Regional Analysis

Automotive Exhaust Systems Market Regional Insights

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North America has established itself as the dominant region in the global automotive exhaust systems market. The region is expected to account for 41.7% of the market share. With the U.S. being the largest passenger as well as commercial vehicle producer, the demand for exhaust systems is consistently high. Strong presence of leading OEMs such as General Motors, Ford, and FCA provides a huge base for local exhaust system manufacturers to cater to replacement and aftermarket demand.

Stringent emission norms implemented by the Environmental Protection Agency (EPA) have forced automakers to invest heavily in R&D to develop efficient exhaust technologies. This has benefited the region's exhaust system suppliers who have evolved into global leaders by offering innovative solutions. For instance, major players like Faurecia and Tenneco have established R&D centers and manufacturing plants catering to North American OEMs as well as markets in other regions. Along with significant manufacturing investments, the suppliers have also customized their portfolios based on engine types, fuel type, and vehicle architecture popular in the American automotive exhaust systems market. This has enabled them to effectively address the replacement needs.

In contrast, the Asia Pacific region has emerged as the fastest growing market for automotive exhaust systems. Factors such as increasing vehicle parc, rising disposable incomes, and growth in commercial vehicle sales are fueling the demand. China, with the world's largest vehicle production, is leading this growth with OEMs steadily enhancing local value addition. Besides, other Southeast Asian countries are also witnessing a boom in the number of passenger cars and two-wheelers.

The thriving aftermarket in the region provides sustained opportunities for both international as well as domestic exhaust suppliers. However, to establish themselves and gain market share in this price sensitive environment, suppliers must offer competitive pricing along with adherence to quality and emission norms. Overall, Asia Pacific’s attractiveness continues to rise due to its massive scale and potential for future increases in automotive demand.