Selective Catalytic Reduction Market Size & Growth Analysis to 2030

The global selective catalytic reduction market size was valued at over USD 14 billion in 2024 and projected to grow at a significant CAGR of around 5.5% during the forecast period from 2025 to 2030. The global market is experiencing steady growth, driven by stringent environmental regulations aimed at reducing nitrogen oxide (NOx) emissions from industrial and automotive sources. SCR technology is widely adopted in power plants, industrial boilers, and diesel engines, utilizing a catalyst and a reductant (such as ammonia or urea) to convert NOx into nitrogen and water vapor. Governments worldwide are enforcing strict emission norms, such as the Euro 6 standards in Europe and Bharat Stage VI (BS VI) in India, pushing industries to integrate SCR systems into their operations. Additionally, the rising adoption of SCR in marine vessels and construction equipment further supports market expansion.

Regionally, Asia-Pacific dominates the SCR market due to rapid industrialization, growing energy demands, and stringent air pollution control measures in countries like China and India. North America and Europe also hold significant market shares, driven by regulations from the Environmental Protection Agency (EPA) and the European Union (EU). The automotive sector remains a key end-user, with manufacturers integrating SCR technology to comply with emission limits in commercial and passenger vehicles. As advancements in catalyst materials and digital monitoring systems enhance efficiency, the SCR market is expected to witness a steady compound annual growth rate (CAGR), reaching new heights in the coming years.

Market Snapshot:

Market Drivers:

The global selective catalytic reduction (SCR) market is primarily driven by stringent environmental regulations aimed at reducing nitrogen oxide (NOx) emissions from industrial and automotive sources. Governments worldwide are enforcing strict emission standards, compelling industries to adopt SCR systems to comply with these regulations. For instance, the California Air Resources Board (CARB) has set ambitious NOx reduction targets for heavy-duty diesel engines by 2027, prompting manufacturers to innovate and implement advanced SCR technologies. In response, Southwest Research Institute has demonstrated new technologies capable of meeting these stringent requirements, showcasing the industry’s commitment to environmental compliance.

Technological advancements and recent product innovations are further propelling the SCR market. In February 2025, Van Oord’s cable-laying vessel, Nexus, was retrofitted with advanced SCR systems by Damen Shipyards Group, significantly reducing its NOx emissions and enhancing environmental performance. Similarly, in the same month, WinGD’s integrated Selective Catalytic Reduction (iSCR) system received type approval and is set for its first commercial deployment, offering an on-engine NOx reduction solution for marine two-stroke engines. These developments underscore the industry’s proactive approach to adopting cutting-edge SCR technologies, ensuring compliance with evolving emission standards and contributing to global environmental sustainability efforts.

Market Trends:

Rising Adoption in the Automotive Sector: The growing emphasis on reducing vehicle emissions has led to a widespread adoption of SCR systems in diesel-powered vehicles. Automakers are integrating SCR technology to comply with stringent nitrogen oxide (NOx) emission regulations set by agencies such as the U.S. Environmental Protection Agency (EPA) and the European Union. This trend is enhancing fuel efficiency and engine performance while meeting emission standards, making SCR an essential component in modern diesel engines.

Expansion Beyond Automotive Applications: While the automotive sector remains a significant end-user, SCR technology is increasingly being adopted in industries such as power generation, marine, and heavy manufacturing. Large-scale industrial operations and power plants are implementing SCR systems to meet emission control standards, particularly in regions where governments are enforcing stricter air quality regulations. The power sector, in particular, has seen a notable increase in SCR adoption due to its effectiveness in reducing NOx emissions from coal and gas-fired plants.

Stringent Environmental Regulations: Governments and environmental agencies worldwide continue to introduce and tighten emission standards, driving industries to adopt SCR technology. Regulations such as the Euro 6 and EPA Tier 4 standards have made SCR systems a necessity in multiple industries. This regulatory pressure is expected to continue shaping the market, with stricter limits on industrial and vehicular emissions being implemented globally.

Advancements in Catalyst Technology: Research and development in catalyst materials have led to the creation of more efficient and cost-effective SCR systems. Innovations such as ammonia-based SCR systems and hybrid catalysts are improving conversion rates, ensuring a higher percentage of NOx emissions are neutralized. These advancements are making SCR technology more appealing for a broader range of applications, reducing operational costs and improving long-term sustainability.

Growth in Marine SCR Systems: The International Maritime Organization (IMO) has enforced Tier III NOx emission regulations for ships operating in designated emission control areas (ECAs). As a result, there is a rising demand for SCR systems in the maritime industry, particularly in commercial vessels and cargo ships. Shipowners are investing in SCR technology to ensure compliance with these environmental mandates, leading to increased market growth in the marine sector.

Market Opportunities:

The global selective catalytic reduction (SCR) market is witnessing ample opportunities driven by regulatory updates and innovations by key industry players. One such opportunity arises from the continuous advancements in SCR technology to meet stricter emission regulations. For example, in response to the global push for more stringent emission control, companies like Johnson Matthey have been enhancing their SCR catalysts and introducing digital technologies to optimize the performance of catalytic converters. Their collaboration with Kebotix in 2021 focused on using artificial intelligence for improving the efficiency and customization of SCR catalysts, showcasing a significant leap in innovation within the emission control sector.

Additionally, evolving regulations in sectors like marine and heavy industry present substantial opportunities for SCR providers. The International Maritime Organization (IMO) has set stringent NOx emission standards for ships, driving the adoption of SCR systems in the maritime industry. In line with this, Tenneco Automotive has made strides in integrating SCR systems with exhaust after-treatment technologies, particularly in marine applications. As global emission standards continue to tighten, such innovations will continue to present lucrative opportunities for SCR system manufacturers to cater to both new installations and retrofits across multiple industries.

Market Restraints:

The global selective catalytic reduction (SCR) market faces several restraining factors that could hinder its growth. One major challenge is the high initial investment and operational costs associated with installing and maintaining SCR systems, particularly in industries such as power generation and heavy manufacturing. Additionally, the requirement for a continuous supply of ammonia or urea-based reductants, such as Diesel Exhaust Fluid (DEF), adds to the ongoing operational expenses. Another limiting factor is the complexity of system integration, as SCR technology requires precise temperature control and proper catalyst maintenance to function efficiently. Furthermore, the emergence of alternative emission reduction technologies, such as Exhaust Gas Recirculation (EGR) and hybrid electric systems, poses a competitive threat to the SCR market.

Market Insights:

The global selective catalytic reduction market is bifurcated into end-use, and geography. On the basis of end-use, the automotive segment dominated the market in 2024 with the largest market share of around 1/2 of the market, primarily due to the strict emission regulations imposed on diesel-powered vehicles worldwide. Governments and regulatory bodies, such as the Environmental Protection Agency (EPA) in the U.S. and Euro 6 standards in Europe, have enforced stringent NOx emission limits, making SCR a crucial technology for compliance. The widespread adoption of SCR in passenger cars, commercial trucks, buses, and off-highway vehicles has significantly driven market growth. Additionally, the rising demand for fuel-efficient and low-emission vehicles has further propelled the integration of SCR systems, particularly in heavy-duty trucks and fleet vehicles. Leading automotive manufacturers, including Daimler, Volvo, and Cummins, continue to expand their SCR-equipped vehicle offerings to meet evolving environmental norms.

Another key factor reinforcing the dominance of the automotive sector is the expansion of SCR adoption in emerging markets, such as China and India, where governments are tightening emission regulations. The Bharat Stage VI (BS-VI) standards in India, for example, have accelerated the deployment of SCR systems in commercial vehicles. Moreover, the growing trend of electrification and hybrid vehicles does not entirely diminish the need for SCR, as diesel hybrid vehicles still require efficient emission control solutions. With increasing production and sales of diesel-powered vehicles that comply with stricter environmental policies, the automotive sector will continue to lead the SCR market, outpacing other end-use industries such as power generation and marine applications.

The selective catalytic reduction market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By End-Use:

• Automotive
  • Passenger Cars
  • Commercial Vehicles
• Power Generation
• Marine
• Chemical & Petrochemical
• Cement
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia-Pacific region dominates the selective catalytic reduction (SCR) market in 2024 with the largest market share of over 1/3 market, driven by stringent environmental regulations, rapid industrialization, and a booming automotive sector. Countries such as China, India, and Japan have implemented strict NOx emission standards for both vehicles and industrial facilities, fueling the demand for SCR systems. China, in particular, has introduced the China VI emission standards, which are among the strictest globally, requiring diesel vehicles to incorporate advanced emission control technologies like SCR. Additionally, the region’s growing power generation sector, which heavily relies on coal-fired plants, has increased the adoption of SCR systems to curb industrial emissions. The presence of major SCR solution providers, such as Hitachi Zosen and Mitsubishi Heavy Industries, further strengthens the market position of Asia-Pacific.

Another factor contributing to the region’s dominance is the rising adoption of SCR technology in the marine and chemical industries. With the International Maritime Organization (IMO) Tier III regulations imposing stricter NOx limits on ships operating in Emission Control Areas (ECAs), Asian shipbuilders and fleet operators are integrating SCR systems into marine vessels. Additionally, the expanding chemical and petrochemical industries, particularly in India and Southeast Asia, are increasingly adopting SCR to comply with emission norms. Government incentives and investments in cleaner technologies, coupled with the high production and sales of diesel-powered vehicles, ensure that Asia-Pacific remains the leading market for SCR solutions, outpacing regions like North America and Europe.

Competitive Landscape:

Some of the prominent market players operating in the global selective catalytic reduction market are Johnson Matthey Plc, BASF SE, Mitsubishi Heavy Industries Ltd., Tenneco Inc., and Bosch Rexroth AG. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Johnson Matthey Plc
• BASF SE
• Mitsubishi Heavy Industries Ltd.
• Tenneco Inc.
• Bosch Rexroth AG
• Cummins Inc.
• Hitachi Zosen Corporation
• CORMETECH Inc.
• Alstom SA
• Yara International ASA

Key Questions Answered by Selective Catalytic Reduction Market Report

• Global selective catalytic reduction market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Selective catalytic reduction submarket forecasts from 2025-2030 covering the market by end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level selective catalytic reduction markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market