Diesel-Powered Commercial Vehicles Drive EGR Cooler Market with a 3.10% CAGR, While Electric Vehicle Adoption Presents Challenges
DUBLIN, Oct. 9, 2023 /PRNewswire/ -- The "Global Exhaust Gas Recirculation (EGR) Cooler Market (by Engine Type, Vehicle Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)" report has been added to ResearchAndMarkets.com's offering.
The global EGR Cooler market is set to achieve a significant milestone, with a projected valuation of US$562.14 million by 2023, marking a commendable compound annual growth rate (CAGR) of 3.10% during the forecast period.
The Exhaust Gas Recirculation (EGR) cooler is a vital component within automotive engines designed to reduce Nitrous Oxide (NOx) emissions. Excessive heat generated during engine combustion can lead to the formation of harmful compounds. EGR coolers play a critical role in mitigating these emissions by lowering temperature peaks and delaying combustion.
The primary function of EGR coolers is to reduce nitrous oxide emissions by cooling exhaust gases before they are reintroduced into the engine. The introduction of new emission standards by governments and international organizations is a significant driver of the EGR cooler market.
Segmentation Highlights
By Engine Type: The global EGR cooler market is segmented into two categories based on engine type: Diesel and Gasoline. The diesel segment holds the majority share of the market as EGR coolers are predominantly used in diesel engines. Diesel engines tend to produce higher levels of pollutants, making the use of EGR coolers essential. The gasoline segment is also experiencing rapid growth due to stringent regulations related to new emission standards.
By Vehicle Type: The market is divided into two segments based on vehicle type: Commercial Vehicle and Passenger Vehicle. The commercial vehicle segment accounts for the largest share in the market, primarily because commercial or heavy-duty vehicles predominantly use diesel engines. The increasing use of commercial vehicles in delivery processes further supports market growth.
Geographic Overview
The global EGR Cooler market is categorized into five major regions: Asia Pacific, Europe, North America, Latin America, and the Middle East & Africa. Key countries within these regions include China, Japan, India, South Korea, the US, Mexico, Canada, Germany, France, the UK, Italy, Spain, Brazil, Argentina, and more.
Asia Pacific leads the market, commanding the largest share, driven by the region's booming automotive industry. Countries such as China, Japan, and India play a significant role in the global automobile sector, contributing substantially to the region's economy. The increasing production of cars in these regions is expected to further boost the EGR cooler market in Asia Pacific.
Key Drivers and Challenges
Growth Drivers:
- Increasing CO? Emissions
- Rising Vehicle Sales
- Growing Demand for Fuel-Efficient Mechanisms
- Implementation of New Emission Standards in the Automotive Sector
Challenges:
- Fouling Problem in EGR Cooler
- Rising Adoption of Electric Vehicles
Trends
- Innovations Associated with EGR Coolers
- EGR Coolers with Bypass
Driver: Increasing CO? Emissions
Emerging economies, such as China, have experienced a significant increase in carbon dioxide (CO?) emissions from burning fossil fuels. These nations emit more CO? due to their industrialization and economic development. The United Nations and various governments worldwide have set deadlines to reduce pollution levels. Consequently, governments have introduced emission standards to control pollution. EGR coolers, used in fuel-based vehicles, effectively reduce the emission of harmful gases such as CO?, nitrogen oxide, and more. The automotive industry's need to meet emission standards set by governments and international organizations is driving the increasing adoption of EGR coolers, fueling market growth.
Challenge: Rising Adoption of Electric Vehicles
The demand for electric vehicles (EVs) has surged due to factors like energy efficiency and low carbon emissions. Traditional combustion engines in petrol or diesel vehicles are known to be highly polluting. Consequently, people are transitioning to electric vehicles, supported by government initiatives. The increasing adoption of EVs is expected to limit the production of fuel-based vehicles, where EGR coolers are primarily used to control emissions. This factor may restrain the growth of the EGR cooler market in the future.
Trend: Innovations Associated with EGR Coolers
Innovations in EGR coolers are addressing issues related to exhaust gas recirculation. For example, BorgWarner has introduced a new EGR cooler for commercial vehicles designed for flexibility and robustness. This EGR cooler offers versatility in standard designs, covering a range of engine sizes. It boasts enhanced robustness against thermal fatigue, improved coolant distribution, and reduced NOx emissions. These innovations are expected to drive market growth.
The COVID-19 Analysis
The global EGR cooler market experienced limitations during the COVID-19 pandemic due to disruptions in supply chains and manufacturing facility closures in the first two quarters of 2020. Lockdowns implemented by governments worldwide had a significant impact. However, the pandemic accelerated the need for emissions-free transportation, especially in industrialized nations like China, Europe, and the US. As a result, EGR coolers gained attention as governments and economies sought ways to recover stronger and more resilient, emphasizing environmental concerns.
Analysis of Key Players
The EGR cooler market exhibits concentration, with several key players dominating the global landscape. Leading players in the global EGR cooler market include Rheinmetall AG (Rheinmetall Automotive AG), Senior plc (Senior Flexonics), MAHLE, Denso Corporation, BorgWarner Inc., Faurecia SE, Benteler International AG, Valeo S.A., KORENS Co., Ltd., Hanon Systems, Tokyo Roki Co., Ltd., and Tokyo Radiator MFG. Co. Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/khof3r
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