According to the Market Statsville Group (MSG), the global exhaust gas recirculation (EGR) systems market size is expected to grow at a CAGR of 8.2% from 2023 to 2033.
The increased environmental regulations and growing demand for fuel-efficient and low-emission vehicles is the major factor driving the market’s growth. The growing demand for cleaner air and reduced greenhouse gas emissions creates a positive outlook for the market. Government regulations and initiatives worldwide are mandating stricter emission standards for vehicles. This has led to increased demand for EGR systems, as they effectively reduce nitrogen oxide (NOx) emissions, a major contributor to air pollution. Further, EGR systems can improve the fuel efficiency of an engine by reducing the amount of fuel required to achieve a certain level of power output. This has led to increased adoption of EGR systems in both diesel and gasoline engines as automakers strive to meet fuel economy standards and improve the overall performance of their vehicles.
Exhaust Gas Recirculation (EGR) systems are used in internal combustion engines to reduce nitrogen oxides (NOx) emissions by recirculating a portion of the engine's exhaust gases back into the combustion chamber. By doing so, the oxygen concentration in the combustion chamber is lowered, which reduces the combustion temperature and thereby reduces the formation of NOx, a pollutant that contributes to smog and acid rain. EGR systems can be either external or internal. External EGR systems recirculate exhaust gases after they have left the engine, while internal EGR systems recirculate exhaust gases from within the engine.
The COVID-19 pandemic significantly impacted the global Exhaust Gas Recirculation (EGR) Systems market. The automotive industry, a major consumer of EGR systems, had witnessed a slight decline during the pandemic as factories shut down and supply chains were disrupted. As a result, the demand for EGR systems decreased significantly in 2020. Additionally, the pandemic has led to a decline in consumer demand for new vehicles as people have hesitated to make major purchases during uncertain times. This had further impacted the demand for EGR systems as vehicle production slowed. However, the COVID-19 pandemic has also led to an increased focus on reducing air pollution and improving air quality, which may lead to a renewed interest in EGR systems. Governments worldwide have been implementing stricter emissions regulations, which is likely to create a demand for EGR systems in the long term.
Governments of various economies are imposing stricter regulations on vehicle emissions in orde to reduce air pollution and improve public health. For instance, in the United States, the Environmental Protection Agency (EPA) introduced Tier 3 emission standards that required a significant reduction in tailpipe emissions of NOx, particulate matter, and other pollutants. The EPA estimated that these regulations would result in an 80% reduction in NOx emissions from passenger cars and light-duty trucks. Similarly, in the European Union, the Euro 6 emission standards were introduced in 2015, which mandated a reduction in NOx emissions from diesel engines by 67% compared to the Euro 5 standards. The European Commission estimated that introducing Euro 6 standards would result in an annual reduction of 430,000 tonnes of NOx emissions from road transport.
GR Systems require sophisticated technologies and materials, which can drive up the overall cost of the system. Additionally, installation and maintenance costs can be high, particularly for older vehicles that require retrofitting of EGR Systems. Furthermore, the complexity of EGR Systems can also lead to reliability issues, resulting in increased maintenance costs and vehicle downtime. This is particularly true for older vehicles with more wear and tear on their engines and exhaust systems. In addition, the effectiveness of EGR Systems can also be limited in certain conditions, such as during cold starts or at high altitudes. This can result in reduced performance and increased emissions during these conditions.
One such technological advancement is the use of electronic controls in EGR Systems. According to the US Department of Energy, electronic controls enable EGR Systems to operate optimally, reducing emissions and improving fuel efficiency. Electronic controls can also monitor and diagnose system performance, leading to faster and more accurate maintenance and repair. Another technological advancement is the use of high-temperature materials in EGR Systems. These materials can withstand the high temperatures and corrosive environments of exhaust gases, resulting in longer system life and reduced maintenance costs.
Further research is underway to develop new materials and coatings that can further enhance the performance of EGR Systems. For instance, the US Department of Energy is researching the use of advanced materials like ceramics and intermetallics in EGR Systems, which could improve system durability and reduce maintenance costs. The 3D printing technology use in the automotive industry has been growing rapidly, and EGR Systems are no exception. 3D printing can produce complex geometries that are difficult to achieve with traditional manufacturing methods, leading to more efficient and effective EGR Systems. This is particularly useful for EGR Systems, which often require intricate designs to optimize system performance.
The study categorizes the exhaust gas recirculation (EGR) systems market based on type and application area at the regional and global levels.
Based on the type, the market is divided into tube EGR coolers and finned EGR coolers. The tube EGR coolers segment accounted for the largest market share in 2022 in the global exhaust gas recirculation (EGR) systems market. Tube EGR coolers are relatively simple in design, easy to manufacture, and can be produced in various sizes to meet different engine requirements. In addition, tube EGR coolers are highly reliable due to their simple design and construction, which reduces the likelihood of failure and the need for maintenance or repairs. This makes them an attractive option for manufacturers looking for long-lasting, low-maintenance solutions for reducing emissions and improving engine performance.
Based on the regions, the global exhaust gas recirculation (EGR) systems market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America accounted for the largest market share in 2022 due to the strict emissions regulations in the region and the presence of key automotive manufacturers and suppliers. In addition, North America is home to several key automotive manufacturers and suppliers, including General Motors, Ford, and BorgWarner, which have played a significant role in driving the growth of the EGR Systems market in the region. These companies have been at the forefront of developing and adopting innovative emission control technologies, including EGR Systems, to meet regulatory requirements and improve their vehicles' fuel efficiency and performance.
The exhaust gas recirculation (EGR) systems market is a significant competitor, and extremely cutthroat in the sector is using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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