Strict and stringent regulatory norms are being enforced worldwide since the signing of The Paris Agreement in 2016 to fight climate change; for instance, adoption of Bharat Stage-VI Emission Standards in India, Euro Standards in Europe, National Ambient Air Quality Standards in the U.S., etc.
Air pollution is a major contributor to climate change. According to the Union of Concerned Scientists (UCS) USA, heavy vehicles comprise approximately 5% of the total number of vehicles globally and are responsible for more than 25% of the total emission. These emit CO, CO2, NO2, hydrocarbons, etc. These gases are harmful for the environment and leading to climate change. Emission control devices convert harmful emissions into non-hazardous gases and then release them into the atmosphere. The rise in demand for emission control devices can be attributed to their mandatory installation in vehicles as per government regulations. This indicates higher requirement for advanced technologies involving emission control devices.
Key Drivers of Global Automotive Emission Control Devices Market
According to the U.S. EPA, the U.S. accounts for 30% of the world’s on-road vehicles that contribute 50% to the world’s total vehicle emissions. In 2008, China became the highest CO2 emitter, followed by the U.S., EU, India, and Russia. In 2016, post the Paris agreement, these countries have taken initiatives to reduce CO2, NO2, and other emissions to fight climate change. In order to achieve control over emissions caused by vehicles, there is an increase in demand for new and more effective emission control devices and technologies. For instance, nowadays, vehicles are equipped with several IoT devices powered by Artificial Intelligence (AI). The development of electric emission control devices powered by such systems can be considered as a growth opportunity.
Emissions are directly proportional to fuel consumption. For instance, a diesel car emits 95 g CO2 per 3.7 liters of diesel per 100 km, while petrol car emits same amount of CO2 per 4 liters of petrol per 100 km. Hence, emission control devices are used to improve fuel efficiency while reducing emissions.