The Euro 7 Regulations Compliant Market is anticipated to experience slight growth, with a projected CAGR of 0.4% from 2026 to 2035. The European Commission has been emphasizing the adoption of technologies that promote zero emissions in the automotive sector. The automotive industry, which is already progressing towards electrification, is facing challenges due to the stricter norms imposed by the European Commission, as they can significantly impact their businesses. Under the Euro 6 regulations, various powertrain and after-treatment technologies are being used, but they will require modifications to meet the Euro 7 standards. As a result, the market for after-treatment technologies is expected to grow during the forecast period.
In the Euro 7 regulations compliant market, there will be advancements in powertrain technology, and the after-treatment systems will become more complex to ensure clean operation in diverse operating conditions. Both light-duty and heavy-duty vehicles will be required to monitor emissions using multiple sensors in the exhaust system. Passenger cars are expected to dominate the Euro 7 compliant market, as they constitute a significant portion of EU production. Germany, being the largest automotive market in Europe, will play a crucial role in achieving the 2035 target for zero CO2 emissions in cars and vans. The pollutant limits under Euro 7 are reduced compared to Euro 6, and OEMs and Tier 1 manufacturers are developing advanced after-treatment technologies to comply with the new regulations.
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Exhaust gas recirculation (EGR) is projected to be the dominant after-treatment technology in the Euro 7 compliant market. EGR is an emission control technology that significantly reduces NOx emissions in diesel engines across different vehicle types. The Euro 7 regulations impose tighter emission limits for diesel vehicles, and a combination of urea-SCR (selective catalytic reduction) and EGR is used to meet these limits. EGR also serves the purpose of reducing exhaust gas temperature in gasoline engines to protect vital components. Hence, EGR will be a mandatory technology across vehicle types to meet emission targets, leading to an increased demand for EGR systems.
MAF/MAP sensors are expected to be the predominant sensor types in the Euro 7 compliant market. These sensors are designed to measure the pressure and mixture of the engine’s air intakes. While both sensors serve the purpose of measuring intake air parameters, the MAP sensor is typically placed in the intake manifold, while the MAF sensor is positioned in the throttle body. The proper functioning of MAF and MAP sensors is crucial for the normal operation of the vehicle. These sensors are commonly used in light-duty and medium-duty applications, and their demand is expected to increase with the growing adoption of EGR systems in diesel engines complying with Euro 7 regulations.
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The key players in the Euro 7 regulations compliant market include Forvia, Tenneco Inc., Eberspächer, Johnson Matthey, and Umicore, among others. These companies dominate the market by providing solutions and technologies that enable compliance with Euro 7 regulations.
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