Raw materials used for production primarily comprise metal catalysts which are usually costly and undergo frequent price fluctuations consequently introducing uncertainty in achieving demand consistency, optimal operations and profitability. Automakers also face the challenge of reducing the negative effect of these components on the automobiles’ fuel efficiency. Some catalyst converters lead to unwanted chemical reactions producing by-products such as sulfur oxides that prove to be environmentally harmful, thus challenging product quality. Mining techniques used in the extraction of raw materials such as palladium, platinum, rhodium result in a considerable amount of environmental pollution. Regulations for emissions limits as well as jurisdictions are not uniform across different countries as a result of which design of catalytic converters and production processes cannot be standardized.
Manufacturers are constantly bringing about innovations in the design of these converters for improving the efficiency and applications in new automobile segments as well as across a wide array of engines. There are a lot of scope in eco-friendly technologies of production, catalyst conversion reactions and emissions control. Companies are innovating in the direction of four-way catalytic converters with enhanced performance, quality and compatibility with advanced engines.
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The product can be segmented by product, material and technology. On the basis of product, these converters can be segregated into three-way catalysts( TWR), selective catalytic reduction( SC), diesel oxidation catalyst( DOC), lean Nox catalyst( LNC) and lean NOx trap( LNT). Two and three-way oxidation and diesel oxidation catalysts are expected to capture a sizeable market share on account of their inherent reduced emission feature. Based on material, the market can be sub-divided into palladium, platinum, rhodium and others. Platinum components are predominantly used but owing to the price rise in this type palladium and rhodium catalysts are expected to gradually capture the market share. Converters can use two techniques for conversion of harmful emissions, namely coil on plug ignition and simultaneous ignition.
Developed markets such as the U. S., Canada, Germany, France and UK are at a maturity stage. However, prominent automotive companies as well as Original Equipment Manufacturers( OEMs) are located in these countries. Collaborations between these companies and converter manufacturers are expected to maintain steady demand for the components and technology development in the sector. Emerging economies China, India, South Korea and Japan are anticipated to grow at a high rate. This can be attributed to growing number of manufacturing facilities in Asia on account of low production costs, availability of skilled labor, and increasing capabilities of the units and rise in demand.