2013 edition 2 © 2013 IHS

IHS Automotive SupplierBusiness | The Automotive Exhaust and Aftertreatment Report

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ContentsKey drivers ....................................................................................................................................................................... 8

Fuel economy and CO2 emissions ............................................................................................................................. 8The United States ......................................................................................................................................................... 8The European Union .................................................................................................................................................... 9Japan ......................................................................................................................................................................... 10China ......................................................................................................................................................................... 10Other countries .......................................................................................................................................................... 10

Criterion emissions ................................................................................................................................................... 12Diesel Soot – Particulate Matters ............................................................................................................................... 13Nitrogen oxides (NOx) ................................................................................................................................................ 14Europe ....................................................................................................................................................................... 15Source: DieselNet .......................................................................................................................................................17The United States ........................................................................................................................................................17Japan ......................................................................................................................................................................... 19Other countries .......................................................................................................................................................... 21Medium- and heavy-duty vehicles .............................................................................................................................. 22

Testing regimes .......................................................................................................................................................... 22Platinum Group Metals trends ................................................................................................................................. 24

Exhaust and Aftertreatment Technology ................................................................................................................... 28Three-Way Catalytic converter (TWC) ......................................................................................................................... 31Diesel oxidation catalyst ............................................................................................................................................. 34Exhaust Gas Re-circulation (EGR) .............................................................................................................................. 35NOx reduction ............................................................................................................................................................ 37Selective catalytic reduction (SCR) ............................................................................................................................. 38Lean NOx trap or NOx adsorber catalyst (NAC).......................................................................................................... 41CRT Process .............................................................................................................................................................. 43Particulate reduction .................................................................................................................................................. 44Particulate filters ......................................................................................................................................................... 45Combined particulate and NOx aftertreatment systems ............................................................................................. 47Catalyst Poisoning ..................................................................................................................................................... 50The SCR versus EGR debate ..................................................................................................................................... 50SCR plus EGR for Euro 6 ........................................................................................................................................... 52

Acoustic management .............................................................................................................................................. 52Exhaust heat recovery systems ............................................................................................................................... 54

Thermoelectric generators ......................................................................................................................................... 57The Exhaust and Aftertreatment Systems Market ................................................................................................... 60

The OEM market ........................................................................................................................................................ 60The Aftermarket ......................................................................................................................................................... 63

Supplier Profiles ............................................................................................................................................................ 65Bienes Turgon ............................................................................................................................................................ 65Bosal ............................................................................................................................................................................ 67Boysen ......................................................................................................................................................................... 69Calsonic Kansei ......................................................................................................................................................... 71

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IHS Automotive SupplierBusiness | The Automotive Exhaust and Aftertreatment Report

Eberspächer ............................................................................................................................................................... 81Emitec ......................................................................................................................................................................... 85Faurecia ...................................................................................................................................................................... 87Futaba ......................................................................................................................................................................... 94Johnson Matthey ....................................................................................................................................................... 96KSPG ........................................................................................................................................................................... 99Magneti Marelli ........................................................................................................................................................ 102Sichuan Bohong Group ........................................................................................................................................... 107Tenneco ..................................................................................................................................................................... 109Umicore ......................................................................................................................................................................115Wahler Verwaltungsgesellschaft mbH ...................................................................................................................118

FiguresFigure 1: Emissions regulation promulgation from different source jurisdictions ............................................... 5Figure 2: The progress of emissions regulations across major markets ................................................................ 6Figure 3: Tenneco’s technology road map for exhaust systems .............................................................................. 7Figure 4: Global CO2 (g/km) progress normalised to NEDC test cycle .................................................................... 8Figure 5: CO2 (g/km) performance and standards in the EU new cars 1994 - 2011 ............................................... 9Figure 6: Fuel economy standards to 2015 for selected countries (US mpg) ........................................................ 10Figure 7: Comparison of different fuel efficiency regulations and test regimes .................................................. 11Figure 8: Global testing procedures and standards ................................................................................................. 11Figure 9: CO reductions in the EU, Japan and the US, 2000 – 2010 ....................................................................... 12Figure 10: An overview of the role of nitrogen oxides in atmospheric chemistry ................................................ 13Figure 11: The structure of particulate matter (PM) ................................................................................................. 13Figure 12: Diesel PM reductions in the EU, Japan and the US, 2000 – 2010 ......................................................... 14Figure 13: NOx reductions in the EU, Japan and the US, 2000 – 2010 ................................................................... 15Figure 14: Euro 5 and 6 emissions regulation implementation roadmap .............................................................. 16Figure 15: US Light duty emissions standards ........................................................................................................ 19Figure 16: Criterion emissions reductions in the EU, the US and Japan, 1992 – 2015 ......................................... 20Figure 17: Emissions standards timetable in selected countries, 2001 – 2010 ..................................................... 22Figure 18: Comparison of different test regimes for EU, US and Japan ................................................................ 23Figure 19: PGM application suitability mix ................................................................................................................ 25Figure 20: Price trends for palladium, platinum and rhodium 1993 to 2011 .......................................................... 26Figure 21: Factors affecting overall PGM demand ................................................................................................... 27Figure 22: Aggregate PGM demand 2003–2012 ........................................................................................................ 27Figure 23: Eberspächer technology road map for exhaust systems ...................................................................... 28Figure 24: A 2012 exhaust system including emissions control, CO2 reduction and acoustic design .............. 29Figure 25: Audi A3 aluminium cylinder head with integrated exhaust manifold ................................................... 30Figure 26: A comparison of exhaust systems 1975 and 2009 .................................................................................. 30Figure 27: The effect of temperature on catalytic converter operation ................................................................ 31Figure 28: Three-way catalytic converter .................................................................................................................. 32Figure 29: A close-coupled catalytic converter, close to the engine for faster light-off, with underfloor cata-lyst and oxygen sensor ................................................................................................................................................ 32Figure 30: The effect of fuel-air mixture on catalytic converter operation ........................................................... 33Figure 31: The construction of an electrically heated TWC .................................................................................... 33Figure 32: The construction of a diesel oxidation catalytic converter .................................................................. 34Figure 33: Exhaust gas recirculation with cooler ..................................................................................................... 35Figure 34: A schematic of an advanced EGR system ............................................................................................... 36Figure 35: Denso’s compact EGR cooler for gasoline engines ............................................................................... 37Figure 36: Selective catalytic reduction schematic ................................................................................................. 38Figure 37: Selective catalytic reduction ..................................................................................................................... 39Figure 38: Delphi’s on-board reformer ....................................................................................................................... 40

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IHS Automotive SupplierBusiness | The Automotive Exhaust and Aftertreatment Report

Figure 39: Faurecia ASDS unit ..................................................................................................................................... 41Figure 40: A schematic of Faurecia’s ASDS system ................................................................................................. 41Figure 41: Lean NOx trap operating modes ............................................................................................................... 42Figure 42: NOx trap system with ECU control ........................................................................................................... 43Figure 43: Strategies for the minimisation of PM in GDI engines ........................................................................... 44Figure 44: A schematic of a wall-flow DPF ................................................................................................................ 45Figure 45: Mercedes Benz E Class DPF ..................................................................................................................... 46Figure 46: Acicular Mulite process effects in DPF substrate .................................................................................. 47Figure 47: Combined NOx reduction and particulate reduction systems ............................................................. 48Figure 48: Assessment grid for combined NOx reduction and particulate reduction systems ......................... 49Figure 49: Development trends for SCR and LNT technologies ............................................................................. 49Figure 50: A comparison between EGR and SCR technology ................................................................................ 50Figure 51: Eberspächer’s ActiveSound technology integrated with an Audi A6 exhaust system ...................... 53Figure 52: Energy distribution and losses ................................................................................................................. 54Figure 53: Honda Rankine cycle energy recovery system ....................................................................................... 55Figure 54: Electrical power requirements for NEDC and actual customer requirements for various vehicle classes ........................................................................................................................................................................... 56Figure 55: BMW Turbostreamer technology on test and in-situ ............................................................................. 56Figure 56: BMW’s combined EGR TEG unit ............................................................................................................... 58Figure 57: A systematic diagram of a TE module...................................................................................................... 58Figure 58: Skutterudite structures ............................................................................................................................. 59Figure 59: Thermoelectric materials development ................................................................................................... 59Figure 60: Global gasoline and diesel production forecast to 2024 ....................................................................... 60Figure 61: Global gasoline and diesel production forecast by region to 2024 ..................................................... 61Figure 62: Forecast DPF market for light vehicles to 2024 ...................................................................................... 62Figure 63: Exhaust and aftertreatment market for light vehicles value to 2024 ................................................... 63Figure 64: Exhaust and aftertreatment market for light vehicles value by region to 2024 ................................. 63

TablesTable 1: Euro emissions limits for light positive ignition (gasoline) vehicles (g/km) ............................................ 16Table 2: Euro emissions limits for light compression ignition (diesel) vehicles (g/km) ....................................... 16Table 3: Monitoring requirements of California OBD systems ................................................................................ 18Table 4: Japan emissions limits for light gasoline & LPG vehicles (g/km) ............................................................. 20Table 5: Japan emissions limits for light diesel vehicles (g/km) ............................................................................. 20Table 6: Chinese emissions standards for light duty vehicles ................................................................................ 21Table 7: Emissions control strategies ........................................................................................................................ 29Table 8: Reactions in a three- way catalytic converter ............................................................................................ 31Table 9: Cost comparison EGR vs SCR in Europe .................................................................................................... 51SAMPLE

2013 edition 5 © 2013 IHS

IHS Automotive SupplierBusiness | The Automotive Exhaust and Aftertreatment Report

IntroductionThe exhaust and aftertreatment sector has grown considerably from beginnings which sought to control hydrocarbons (HC) and carbon monoxide (CO) through the US Clean Air Act introduced in California in the early 1970s. From this has evolved a highly complex set of technologies that seek to meet ever-tighter regulations of both criteria and, in the past few years, greenhouse gas emissions.

According to a 1997 EPA Report to the US Congress, the first 20 years of Clean Air Act programs, from 1970 - 1990, led to the prevention in 1990 of:

• 205,000 premature deaths;

• 672,000 cases of chronic bronchitis;

• 21,000 cases of heart disease;

• 843,000 asthma attacks;

• 189,000 cardiovascular hospitalisations;

• 10.4 million lost IQ points in children - from lead reductions; and

• 18 million child respiratory illnesses.

In 1990 the US regulation was revised with bipartisan support from US lawmakers, and from 1990 through to 2008 emissions of six common pollutants fell by 41%. Emissions of volatile organic compounds fell by31%, carbon monoxide fell by 46% and sulphur dioxide by 51%.

Figure 1: Emissions regulation promulgation from different source jurisdictions

Source: Umicore

Lead levels in ambient air are today 92% lower than in 1980, greatly reducing the number of children with IQs below 70 because of dirty air.

Analysis by the US EPA shows that in 2010 Clean Air Act fine particles and ozone programmes implemented since the 1990 amendments prevented more than 160,000 premature deaths. In addition, the forecast economic value to the US of the air quality improvements is estimated to reach close to $2 trillion for the year 2020, a value that vastly exceeds the compliance

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2013 edition 6 © 2013 IHS

IHS Automotive SupplierBusiness | The Automotive Exhaust and Aftertreatment Report

costs and its related programmes in the US.

From these beginnings, today technology to reduce criterion emissions is essentially pre-competitive not only in the developed markets but across emerging markets as well. However, an awkward situation has developed that carries an additional cost burden for the industry, where different national and regional regulation and testing regimes have meant that different technologies and systems have been needed to satisfy disparate markets.

This situation is being gradually eroded by the harmonisation of regulations; a measure that can bring long term benefits to the automotive industry. Figure 1 illustrates the position today, where although there are still three distinct bodies of regulation operating, EU and EU inspired regulation standards are the most widespread.

Figure 2: The progress of emissions regulations across major markets

Source: IHS Automotive

Having initially endured the difficult situation of meeting standards developed across three different markets (the US, the European Union and Japan) OEMs and suppliers have found that emerging markets have largely been able to pick their regulation ’off the shelf’. This has mainly been the Euro regulation system. This has also meant that OEMs and the supply base that have successfully developed technology to meet regulation enjoy a competitive advantage in emerging markets in this respect.

Today the additional factor of reducing greenhouse gas emissions, and particularly CO2 emissions through improving fuel efficiency, has begun to have a very significant influence over the exhaust and aftertreatment sector. Around two-thirds of the energy contained in fuel is dissipated as heat, a large proportion of this through the exhaust system. Therefore there are considerable gains to be made in harnessing this energy, particularly in terms of its conversion to electricity, as modern vehicles utilise increasing electrical power (see Exhaust heat recovery systems on page 74).

Exhaust and aftertreatment suppliers have had a difficult time over the past few years, which have resulted in structural changes in the sector. The technology development is largely based in a pre-competitive market and therefore competition is ultimately cost-based rather than having a differentiative element where cost can be passed down the value chain to the consumer. In addition the depressed vehicle market between 2008 and 2012 ultimately lowered volumes and the increased use of more robust materials, such as stainless steel, has heavily impacted on the once lucrative aftermarket.

Furthermore, raw materials prices, such as those for steel and platinum group metals (PGMs), have impacted on the underlying cost base of the sector at the same time as the market has become more fragmented, with model proliferation, shorter product lifecycles and more demanding technology.

Estimates from a number of commentators have concluded that the overall costs for exhaust and aftertreatment systems will make up more than 5% of the total light vehicle costs for diesel engines and approaching this amount for gasoline by 2015. This is compares to an estimate of 0.5% for light vehicles in 2003.

More stringent criterion and greenhouse gas emission regulations have required considerable innovation, which continues to cause considerable cost pressure on the suppliers despite the increasing sophistication of the technology. However, new developments that can improve fuel efficiency are becoming significant.

Suppliers have also been put under considerable pressure to match OEM customer footprints and install production capacity close to new vehicle assembly across the emerging markets of China, India and central and eastern Europe.

As with many automotive technology sectors, the supply relationship with OEMs has changed such that suppliers are expected to shoulder more of the research and development cost and risk, and develop the in-house competencies needed

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