing industry. The challenges facing this market include: • Structural Demand Changes from Technology and Electrification: The IEA reported the sale of 18% of all new passenger cars in 2023 were electric, and that number is expected to increase. Expanding electrification and the proliferation of battery-electric vehicles will potentially reduce the market for conventional after-treatment systems. Over the next 5 years, the catalyst industry will have to find other markets, such as selective catalytic reduction (SCR) and NOx catalysts for industrial applications, ammonia catalysts for hydrogen production, hydrogen and fuel cells, and other emission control catalysts to offset the expected loss in demand. • Risk of Supply and Volatility of Platinum Group Metals: Changes in the price of Platinum group metals negatively impacts the after-treatment catalyst industry. Like other metals, the price of Platinum group metals are impacted by geopolitical and supply risks. In 2022, the price of palladium hit an average of $3000/oz. Volatility in the price of platinum group metals increases the cost of vehicles, encourages end-of-life catalyst recycling, and potentially changes catalysts and chemistries. • Complex Compliance and Performance Requirements: Diverse testing protocols, durability requirements, and on-board diagnostic controls, coupled with regional and national emissions regulations, create a challenge for suppliers. Control of emissions outside the laboratory, particularly with the tighter requirements of Euro 7, raises further challenges. Between now and the next 3-5 years, the introduction of Euro 7 will lead to an increase in the cost of Research, Validation and Mastering (RVM) of emission control systems and warranties. For smaller companies, the costs will be disproportionately greater and may result in product recalls, loss of business, and damage to a company’s reputation. The stricter regulations on emissions will create greater opportunities for the emission control catalysts. However, the complexity of regulations will negatively impact the profitability of the companies. The ability of a company to combine different business offerings and efficiently process emission control catalysts will be the key to success. The same will hold true for other emission control and catalytic converters used in hybrid and heavy-duty vehicles. List of Emission Control Catalyst Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies emission control catalyst market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the emission control catalyst market companies profiled in this report include- • BASF SE • Johnson Matthey Plc • Umicore N.V. • Corning Incorporated • Tenneco Emission Control Catalyst Market by Segment The study includes a forecast for the global emission control catalyst market by metal type, vehicle type, mobility, application, and region. Emission Control Catalyst Market by Metal Type [Value ($B) from 2019 to 2035]: • Palladium • Platinum • Rhodium • Others Emission Control Catalyst Market by Vehicle Type [Value ($B) from 2019 to 2035]: • High-Duty • Heavy-Duty Emission Control Catalyst Market by Mobility [Value ($B) from 2019 to 2035]: • Mobility Emission Control Catalysts • Stationary Emission Control Catalysts Emission Control Catalyst Market by Application [Value ($B) from 2019 to 2035]: • Transportation • Industrial • Others Emission Control Catalyst Market by Region [Value ($B) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Emission Control Catalyst Market Because of the introduction of stringent emission norms for the automotive and other industries, the emission control catalysts market is expected to provide attractive investment opportunities during 2021-2027. As per Lucintel’s analysis, other strategies such as localization of catalysts manufacturing, ERS/select catalysts technology, and domestication of catalysts are of key importance in the near term. • United States: The U.S. EPA has published regulations requiring after 2027 heavy-duty engines to controlling NOx emissions and requiring other aftertreatment technology to achieve other emissions standards. Cummins Inc. plans to invest USD 1.9 billion to construct and expand its U.S. based facilities to production catalysts and other aftertreatment technologies (announced in February 2025). Thus, there will be increased demand for durability aftertreatment and catalysts in the U.S. to meet the standards effective after 2027. • China: China has accelerated the implementation of China 7 vehicle standards and localized emission norms. BASF has recently constructed and started a new catalyst production and research facility in Shanghai (announced in April 2025). Increased focus by the Chinese Government on technology localization will stimulate the increase of local production of catalysts and other aftertreatment technologies in China. • Germany: As of the beginning of 2026, Germany will begin enforcing the European Union’s (EU) Euro 7 emissions standard. In the meantime, the country will continue to be an important production site for many automakers, including Volkswagen and BMW. Before the EU emissions standards take full effect, automakers will probably invest in new facilities to produce vehicles equipped with emissions-control systems. • India: The Ministry of Road Transport and Highways of India enforced Phase 2 of the Bharat Stage VI emissions standard in 2025. In conjunction with these new regulations, Tata Motors and other automakers increased their production of compliant vehicles. Because the regulations on emissions standards will cycle, vehicles equipped with emissions-control systems will have a relatively short service life. Therefore, the demand for three-way catalytic converters and diesel and gasoline particulate filters will remain during the lifetime of these vehicles. • Japan: The policy framework on fuel efficiency and the new vehicle standards for 2025 reinforced the use of more advanced emissions-control systems in Japan. In addition, automakers and suppliers based in Japan will incorporate various emissions control systems in new platforms in order to be compliant with several countries’ regulations. Features of the Global Emission Control Catalyst Market Market Size Estimates: emission control catalyst market size estimation in terms of value ($B). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: emission control catalyst market size by various segments, such as by metal type, vehicle type, mobility, application, and region in terms of value ($B). Regional Analysis: emission control catalyst market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different metal type, vehicle type, mobility, application, and regions for the emission control catalyst market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the emission control catalyst market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the emission control catalyst market by metal type (palladium, platinum, rhodium, and others), vehicle type (high-duty and heavy-duty), mobility (mobility emission control catalysts and stationary emission control catalysts), application (transportation, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?