Government Policies to Flank Automotive Emission Test Equipment Market Growth

1
Government Policies to Flank Automotive Emission
Test Equipment Market Growth

• As the global community becomes increasingly
  concerned about the environmental impacts of
  automotive emissions, governments worldwide have
  implemented various policies to curb pollutants
  from vehicles. These policies encourage the
  development and use of cleaner, more
  energy-efficient vehicles and aim to improve air
  quality and reduce the harmful effects of
  greenhouse gases. Also, these policies have
  significantly impacted the global demand for
  futuristic emission test equipment. According to
  Inkwood Research, the global automotive emission
  test equipment market is expected to surge with a
  5.23 CAGR during the forecast period 2023-2032.
• Governments worldwide have recognized the need
  for policies to address automotive emissions. Key
  areas of focus include
• Emission Standards Governments have established
  stringent emission standards, pushing automakers
  to develop cleaner technologies and reduce
  vehicle emissions.
• Incentives for Electric Vehicles (EVs) Many
  governments are offering financial incentives,
  such as tax credits and subsidies, to encourage
  the adoption of electric vehicles and reduce
  dependence on fossil fuels.
• Infrastructure Development Governments are
  investing in infrastructure to support the growth
  of

electric vehicles, such as charging stations and
public transportation networks.
2

• Important Government Policies Curbing Pollutants
  from Automotive Emissions
• European Union Emission Standards
• The European Union (EU) has established a
  comprehensive set of emission standards for
  vehicles to ensure the reduction of harmful
  pollutants such as hydrocarbons (HC), nitrogen
  oxides (NOx), particulate matter (PM), and
  carbon monoxide (CO). These standards,
  progressively tightened over time, apply to
  passenger and commercial vehicles. The latest
  standard, Euro 6, has significantly reduced the
  permissible emission levels compared to previous
  iterations.
• Key features of the EU Emission Standards
• This standard applies to new vehicles sold within
  the EU and European Economic Area (EEA)
• Regular updates to set more stringent emission
  limits
• Differentiates between diesel and gasoline
  vehicles for certain pollutants due to their
  different combustion properties
• Corporate Average Fuel Economy (CAFE) Standards
  in the United States
• In the United States, the Environmental
  Protection Agency (EPA) and the National Highway
  Traffic Safety Administration (NHTSA) jointly
  regulate fuel economy standards for new passenger
  cars and light trucks under the Corporate Average
  Fuel Economy (CAFE) program. This program aims to
  reduce fuel consumption and greenhouse gas
  emissions from vehicles. The CAFE standards have
  successfully encouraged the development of more
  fuel-efficient vehicles.
• Key aspects of the CAFE Standards
• Sets mandatory minimum fuel efficiency targets
  for vehicle manufacturers
• Gradually increasing fuel economy requirements
  over time
• Manufacturers receive credits for exceeding
  standards and can trade or bank them for future
  use
• India's Bharat Stage Emission Standards
• India has implemented its emission standards,
  Bharat Stage (BS), to address the increasing air
  pollution caused by automotive emissions. Like
  the EU Emission Standards, the Bharat Stage
  standards have evolved, with the latest BS-VI
  norms coming into effect in April 2020. These
  stringent standards have led to the rapid
  adoption of cleaner technologies in the
  automotive sector, significantly reducing the
  emission of harmful pollutants.
• Key highlights of the Bharat Stage Emission
  Standards

?
Encourages the adoption of cleaner fuel and
advanced emission control technologies
3

• China's New Energy Vehicle (NEV) Policy
• China's New Energy Vehicle (NEV) mandate,
  introduced by the Ministry of Industry and
  Information Technology (MIIT) in 2017, encourages
  the adoption of NEVs by setting credit targets
  for manufacturers. Inspired by California's Zero
  Emission Vehicle (ZEV) mandate, the policy
  focused on passenger cars and aimed for a 10 NEV
  credit target in 2019 and 12 in 2020. Credit
  allocation is based on factors like electric
  range, energy efficiency, and fuel cell system
  power.
• Key aspects of China's NEV Policy
• China promotes NEV adoption by offering financial
  incentives, contributing to the country's
  position as the largest electric vehicle market
  globally.
• Automakers in China must produce a specific
  percentage of NEVs, earning credits based on
  production and sales. Excess credits can be sold
  to other manufacturers.
• China is dedicated to increasing the number of
  public charging stations, enhancing convenience
  for electric vehicle users.

Impact of Government Policies on the Global
Automotive Emission Test Equipment Market It is
evident that as governments continue to introduce
and enforce stringent policies, the global
automotive emission test equipment market will
experience significant growth. To remain
competitive and compliant with these evolving
regulations, automotive manufacturers and testing
equipment providers should continue to invest in
research and development, paving the way for a
cleaner and more sustainable future for the
automobile industry. Furthermore, the demand for
advanced emission test equipment has surged,
driving innovation and growth in the global
automotive emission test equipment market.
Initiatives such as the Euro 6 and the Bharat
Stage Emission Standards have led to the
development of cleaner and more efficient
engines, directly influencing the emission test
equipment industry. Furthermore, incentive
programs promoting electric and hybrid vehicles,
such as the Faster Adoption and Manufacturing of
Hybrid and Electric Vehicles (FAME) in India,
have bolstered the need for specialized testing
equipment. Frequently Asked Questions (FAQs) 1.
What are some of the major findings in the
global automotive emission test equipment
market? A Government regulation is a key growth
enabler, vehicular emissions are a major
contributor to greenhouse gases, and passenger
car testing constitutes a large market share are
some of the major findings in the global
automotive emission test equipment market.
2. What are the key growth restraints of the
global automotive emission test equipment market?
4
A Non-compliance to vehicle emission standards
and low emissions from electric vehicles are the
key growth restraints of the global automotive
emission test equipment market.