Automotive EGR Market

Automotive EGR Market Overview

The global Automotive EGR Market size was valued at USD 19.26 billion in 2023 and is predicted to reach USD 34.37 billion by 2030 with a CAGR of 10.1% from 2024-2030. The automotive exhaust gas recirculation (EGR) market refers to the production, distribution, and utilization of systems designed to reduce nitrogen oxide (NOx) emissions from internal combustion engines.

EGR systems work by recirculating a portion of exhaust gases back into the engine's combustion chambers, where they dilute the incoming air-fuel mixture, thus lowering the combustion temperature and subsequently reducing the formation of NOx.

These automotive exhaust systems are crucial components of modern vehicle emissions control systems, helping automakers meet increasingly stringent environmental regulations while maintaining engine performance and fuel efficiency. 

Market Dynamics and Trends

The global automotive EGR market is experiencing significant growth driven by the surge in motor vehicle production that uses EGR systems as a crucial component in controlling emissions. According to the Association of European Automobile Manufacturers (ACEA), global motor vehicle production reached 85.4 million units in 2022, marking a 5.7% increase compared to the previous year, 2021. This rise in vehicle population underscores the automotive industry's growing reliance on EGR systems for mitigating pollution across the globe.

Moreover, the increasing government regulations across the globe to curb harmful vehicle emissions is another factor propelling the automotive EGR market growth. For example, the European Commission (EC) and the Government of India (GoI) proposed various stringent regulatory standards such as Euro 7 and Bharat Stage VI (BS VI) for reducing harmful pollutants including NOx emissions caused by vehicles.

These stringent emission standards are compelling automakers to adopt advanced emission control technologies, including EGR systems, that are effective in reducing NOx emissions from combustion engines.

Additionally, worldwide rising air pollution further drives the automotive EGR market demand by lowering NOx emissions from vehicles through exhaust gas recirculation. Air pollution is the most pressing environmental health crisis in the world, with NOx released by motor vehicles acting as a primary contributor.

As per the report published by the World Health Organization (WHO) in 2024, air pollution led to an estimated 7 million deaths every year. EGR systems play a crucial role in reducing NOx emissions from automotive engines, that in turn drives the market. However, the shift towards electric vehicles (EVs) is restraining the automotive EGR market expansion. On the contrary, the increasing adoption of electronic EGR valves is expected to create future opportunities in the sector. This system will lead to optimum emissions reduction without compromising engine efficiency and performance.

Market Segmentations and Scope of the Study

The automotive EGR market report is segmented on the basis of component, vehicle type, engine type, application, and region. On the basis of component, the market is segmented into cooler, valve, pipe, and others. On the basis of vehicle type, the market is classified into passenger vehicle, commercial vehicle, and heavy-duty vehicles. On the basis of engine type, the market is bifurcated into diesel and gasoline. On the basis of application, the market is divided into OEM and aftermarket. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW). 

Geographical Analysis

Asia-Pacific holds the dominant share of the automotive EGR market share and is expected to continue its dominance during the forecast period. This is attributed to the widespread stringent environmental regulations aimed at reducing nitrogen oxide (NOx) emissions in this region. To meet these regulatory requirements, automakers in this region are increasingly incorporating EGR systems into their vehicles.

For instance, in January 2023, Cummins launched a new CS IV engine range specifically for the Chinese market, meeting China National Stage IV emissions (CS IV) standards that began on December 1, 2022. These initiatives highlight the proactive adoption of EGR technology in Asia-Pacific region.

Moreover, the increasing automotive manufacturing in the Asia-Pacific region that requires the adoption of EGR systems to meet environmental standards and regulations is another factor driving the growth of the market.

According to data from the Society of Indian Automobile Manufacturers (SIAM), automotive production in India witnessed an 18% increase from January 2022 to January 2023, reaching 188 thousand units by January 2023. This surge in automotive production increases the demand for EGR as a crucial component of the automotive manufacturing landscape.

On the other hand, in the North American region, the automotive EGR market is steadily growing, fueled by the introduction of self-cleaning EGR valves to address carbon buildup issues that affect valve performance. This innovative feature ensures efficient recirculation of exhaust gases and contribute to lower emissions.

For instance, in May 2022, Stanadyne launched a self-cleaning EGR valve for reducing nitrogen oxide emissions from internal combustion engines, particularly in diesel vehicles. This increased reliability and longevity provided by self-cleaning EGR valves make them attractive to automakers seeking advanced solutions for emission control and regulatory compliance.

Also, the growing adoption of internal combustion engines in the North American further increases the demand for automotive emission controls. As regulatory standards become more stringent on pollutants, EGR systems become crucial for reducing NOx emissions in internal combustion engines.

For example, in January 2023, General Motors (GM) invested heavily in the production of internal combustion engines (ICE) for trucks and SUVs. The company invested nearly USD 1 billion into several U.S. plants to prepare for the production of future ICE vehicles. This increasing production of ICE grows the demand for effective solutions to address environmental concerns associated with traditional engine technologies, thereby boosting the automotive EGR market trends.

Competitive Landscape

Various market players operating in the automotive EGR industry includes BorgWarner Inc., Delphi Automotive LLP, Denso Corporation, Valeo SA, Mahle GmbH, Continental AG, Wuxi Longsheng Technology Corporation, Futaba Industrial Co., Ltd., Friedrich Boysen GmbH & Co. KG, Bosal Automotive Division, and others.

These companies continue to adopt various market development strategies including business expansion and product launches to maintain their dominance in the market. For instance, in July 2024, Valeo expanded its EGR valve range for the European market. The expanded range from Valeo Service includes EGR valves for a variety of popular European vehicle models, ensuring a comprehensive solution for aftermarket repair and maintenance needs.

Additionally, in September 2023, BorgWarner launched a new line of EGR valves for the aftermarket. These valves are electrically actuated and feature high actuation force, fast response time, and patented anti-contamination and anti-sticking technology.  The valves are designed to be highly efficient, reducing fuel consumption, and comply with global emissions standards. 

Key Benefits

• The report provides quantitative analysis and estimations of the automotive EGR market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future automotive EGR market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

Automotive EGR Market Key Segments

By Component

• Cooler

• Valve

• Pipe

• Others

By Vehicle Type 

• Passenger Vehicle

• Commercial Vehicle

• Heavy-Duty Vehicles

By Engine Type 

• Diesel 

• Gasoline

By Application

• OEM 

• Aftermarket

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 19.26 Billion
Revenue Forecast in 2030	USD 34.37 Billion
Growth Rate	CAGR of 10.1% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The surge in motor vehicle production is propelling the market. The increasing government regulations across the globe is boosting the market. The worldwide rising air pollution drives the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• BorgWarner Inc.

• Delphi Automotive LLP

• Denso Corporation

• Valeo AG

• Mahle GmbH

• Continental AG

• Wuxi Longsheng Technology Corp.

• Futaba Industrial Co., Ltd.

• Friedrich Boysen GmbH & Co. KG

• Bosal Automotive Division