Press release
Covid-19 Impact on EGR Cooler Market Forecast to 2027 - Benteler Automotive, BorgWarner, Continental AG, Denso
The exhaust gas regulation (EGR) cooler market was valued at US$ 511.6million in 2019 and is projected to reach US$ 527.8 million by 2027; it is expected to grow at a CAGR of 1.5% from 2020 to 2027.Exhaust gas recirculation (EGR) helps increase fuel-efficiency and reduce emissions as well as engines' power output by circulating toxic gasses back to the combustion chamber for further combustion. Multiple emission norms set up by governments and various organizations, such as Environment Protection Agency (EPA) in North America, EURO 6 in European Union, and Bharat Stage Emission Standards in India, compel vehicle manufacturers meet the regional gas emission standards. These standards focus on lowering the nitrogen monoxide (NO), carbon dioxide (CO2), particulate matter (PM), and no methane hydrocarbons (NMHC) emissions, among others. The emission standards have encouraged to the invention of new technologies, aiming to reduce the emission of harmful gasses from vehicles' combustion engines. EGR is one of the techniques being used to comply with these emission standards. Apart from recirculating the toxic gasses for combustion, EGR systems also help distribute some portion of them back to the engine, which in turn burns less fuel and emits lower volumes of toxic gasses. The forced induction of compressed air accomplished in the combustion chamber, which leaves very little or no unburnt fuel in the combustion chamber, thus reducing the emission of harmful gasses.
Further, the Corporate Average Fuel Economy (CAFÉ) standards that determine the average fuel economy obtained by a vehicle also aid the growth of the EGR market. The CAFÉ standards mandate all the auto manufacturers to manufacture a variety of trucks and cars that, together, set average fuel consumption. These standards are generally met by turbocharging, exhaust gas recirculation, and downsizing vehicle engines, which, in turn, reduces the vehicles' overall weight, a factor that directly correlates with fuel-efficiency.
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Market Insights
Growing Demand for EGR in Gasoline Engines
EGR coolers have primarily been used on diesel engines for decades to reduce emission by recirculating exhaust gasses emitted by the engine back to the engine for the combustion process. These systems have also been in use with gasoline engines in the past it has been recently introduced to improve fuel economy at high and mid-engine load conditions for reducing throttling issues and fuel enrichment. Fuel enrichment process, however, causes high soot particles and fuel penalty, along with emitting hydrocarbons (HC), which is constantly being checked through various emission-related regulations in many countries. While operating in stoichiometric conditions, a gasoline engine can be operated at higher rates of exhaust gas recirculation compared to a diesel engine. However, the recirculated exhaust gasses need extreme cooling to gain ultimate fuel efficiency, compared to that in the case of diesel engine.
Unlike diesel engines, EGR coolers are actively used in gasoline engines to reduce NOx discharge dramatically. To maintain the exact torque and power output after adding EGR function in the gasoline engine, it is necessary to further open the engine throttle to increase the trapped charge density, which can reduce pumping loss and improve fuel economy. On the other hand, the gasoline engines work with a stoichiometric air-fuel mixture to meet the need for a three-way catalytic converter, to ensure low O2 concentration in the exhaust, which will cause a corresponding lower NOx emission. However, due to the ongoing COVID-19 pandemic, most of the prime OEMs have taken a stall in production due to a lack of demand for a new vehicle, which is likely to cut down the demand for EGR coolers as well, in the next couple of months, or even years as well.
North America and the European Union have implemented emission standards for non-road diesel-driven engines. The regulatory programs developed in North America and Europe historically have served as the model for programs adopted in other regions. Countries such as Canada, South Korea, and Japan have kept the pace with developments in the US and Europe. For countries where no standards have been reinforced, there is a substantial opportunity to mitigate emissions of dangerous air pollutants from non-road engines. Thus, other developing countries are focused on adopting advanced EGR coolers systems in vehicles. Further, the EGR cooler market in other developing countries in the MEA and SAM are also projected to grow at a steady pace owing to the increasing government initiatives to digitalize the economy with the adoption of advanced technologies.
Companies Profiles
o Benteler Automotive
o BorgWarner Inc.
o Continental AG
o Denso Corporation
o erae Automotive Systems Co., Ltd.
o Faurecia
o Hanon Systems
o KORENS. Co., LTD
o MAHLE GmbH
o Maruyasu Industries Co., Ltd.
o Rheinmetall Automotive AG
o Senior Flexonics
o Tokyo Radiator MFG. Co., Ltd.
o Tokyo Roki Co. Ltd.
o Valeo SA
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