Automotive EGR System Market Trend, Share, Size, and Forecast 2032

Automotive EGR System Market: Industry Prospective

The Automotive EGR System Market was worth around USD 4,629.5 million in 2021 and is estimated to grow to about USD 5,560.1 million by 2028, with a compound annual growth rate (CAGR) of approximately 3.1 percent over the forecast period. The report analyzes the Automotive EGR System Market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Automotive EGR System Market.

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Automotive EGR System Market: Overview

To reduce the temperature of the exhaust gases recirculated by the exhaust gas recirculation (EGR) system, an EGR cooler is connected with the internal combustion engine. The EGR system is utilized in diesel and gasoline engines to minimize fuel emissions. Globally, one of the primary reasons for the increased utilization of EGR coolers in the automotive sector is the growing number of automobiles on the road. In addition, the government's rigorous regulations set on the automobile sector to reduce fuel emissions are driving car manufacturers to install EGR systems in their vehicles, which control gas emissions, and EGR coolers help lower gas temperatures. Thus increasing the demand in the coming years. Moreover, increased concern about air pollution levels has forced automakers to install exhaust gas recirculation systems (EGRs) in conjunction with catalytic converters not only in new vehicles but also in existing ones via retrofitting programs. These variables have aided in expanding automotive sales worldwide, hence propelling the growth pace.

Automotive exhaust gas recirculation system (EGR) helps in reducing NOx emissions in internal combustion engines. The system is used in both gasoline and diesel engines. In a gasoline engine, the recycled exhaust gas replaces some amount of combustible charge in the cylinder, whereas in a diesel engine, the exhaust gas replaces a certain amount of oxygen in the pre-combustion mixture.

Covid-19 Impact

Due to lockdowns, travel bans, and company lockdowns, the COVID-19 situation is harming economies and industries in a number of countries. The worldwide material supplier industry is experiencing severe disruptions, such as supply chain breakdowns and office closures. The closure of numerous Chinese facilities and factories is limiting global supply chains and affecting manufacturing, delivery timetables, and material sales. The coronavirus outbreak has had a significant impact on OEMs and parts suppliers, resulting in a reduction in manufacturing capacity. Several companies have declared anticipated delays in product deliveries as well as a drop in future sales of their items. Due to the drop in new car sales, the global crisis has had an influence on the vehicle trailer hitch business. The auto sector is expected to suffer as a result of the epidemic. Furthermore, stricter CO2 emissions rules and a decrease in investment in new technology. All of these issues are expected to have a negative impact on the worldwide automotive EGR valves market. However, the favorable environmental impact of the lockout is projected to drive demand for zero-emission vehicles.

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Automotive EGR System Market: Drivers

Automotive exhaust gas recirculation (EGR) systems are extremely useful in recirculating and recycling gases generated by a vehicle in the vehicle combustion system. Governments from around the world have signed a variety of treaties to decrease air pollution caused by automobile emissions. Europe, as well as countries in the Asia Pacific such as Japan, India, China, and South Korea, use this technique. These countries have made the usage of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) mandatory, which will aid in the reduction of gasoline emissions and drive growth in the worldwide automotive EGR systems market.

The surge in vehicle production and sales is propelling the market for automotive exhaust gas recirculation (EGR) coolers. Additionally, rigorous government emission rules are fueling market expansion. Moreover, new emission rules for car manufacturing are driving up demand for automotive exhaust gas recirculation (EGR) coolers. Furthermore, technological advancements are expected to drive the growth of the exhaust gas recirculation (EGR) cooler market.

Automotive EGR System Market: Restraint

The availability of replacements, high government standards, and pricing pressure rules for certification of automotive EGR systems are important barriers and hurdles to market expansion. High maintenance and replacement costs of exhaust gas recirculation (EGR) coolers, on the other hand, are limiting market expansion.

Automotive EGR System Market: Segmentation

The automotive EGR system market is segregated based on product type, vehicle type, and application.

By product type, the market is classified into EGR coolers, EGR valves, and EGR pipes. In the forecast period, the EGR valve category held the largest market share and is expected to increase significantly over the forecast period. Companies are implementing cooled exhaust gas recirculation (EGR) to comply with the new emission requirements since the EGR cooler device aids in reducing nitrogen oxide emissions (NOx) for internal combustion engines.

By vehicle type, the market is classified into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The passenger car segment is expected to be dominant during the forecast period due to expanding passenger car demand among a vast population pool, rising disposable per capita income in emerging countries, and global automakers' growth into new emerging markets.

By application, the market is classified into gasoline and diesel. During the projection period, the diesel segment is expected to increase at the fastest rate. EGR (exhaust gas recirculation) systems in diesel engines are commonly utilized in light-duty, medium-duty, and heavy-duty vehicles. EGR reduces nitrogen oxide emissions in automobiles powered by diesel engines. Additionally, it aids in improving vehicle performance and average per mile. As a result, the diesel category is expanding rapidly in the global market.

Automotive EGR System Market: Report Scope

Automotive EGR System Market: Regional Landscape

The Asia Pacific currently owns the largest share of the global automotive exhaust gas recirculation (EGR) cooler market and is likely to continue this position during the forecast period. The enormous amount of automobile manufacturing and sales in this region is infiltrating the automotive EGR cooler industry. Developing economies such as India, China, and Japan are the leading nations with the highest concentration of prominent automotive manufacturing corporations. Furthermore, the fast use of automotive coolers, technologically improved systems, and the thriving automotive sector are driving up demand for autos with EGR coolers.

In North America, the market for automotive exhaust gas recirculation (EGR) systems is expected to grow in tandem with growing automobile demand. North America, as the world's largest vehicle market, is predicted to have the highest demand for automotive EGR systems. The expansion of the North American automotive EGR system market can also be due to increased passenger car sales and technical improvement.

Automotive EGR System Market: Competitive Landscape

Some of the main competitors dominating the automotive EGR system market include:

• Mahle GmbH
• Wells Vehicle Electronics
• BorgWarner Inc.
• Combustion Ltd
• Delphi ANSYS Inc.
• DENSO Europe BV
• Eberspächer Climate Control Systems GmbH & Co. KG
• Friedrich Boysen GmbH & Co. KG
• ElringKlinger AG
• IAV GmbH.

The automotive EGR system market is segmented as follows:

By Product Type

• EGR cooler
• EGR valve
• EGR pipe

By Vehicle Type

• Passenger vehicle
• Light commercial vehicle
• Heavy commercial vehicle

By Application

• Gasoline
• Diesel

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa