3NBBC-39ContentsSection Slide NumbersExecutive Summary 4Market Overview 11Total Emission Control Catalysts Market• Industry Challenges 21• External Challenges: Drivers and Restraints 26• Forecasts and Trends 35• Market Share and Competitive Analysis 41CEO’s 360 Degree Perspective 49Regional Analysis 51Mobile Emission Control Catalysts Market 77Stationary Emission Control Catalysts Market 126The Last Word (Conclusions and Implications) 147Appendix 150
5NBBC-39Executive SummarySource: Frost & Sullivan analysis.• The global emission control catalysts market is expected to reach $6,705.2 million by2019 growing at a compound annual growth rate (CAGR) of 11.3 per cent from 2012 to2019.• The market is driven primarily by growth in automotive vehicle sales and tighteningregulatory trends.• It is set to witness advancements in technology with companies striving to deliverefficient solutions and remaining cost-competitive at the same time.• Demand for emission control catalysts is shifting from developed to emergingeconomies such as India and China, where the automotive industry is expected toflourish.• Johnson Matthey Plc, BASF, and Umicore group are the major participants in themobile segment, and Cormetech Inc. leads the stationary segment of the market.• Companies are focusing on expansion strategies, research and development (R&D)activities, and product customization to retain and increase market share.• The mobile emission control catalysts segment is the largest and accounts for 82.0 percent of the total market revenue.
6NBBC-39Executive Summary (continued)Source: Frost & Sullivan analysis.• The mobile emission control catalysts segment is expected to grow at a CAGR of 11.0per cent through 2019.• The emission control catalysts market for diesel engines is gaining momentum with theemergence of heavy-duty diesel vehicle regulations. Hence, companies are beginning tofocus on diesel engines to gain a competitive position in the market.• The stationary emission control catalysts segment constitutes 18.0 per cent of the totalemission control catalysts market. Power plants, gas turbines, and industrial processingunits are the major end users.• This segment is expected to witness faster growth with a CAGR of 12.7 per cent through2019. The stationary emission control catalysts segment was worth $1,206.3 million in2012 and is expected to grow to $2,788.5 million by 2019.• Both mobile and stationary emission control catalysts are highly consolidated, with thetop three participants accounting for 79.8 per cent and 73.5 per cent of the market,respectively.
7NBBC-39CompoundAnnual GrowthRate11.3%(CAGR, 2012–2019)MarketConcentration69.5%(% of market share held by top3 companies)Executive Summary—Market Engineering MeasurementsMarket StageGrowthMarket Revenue$6,705.2M(2012)Market Size forLast Year of StudyPeriod$14,229.0M(2019)Base Year MarketGrowth Rate0.6%Customer PriceSensitivity6(scale: 1 [low] to 10 [high])Degree ofTechnical Change8(scale: 1 [low] to 10 [high])Total Emission Control Catalysts Market: Global, 2012Market OverviewFor a tabular version, click here.Stable IncreasingDecreasingNote: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
8NBBC-39ReplacementRate3-5 years(average period ofreplacement of catalystsformulation)Number ofCompetitors20-25(active market competitors inbase year)Executive Summary—Market Engineering Measurements(continued)Competitor OverviewStable IncreasingDecreasing Note: All figures are rounded. The base year is 2012.Source: Frost & Sullivan analysis.Total Addressable Market
9NBBC-39Executive Summary—CEO’s Perspective2Companies are expanding globally toefficiently tap growth markets indeveloping countries.3Catalysts manufacturers should workclosely with original equipmentmanufacturers (OEMs) to achieve costminimization and improve systemperformance.1Technology innovation at the substrate,wash-coat, and product level is criticalto reduce platinum group metal (PGM)consumption without compromising onefficiency.Source: Frost & Sullivan analysis.
10NBBC-39Executive Summary—CEO’s Perspective (continued)4Global companies will partner withsmall and niche participants to expandtheir product portfolio and increasetheir presence in developing markets.5Vertical market integration and theoutsourcing of production activities tolow-cost regions will enable companiesto be cost-competitive.Source: Frost & Sullivan analysis.
12NBBC-39Market Overview—Introduction• Emission reduction from automotive and stationary engines has been one of the top priorities forcountries around the world.• Apart from carbon dioxide (CO2) and water, which are by-products of fuel combustion inautomotive and stationary engines, carbon monoxide (CO), hydrocarbons (HC), oxides of nitrogen(NOx), and other particulate matter are produced due to incomplete combustion of fuel.• The concentration and quantities of pollutants vary with the type of engine, fuel, and operatingconditions.• The market for emission control catalysts has evolved since the 1970s, when the Clear Air Act wasintroduced in the US to control emissions form automotive sources.• The market has been continuously growing with the on-going regulatory trends.• The growth of the market is further driven by the corresponding growth in the automotive andpower plant segments.Market Segments CAGR (%)Mobile Emission Control Catalysts Segment 11.0Stationary Emission Control Catalysts Segment 12.7Total Emission Control Catalysts Market: CAGR for Mobile and Stationary Segments, Global, 2012Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
13NBBC-39Market Overview—Introduction (continued)Source: Frost & Sullivan analysis.Mobile Emission Control Technologies Stationary Emission Control TechnologiesOperate at high temperature ranges Operate at comparatively lower temperaturesCatalytic converters have space limitations, asthey have to be installed in automobile enginesNo space constraintTechnologies for diesel and gasoline engines arestandardized and require lesser modification forspecific applicationsIt is a project-driven business dealing with powerplants and gas turbines and requires a high levelof customizationCatalysts manufacturers work closely with OEMsin choice of substrates, chemistries, andtechnologies used in the catalytic converterCatalysts manufacturers have more freedom indesigning and engineering processesShort development time Longer development timeThere are significant differences in catering to the mobile and stationary segments. Some of the key areaswhere the two segments contrast each other are as follows.Total Emission Control Catalysts Market: Contrast between Mobile and Stationary Emission ControlTechnologies, Global, 2012
14NBBC-39Market Overview—Definitions• The study examines the market for emission control catalysts under two broad segments:o Mobile emission control catalystso Stationary emission control catalysts• The unit shipments and revenue of the catalysts formulation include only those of thechemistries and exclude revenues from wash-coats, substrates, and other parts of thecatalytic converters.• The catalysts formulation is either a single metal or a combination of active metals thatinclude platinum, palladium, rhodium, vanadium, and zeolites. Supporting and stabilizingagents such as oxides of tungsten, titanium ,and molybdenum are excluded from therevenue.• Unit shipments are represented in kilograms, and the revenue is expressed in $ million.The price of the catalysts are represented as the average price per kilogram of thecatalysts.• The study discusses the unit shipments and revenue for the mobile application segment.Source: Frost & Sullivan analysis.
15NBBC-39Research Objective and Scope—Segments CoveredSource: Frost & Sullivan analysis.MobileApplicationsStationaryApplicationsInclude on-road vehicles such as passenger cars, trucks,and buses and exclude off-road vehicles such asconstruction machinery, material handling, mining, andmarine applicationsPower plants, chemical and industrial processes, gasturbinesGasolineenginesDieselenginesGeographic Coverage North America, Europe, APAC, and Rest of the World (ROW)Base Year 2012Study Period 2009–2019Note: The stationary segment discusses only revenue of the catalysts formulation.
16NBBC-39Market Overview—Key Questions This Study Will AnswerIs the market growing, how long will it continue to grow, and at what rate?What are the key dynamics impacting the growth of the market?What are the regulatory trends in the market?What is the competitive scenario in the market? How is it expected to change in the future?Which segments are poised to grow in the future?Source: Frost & Sullivan analysis.
17NBBC-39Market Overview—SegmentationEmission ControlCatalysts forStationaryEngines18.0%Emission ControlCatalysts forMobile Engines82.0%Per Cent Sales BreakdownTotal Emission Control Catalysts Market: Global, 2012Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.Key Takeaway: The growth of the mobile segment is driven by automotive sales, andthat of the stationary segment is driven by the increasing demand for power.
18NBBC-39Total Emission Control Catalysts Market—TechnologyOverviewSource: Frost & Sullivan analysis.Two- and Three-wayCatalysts• Two-way catalysts are usedto eliminate CO and HCemissions.• Three-way catalysts are themain source for controllingemissions from gasolineengines.• These catalysts convert COand HC into CO2 and waterNOx to nitrogen in tandem.• Gasoline enginespredominantly have oxidationtaking place, as NOxemissions are minimal.• Three-way catalysts are themost popular emissioncontrol technologies forgasoline engines and havebeen widely used across allgeographies.Diesel Oxidation Catalysts(DOC)• Diesel emissions have ahigher oxygen content thatmakes three-way catalystsless efficient.• Apart from CO and HCconversions into CO2 andwater, diesel oxidationcatalysts eliminate the dieselparticulate matter byoxidizing the hydrocarbonsthat usually get adsorbed inthe carbon particles.• DOCs are used inconjunction with dieselparticulate filters (DPF), SCRand NOx adsorbers toenhance the NOx conversionlevels.Selective CatalyticReduction (SCR)• The technology involvesammonia as a reductant toeliminate NOx in an oxidizingatmosphere and allowing theselective reduction of NOxover the oxidation ofammonia itself.• Originally designed forstationary applications suchas power plants, marineapplications, and otherstationary diesel engines, theSCR technology has gainedmomentum and is now beingdeployed even in light andheavy duty diesel engines.
19NBBC-39Total Emission Control Catalysts Market—TechnologyOverview (continued)Source: Frost & Sullivan analysis.Oxidation Catalysts• These are the original autocatalysts that convert CO andHC into CO2 and water. Theyhave lost popularity with theintroduction of three-waycatalysts that have theadditional capability toperform reductionsimultaneously. Oxidationcatalysts are being used inareas with less stringentregulatory requirements.NOx Adsorbers• NOx adsorbers, also knownas Lean NOx Traps (LNT),are used to enhance theconversion of NOx tonitrogen.• When NO is converted intoNO2 in a three-waycatalyses, the NO2 is allowedto be adsorbed by a materialsuch as alkali and alkalineearth metals that can storethe NO2 by forming stablenitrates.• The NOx is regenerated bycreating a rich conditionthrough the injection of smallamounts of fuel.• These are typically operatedat high temperatures, wherethe use of precious metals isdifficult.Lean De NOx Catalysts• These are also known ashydrocarbon SCR, whichinvolve hydrocarbons toreduce NOx to nitrogen in anSCR technology.• The hydrocarbon required iseither consumed from theexhaust itself or by injectingsmall quantities of the fuel.• Lean DeNOx catalysts offerthe advantage of notrequiring an additionalreductant to be attached,while their efficiencycompared to the ammoniaSCR is still being questioned.
20NBBC-39Total Emission Control Catalysts Market—RegulatoryOverviewNorth AmericaMobile: CARB,Tier I-IV,Stationary:NSPS, NESHAPEuropeMobile: Euro 1 to 6Stationary:GothenburgProtocolIndiaMobile: BharatStage II-IVStationary: USTier 1 and EUstage IIChinaMobile: China III-VStationary: ChinaTier I and IISource: Frost & Sullivan analysis.BrazilMobile: PROCONVE L4-L6PROCONVE P5-P7Stationary: Sao PauloGuidelinesAustraliaMobile: ADR79/01–ADR79/05,ADR80/00–ADR80/03Stationary: State-levelRegulations