Table of Contents
- Executive Summary: 2025 and Beyond
- Global Market Forecasts: Volume & Value Projections to 2030
- Key Players & Strategic Initiatives (OEMs & Catalyst Manufacturers)
- Emerging Technologies: Innovations in Catalyst Materials & Design
- Regulatory Drivers: Emissions Standards & Policy Impact
- Regional Analysis: Growth Hotspots & Regulatory Differences
- Supply Chain Dynamics & Raw Material Trends
- Competitive Landscape: Partnerships, M&A, and New Entrants
- Sustainability & Circular Economy: Catalyst Recycling and ESG
- Future Outlook: Disruptive Trends and Long-Term Opportunities
- Sources & References
Executive Summary: 2025 and Beyond
The global automotive exhaust purification catalysts market is poised for significant transformation in 2025 and the years immediately following, driven by tightening emission regulations, technological advancements, and evolving powertrain strategies. As regulatory bodies such as the European Union and China implement stricter emission standards targeting nitrogen oxides (NOx), carbon monoxide (CO), hydrocarbons (HC), and particulate matter (PM), demand for advanced exhaust purification catalysts is intensifying. In the European Union, the Euro 7 standard, scheduled to come into effect starting in July 2025 for new light-duty vehicles, imposes lower emission thresholds and broader real-world testing conditions, necessitating more efficient catalyst systems and the adoption of new materials and formulations (Umicore).
Automotive manufacturers, in partnership with leading catalyst suppliers, are accelerating the development of next-generation three-way catalysts, diesel oxidation catalysts, and selective catalytic reduction (SCR) technologies. Companies such as Evonik Industries and Johnson Matthey are focusing on innovations in catalyst substrates, washcoat chemistry, and the reduction of precious metal content to balance performance with cost. Additionally, platinum group metal (PGM) price volatility is spurring research into alternative materials and recycling strategies, as highlighted by BASF’s recent investments in catalyst recycling facilities.
The outlook for 2025 and beyond is characterized by a dual-track strategy: While the rapid growth of battery electric vehicles (BEVs) is expected to reduce long-term demand for exhaust catalysts, internal combustion engine (ICE) vehicles—particularly hybrids and commercial vehicles—will remain a large share of the global fleet for at least the next decade. Major automakers are thus investing in cleaner ICE technologies to comply with emission targets and avoid heavy penalties. For example, Toyota Motor Corporation continues to deploy advanced exhaust purification systems in new hybrid and plug-in hybrid models.
In summary, the automotive exhaust purification catalyst sector is entering a period of rapid innovation and adaptation. Key players are leveraging advanced materials, digitalized catalyst design, and expanded recycling capabilities to address regulatory, economic, and environmental pressures. While the electrification trend will reshape demand profiles in the longer term, exhaust purification catalysts remain indispensable for meeting near-term air quality goals and sustaining compliance across global automotive markets in 2025 and the foreseeable future.
Global Market Forecasts: Volume & Value Projections to 2030
The global market for automotive exhaust purification catalysts is poised for significant evolution through 2030, shaped by tightening emissions regulations, ongoing electrification, and regional market dynamics. As of 2025, the automotive catalyst sector continues to be driven by demand for advanced emission control technologies, particularly in countries enforcing Euro 6/7, China VI, and Bharat Stage VI standards.
Major suppliers of catalyst technologies such as BASF, Honeywell UOP, Johnson Matthey, and Umicore are expanding their manufacturing capacities and R&D efforts to meet regional and global regulatory requirements. For instance, Umicore recently expanded catalyst production in China, reflecting the country’s ongoing dominance in vehicle manufacturing and increasingly strict emissions enforcement.
Volume-wise, the market’s trajectory is closely tied to the global production of internal combustion engine (ICE) vehicles, especially in emerging economies where electrification is advancing at a slower pace. While electric vehicle (EV) adoption is accelerating in Europe and North America, ICE and hybrid vehicles with advanced aftertreatment systems will continue to represent a substantial share of new vehicle sales through the latter part of the decade. According to Johnson Matthey, approximately 85 million light-duty vehicles were produced globally in 2023, and annual production volumes are projected to stay within the 80–90 million range through 2030, with the majority still requiring exhaust purification catalysts.
From a value perspective, the market is influenced by both the volume of catalytic converter installations and the price of precious metals (platinum, palladium, rhodium) used in these systems. BASF and Johnson Matthey have noted that fluctuations in rhodium and palladium prices in recent years have significantly impacted overall catalyst market values. However, efforts to optimize catalyst formulations and enhance recycling rates are expected to stabilize input costs over the outlook period.
Looking ahead to 2030, the global automotive exhaust catalyst market is expected to remain robust in both volume and value. While the gradual shift to EVs will moderate long-term growth in mature markets, ongoing vehicle production in Asia-Pacific, Latin America, and Africa, coupled with stricter emissions norms, will sustain demand for advanced catalyst systems. Key players such as Umicore and BASF are investing in innovative catalyst technologies to address these evolving market needs.
Key Players & Strategic Initiatives (OEMs & Catalyst Manufacturers)
The automotive exhaust purification catalyst sector is undergoing notable transformation in 2025, as both original equipment manufacturers (OEMs) and catalyst producers respond to tightening global emissions regulations and evolving propulsion technologies. Leading catalyst manufacturers such as Johnson Matthey, BASF, and Umicore continue to invest heavily in advanced catalyst formulations, targeting enhanced conversion efficiency for nitrogen oxides (NOx), hydrocarbons (HC), and particulate matter (PM).
In 2025, Johnson Matthey is focusing on its latest high-performance three-way catalysts and diesel oxidation catalysts, optimized for both light-duty and heavy-duty vehicles. The company is expanding its collaboration with global automakers to integrate next-generation catalyst systems compatible with hybrid and plug-in hybrid vehicles, addressing the growing complexity of exhaust gas composition in electrified powertrains.
BASF is advancing its Four-Way Conversion (FWC) catalysts, which simultaneously control NOx, CO, HC, and PM emissions. In recent announcements, BASF has highlighted the integration of its catalyst technologies in Euro 7-ready vehicles and its ongoing partnerships with major OEMs for real-world emissions reduction. The company’s Emissions Management segment is prioritizing sustainable sourcing of precious metals, given heightened market volatility and supply chain concerns.
Umicore is prioritizing the development of low-platinum group metal (PGM) catalysts to address cost and resource constraints. The company’s 2025 strategy includes scaling up manufacturing capacity in Asia and Europe, and deepening technical partnerships with both established and emerging automakers, particularly in China and India where emissions standards are rapidly aligning with Euro 6/7 norms.
On the OEM side, manufacturers such as Toyota Motor Corporation and Volkswagen AG are making strategic investments in advanced emission control systems, ensuring compliance with the latest regulatory requirements. Toyota, for instance, is implementing advanced catalyst systems across its hybrid lineup, focusing on durability and efficiency over extended lifecycles. Volkswagen is collaborating closely with catalyst suppliers to develop solutions for its new generation of internal combustion engines and electrified powertrains.
Looking forward, market participants are expected to accelerate R&D in catalyst durability, rare metal recovery, and adaptability for hybrid and alternative fuel vehicles. Strategic partnerships, regional expansion, and circular economy initiatives are central to sustaining competitiveness in the evolving regulatory and technological landscape.
Emerging Technologies: Innovations in Catalyst Materials & Design
The automotive exhaust purification catalyst landscape is rapidly evolving as stricter emissions regulations and sustainability goals drive innovation in catalyst materials and architectures. In 2025 and the coming years, the industry is witnessing significant advancements in both the composition and design of catalysts used to reduce harmful emissions from internal combustion engine vehicles.
A major trend is the accelerated development of low- and zero-platinum group metal (PGM) formulations. Traditional three-way catalysts (TWCs) rely heavily on precious metals like platinum, palladium, and rhodium. Given the volatility and high cost of these resources, companies are investing in alternative materials and optimized catalyst structures. For example, BASF has introduced advanced catalyst technologies that reduce PGM content without compromising emission performance, leveraging proprietary washcoat formulations and novel support materials. Similarly, Umicore is expanding its portfolio of hybrid catalysts designed for hybrid vehicles, which have unique emission profiles demanding tailored solutions.
Material science breakthroughs underpin many of these innovations. Nanostructured catalysts and engineered supports are enabling higher dispersion of active metals, enhancing catalytic efficiency and longevity. Toyota Tsusho Corporation recently announced collaboration on next-generation ceria-zirconia solid solutions that improve NOx conversion and sulfur tolerance. Such materials are critical for meeting Euro 7 and China 7 emission standards, which impose lower pollutant thresholds and demand robust cold-start performance.
Design improvements are also focused on reducing catalyst light-off temperatures and maximizing surface area contact with exhaust gases. Corning Incorporated has launched advanced ceramic substrate technologies, such as cellular structures with ultra-thin walls, which facilitate rapid heat-up and improved mass transfer. These substrates are being adopted in both gasoline and diesel aftertreatment systems, supporting compliance with future global regulations.
Looking ahead, the integration of digital tools and AI-driven design is beginning to shape catalyst development. Companies are leveraging machine learning models to predict optimal material combinations and accelerate prototyping cycles. This approach is expected to yield further reductions in PGM usage and unlock new functionalities, such as self-regenerating surfaces and enhanced durability.
With internal combustion engines projected to remain a significant part of the global vehicle fleet in the near future—even as electrification advances—these catalyst innovations will be crucial for automakers striving to minimize environmental impact under increasingly stringent standards.
Regulatory Drivers: Emissions Standards & Policy Impact
The landscape for automotive exhaust purification catalysts in 2025 is being profoundly shaped by stringent regulatory frameworks across key global markets. Governments are steadily advancing emissions standards to mitigate air pollution and address climate change, directly influencing catalyst technology and adoption.
In the European Union, the Euro 7 emissions standards are scheduled to come into effect starting in 2025. These standards introduce significantly lower limits for nitrogen oxides (NOx), particulate matter, and ammonia emissions from both light-duty and heavy-duty vehicles. Notably, Euro 7 will require real driving emissions (RDE) testing under a broader range of conditions, pushing manufacturers to adopt advanced catalyst formulations and systems for compliance. The requirements extend to both internal combustion engine (ICE) vehicles and new hybrid models, ensuring that catalyst innovation remains critical even as electrification accelerates. Companies such as BASF and Johnson Matthey are actively developing next-generation systems, including advanced three-way catalysts (TWC), diesel oxidation catalysts (DOC), and selective catalytic reduction (SCR) solutions tailored to meet these demands.
In the United States, the Environmental Protection Agency (EPA) has finalized the Multi-Pollutant Emissions Standards for model years 2027 and later, but the regulatory trajectory is already impacting 2025 development cycles. Automakers are investing in purification technologies to ensure that vehicles launched in 2025 will remain compliant during their usable lifespans. The focus is on reducing hydrocarbons, carbon monoxide, NOx, and particulate emissions, with leading catalyst suppliers like Umicore and Corning Incorporated introducing innovations such as high-durability substrates and low-temperature active catalysts for cold-start emissions.
Asia-Pacific, particularly China, is also tightening emissions policies. The China VI-b standard, which is more stringent than Euro 6, is being enforced in major cities and will see nationwide adoption in 2025. This compels local and global manufacturers to deploy advanced purification catalyst technologies, including close-coupled catalysts and integrated SCR systems. Companies such as Honeywell are supporting OEMs in this transition with tailored catalyst solutions for both gasoline and diesel engines.
The outlook for automotive exhaust purification catalysts through 2025 and beyond is driven by the dual forces of regulatory tightening and the gradual shift to electrification. While the share of battery electric vehicles is rising, the persistence of ICE and hybrid vehicles—especially in heavy-duty and developing markets—ensures sustained demand for innovative catalyst solutions. Industry leaders anticipate further evolution in catalyst material efficiency, durability, and recyclability, aligning with both environmental mandates and circular economy goals.
Regional Analysis: Growth Hotspots & Regulatory Differences
The automotive exhaust purification catalysts market is poised for dynamic regional growth in 2025 and the coming years, driven by divergent regulatory frameworks and emission targets across key geographies. Stringent emissions standards in regions such as the European Union, China, and North America continue to spur demand for advanced catalytic converter technologies, while emerging markets present unique opportunities and challenges.
Europe remains a frontrunner in regulatory stringency. The implementation of Euro 7 standards, slated for 2025, will further tighten permissible emission limits for passenger cars and commercial vehicles, compelling automakers to adopt higher-performance catalysts with improved NOx and particulate control. Leading catalyst suppliers, such as Johnson Matthey and BASF, are expanding R&D and production capacity in the region to address these evolving requirements. Additionally, the European Commission’s Green Deal continues to drive investment in sustainable catalyst technologies and recycling initiatives.
In China, the enforcement of China 6b emission standards in July 2023 has had a ripple effect into 2025, demanding wide-scale deployment of sophisticated three-way catalysts and diesel oxidation catalysts. Local manufacturers like CNPC and global players are ramping up their production and localization strategies to meet surging domestic demand. Furthermore, incentives for new energy vehicles are complemented by stricter oversight for internal combustion engines, ensuring the continued relevance of exhaust purification catalysts in the short-to-medium term.
North America is anticipated to witness robust growth, fueled by the United States Environmental Protection Agency’s proposed Tier 4 emission standards for light-duty vehicles. These are expected to come into effect by mid-decade, with a direct impact on catalyst formulation and system integration. Major suppliers, including Umicore and Corning Incorporated, are investing in advanced catalyst substrates and washcoat technologies to cater to evolving OEM requirements.
Meanwhile, regions such as India and Latin America are experiencing policy-driven market acceleration. India’s Bharat Stage VI norms, enforced since 2020, continue to shape local manufacturing and technology partnerships, with companies such as Tata Motors collaborating with catalyst providers for compliance and performance optimization.
Looking ahead, regional disparities in regulatory timelines and enforcement will shape the competitive landscape for automotive exhaust purification catalysts, with technology adaptation, local production, and regulatory alignment being decisive factors for market leadership.
Supply Chain Dynamics & Raw Material Trends
The supply chain for automotive exhaust purification catalysts—critical components in reducing vehicular emissions—faces notable shifts entering 2025 and the years immediately beyond. These catalysts primarily rely on platinum group metals (PGMs) such as platinum, palladium, and rhodium, whose sourcing, pricing, and availability are closely tied to geopolitical, environmental, and technological factors.
PGMs are predominantly mined in South Africa, Russia, and North America, with Anglo American Platinum reporting that South Africa alone accounted for over 70% of global platinum supply in recent years. Disruptions in these regions—due to labor actions, infrastructure challenges, or geopolitical tensions—can introduce volatility into the supply chain. For example, ongoing power constraints and labor issues in South Africa have caused intermittent disruptions in PGM output, impacting downstream catalyst manufacturers.
Automotive OEMs and catalyst producers such as BASF and Evonik are increasingly investing in supply chain resilience. Strategies include diversifying sourcing, establishing long-term contracts, and expanding recycling initiatives. Notably, Johnson Matthey has expanded its use of recycled PGMs—so-called “secondary supply”—which now contributes a growing share of catalyst raw material. According to company disclosures, recycled PGMs can offset fluctuations in mine production and help stabilize input costs.
Raw material pricing remains a critical factor shaping the sector. In 2024, rhodium prices experienced significant volatility, trading at less than half of their 2021 peak. Such price swings prompt catalyst formulators to continually adjust PGM loadings and explore substitution strategies. For example, Umicore has developed technologies that optimize the use of palladium and platinum, shifting formulations based on prevailing market prices and supply outlooks. This adaptive approach is expected to persist in 2025 and beyond as companies seek cost-effective compliance with tightening emissions standards.
Looking forward, the transition to electrified vehicles will gradually reduce demand for exhaust catalysts, but internal combustion engine (ICE) vehicles are expected to retain a meaningful share in key global markets through the late 2020s. As a result, the automotive exhaust catalyst supply chain will remain under pressure to ensure material security, cost control, and environmental sustainability. Industry leaders, including BASF and Johnson Matthey, signal ongoing investments in R&D for catalyst efficiency and circular economy solutions, reinforcing the sector’s adaptation to evolving supply and material trends.
Competitive Landscape: Partnerships, M&A, and New Entrants
The competitive landscape for automotive exhaust purification catalysts is experiencing significant transformation in 2025, driven by regulatory shifts, electrification trends, and evolving customer demands. Established players are reinforcing their positions through strategic partnerships, mergers and acquisitions (M&A), and technology alliances, while new entrants target niches in emissions reduction and novel catalyst formulations.
Partnerships and Technology Alliances
Collaborations between automakers and catalyst suppliers are intensifying. For instance, BASF continues to partner with global OEMs to co-develop advanced three-way catalysts and selective catalytic reduction (SCR) systems focused on meeting Euro 7 and China 7 emissions standards. Similarly, Johnson Matthey has deepened its cooperation with Asian manufacturers, leveraging its expertise in coated substrates and precious metal optimization to support next-generation hybrid and internal combustion vehicles.
Mergers and Acquisitions
The year 2025 has seen notable M&A activity as companies seek scale, expanded portfolios, and geographic reach. Umicore has acquired strategic assets in Asia to bolster its presence in the fast-growing Chinese emissions control market. Meanwhile, Corning Incorporated has made targeted investments in ceramic substrate manufacturing, consolidating its position as a leading supplier of advanced particulate filters and catalyst supports.
New Entrants and Innovation
Start-ups and new market entrants are targeting segments such as low-platinum group metal (PGM) catalysts, advanced coatings, and digital catalyst monitoring. For example, Toyota Tsusho Corporation has expanded into the catalyst recycling and PGM recovery space, addressing supply chain sustainability concerns. Additionally, innovation-driven companies are piloting next-generation ammonia slip catalysts and electrified exhaust aftertreatment modules in response to stricter emissions limits for both light-duty and heavy-duty vehicles.
2025 Outlook
Looking ahead, the competitive landscape is expected to remain dynamic. As emission regulations tighten globally and OEMs demand more cost-effective, durable, and sustainable solutions, partnerships and industry consolidation are set to accelerate. Established firms like BASF, Johnson Matthey, and Umicore will likely continue leveraging their R&D capabilities and global networks, while new entrants challenge the status quo with disruptive chemistries and circular economy business models.
Sustainability & Circular Economy: Catalyst Recycling and ESG
The automotive exhaust purification catalyst industry is experiencing a pronounced shift toward sustainability and circularity, driven by regulatory pressure, resource constraints, and evolving Environmental, Social, and Governance (ESG) expectations. As of 2025, recycling of spent automotive catalysts—primarily containing platinum group metals (PGMs) like platinum, palladium, and rhodium—has become a focal point for both OEMs and catalyst producers. The high value and scarcity of PGMs have intensified efforts to recover these materials, reducing the need for virgin mining and lowering the overall carbon footprint of catalyst manufacturing.
Key industry players have established closed-loop recycling systems to collect and process spent catalysts. For example, Johnson Matthey operates dedicated facilities for recovering PGMs from end-of-life vehicle catalysts, ensuring high recovery rates and traceability. Similarly, BASF emphasizes the integration of recycled metals into new catalyst production, supporting both resource efficiency and supply chain resilience.
Automotive OEMs are increasingly demanding transparent, ESG-compliant supply chains for catalytic converters. In response, catalyst manufacturers are investing in digital tracking systems and collaborating with recyclers to provide end-to-end documentation of PGM flows. This aligns with emerging regulatory frameworks in regions such as the EU, where the Corporate Sustainability Reporting Directive (CSRD) and proposed Critical Raw Materials Act are elevating expectations for responsible sourcing and material circularity.
On a technical level, advances in hydrometallurgical and pyrometallurgical processing are improving the efficiency and environmental performance of PGM recovery from used catalysts. For instance, Umicore has reported the use of proprietary technologies that minimize waste and energy use while achieving recovery rates exceeding 95%.
Looking ahead to the next few years, market forecasts anticipate an increase in catalyst recycling volumes due to the rising number of vehicles reaching end-of-life and the continued global adoption of stricter emission standards. The industry is expected to deepen partnerships across the value chain—from auto dismantlers to refiners—to secure PGM supply and enhance ESG performance. As electrification advances, hybrid vehicles and plug-in hybrids will continue to require advanced exhaust purification systems, reinforcing the strategic importance of sustainable catalyst lifecycle management.
Overall, the integration of catalyst recycling with robust ESG practices is poised to define competitiveness in the automotive exhaust purification catalyst sector, as stakeholders from manufacturers to end-users prioritize resource stewardship and regulatory compliance.
Future Outlook: Disruptive Trends and Long-Term Opportunities
The future of automotive exhaust purification catalysts is shaped by a convergence of stricter global emissions regulations, technological innovation, and the ongoing transition toward electrification. Looking into 2025 and the subsequent years, several disruptive trends and long-term opportunities are poised to redefine the sector.
A major driver is the implementation of increasingly rigorous emission standards across key markets. For instance, the European Union’s Euro 7 proposal targets further reductions in nitrogen oxides (NOx) and particulate matter from both light- and heavy-duty vehicles, slated for enforcement within the next few years. This compels automakers and catalyst manufacturers to advance catalyst formulations, particularly those based on precious metals like platinum, palladium, and rhodium, to achieve lower emission thresholds and improved durability BASF.
Parallel to regulatory pressures, the industry is witnessing significant R&D investment in next-generation catalyst technologies. These include high-surface-area substrates, advanced washcoat chemistries, and integrated filtration-catalyst systems designed to cater to hybrid and plug-in hybrid vehicles, which present unique cold-start and low-load emission challenges. Companies such as Johnson Matthey and Umicore are scaling up their capabilities to supply bespoke catalyst solutions optimized for evolving powertrain architectures.
Despite the rapid growth of electric vehicles (EVs), the internal combustion engine (ICE) and hybrid segments are projected to remain significant, particularly in emerging markets and for commercial vehicles. This ensures continued demand for sophisticated exhaust purification systems in the medium term. Notably, manufacturers are also exploring the use of digital monitoring and predictive maintenance tools—leveraging data analytics to extend catalyst service life and optimize replacement cycles, thereby enhancing sustainability and total cost of ownership Tenneco.
Looking further ahead, the push toward decarbonization and material circularity presents new opportunities. Catalyst recycling initiatives are gaining momentum, driven by the high value and constrained supply of precious metals. Industry leaders are investing in closed-loop recycling programs to reclaim and reuse these materials, aligning with both economic and environmental imperatives Honeywell.
In summary, while the long-term shift toward zero-emission vehicles will eventually reshape demand, the next several years promise robust innovation and growth in automotive exhaust purification catalysts. Regulatory evolution, hybridization, digitalization, and sustainability initiatives will remain at the forefront, offering both challenges and opportunities for sector stakeholders.
Sources & References
- Umicore
- Evonik Industries
- BASF
- Toyota Motor Corporation
- Volkswagen AG
- Toyota Tsusho Corporation
- Honeywell
- Johnson Matthey
- BASF
- Anglo American Platinum
- BASF
- Tenneco