The Euro 7 compliant sensors market is projected to grow from 119,571.1 thousand units in 2026 to 119,203.4 thousand units by 2035. Increasing need to comply with the stringent emission reduction in the Euro 7 regulation are the driving factors for the Euro 7 compliant sensors market.
The Euro 7 regulation includes various real driving emissions (RDE), including the emissions from the brakes and tires of ICE and EVs. In-depth emission monitoring from different vehicular systems is required to achieve the agenda. Furthermore, the EU aims to be climate-neutral by 2050, with zero greenhouse gas emissions. Transitioning to this climate-neutral environment is not easy or quick; the Euro 7 regulation can also be considered a step toward achieving the climate-neutral vision. The Euro 7 targets to lower the emission of particles from the tailpipe by 13% from cars and vans and 39% from buses and lorries by 2035. Furthermore, the particles from the brakes of cars will be lessened by 27%. To achieve such targets, many OEMs are developing advanced emission reduction technologies and powertrains to comply with the Euro 7. For instance, to meet the updated BS6 norms in India, TATA Motors (India) has upgraded its entire range of engines to be RDE compliant. Similarly, many European OEMs are equipping their powertrains to be Euro 7 compliant. These regulations have also compelled automotive OEMs to increase the use of lightweight materials such as light metals, composites, and plastics, which helps increase efficiency and reduce emissions. Following several limitations on the usage of diesel vehicles in the Netherlands and Belgium, many countries have imposed restrictions on vehicles for their environmental protection. Germany is the only country worldwide that has banned diesel vehicles that are emission standard 4/IV or lower in its Stuttgart city. Many other cities in Germany are expected to implement diesel vehicle bans soon. With increasingly stringent emission norms and restrictions, automotive OEMs focus more on electric and hybrid vehicles. For instance, Mercedes Benz (Germany) has many upcoming electric vehicles ranges in its EQ models, including the newer versions of its EQS and EQE offerings. The other leading European carmakers, including Volvo (Sweden), Volkswagen (Germany), and others, are also developing electric vehicles.
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The rise in the overall vehicle cost is mainly because of the increasing incorporation of technologies to comply with the Euro 7 regulations. This includes on-board monitoring, emission reduction technologies such as fuel particulate filters, selective catalytic reduction, and many associated sensors in these systems. Though these technologies aid in reducing emissions, they increase the overall weight of the vehicle, adding load on the powertrain and enhancing emissions. However, the costs for these technologies can be relatively lower than the cost of developing an entirely new IC powertrain. For these reasons, many leading automakers have concentrated more on the electric powertrain than the ICEs. For instance, according to the Europe head of Ford, the Model E division, it is better to invest in developing zero-emission technologies than concentrate on conventional internal combustion engines. In 2021, General Motors (US) announced that the company would discontinue all their ICEs vehicles by 2035 and will only offer vehicles with zero tailgate emission in their product portfolio. According to the Chairman of the European Automobile Manufacturers Association (ACEA) Commercial Vehicle Board and CEO of Volvo Group, the new regulation can slow down the transition to zero-emission transport and climate neutrality. This is mainly because, to comply with the Euro 7 regulation, the truck and bus manufacturers must again concentrate on making their ICE vehicles meet the emission norms instead of progressing in developing battery- and fuel-cell electric vehicles. To comply with the Euro 7, some leading automakers are discontinuing their engine variants and planning to retain the engines that meet the emission norms. This can significantly impact the customer product offering, affecting vehicle sales. For instance, in 2021, Mercedes (Germany) announced that it would halve its engine variant in the following decade. ith these increasingly stringent emission norms, many other automakers have announced their forceful transition to a completely electric range of vehicles. This can translate to a considerable investment in the development of the powertrain and batteries and the discontinuation of many recently developed ICE vehicles.
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The Oxygen/Lambda sensors is expected to dominate the Euro 7-compliant emission sensors market. The oxygen/lambda sensors are generally used in the three-way catalytic converter for the spark-ignition (SI) engine. These sensors are designed to be used in the exhaust system for measuring the residual oxygen in the exhaust gas and to provide a precise indication of whether combustion is complete. The lambda sensor output signal not only indicates instantaneous air–fuel mixture composition but also follows any air–fuel mixture changes. The system controls the fuel supply per the signal from the oxygen/lambda sensor to maintain a stoichiometric air–fuel ratio. Lambda sensors make exhaust-gas treatment more effective. The modern exhaust system features two lambda sensors. Bosch is the leader in the OE and aftermarket for lambda sensors. Most vehicles worldwide are equipped with Bosch lambda sensors as original equipment. These sensors help to prevent the catalytic converter and contribute to fulfilling the emission standards.
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