Europe Automotive Exhaust System Market Outlook, 2030

The implementation of Euro emission standards, which established increasingly stringent limits on pollutants like nitrogen oxides (NOx), carbon monoxide (CO), hydrocarbons, and particulate matter, significantly accelerated the development of automotive exhaust systems in Europe, notably in Germany and the UK. These rules encouraged the early adoption of cutting-edge exhaust technologies, compelling automakers to move away from simple tailpipe designs and toward comprehensive emission control systems. Due to their fuel economy, diesel cars were formerly popular in European markets.

However, manufacturers switched from simple exhaust systems to sophisticated systems like diesel particulate filters (DPFs), which gained popularity after the Euro 4 and Euro 5 standards. DPFs dramatically reduced soot emissions by capturing and incinerating particulate matter via regulated regeneration cycles. But the Dieselgate controversy revealed manipulation of emissions testing results, emphasizing the disparity between lab and real-world performance. As a result of this dispute, there was a huge regulatory response, and automakers were compelled to spend money on cleaner, more dependable exhaust technologies.

The widespread adoption of Selective Catalytic Reduction (SCR) systems, which employ urea-based AdBlue fluid to convert NOx into harmless nitrogen and water vapor, was one example of such a breakthrough. SCR technology was essential for adherence to Euro 6 standards since it provided technical benefits such as a high NOx reduction rate and compatibility with lean-burn diesel engines. Strategic R&D collaborations between car manufacturers and chemical industry titans like BASF also contributed to the evolution of exhaust technologies.

By facilitating the creation of high-performance catalyst coatings, lightweight ceramic substrates, and next-generation NOx traps, these partnerships sped up the market readiness of compliant systems. Through shared innovation and regulatory pressure, Europe's exhaust systems sector has evolved into a global benchmark for clean combustion technology - laying the groundwork for future hybrid and zero-emission platforms while ensuring cleaner air in urban centers across the continent.

According to the research report, "Europe Automotive Exhaust Systems Market Outlook, 2030," the Europe Automotive Exhaust Systems market is expected to reach a market size of more than USD 14.34 Billion by 2030. Due to strict environmental laws, technological advancements, and strategic industry alliances, the European market for automotive exhaust systems is seeing rapid expansion. The main market drivers are green mobility initiatives and environmental legislation.

Diesel particulate filters (DPFs) and selective catalytic reduction (SCR) systems are just two examples of the sophisticated exhaust technology that has been adopted by the European Union as part of its commitment to lowering automobile emissions. In order for manufacturers to achieve demanding emission standards and aid the EU's larger climate objectives, these technologies are crucial. The most cutting-edge developments in exhaust systems are coming from top European companies such as Bosal and Eberspächer. Eberspächer, under its brand Purem by Eberspächer, has created active heating solutions that improve exhaust gas purification during cold starts, which is a crucial stage for emission control.

Bosal has released lightweight exhaust components intended to increase fuel efficiency and lower emissions. Leading original equipment manufacturers (OEMs) and Tier 1 suppliers, such as ElringKlinger, Continental AG, and Forvia (previously Faurecia), incorporate cutting-edge exhaust solutions into their automobiles. These businesses work in close partnership with automobile manufacturers to create systems that satisfy both regulatory and performance standards. For instance, to guarantee adherence to existing and future emission requirements, Forvia provides emission control technologies to several automobile manufacturers. The market penetration is significantly influenced by EU vehicle emission certifications and CE marking.

CE marking demonstrates that a product complies with EU safety, health, and environmental protection regulations, which promotes its free movement throughout the European Economic Area. Adherence to EU emission certifications guarantees that exhaust systems meet set environmental standards, which boosts consumer confidence and market acceptability. European automobile exhaust systems industry is expected to continue to expand, supported by regulatory requirements, technological advancements, and strategic alliances between industry participants.

Market Drivers

• strict emission regulations: Some of the strictest emission regulations in the world are enforced by the European Union, such as Euro 6 and the soon-to-be-implemented Euro 7 requirements. These regulations require lower particulate matter (PM), carbon monoxide (CO), and nitrogen oxides (NOx) emissions. Diesel Particulate Filters (DPFs) and Selective Catalytic Reduction (SCR) are two examples of the sophisticated exhaust technologies that automakers must invest in. The market's technical advancement is largely due to this regulatory drive. Noncompliance may result in fines or prohibitions, which would increase OEM demand for integrated emission control systems. The aftermarket improvements for older cars are also impacted by government pressure.
• Increase in Clean-Combustion and Hybrid Automobiles: Despite the increasing popularity of electrification, many European consumers continue to choose low-emission combustion cars or hybrid vehicles. To balance fuel economy and emission norms, these cars need exhaust systems that are well optimized. In order to address the exhaust problems of small, turbocharged engines, particularly in models designed for city use, manufacturers are creating exhaust solutions. This driver promotes ongoing advancements in thermal management, sensor technology, and materials for exhaust components. The ongoing demand for partial exhaust systems is maintained by the rise of hybrid vehicle sales throughout Europe.

Market Challenges

• Changeover to Electric Vehicles (EVs): Demand for conventional exhaust systems may decrease as the usage of electric vehicles increases throughout Europe. Because they are entirely electric, cars do not need exhaust systems, which represents a long-term danger to companies that depend on income from ICE-related products. Despite the fact that hybrid and ICE cars continue to hold the majority, the transition to total electrification may eventually lessen investments in exhaust systems. To stay competitive, OEMs and suppliers need to change their R&D focus.
• Expensive Regulatory and Innovative Requirements: Significant R&D investment in materials, sensors, and catalytic technology is necessary in order to comply with future Euro 6 and Euro 7 standards. These sophisticated systems increase the cost of producing cars, which can result in lower profits or be passed on to consumers. It may be difficult for smaller manufacturers to keep up with technological advances and regulatory compliance. The financial burden can prevent market entry and slow down the pace of innovation.

Market Trends

• Exhaust Solutions That Are Lightweight and Compact: In order to increase fuel efficiency and reduce vehicle weight, manufacturers are shifting toward smaller, lighter exhaust systems. The use of sophisticated materials such ceramic composites and stainless-steel alloys is becoming more prevalent. These lighter systems improve vehicle handling and performance in addition to assisting in the attainment of CO2 reduction targets. In line with the industry's emphasis on sustainability and performance, integrated exhaust components are becoming more modular and efficient.
• IoT and Smart Sensor Integration: Real-time emissions monitoring is becoming more common with the use of intelligent sensors in modern exhaust systems. IoT integration is enabling automakers to guarantee that they comply with emission regulations, even while driving in the real world. These systems may transmit data for fleet management, on-board diagnostics (OBD), or regulatory reporting. The aftermarket service models are also enhanced by predictive maintenance capabilities that use sensor data. This trend is in line with Europe's efforts to promote digital transformation and cleaner transportation.

Due to the increasing use of gasoline direct injection (GDI) engines and Euro 6/7 emission laws that aim to lower particulate matter emissions, Gasoline Particulate Filters (GPFs) are the fastest-growing segment in Europe's automotive exhaust systems market.

The fastest-growing segment of Europe's automotive exhaust systems industry is the Gasoline Particulate Filter (GPF) segment, which is mostly fueled by the widespread use of Gasoline Direct Injection (GDI) engines and increasingly stringent emissions regulations. In contemporary gasoline vehicles, GDI engines are now popular due to their increased fuel efficiency and power output, but they regrettably release more particulate matter (PM) than conventional port fuel-injected engines. In response, regulatory organizations all throughout Europe have set restrictions on the amount of particulate number (PN) released by gasoline engines in addition to limits on NOx and CO₂, notably under the upcoming Euro 6d and Euro 7 emission standards.

This change has made GPFs necessary for automakers to satisfy regulatory obligations. GPFs, unlike Diesel Particulate Filters (DPFs), are designed to filter out ultrafine particles while having little impact on engine performance or backpressure. They are optimized for gasoline engine combustion properties. GPFs are becoming increasingly common as standard components of OEM production lines as European consumers continue to prefer gasoline vehicles, particularly compact cars, SUVs, and hybrids. The adoption of GPF technology is further encouraged by government support for clean air programs in metropolitan regions, where particulate air pollution from traffic is a major issue.

Technological breakthroughs have also improved the GPF's durability, regeneration techniques, and cost-effectiveness, making it more appealing to consumers and OEMs alike, in addition to regulatory considerations. The demand for GPFs is predicted to rise sharply in the short future as hybrid cars frequently utilize GDI engines and the gasoline vehicle market remains strong in Europe. The GPF sector has established itself as the fastest-growing segment in the European exhaust systems market by not only promoting emissions compliance but also by aligning with broader environmental objectives and public health issues.

Due to the increasing need for real-time emissions monitoring and regulatory compliance under Euro 6d and Euro 7 standards, sensors are the fastest expanding segment of Europe's automotive exhaust systems industry.

Due to stricter emissions laws and the demand for real-time vehicle diagnostics, sensors are the fastest-growing element in the European market for automobile exhaust systems. Modern Euro 6d and forthcoming Euro 7 standards mandate accurate, consistent monitoring of vehicle emissions across a range of driving scenarios, in addition to requiring vehicles to produce fewer pollutants. Consequently, exhaust systems must include a variety of sophisticated sensors, including oxygen (O2), nitrogen oxide (NOx), temperature, and particulate matter (PM) sensors, to ensure that catalytic converters, diesel/gasoline particulate filters (DPFs/GPFs), and selective catalytic reduction (SCR) systems are performing at their best.

By allowing for accurate changes to air-fuel ratios and the initiation of after-treatment procedures, such as regeneration cycles or AdBlue dosing in SCR systems, these sensors deliver vital input to the engine control unit (ECU). The focus in Europe on lowering the actual environmental impact of automobiles, particularly under Real Driving Emissions (RDE) testing protocols, has increased the importance of sensor accuracy and responsiveness. Furthermore, the integration of sensor data into larger vehicle diagnostics and telematics platforms has increased as a result of the development of connected vehicles and predictive maintenance solutions.

In order to monitor system health, maximize performance, and comply with warranty and durability standards, OEMs are incorporating more sensors into both hybrid and ICE vehicles. In addition, the transition to electrified powertrains, which continue to include combustion components in hybrid models, maintains the need for exhaust sensors. Sensors have changed from passive elements to active facilitators of compliance, efficiency, and consumer confidence as automotive technology has gotten more and more software- and data-driven. Their increasing importance in digital diagnostics, regulatory frameworks, and vehicle platforms makes them the fastest-growing part of the automotive exhaust systems industry in Europe.

Passenger cars are the market leader and are expanding at the quickest rate in the European market for automotive exhaust systems because they hold the majority of vehicle production and because high-volume urban transportation is subject to more stringent emissions regulations.

Passenger vehicles are the biggest and fastest expanding sector of the European car exhaust systems market, owing to their overwhelming dominance in total vehicle sales and the continent's aggressive emission control laws that target mass transit. The majority of vehicles on European roadways are passenger cars, which include sedans, hatchbacks, SUVs, and crossovers, as opposed to heavy-duty or commercial trucks. Due to this high volume, there is a higher demand for exhaust system parts like advanced sensor arrays, selective catalytic reduction (SCR) systems, diesel and gasoline particulate filters (DPFs/GPFs), and catalytic converters.

All passenger automobiles in the European Union are subject to strict emissions rules, such as Euro 6d and the future Euro 7 standards, which mandate that manufacturers employ cutting-edge exhaust after-treatment technologies in order to stay in compliance. In addition, the emphasis on particulate number (PN) limits in urban areas and real driving emissions (RDE) testing has increased the pressure on manufacturers to improve emissions performance in this high-density vehicle class. Passenger vehicle emissions are further exacerbated by urbanization trends throughout Europe, prompting governments to implement low-emission zones (LEZs) in major cities, which has led OEMs to increase the exhaust efficiency of new models.

Furthermore, the growing popularity of hybrid vehicles, many of which still use combustion engines, supports the demand for sophisticated exhaust systems, even as the use of full EVs increases gradually. The increasing use of gasoline particulate filters (GPFs) in passenger segments is also influenced by consumer choices for SUVs and small cars, which often employ gasoline direct injection (GDI) engines. Passenger cars are both the foundation and the innovation hub for the European exhaust systems market, with their large production base, stricter compliance requirements, and evolving technologies, ensuring they remain the leading and fastest-growing vehicle type category for years to come.

The market for automotive exhaust systems in Europe is expanding at the fastest rate in the aftermarket sector as a result of aging vehicles, stricter emission test enforcement, and increased demand for replacement of compliant components.

The aftermarket sales channel is becoming the fastest-growing sector in Europe's automobile exhaust systems market, driven by a confluence of aging vehicle fleets, more stringent regulatory enforcement, and consumer demand for affordable emission compliance. Wear and tear on exhaust system components, such as catalytic converters, diesel/gasoline particulate filters (DPFs/GPFs), and mufflers, rises considerably as the average age of automobiles on European roads reaches more than 11 years. These parts are essential for both regulatory compliance and vehicle performance, especially under periodic technical inspections (PTI) that assess emissions.

The growing enforcement of Euro 6 and future Euro 7 regulations, even for vehicles in use, is pushing fleet operators and consumers to replace or improve exhaust components in order to avoid penalties or restrictions in low-emission zones (LEZs) in cities such as London, Berlin, and Paris. The growth in the market for hybrid and gasoline direct injection (GDI) vehicles has increased the need for specialized aftermarket components, such as gasoline particulate filters, which has broadened the scope of the aftermarket business. Independent workshops and parts providers are profiting from this trend by providing a wide selection of Euro-compliant, sensor-equipped exhaust systems and parts.

The growth of online auto parts retailers and e-commerce platforms also promotes aftermarket acceptance and accessibility throughout Europe. Furthermore, the high price of genuine manufacturer replacement parts frequently pushes consumers toward less expensive aftermarket options that nonetheless adhere to regulatory requirements, particularly in areas like Eastern Europe, where there are a lot of older automobiles.

Aftermarket exhaust systems have also become a popular choice for many motorists due to improvements in their durability and reliability as a result of technological developments in materials and design. Consequently, the aftermarket channel is becoming a key factor in the expansion of the European exhaust systems industry, in addition to satisfying an increasing demand for emissions compliance.

Germany holds the top spot in the European market for automotive exhaust systems thanks to its robust automotive industry, significant investment in research and development, and dominance in emissions control technology worldwide.

Germany dominates the European market for automotive exhaust systems because of its leading role as the region's top producer and exporter of automobiles. With some of the most well-known automotive brands in the world, including Volkswagen, BMW, Mercedes-Benz, and Audi, Germany has a sophisticated and integrated supply chain that enables the manufacture of large quantities of automobiles and their emission control systems. German companies are at the forefront of the development of emissions control technologies in the exhaust systems industry, building on the nation's leadership in engineering excellence and innovation.

Headquartered in Germany, companies like Eberspächer, BOSAL, and Boysen are experts in creating cutting-edge exhaust gas after-treatment technologies such catalytic converters, selective catalytic reduction (SCR) systems, and sensors for continuous emissions monitoring. Germany's dedication to R&D is another key factor contributing to its leadership. The nation has consistently made breakthroughs in lightweight materials, NOx reduction systems, and intelligent exhaust technologies that comply with or surpass EU standards, thanks to significant public and private investment in clean mobility research.

Furthermore, Germany's proactive approach to emissions legislation and its strong adherence to the goals of the European Green Deal force manufacturers and suppliers to innovate at a faster pace in order to keep up with regulatory requirements such as Euro 6d and Euro 7. Germany's market dominance is strengthened by its sizable domestic car parc, cutting-edge vehicle testing infrastructure, and impact on EU-wide automotive regulations. The introduction of new exhaust technologies is accelerated by the existence of advanced testing infrastructure and emissions certification organizations, which guarantees faster market adoption.

Germany also strengthens its position as a manufacturing and technology center by playing a key role in the export of emission-compliant exhaust systems to other European and worldwide markets. All of these factors work together to establish Germany as the clear frontrunner in the European automotive exhaust systems market, with a distinctive fusion of regulatory compliance, industrial prowess, and innovation.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Automotive Exhaust System Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By After-Treatment Device

• Diesel Particulate Filter (DPF)
• Selective Catalytic Reduction (SCR)
• Gasoline Particulate Filter (GPF)
• Three-way Catalytic Converter(TWC)
• Lean NOx Trap (LNT)
• Others(EGR, Ammonia Slip Catalyst, EHC)

By Component

• Manifolds
• Downpipes
• Catalytic Converter
• Mufflers
• Tailpipes
• Sensors
• Hangers
• Others (Resonator, Gaskets, Pipes)

By Sales Channel

• OEM
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.