New Energy Hybrid Exhaust System Research: the global market size is projected to reach USD 2.77 billion by 2031

QY Research Inc. (Global Market Report Research Publisher) announces the release of 2025 latest report "New Energy Hybrid Drive System- Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032". Based on current situation and impact historical analysis (2020-2024) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global New Energy Hybrid Drive System market, including market size, share, demand, industry development status, and forecasts for the next few years.

The global market for New Energy Hybrid Drive System was estimated to be worth US$ million in 2024 and is forecast to a readjusted size of US$ million by 2031 with a CAGR of %during the forecast period 2025-2031.

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New Energy Hybrid Exhaust System Product Introduction

PHEV and REEV exhaust systems are exhaust treatment systems specifically designed for plug-in hybrid electric vehicles (PHEVs) and range-extended hybrid electric vehicles (REEVs), aiming to reduce vehicle emissions and improve fuel efficiency. Compared to traditional internal combustion engine vehicles, PHEV and REEV exhaust systems must simultaneously meet the emission requirements of both internal combustion engines and electric motors. Exhaust systems typically include components such as catalytic converters, particulate filters, and oxygen sensors. Through chemical reactions and physical filtration, they convert harmful gases emitted by the vehicle (such as carbon monoxide, nitrogen oxides, and hydrocarbons) into harmless gases, ensuring that the vehicle meets stringent emission standards. PHEV and REEV exhaust systems are designed with a greater emphasis on emission control and fuel efficiency to adapt to the emission requirements of different driving modes.

New Energy Hybrid Exhaust System Market Summary

According to the new market research report "China New Energy Hybrid Exhaust System Market Report 2025-2031", published by QYResearch, the global New Energy Hybrid Exhaust System market size is projected to reach USD 2.77 billion by 2031, at a CAGR of 6.16% during the forecast period.

Main Development Trends

The trends of lightweighting and material innovation are driving the development of exhaust system materials towards lightweight, high-temperature resistant, and corrosion-resistant alloys and composite materials to improve the fuel economy of hybrid vehicles. Simultaneously, modular design improves vehicle assembly efficiency and system compatibility. The trends of intelligentization and system integration are also driving the exhaust system to work in tandem with the vehicle's energy management system and electric motor to achieve dynamic emission control and fuel economy optimization; the integration of sensors and monitoring components supports online monitoring and data feedback of exhaust emissions. The trends of environmental protection and sustainable development are pushing exhaust system materials and manufacturing processes towards low-carbon and recyclable directions to meet national green manufacturing and sustainable development requirements. Industry concentration is increasing, with the Chinese domestic market concentrating on leading manufacturers, who hold a major market share.

Industry Chain Analysis

The upstream of PHEV and REEV exhaust systems mainly includes raw material supply and core components. Key raw materials include high-temperature corrosion-resistant stainless steel, lightweight aluminum alloys, precious metals for catalysts (platinum, palladium, rhodium), and high-performance heat insulation materials. System components typically include major parts such as the exhaust manifold, three-way catalytic converter, muffler, exhaust pipe, and tailpipes. These components are crucial to the exhaust system. The midstream involves the design, production, and modular assembly of the exhaust system. Core manufacturers include domestic Chinese companies such as Jinhua Oulun and Airui Technology, as well as foreign companies such as Faurecia, Tenneco, and SJG Sejong, whose production bases in China are also involved. Midstream companies are responsible for modular integration, must have vehicle compatibility capabilities, and must pass China VI and vehicle certifications, directly supplying downstream OEMs. The downstream mainly consists of vehicle manufacturers (OEMs) and the aftermarket. Vehicle manufacturers include BYD (with self-developed capabilities), Geely, FAW, and SAIC. The exhaust system needs to work in conjunction with the vehicle's powertrain, electric motor, and energy management system; therefore, OEMs have extremely high requirements for the technical capabilities and delivery reliability of suppliers.

Industry Policies

China VI b emission standards were fully implemented nationwide on July 1, 2023, specifying requirements for RDE testing and information disclosure. Current regulations limit particulate matter counts to ≥23 nm (PN23), and academic research and policy discussions are assessing the feasibility and health benefits of PN10. Simultaneously, the "dual-credit" (CAFC+NEV) mechanism will be further strengthened in 2024-2025, optimizing the credit weighting and threshold for PHEVs, which will benefit their increased proportion in the product structure. This policy combination makes cold start control, particulate matter, and vehicle durability rigid constraints for PHEV/REEV exhaust system R&D.

Challenges and Obstacles

Increased battery EV penetration puts pressure on long-term installations; fluctuations in precious metal, stainless steel, and energy prices compress profit margins; low exhaust temperatures and frequent cold starts in PHEV operating conditions make catalytic converter ignition difficult and verification costs high; the coexistence of multiple regulatory domains (China VI b/RDE, export models meeting EU PN10 requirements, etc.) increases testing and certification complexity; more stringent packaging space and NVH targets, and greater difficulty in balancing exhaust layout and acoustics when range extenders and battery/heat pump systems coexist; price wars and bidding pressures, along with higher life-cycle cost (LCC) requirements, place higher demands on suppliers.

Industry Entry Barriers

Emissions Certification and Regulatory Barriers: The Chinese market has stringent emission certification requirements (vehicle and system-level testing) for PHEV and REEV models. Manufacturers must pass China VI emission certification and environmental testing, regardless of whether they meet stricter local emission standards (such as China VIb and China VIc in some cities). The certification process is lengthy and costly. OEM Cooperation Barriers: Some OEMs and their subsidiaries have independent R&D capabilities, requiring new entrants to build long-term partnerships to secure OEM orders. Furthermore, leading domestic and international manufacturers (Faurecia, Tenneco) have established long-term partnerships with mainstream OEMs, making it difficult for new entrants to quickly enter the core supply chain. Manufacturing and Process Barriers: The manufacturing processes for high-temperature corrosion-resistant exhaust system components, catalytic converters, and mufflers are complex, involving precision welding, modular assembly, and durability testing. High equipment investment and process experience are required, creating production barriers. Material Supply and Cost Control Barriers: Core materials such as high-temperature alloys and precious metal catalysts rely on stable supplies, making it difficult for new manufacturers to establish reliable supply chains in the short term. Established manufacturers achieve cost advantages through large-scale procurement and long-term partnerships.

The report provides a detailed analysis of the market size, growth potential, and key trends for each segment. Through detailed analysis, industry players can identify profit opportunities, develop strategies for specific customer segments, and allocate resources effectively.

The New Energy Hybrid Drive System market is segmented as below:
By Company
MAGTEC
BAE Systems
Bosch
Siemens
Chongqing Qin'An M&E
Suzhou Lvkon Transmission
Tebaijia Power Technology
ZHONGSHAN BROAD-OCEAN MOTOR
YUEBOO
Jing-Jin Electric Technologies
Weichai Power

Segment by Type
Parallel Hybrid Drive Systems
Hybrid-Hybrid Drive Systems
Series Hybrid Drive Systems

Segment by Application
Passenger Vehicles
Commercial Vehicles

Each chapter of the report provides detailed information for readers to further understand the New Energy Hybrid Drive System market:

Chapter 1: Introduces the report scope of the New Energy Hybrid Drive System report, global total market size (valve, volume and price). This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry. (2021-2032)
Chapter 2: Detailed analysis of New Energy Hybrid Drive System manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc. (2021-2026)
Chapter 3: Provides the analysis of various New Energy Hybrid Drive System market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments. (2021-2032)
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.(2021-2032)
Chapter 5: Sales, revenue of New Energy Hybrid Drive System in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world..(2021-2032)
Chapter 6: Sales, revenue of New Energy Hybrid Drive System in country level. It provides sigmate data by Type, and by Application for each country/region.(2021-2032)
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc. (2021-2026)
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.

Benefits of purchasing QYResearch report:

Competitive Analysis: QYResearch provides in-depth New Energy Hybrid Drive System competitive analysis, including information on key company profiles, new entrants, acquisitions, mergers, large market shear, opportunities, and challenges. These analyses provide clients with a comprehensive understanding of market conditions and competitive dynamics, enabling them to develop effective market strategies and maintain their competitive edge.

Industry Analysis: QYResearch provides New Energy Hybrid Drive System comprehensive industry data and trend analysis, including raw material analysis, market application analysis, product type analysis, market demand analysis, market supply analysis, downstream market analysis, and supply chain analysis.

and trend analysis. These analyses help clients understand the direction of industry development and make informed business decisions.

Market Size: QYResearch provides New Energy Hybrid Drive System market size analysis, including capacity, production, sales, production value, price, cost, and profit analysis. This data helps clients understand market size and development potential, and is an important reference for business development.

Other relevant reports of QYResearch:
Global New Energy Hybrid Drive System Market Outlook, In‐Depth Analysis & Forecast to 2031
Global New Energy Hybrid Drive System Sales Market Report, Competitive Analysis and Regional Opportunities 2025-2031
Global New Energy Hybrid Drive System Market Research Report 2025

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