Euro 7 Regulations Compliant Market worth 14.1 million units by 2035 – Exclusive Report by MarketsandMarkets™

CHICAGO, March 10, 2023 /PRNewswire/ — Euro 7 Regulations Compliant Market is estimated to grow from 13.6 million units in 2026 to 14.1 million units by 2035 at a CAGR of 0.4% from 2026 to 2035, according to a new report by MarketsandMarkets™. The European Commission has been focusing on technologies that will help achieve the goal of zero emissions from the automotive sector. The automotive industry, already moving forward on the trend of electrification, is now baffled by the stricter norms imposed by the European Commission, as it may impact their businesses on a considerable level. Under Euro 6, various powertrain and after-treatment technologies are being used; however, they will need modifications to comply with Euro 7. Hence, the market for after-treatment technologies will grow during the forecast period from 2026-2035. 

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Browse in-depth TOC on “Euro 7 Regulations Compliant Market”

109 – Tables
39 – Figures
73- Pages

Euro 7 Regulations Compliant Market Scope:

Report Coverage

Details

Market Size

14.1 million units by 2035

Growth Rate

0.4% of CAGR

Market Dynamics

Drivers, Restraints, Opportunities & Challenges

Forecast Period

2026-2035

Forecast Units

Value (units)

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

Segments Covered

By Vehicle Type, Technology

Report Highlights

Updated financial information/Company Evaluation Quadrant

Key Market Opportunities

Increased periodic maintenance of vehicles

Key Market Drivers

Zero emission targets by 2050

Under Euro 7 regulations compliant market, powertrain technology will be developed to an advanced stage. The after-treatment systems will be more complex to ensure clean operation under various operating conditions. Both light-and heavy-duty vehicles will be required to monitor emissions using multiple sensors in the exhaust system. Below is the table showing the reduction in pollutant limits, which leads to the development and advancement of different after-treatment technologies.

The passenger cars would be the largest Euro 7 compliant market over the forecast period

Passenger cars include vehicles with a maximum seating capacity of seven and a gross vehicle weight rating (GVWR) of <3.5 tons, expected to lead the vehicle type segment during the forecast period. Passenger cars contribute to around 78% of the total EU production. Germany is the biggest automotive market in Europe; in production and sales terms, accounting for around 25% of all passenger cars manufactured and almost 20% of all new registrations. Euro 7/VII proposal is targeted to achieve the 2035 target for zero CO2 emissions in cars and vans. The pollutant limits are also reduced under Euro 7 compared to Euro 6 regulations, and to comply with the new regulations, OEMs, and Tier 1 manufacturers are developing advanced after-treatment technologies. For instance, in 2023, BMW launched BMW 7 Series G70 Combustion engines, ready to comply with Euro 7 Regulations. Like, earlier Euro regulations, the pollutant limits for diesel and gasoline vehicles have different limits. Under Euro 7, 30 mg/km for nitrogen oxides (NOx), 2 mg/km for particle mass, 400 mg/km for carbon monoxide (CO), 45 mg/km for non-methane organic gases (NMOG), and 1*10 ^11 /km for particle number limits have been set for light-duty vehicles. To comply with the reduced emission limits, lean NOx trap is in demand in gasoline engines and SCR & EGR systems in diesel engines. The passenger car segment, the major contributor to the total EU vehicle production, will lead the market.

Exhaust gas recirculation (EGR) would be the dominating after-treatment technology over the forecast period

EGR is an emission control technology allowing significant NOx emission reductions from most diesel engines in light, medium, and heavy-duty vehicles. The Euro 7 regulation imposes tighter emission limits for diesel vehicles, reducing the maximum limit for nitrogen oxide (NOx) to 60 mg/km, from 80 mg/km under Euro 6. The limits for petrol remain the same at 60mg/km. In diesel-powered vehicles, a combination of urea-SCR and EGR is used to achieve the new limits. EGR has a different purpose for gasoline (petrol) engines. It is used mainly to reduce the temperature of the exhaust gases to protect the turbocharger and the catalytic converter. Hence, EGR will be mandatory technology across the vehicle types to meet the emission targets, and hence the demand is expected to increase.

The MAF/MAP sensors would be the predominant sensor type during the forecast period

The mass air pressure (MAP) and mass airflow (MAF) sensors are designed to measure the pressure and mixture of the engine’s air intakes. Though both sensors aim to measure the parameters of the intake air, the MAP sensor is generally placed in the intake manifold, and the MAF sensor is placed in the throttle body. The proper working of the MAF and MAP sensors is very crucial for the normal functioning of the vehicle. These sensors are common for light- and medium-duty applications. However, using these in heavy-duty applications has challenges, including inadequate durability. In diesel engines, the MAF sensor mainly controls exhaust gas recirculation (EGR). EGR is an important after-treatment technology in diesel vehicles complying to Euro 7, hence the need for MAF sensors. With the growing demand for EGR systems, MAF?MAP sensors demand will increase.

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Key Market Players:

The Euro 7 regulations compliant market is dominated by giants such as Forvia (Germany), Tenneco Inc. (US), Eberspächer (Germany), Johnson Matthey (UK), and Umicore (Belgium).

Recent Developments:

  • In September 2022, Forvia showcased its heated doser in the IAA Transport exhibition held in Germany. The company claimed it could reduce NOx emission by 90% at low-temperature engines obeying all the norms of Euro 7 and EPA2027. It would be available for aftermarket architectures.
  • In October 2022, Eberspächer and AAPICO (Thailand) signed a joint venture agreement named “JV company Purem AAPICO Co., Ltd.” to manufacture exhaust system control systems and components used in commercial and passenger car segments sold in Thailand and ASEAN markets. Eberspächer will have 51% of the holding in the joint venture.
  • In January 2022, Forvia (formerly Faurecia) acquired Hella (Germany) to expand its lighting and sensor product portfolio. Both companies will sell their products in their respective brands but will communicate under the new brand, Forvia.
  • In April 2022, Johnson Matthey invested USD 54.24 million to build a new plant in Poland to manufacture small batches of spare parts of catalyst products for the automotive sector, which will help reduce the harmful emission more efficiently. This project will take 18 months to complete.

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