The Euro 7 regulations compliant market is estimated to grow from 13.6 million units in 2026 to 14.1 million units by 2035 at a CAGR of 0.4% from 2026 to 2035. Euro 7 emission norms will help in the reduction of NOx and PM emissions to a great extent, which will help to achieve cleaner air. To monitor the emissions and employ onboard sensors, periodic technical controls, and compliance checks will be done to ensure emissions do not increase over the period.
Passenger cars are expected to be the largest segment in the Euro 7 regulations compliant market
According to the European Commission's proposal, the entry into force of the new Euro 7/VII Regulation is 1 July 2025 for new light-duty vehicles (cars and vans) and 1 July 2027 for new heavy-duty vehicles (lorries and buses). The passenger car segment contributes to around 78% of the total vehicle production in the EU. In passenger cars, the NOx emission limit is reduced from 0.08 g/km under Euro 6 to 0.02 g/km under Euro 7, and to achieve this, OEMs and Tier-1 companies need to focus on dual SCR systems for diesel engines and lean NOx traps and NOx adsorbers for gasoline engines. These systems will help to achieve the set targets under Euro 7 norms.
As in the passenger car segment, the penetration of gasoline is around 70 - 75% in the year 2022; the lean NOx trap technology witnesses the largest market size. OEMs have already started developing strategies to comply with Euro 7 and changing the existing Euro 6 after-treatment technologies. Few OEMs have already started towards the developments related to Euro 7 compliance. For instance, In March 2022, BMW launched BMW 7 Series G70 Combustion Engines, ready to comply with Euro 7 Regulations. In January 2023, Renault Group and PUNCH Torino signed a strategic partnership on low-emission diesel engines. Both companies will develop the Euro VI and Euro 7 variants of Renault 4-cylinder diesel engines for light commercial vehicles for production starting in 2025.
On the other hand, a few OEMs are moving ahead with their electrification targets and observe that Euro 7 complaints will lead to huge investments. According to Fleet Europe’s insights, the Euro 7 implementation will lead to an incremental cost of around USD 320 per car or van. Hence, OEMs and Tier-1 are finding ways to comply with Euro 7 through extensive research and development. Passenger cars being the major contributor in production across the EU, will lead the market in 2035.
Exhaust Gas Recirculation Technology is expected to witness the largest market size during the forecast period
The exhaust gas recirculation system is an effective technology to control NOx emissions from diesel engines. EGR is also used in gasoline engines to reduce pumping work and increase engine efficiency. According to the ACEA insights, 40% of all new cars registered in the European Union run on petrol, while diesel accounts for 19.6% of registrations in 2021. With the increasing registrations of diesel and gasoline cars, the demand for exhaust gas recirculation systems is also increasing. Under Euro 6, the NOx limit is set at 0.4 g/kWh in commercial vehicles; hence, most manufacturers use a combination of EGR and urea-SCR. The competing technology coming in heavy duty vehicles is urea-SCR without EGR, which is present in a few Iveco and Scania truck engines.
Exhaust gas recirculation can reduce NOx emissions by around 40%. Depending upon the vehicle type, SCR systems remove up to 90% of the NOx from exhaust gases. In case of stringent emission norms such as Euro 7, the EGR system is combined with SCR to achieve the emission targets. Hence, the demand for EGR is increasing with the upcoming Euro 7 norms.
Germany is expected to hold the largest market in the Euro 7 regulations complaint market
With the increasing stringency of emission norms, OEMs find it difficult to certify their vehicles. Implementing the Euro 7 mandates will increase the R&D, vehicle, and other production costs too. This increase in cost will lead to the phasing out of smaller, cheaper models. According to European Union, for cars and vans, the expected increase in cost is between USD 95 to USD 160. The major German OEMs such as BMW (Germany) & Renault (France) are moving towards engine technology development to comply with Euro 7 and getting into strategic partnerships to develop products that will help comply with Euro 7 mandates.
On the other hand, VW (Germany) believes the cost of subcompact hatchbacks will lie between USD 3,000 to USD 5,000, with Euro 7 in place. This will make the car unaffordable for its customers. The impact of Euro 7 is huge on the cost of vehicles, and the company doesn’t want to invest more in this, hence planning for complete electrification soon. OEMs are finding it difficult to accept the changes which they are supposed to make in the powertrain technologies to comply with Euro 7, Germany is still the major contributor (30 - 40%) in the EU27 country's passenger car production, leads the Euro 7 compliant passenger cars market.
Breakdown of Primaries
The study contains various industry experts' insights, from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
- By Company Type: OEMs - 30% and Tier I/II - 70%
- By Designation: C-level - 30%, Director Level - 60%, and Others - 10%
- By Region: Asia-Pacific - 55%, Europe - 30%, and North America - 15%
The key players in the Euro 7 regulations compliant market are Eberspächer (Germany), FORVIA (Germany), Tenneco (US), and Johnson Matthey (UK). The key strategies adopted by major companies to sustain their position in the market are expansions, contracts and agreements, and partnerships.
Research Coverage
The Euro 7 regulations compliant market by vehicle type (Passenger cars, LCVs, Trucks, and Buses), By Technology (DOC, SCR, DPF/GPF, Ammonia Slip Catalyst, Electrically Heated Catalyst, EGR, Lean NOx trap), Sensors (exhaust gas pressure & temperature sensor, oxygen/lambda sensor, NOx sensor, engine coolant temperature sensors, PM sensors, and MAP/MAF sensors) and by EU countries.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the Euro 7 regulations compliant market and the sub-segments. This will also help the key players identify the highest potential region and design their product portfolio per market requirements. A detailed study on the after-treatment and sensor technologies will help manufacturers understand their potential market.
This report includes analyses like emission limits, key powertrain and after-treatment technologies, OEM readiness and their challenges accepting the Euro 7, RDE boundary challenges, vehicle incremental cost, regulatory landscape, and others. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market's pulse and provides information on key market drivers, restraints, challenges, and opportunities.
Table of Contents
1 Introduction
1.1 Study Objectives
1.2 Market Definition
1.3 Inclusions and Exclusions
1.4 Study Scope
Figure 1 Euro 7 Market Segmentation
1.5 Currency Considered
1.6 Package Size
1.7 Limitations
1.8 Stakeholders
2 Research Methodology
2.1 Research Data
Figure 2 Research Methodology Model
2.1.1 Secondary Data
2.1.1.1 Key Secondary Sources for Vehicle Sales/Production
2.1.1.2 List of Key Secondary Sources to Estimate Market Sizing
2.1.1.3 Key Data from Secondary Sources
2.1.2 Primary Data
2.1.2.1 Breakdown of Primary Interviews: by Company Type & Designation
2.1.2.2 List of Primary Participants
2.2 Market Size Estimation
Figure 3 Research Methodology: Hypothesis Building
2.2.1 Bottom-Up Approach
Figure 4 Bottom-Up Approach
2.2.2 Top-Down Approach
Figure 5 Top-Down Approach
Figure 6 Research Design and Methodology
2.3 Data Triangulation
Figure 7 Data Triangulation Methodology
2.4 Factor Analysis
2.5 Research Assumptions
2.6 Research Limitations
3 Executive Summary
3.1 Report Summary
3.2 Roadmap of Key Powertrain Technologies
Figure 8 Roadmap of Key Powertrain Technologies
3.3 Euro 7 Compliance for Passenger Cars
3.4 Conclusion and Recommendations
4 Market Overview
4.1 Introduction
Table 1 Timeline of Euro Regulations for Heavy-Duty Engines and Passenger Vehicles
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.2.4 Challenges
4.3 Regulatory Overview
Table 2 Historic Overview of On-Road Vehicle Emission Regulations for Passenger Cars, 2016-2021
4.4 Paris Agreement - Zero Carbon Emissions by 2050
Figure 9 Carbon Reduction Pathway of Paris Climate Agreement
4.5 Country-Wise Outlook of Electrification Targets and Emission Regulations
Figure 10 Country-Wise Electrification Targets, 2025-2050
4.5.1 Europe
4.5.1.1 Overview
Table 3 Pollutant Limit Reduction from Euro 3 to 6
4.5.2 China
4.5.2.1 Overview
Table 4 Emission Regulation Outlook of China, 2021-2023
Table 5 Pollutant Limit Reduction from China 3 to 6B
4.5.3 Japan
4.5.3.1 Overview
Table 6 Passenger Car and LCV CO2 Emissions in Japan
4.5.4 India
4.5.4.1 Overview
Table 7 Bs6 CO2 Emissions in India, 2020
Table 8 Pollutant Limit Reduction from Bs IV to VI
4.5.5 US
4.5.5.1 Overview
Table 9 Passenger Car and LCV CO2 Emissions in US, 2022-2026
Table 10 Pollutant Limits Reduction from Tier 2 to 3
4.6 Euro 7: Pollutant Emission Limits
Table 11 Proposed Euro 7 Emission Limits for Category M1 and N2 Vehicles with ICE
Table 12 Proposed Conditions for Real Driving Emissions Testing: Category M1 and N1 Vehicles
4.7 Euro 6 vs. 7: NOx & PM Emission Reduction
Figure 11 Passenger Cars: Euro 6 vs Euro 7 NOx & PM Emission Reduction
Figure 12 Heavy-Duty Vehicles: Euro 6 vs Euro 7 NOx & PM Emission Reduction
4.8 Cost of Implementing Emission Control Technologies in Euro 7
Table 13 Cost of Euro 7 Emission Reduction Technologies for Heavy-Duty Vehicles, 2021 vs. 2025 vs. 2030 (EUR)
Table 14 Cost of Euro 7 Emission Reduction Systems for Heavy-Duty Vehicles (EUR)
4.9 Supplier Analysis
4.9.1 Aftertreatment Device Suppliers
4.9.1.1 Gasoline Particulate Filters
Table 15 Who Supplies Whom, Gasoline Particulate Filters
4.9.1.2 Diesel Particulate Filters
Table 16 Who Supplies Whom, Diesel Particulate Filters
4.9.1.3 Selective Catalytic Reduction
Table 17 Who Supplies Whom, Selective Catalytic Reduction
4.9.1.4 Diesel Oxidation Catalysts
Table 18 Who Supplies Whom, Diesel Oxidation Catalysts
4.9.2 Exhaust Sensor Suppliers
4.9.2.1 Oxygen Sensors
Table 19 Who Supplies Whom, Oxygen Sensors
4.9.2.2 Pressure Sensors
Table 20 Who Supplies Whom, Pressure Sensors
4.9.2.3 Temperature Sensors
Table 21 Who Supplies Whom, Temperature Sensors
5 Responses of OEMs to Euro 7
5.1 Volkswagen AG
5.2 Stellantis
5.3 Renault
5.4 Hyundai
5.5 Mercedes-Benz
Table 22 Mercedes Benz Vehicle Models That Comply with Euro 6D Standards
5.6 BMW
5.7 Nissan
5.8 Volvo
5.9 Jaguar Land Rover (JLR)
5.1 Peugeot
5.11 Ford
6 Euro 7 Compliant Vehicles Market, by Country
6.1 Introduction
Figure 13 Euro 7 Compliant Vehicles Market, by Vehicle Type (Thousand Units)
6.1.1 Research Methodology
6.1.2 Assumptions
Table 23 Euro 7: Vehicle Cost Increment in Comparison with Euro 6
Table 24 Euro 7 Compliant Vehicles Market, by Vehicle Type, 2026-2035 (Thousand Units)
6.2 Passenger Cars
Table 25 Euro 7 Compliant Passenger Cars Market, by Country, 2026-2035 (Thousand Units)
6.3 Light Commercial Vehicles (LCVs)
Table 26 Euro 7 Compliant Light Commercial Vehicles Market, by Country, 2026-2035 (Thousand Units)
6.4 Trucks
Table 27 Euro 7 Compliant Trucks Market, by Country, 2026-2035 (Thousand Units)
6.5 Buses
Table 28 Euro 7 Compliant Buses Market, by Country, 2026-2035 (Thousand Units)
7 Euro - 7 Compliant Technologies Market, by Vehicle Type
7.1 Introduction
Table 29 Pollutant Limit Reduction Under Euro 6 & Proposed Euro 7 Regulations
7.1.1 Research Methodology
7.1.2 Assumptions
Table 30 ASP Analysis, by Technology, 2021 vs. 2030 (USD)
Figure 14 Aftertreatment Technology Market, 2026 vs. 2035 (Thousand Units)
7.2 Diesel Oxidation Catalysts
Figure 15 Diesel Oxidation Catalyst Technology Market Insights
Table 31 Diesel Oxidation Catalyst Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.3 Diesel/Gasoline Particulate Filters
Figure 16 Diesel/Gasoline Particulate Filter Technology Market Insights
Table 32 Diesel Particulate Filter Market, by Vehicle Type, 2026-2035 (Thousand Units)
Table 33 Gasoline Particulate Filter Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.4 Selective Catalytic Reduction
Figure 17 Selective Catalytic Reduction Technology Market Insights
Table 34 Selective Catalytic Reduction Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.5 Ammonia Slip Catalysts
Figure 18 Ammonia Slip Catalyst Technology Market Insights
Table 35 Ammonia Slip Catalyst Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.6 Electrically Heated Catalysts
Figure 19 Electrically Heated Catalyst Market Insights
Table 36 Electrically Heated Catalyst Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.7 Exhaust Gas Recirculation Systems
Figure 20 Exhaust Gas Recirculation System Market Insights
Table 37 Exhaust Gas Recirculation System Market, by Vehicle Type, 2026-2035 (Thousand Units)
7.8 Lean NOx Traps
Figure 21 Lean NOx Trap Market Insights
Table 38 Lean NOx Trap Market, by Vehicle Type, 2026-2035 (Thousand Units)
8 Euro 7 Compliant Emission Sensors Market, by Sensor Type
8.1 Introduction
Figure 22 Euro 7 Compliant Emission Sensors Market, by Sensor Type (Thousand Units)
Table 39 Euro 7 Compliant Emission Sensors Market, by Sensor Type, 2026-2035 (Thousand Units)
8.2 Research Methodology
8.2.1 Assumptions
Table 40 ASP Analysis, by Sensors, 2021 (USD)
8.3 Exhaust Gas Pressure Sensors
Table 41 Exhaust Gas Pressure Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.4 Exhaust Gas Temperature Sensors
Table 42 Exhaust Gas Temperature Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.5 Particulate Matter Sensors
Table 43 Particulate Matter Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.6 Oxygen/Lambda Sensors
Table 44 Oxygen/Lambda Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.7 NOx Sensors
Table 45 NOx Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.8 Engine Coolant Temperature Sensors
Table 46 Engine Coolant Temperature Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
8.9 MAP/MAF Sensors
Table 47 MAP/MAF Sensors Market, by Vehicle Type, 2026-2035 (Thousand Units)
9 Competitive Landscape
9.1 Overview
9.2 Euro 7 Market Ranking Analysis, 2021
Figure 23 Euro 7 Market Ranking Analysis, 2021
Figure 24 Revenue Analysis of Top Listed/Public Players (Aftertreatment Device Suppliers), 2021
9.3 Company Evaluation Quadrant (Aftertreatment Device Suppliers)
9.3.1 Stars
9.3.2 Emerging Leaders
9.3.3 Pervasive Players
9.3.4 Participants
Figure 25 Competitive Evaluation Matrix (Aftertreatment Device Suppliers), 2021
Figure 26 Competitive Evaluation Matrix (Catalytic Converter Suppliers), 2021
Figure 27 Companies Adopted Product Developments and Expansions as Key Growth Strategies, 2019-2022
9.4 Competitive Scenario
9.4.1 Product Launches
9.4.2 Product Launches, 2019-2022
Table 48 Product Launches, 2019-2022
9.4.3 Deals
Table 49 Deals, 2019-2022
9.4.4 Other Developments, 2019-2022
Table 50 Other Developments, 2019-2022
9.4.5 Right to Win
Table 51 Companies Adopted Product Developments, Partnerships, and Supply Contracts as Key Growth Strategies from 2019-2022
9.5 Competitive Benchmarking
Table 52 Aftertreatment Device Manufacturers: Detailed List of Key Startups/SMEs
Table 53 Competitive Benchmarking of Key Players, by Application and Region
10 Company Profiles
10.1 Key Players
10.2 Aftertreatment Device Manufacturers
(Business Overview, Products Offered, Recent Developments, Analyst's View)*
10.2.1 Eberspächer
Table 54 Eberspächer: Business Overview
Figure 28 Eberspächer: Company Snapshot
Table 55 Eberspächer: Products Offered
Table 56 Eberspächer: Product Developments
Table 57 Eberspächer: Deals
Table 58 Eberspächer: Other Developments
10.2.2 Forvia
Table 59 Forvia: Business Overview
Figure 29 Forvia: Company Snapshot
Table 60 Forvia: Products Offered
Table 61 Forvia: Product Developments
Table 62 Forvia: Deals
Table 63 Forvia: Other Developments
10.2.3 Tenneco Inc.
Table 64 Tenneco Inc.: Business Overview
Figure 30 Tenneco Inc.: Company Snapshot
Table 65 Tenneco Inc.: Product Developments
Table 66 Tenneco Inc.: Deals
Table 67 Tenneco Inc.: Other Developments
10.2.4 Johnson Matthey
Table 68 Johnson Matthey: Business Overview
Figure 31 Johnson Matthey: Company Snapshot
Table 69 Johnson Matthey: Products Offered
Table 70 Johnson Matthey: Other Developments
10.2.5 Umicore
Table 71 Umicore: Business Overview
Figure 32 Umicore: Company Snapshot
Table 72 Umicore: Products Offered
Table 73 Umicore: Deals
10.3 Technology Suppliers/Sensors Manufacturers
10.3.1 Robert Bosch GmbH
Table 74 Robert Bosch GmbH: Business Overview
Figure 33 Robert Bosch GmbH: Company Snapshot
Table 75 Robert Bosch GmbH: Products Offered
Table 76 Robert Bosch GmbH: Product Developments
Table 77 Robert Bosch GmbH: Deals
Table 78 Robert Bosch GmbH: Other Developments
10.3.2 Siemens
Table 79 Siemens: Business Overview
Figure 34 Siemens: Company Snapshot
Table 80 Siemens: Products Offered
Table 81 Siemens: Product Developments
Table 82 Siemens: Deals
10.3.3 Borgwarner Inc.
Table 83 Borgwarner Inc.: Business Overview
Figure 35 Borgwarner Inc.: Company Snapshot
Table 84 Borgwarner Inc.: Products Offered
Table 85 Borgwarner Inc.: Deals
Table 86 Borgwarner Inc.: Other Developments
10.3.4 Continental AG
Table 87 Continental AG: Business Overview
Figure 36 Continental AG: Company Snapshot
Table 88 Continental AG: Products Offered
Table 89 Continental AG: Product Developments
Table 90 Continental AG: Deals
10.3.5 Denso
Table 91 Denso: Business Overview
Figure 37 Denso: Company Snapshot
Table 92 Denso: Products Offered
Table 93 Denso: Product Developments
Table 94 Denso: Deals
Table 95 Denso: Other Developments
10.3.6 Snap-On
Table 96 Snap-On: Business Overview
Figure 38 Snap-On: Company Snapshot
Table 97 Snap-On: Products Offered
Table 98 Snap-On: Product Developments
Table 99 Snap-On: Deals
Table 100 Snap-On: Other Developments
10.3.7 Sensata Technologies
Table 101 Sensata Technologies: Business Overview
Figure 39 Sensata Technology: Company Snapshot
Table 102 Sensata Technologies: Products Offered
Table 103 Sensata Technologies: Product Developments
Table 104 Sensata Technologies: Deals
10.4 Software Providers
10.4.1 KPIT
Table 105 KPIT: Company Overview
10.4.2 Crypton Technology
Table 106 Crypton Technology: Company Overview
10.4.3 AVL
Table 107 AVL: Company Overview
10.4.4 Horiba
Table 108 Horiba: Company Overview
10.4.5 Applied Systems Ltd.
Table 109 Applied Systems Ltd.: Company Overview
*Details on Business Overview, Products Offered, Recent Developments, Analyst's View Might Not be Captured in Case of Unlisted Companies
11 Appendix
11.1 Insights of Industry Experts
11.2 Discussion Guide
11.3 Knowledgestore: The Subscription Portal
Companies Mentioned
- Applied Systems Ltd.
- AVL
- BMW
- Borgwarner Inc.
- Continental AG
- Crypton Technology
- Denso
- Eberspächer
- Ford
- Forvia
- Horiba
- Hyundai
- Jaguar Land Rover (JLR)
- Johnson Matthey
- KPIT
- Mercedes-Benz
- Nissan
- Peugeot
- Renault
- Robert Bosch GmbH
- Sensata Technologies
- Siemens
- Snap-On
- Stellantis
- Tenneco Inc.
- Umicore
- Volkswagen AG
- Volvo
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 170 |
| Published | March 2023 |
| Forecast Period | 2026 - 2035 |
| Estimated Market Value in 2026 | 13.6 Million Units |
| Forecasted Market Value by 2035 | 14.1 Million Units |
| Compound Annual Growth Rate | 0.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 28 |
