The global market in emission control catalysts is set to grow exponentially as passenger car sales expand over the next five years.
According to reports by Global Industry Analysts (GIA the catalyst and car markets are both set to grow over the next five years and go hand-in-hand. According to the analysts' passenger car sales report, the auto industry faces two main challenges - transition from fossil to alternative fuels and reducing C0² emissions.
|
The passenger car market is set to reach 86.5m units by 2017, helped by GDP growth in the BRICS countries - particularly India and China, where per capita GDP is heading above the $4,000 mark. According to GIA, countries where per capita GDP exceeds $4,500 see car ownership tending to double at a faster rate than per capita income.
With such strong growth potential, the news is good for catalyst manufacturers who are likely to see the market top $7.7bn by 2017. According to GIA's Emission Control Catalyst market anaylsis, strengthening environmental regulations around the globe can only be positive for the industry. The new Euro V regulations are introducing even more stringent particulate controls, with Asia starting to follow Europe's lead with Latin America and the Middle East also providing strong markets for the catalyst makers.
Catalyst production is currently focused in the West, according to the report, although this is likely to change as manufacturers look to China, India and Thailand as a base for manufacturing plants.