Automotive Exhaust System Market Analysis

Sales Channel Segment Analysis

Under the sales channel, the original equipment manufacturers segment is dominating and is projected to hold the share value of 78.3% by 2035 in the automotive exhaust system market. This dominance is due to the integrated systems-level engineering required for modern exhaust after-treatment, which is best achieved via direct long-term partnerships with vehicle makers. The shift toward electrification and stringent regulations further cements the OEM integration as exhaust systems become a core part of the vehicle’s thermal and emission management architecture. The growth of this channel is supported by the strong vehicle production, for instance, the report from the Auto Innovators in April 2025, the North America production of light-duty vehicles reached over 15,972,369 in 2024, creating a direct demand for the OEM integrated systems. 

North America Production of Light Duty Vehicles

Source: Auto Innovators April 2025

Vehicle Type Segment Analysis

The passenger cars sub segment leads the vehicle type segment in the market. This share is driven by the sheer global volume of passenger car production and the rapid adoption of complex after-treatment technologies such as gasoline particulate filters and advanced catalytic converters in this segment. Strict emission standards worldwide, such as China 6 and India’s BS-VI mandate these technologies for new passenger vehicles. The report from the U.S. BTS in December 2023 shows that the new passenger car sales in 2023 reached 2,640 thousand underscoring the massive installed base for exhaust systems. further the segment's leadership is reinforced by the global transition toward hybrid electric vehicles, which require advanced exhaust systems to manage intermittent internal combustion engine operation.

Material Segment Analysis

Within the material segment, the stainless-steel sub-segment is leading and is expected to hold a significant share value in the market. The dominance is due to its optimal balance of corrosion resistance durability, and cost effectiveness in high temperature exhaust environments. Its dominance is being reinforced by the need for longevity to match extended vehicle warranty periods for emission components, and its suitability for manufacturing complex after-treatment device housings. According to the American Iron and Steel Institute's January 2025 report, the U.S. imported 2,082,000 net tons of steel in December 2023, indicating its critical industrial role. Furthermore, the push toward lightweighting to improve fuel efficiency is driving the adoption of advanced, thinner-gauge ferritic and austenitic stainless steel grades, which maintain strength while reducing overall system weight.

U.S. Steel Imports by Country

Source: American Iron and Steel Institute's January 2025

Our in-depth analysis of the global market includes the following segments: