EGR Cooler Market Size, Trends and Growth Analysis by 2027

The exhaust gas regulation (EGR) cooler market was valued at approximately US$511.6 million in 2019 and is anticipated to grow to US$527.8 million by 2027, reflecting a compound annual growth rate (CAGR) of 1.5% from 2020 to 2027.

As environmental concerns, particularly global warming, gain prominence, regulations governing automobile exhaust emissions are becoming increasingly stringent. In response, various countries are innovating exhaust gas reduction technologies to comply with these emissions standards. EGR technology is particularly effective in lowering nitrogen oxides (NOx) emissions at reduced temperatures, which traditionally required high combustion temperatures for mitigation. Historically, EGR coolers were predominantly manufactured from stainless steel; however, this material is both heavy and expensive. Modern EGR coolers must not only perform efficiently but also meet compactness requirements to adhere to current pollution standards. The integration of aluminum into the design of stainless steel EGR coolers enhances heat transfer efficiency due to aluminum's superior heat transfer coefficient, while also reducing overall weight. Consequently, aluminum is poised to become a preferred material for future EGR cooler production.

In North America, the EGR cooler market is primarily propelled by several factors, including an increasing number of passenger vehicles, expanding transportation infrastructure, and heightened awareness of the advantages offered by EGR coolers. This region is experiencing significant advancements in technology, such as smartphone-controlled audio systems and voice-activated features. According to the Organization International des Constructeurs d'Automobiles (OICA), the production of commercial vehicles in the United States rose in 2019 compared to 2018, reaching approximately 12,764,999 units. This ongoing growth in commercial vehicle production in the U.S. is driving up the demand for EGR coolers.

The EGR cooler market is characterized by a high degree of fragmentation and competition. Major players in the industry are actively expanding their market presence by enhancing their product offerings and diversifying their customer bases, which intensifies competition among both established and emerging companies. Numerous firms are innovating new products to maintain their competitive edge and provide efficient solutions to their clients. For example, in October 2018, BorgWarner, Inc. launched an EGR system designed to assist automakers in meeting increasingly stringent emission standards. This system effectively reduces NOx emissions in various diesel vehicles and is packaged compactly, integrating multiple technologies, including an EGR cooler, a bypass, and an EGR valve.

The EGR cooler market is segmented based on type, engine type, vehicle type, and geography. In terms of type, the market is divided into tube EGR coolers and finned EGR coolers. When categorized by engine type, the market includes diesel and gasoline engines. Vehicle types are classified into passenger vehicles and commercial vehicles. Geographically, the EGR cooler market is segmented into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM).

Key players in the EGR cooler market include Benteler Automotive, BorgWarner Inc., Continental AG, Denso Corporation, erae Automotive Systems Co., Ltd., Faurecia, Hanon Systems, Korens Co. Ltd., MAHILE GmbH, Maruyasu Industries Co., Ltd., Tokyo Radiator MFG. Co., Ltd, Tokyo Roki Co. Ltd., Rheinmetall Automotive AG, Senior Flexonics, and Valeo SA.

The overall size of the EGR cooler market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aids in providing an overview and forecast for the EGR cooler market across all segments. Additionally, numerous primary interviews have been conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this research typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants like valuation experts, research analysts, and key opinion leaders specializing in the EGR cooler sector.