The global automotive exhaust gas recirculation (EGR) system market size was around USD 21.10 Bn in 2022 and is likely to reach USD 46.87 Bn by 2031, expanding at a CAGR of 9.30% during 2023–2031. The growth of the market is attributed to increasing environmental awareness and stringent vehicle emission standards.
An exhaust gas recirculation (EGR) system is installed in a vehicle’s engine, which carries exhaust gases and pollutants collected at an engine’s outlet to its combustion chambers via the intake manifold. The exhaust gas sensor monitors the EGR cooler operations and measures the temperature and number of pollutants present in the exhaust gases.
The mechanism ultimately helps to reduce the engine’s temperature. This results in reduced Nitrogen Oxide gas (NOx) emission into the air by reducing the combustion temperature in the cylinders. EGR systems enhance the performance of the vehicle’s engines by reducing fuel consumption. It reduces the torque and brake power output of diesel engines, which helps to decrease NOx and CO2 emissions.
The COVID-19 pandemic affected the EGR market and faced a major setback, due to a sharp decline in the automobile industry. Many industries that develop EGR systems already announced possible delays in product delivery, due to the lack of timely supply of raw materials, labor shortage, and transportation restrictions, which disrupt the overall supply chain of the market.
Automotive Exhaust Gas Recirculation (EGR) Market Dynamics
Key Trends
Innovation of the EGR bypass cooler has drawn the market. This type of EGR cooler has a bypass valve that carries exhaust gases back into the combustion chamber when the engine operates at low temperatures. It boosts engine performance and reduces combustion, resulting in reduced emissions of hydrocarbons and other harmful wastes. It also reduces the risk of diesel filter failure by particulate saturation.
Major Drivers
Mandatory implementation of EGR system into vehicles engine is a major factor driving the market growth. Governments across the globe signing various agreements to control the emission of harmful pollutants. However, stringent emission norms and penalties regarding pollution under control (PUC) certification marks boost the demand for EGR systems during the forecast period.
Increasing awareness among the population regarding the drawbacks of harmful emissions from vehicles drives market growth. People are well aware of pollution, global warming, ozone layer depletion, acid rain, and other such environmental tragedies caused due to excessive human interference in nature. Thus, the automobile industry highly demands advanced EGR systems, due to the growing environmental concerns, which accelerates the growth of the market.
Existing Restraints
EGR system may affect an engine’s performance resulting in reduced horsepower of the vehicles, and increased exhaust gas temperatures, which hinders the market growth. Furthermore, the high maintenance cost of the EGR system restraints the market at a certain limit.
The increasing popularity of electric vehicles hampers the market. Rising awareness regarding eco-friendly solutions and government initiatives toward reducing pollution encouraged consumers to adopt electric vehicles, which further decrease the demand for EGR systems.
Emerging Opportunities
Rising technological advancements coupled with the growing adoption of automatic and luxury cars create immense growth opportunities in the market. The automotive industry is becoming technology-oriented with new innovations to produce high-tech and advanced vehicles, which fuels the growth of the market.
Scope of Automotive Exhaust Gas Recirculation (EGR) Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Automotive Exhaust Gas Recirculation (EGR) System Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product Type (EGR Coolers, EGR Pipes, and EGR Valves), Pressure (Low-pressure EGR Systems and High-pressure EGR Systems), and Application (Commercial Vehicles and Passenger Cars)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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BorgWarner Inc.; ElringKlinger, AG; Embarcadero; Continental AG; Pierberg; Klubert + Schmidt; Wells Vehicle Electronics; GITS Manufacturing; Eberspacher; Korens; Wuxi LongSheng Technology; Infocom Network Pvt. Ltd.; MAHLE GmbH; and IAV
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Automotive Exhaust Gas Recirculation (EGR) Market Segment Insights
Product Type Segment Analysis
Based on product type, the automotive exhaust gas recirculation (EGR) system market is divided into EGR coolers, EGR pipes, and EGR valves. The EGR valves segment held a key market share in 2021 and is expected to expand at a considerable CAGR during the projection period as it lowers the amount of oxygen formation and forms water vapor. It cools the overall temperature of an engine and reduces the emission of NOx gas.
EGR valves are manufactured in compliance with stringent vehicle emission regulations. The valves are the main component of an EGR system, as it recycles the exhaust gases and let them merge with fresh air at the inlet. It has the ability to control the flow of gas in the engine.
The EGR coolers segment is anticipated to grow at a rapid pace during the forecast period, due to the growing requirements for reducing the emission of NOx gas. It lowers the combustion temperature of an engine and prevents overheating of the engine, resulting in improved engine performance.
Pressure Segment Analysis
On the basis of pressure, the market is bifurcated into low-pressure EGR systems and high-pressure EGR systems. The high-pressure EGR systems segment is projected to register a robust growth rate in coming years as it operates at lower speeds and loads than a vehicle engine. High-pressure EGR systems are used for short-distance transportation. Hence it is able to provide higher dynamics.
The low-pressure EGR systems segment is expected to grow at a significant growth rate during the forecast period. A low-pressure EGR system recirculates the exhaust gases into the combustion chamber. It consumes a lesser amount of fuel and reduces heat & pumping, due to advanced combustion phasing.
Application Segment Analysis
Based on application, the market is segmented into commercial vehicles and passenger cars. The passenger cars segment is expected to register a considerable CAGR during the assessment period, due to the rising adoption of passenger cars. The segment growth is further attributed to the growing requirement for the upgradation of passenger vehicles and the rising passenger car production in developing countries such as India and China.
Regional Analysis
In terms of region, the global automotive exhaust gas recirculation (EGR) system market is fragmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market in the coming years. Rising urbanization at a rapid pace within the region highly demands for commercial vehicles as the majority of the population prefers private vehicles. Growing awareness regarding safety features among the population demands for advanced EGR system, which propels the regional market growth.
Segments
The global automotive exhaust gas recirculation (EGR) system market has been segmented on the basis of
Product
- EGR Cooler
- EGR Pipe
- EGR Valve
Pressure
- Low-Pressure EGR Systems
- High-Pressure EGR Systems
Application
- Commercial vehicles
- Passenger cars
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- BorgWarner Inc.
- ElringKlinger, AG
- Embarcadero
- Continental AG
- Pierberg
- Klubert + Schmidt
- Wells Vehicle Electronics
- GITS Manufacturing
- Eberspacher
- Korens
- Wuxi LongSheng Technology
- Infocom Network Pvt. Ltd.
- MAHLE GmbH
- IAV
Competitive Landscape
Key players competing in the global automotive exhaust gas recirculation (EGR) system market are BorgWarner Inc.; ElringKlinger, AG; Embarcadero; Continental AG; Pierberg; Klubert + Schmidt; Wells Vehicle Electronics; GITS Manufacturing; Eberspacher; Korens; Wuxi LongSheng Technology; Infocom Network Pvt. Ltd.; MAHLE GmbH; and IAV.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
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On April 26, 2019, BorgWarner announced the extension of their REMAN range offering 6 new REMAN EGR valves, for passenger car applications. It is a high-quality, cost-effective product that is remanufactured and is original equipment.
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