
Global Exhaust System Market Insights, Size, and Forecast By Exhaust System Type (Mufflers, Catalytic Converters, Exhaust Manifolds, Exhaust Pipes, Resonators), By Material Type (Stainless Steel, Aluminum, Cast Iron, Carbon Steel, Mild Steel), By Application (Passenger Cars, Commercial Vehicles, Two Wheelers, Heavy Trucks, Buses), By Technology (Direct Injection, Turbocharging, Aftertreatment, Variable Valve Timing, Exhaust Gas Recirculation), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Exhaust System Market is projected to grow from USD 85.4 Billion in 2025 to USD 115.2 Billion by 2035, reflecting a compound annual growth rate of 4.6% from 2026 through 2035. The exhaust system market encompasses the components responsible for channeling spent gases from an engine, mitigating noise, and reducing harmful emissions before release into the atmosphere. This critical automotive system includes components like exhaust manifolds, catalytic converters, mufflers, resonators, and tailpipes. Growth in this market is primarily driven by stringent global emission regulations, increasing automotive production, and the growing demand for lightweight and performance enhancing exhaust systems. Governments worldwide are imposing stricter limits on pollutants like nitrogen oxides (NOx) and particulate matter (PM), forcing manufacturers to innovate and adopt advanced exhaust technologies. Furthermore, the robust expansion of the automotive industry, particularly in emerging economies, fuels both original equipment manufacturer OEM and aftermarket demand. The shift towards electrification, while a long-term trend, also creates opportunities for hybrid vehicle exhaust systems and components for internal combustion engines that will remain relevant for decades. Restraints include the rising adoption of electric vehicles EVs which do not require traditional exhaust systems, and the high cost associated with advanced materials and complex emission control technologies. However, the market is continually evolving with new opportunities arising from the development of more efficient catalytic converters, exhaust gas recirculation EGR systems, and the integration of smart exhaust technologies for real-time monitoring and optimization.
Global Exhaust System Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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A significant trend observed in the market is the increasing focus on lightweight materials such as stainless steel and aluminum to improve fuel efficiency and reduce overall vehicle weight. Another crucial trend is the growing demand for modular exhaust systems which offer greater flexibility in design and manufacturing, catering to diverse vehicle platforms. The market is also witnessing a surge in research and development activities aimed at enhancing exhaust system durability and performance, especially for commercial vehicles and heavy machinery operating under demanding conditions. Furthermore, the aftermarket segment holds substantial potential, driven by the need for replacement parts and performance upgrades for older vehicles. Opportunities also lie in the development of sustainable manufacturing processes and the recycling of exhaust system components to minimize environmental impact and comply with circular economy principles. As global economies recover and disposable incomes rise, the demand for premium and customized exhaust systems, particularly in the performance vehicle segment, is expected to surge. The market is also seeing an increasing emphasis on exhaust systems that contribute to a quiet cabin experience, leading to advancements in noise reduction technologies.
Asia Pacific stands out as the dominant region in the global exhaust system market, primarily due to its massive automotive production base and rapidly expanding vehicle parc, especially in countries like China, India, and Japan. This region is also the fastest growing, propelled by increasing urbanization, rising disposable incomes, and the continuous introduction of new vehicle models. The presence of major automotive manufacturing hubs and supportive government policies further stimulate market expansion in Asia Pacific. Passenger cars represent the leading segment, accounting for a significant share of the market, driven by high sales volumes and the continuous technological advancements in this vehicle category. Key players such as Magna International, Honda Motor, Faurecia, Sango, Walker Exhaust Systems, Nissan Motor, Calsonic Kansei, Denso, Tenneco, and Bosal are actively investing in R&D to develop innovative and compliant exhaust solutions. Their strategies often involve strategic partnerships, mergers and acquisitions, and geographical expansion to capitalize on emerging market opportunities. These companies are also focusing on product differentiation through advanced materials, smart features, and improved performance characteristics to maintain their competitive edge in a dynamic market landscape.
Quick Stats
Market Size (2025):
USD 85.4 BillionProjected Market Size (2035):
USD 115.2 BillionLeading Segment:
Passenger Cars (62.8% Share)Dominant Region (2025):
Asia Pacific (41.2% Share)CAGR (2026-2035):
4.6%
Global Exhaust System Market Emerging Trends and Insights
Electrification's Impact on Exhaust Demand
Electrification significantly reshapes the Global Exhaust System Market by altering demand dynamics. As electric vehicle sales accelerate globally, the need for traditional exhaust systems in newly manufactured passenger cars and light commercial vehicles diminishes. Electric powertrains eliminate the combustion process, rendering components like catalytic converters, mufflers, and particulate filters unnecessary for EV propulsion. This fundamental shift reduces original equipment demand for exhaust systems. However, the existing internal combustion engine vehicle parc will continue to require replacement exhaust parts for maintenance and repairs, creating a sustained but gradually shrinking aftermarket segment. Furthermore, hybrid vehicles, which retain an internal combustion engine, still require exhaust systems, though often smaller and sometimes less complex than those for purely fossil fueled vehicles, providing a transitional demand bridge. Overall, the trend points to a long term decline in overall exhaust system demand driven by the increasing market penetration of fully electric vehicles.
Greener Materials for Exhaust Systems
A significant trend in the global exhaust system market is the shift toward greener materials. This reflects growing environmental consciousness and stringent emissions regulations worldwide. Traditional exhaust components often utilize stainless steel alloys, which while durable, have a considerable carbon footprint associated with their production and recycling. Newer, greener materials aim to reduce this impact. Innovations include the development of lighter weight, high strength alloys that require less energy to produce and transport. Furthermore, the integration of advanced catalytic coatings and filters with improved precious metal recovery rates contributes to the sustainability goal. Research also focuses on exploring novel composites and materials with enhanced heat resistance and corrosion properties, extending system lifespan and reducing the need for premature replacements, ultimately contributing to a more sustainable automotive industry.
Smart Exhaust Systems for Emissions Control
Smart exhaust systems are a significant trend in the global exhaust system market, driven by the increasing need for enhanced emissions control and fuel efficiency. These intelligent systems integrate advanced sensors, actuators, and sophisticated control units to monitor exhaust gas composition in real time. They can dynamically adjust parameters like catalytic converter operating temperature, optimize urea injection in Selective Catalytic Reduction SCR systems, and manage particulate filter regeneration cycles. This proactive and adaptive approach ensures more effective reduction of harmful pollutants such as nitrogen oxides NOx and particulate matter, surpassing the capabilities of traditional passive systems. The trend reflects a broader industry shift towards incorporating AI and IoT technologies into vehicle components for better environmental performance and regulatory compliance.
What are the Key Drivers Shaping the Global Exhaust System Market
Stringent Emission Regulations & Standards
Stringent emission regulations and standards are a primary driver in the global exhaust system market. Governments worldwide are implementing increasingly strict rules to combat air pollution from vehicles. These regulations mandate significant reductions in harmful gases like nitrogen oxides, carbon monoxide, and particulate matter. To comply, automotive manufacturers must design and incorporate sophisticated exhaust systems featuring advanced technologies such as catalytic converters, diesel particulate filters, and selective catalytic reduction systems. This legislative pressure compels continuous innovation and upgrades in exhaust technology across all vehicle segments, from passenger cars to commercial vehicles. The constant evolution of these standards ensures a sustained demand for new and improved exhaust components and aftermarket solutions, fueling the market's expansion as the industry strives to meet evolving environmental mandates.
Growing Automotive Production & Sales
The expansion of automotive manufacturing globally directly fuels demand for exhaust systems. As more vehicles, including passenger cars, commercial vehicles, and light trucks, roll off production lines, each requires a complete exhaust system. This consistent output from automotive plants, driven by rising consumer purchasing power and growing vehicle parc, creates a robust and continuous need for original equipment exhaust components. Additionally, increasing vehicle sales, both new and used, necessitate a steady supply of replacement exhaust parts for maintenance and repairs. This perpetual cycle of new vehicle production and subsequent aftermarket servicing establishes a fundamental and powerful driver for the global exhaust system industry.
Technological Advancements in Exhaust Systems
Technological advancements in exhaust systems are a key driver in the global market. Innovations focus on enhancing emission control, fuel efficiency, and overall system performance. Manufacturers are developing advanced catalytic converters with improved precious metal loadings and substrate designs to more effectively reduce harmful pollutants like nitrogen oxides and particulate matter. The integration of sophisticated sensors and electronic control units allows for real time monitoring and optimization of exhaust gas treatment. Lighter weight materials such as stainless steel alloys and composites contribute to vehicle weight reduction, improving fuel economy. Furthermore, noise reduction technologies like advanced muffler designs and active noise cancellation are being incorporated, enhancing passenger comfort. These continuous innovations respond to stricter global emission regulations and consumer demand for cleaner, more efficient, and quieter vehicles.
Global Exhaust System Market Restraints
Stringent Emission Regulations and Compliance Costs
Stringent emission regulations impose a significant restraint on the global exhaust system market. Governments worldwide are implementing increasingly strict standards for vehicle emissions, requiring manufacturers to invest heavily in advanced technologies. These regulations, aimed at reducing pollutants like nitrogen oxides and particulate matter, necessitate the development of more complex and efficient exhaust systems. Compliance involves substantial research and development costs for new catalytic converters, diesel particulate filters, and selective catalytic reduction systems. Furthermore, the testing and certification processes to meet these ever evolving standards add to the overall operational expenses. These escalating compliance costs directly impact profitability, potentially leading to higher product prices and slower market adoption of innovative, compliant solutions, thereby hindering overall market growth.
High Investment and R&D for Advanced Exhaust Technologies
Developing cutting edge exhaust technologies demands substantial upfront capital and ongoing research and development. Companies must allocate significant financial resources to innovate materials, design advanced catalytic converters, and integrate sophisticated filtration systems. This high investment creates a barrier for new market entrants and smaller firms lacking the necessary capital. Furthermore, the long development cycles inherent in R&D mean returns on investment may not materialize for several years. Staying competitive requires continuous innovation, necessitating further R&D expenditure to meet evolving emission standards and consumer demands for improved performance and fuel efficiency. This constant financial commitment restricts the agility and growth potential of many players in the global exhaust system market.
Global Exhaust System Market Opportunities
High-Efficiency Emission Aftertreatment Solutions for Hybrid and Next-Gen ICE Vehicles
The global exhaust system market offers a significant opportunity in high-efficiency emission aftertreatment solutions, particularly for hybrid and next-generation internal combustion engine vehicles. Stricter environmental regulations worldwide, combined with growing consumer demand for cleaner transportation, necessitate advanced systems capable of substantially reducing pollutants.
Hybrid vehicles, while integrating electric power, still require sophisticated exhaust aftertreatment to meet stringent emission targets during engine operation. Similarly, next-generation internal combustion engines are designed for greater efficiency but still depend on cutting-edge exhaust components to achieve compliance and minimize their environmental footprint. This demand fuels innovation in catalyst technologies, particulate filters, and selective catalytic reduction systems.
The Asia Pacific region, experiencing rapid growth in vehicle adoption, serves as a crucial hub for this opportunity. Its expanding automotive production and evolving regulatory landscape create a substantial and immediate market for suppliers offering superior emission control technologies, aligning with global efforts towards sustainable mobility.
Lightweight & Performance-Optimized Exhaust Systems for Fuel Economy and Vehicle Dynamics
The global automotive landscape presents a compelling opportunity for lightweight and performance-optimized exhaust systems, primarily fueled by an urgent demand for enhanced fuel economy and superior vehicle dynamics. These innovative systems, utilizing advanced materials and designs, drastically reduce vehicle weight, directly translating into significant fuel savings and improved handling characteristics. Concurrently, their precision engineering optimizes engine exhaust flow, unlocking greater power output and a more responsive, engaging driving experience for consumers. This strategic shift is particularly pronounced within the fast growing Asia Pacific market, where a burgeoning middle class increasingly values both economic efficiency and advanced vehicle performance. Stricter global emission regulations also compel manufacturers to integrate such efficient solutions. The pursuit of reduced carbon footprints and better overall vehicle agility positions these advanced exhaust systems as a critical differentiator for carmakers and a lucrative segment for suppliers, addressing both environmental mandates and evolving consumer expectations for efficiency and thrill.
Global Exhaust System Market Segmentation Analysis
Key Market Segments
By Application
- •Passenger Cars
- •Commercial Vehicles
- •Two Wheelers
- •Heavy Trucks
- •Buses
By Exhaust System Type
- •Mufflers
- •Catalytic Converters
- •Exhaust Manifolds
- •Exhaust Pipes
- •Resonators
By Material Type
- •Stainless Steel
- •Aluminum
- •Cast Iron
- •Carbon Steel
- •Mild Steel
By Technology
- •Direct Injection
- •Turbocharging
- •Aftertreatment
- •Variable Valve Timing
- •Exhaust Gas Recirculation
Segment Share By Application
Share, By Application, 2025 (%)
- Passenger Cars
- Commercial Vehicles
- Two Wheelers
- Heavy Trucks
- Buses
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Why do Passenger Cars hold the largest share in the Global Exhaust System Market?
Passenger Cars dominate due to their substantial global production volumes and widespread consumer adoption. Stringent emission regulations across various regions necessitate advanced exhaust systems for these vehicles, driving both original equipment manufacturing and a robust aftermarket for replacements and upgrades. The sheer diversity and high turnover rate of passenger car models further contribute to the consistent demand for a wide array of exhaust components, from mufflers to catalytic converters, solidifying this segment's leading position in the market.
How does Aftertreatment Technology influence the evolution of exhaust systems?
Aftertreatment technology is a pivotal driver shaping the Global Exhaust System Market, particularly due to increasingly strict global environmental regulations. Components like catalytic converters, diesel particulate filters, and selective catalytic reduction systems are crucial for reducing harmful emissions from vehicles. This technology segment demands continuous innovation in materials and design to enhance efficiency and durability, directly impacting the complexity and value of modern exhaust systems across all vehicle types as manufacturers strive to meet ever-tightening emission standards.
What role does Stainless Steel play in the durability and performance of exhaust systems?
Stainless Steel is a fundamental material in exhaust system manufacturing, highly valued for its exceptional corrosion resistance and high temperature tolerance. These properties are critical for exhaust components which are exposed to harsh conditions, including extreme heat, moisture, and corrosive gases. Its use significantly extends the lifespan of exhaust parts such as exhaust pipes and mufflers, reducing maintenance and replacement frequency. The material's strength and durability ensure reliable performance over the vehicle's lifespan, making it a preferred choice for manufacturers seeking long lasting and efficient exhaust solutions.
Global Exhaust System Market Regulatory and Policy Environment Analysis
The global exhaust system market is profoundly shaped by stringent and evolving environmental regulations across major economies. Emissions reduction mandates, such as Euro 7, EPA Tier 3, and China VI, are primary drivers, compelling continuous innovation in aftertreatment technologies. These policies necessitate advanced catalytic converters, diesel particulate filters DPF, gasoline particulate filters GPF, and Selective Catalytic Reduction SCR systems to minimize harmful pollutants like NOx, PM, and CO.
Noise pollution regulations, like ECE R51, also influence muffler design and acoustic engineering. Policies promoting fuel efficiency indirectly push for lighter exhaust components and optimized thermal management. Regional variations exist, yet there is a converging trend towards stricter standards globally, requiring manufacturers to invest heavily in research and development for compliant and efficient solutions. Vehicle inspection programs further enforce adherence. This regulatory landscape ensures a sustained demand for sophisticated and robust exhaust systems, even amidst the long term transition to electric vehicles.
Which Emerging Technologies Are Driving New Trends in the Market?
The global exhaust system market is undergoing transformative innovation. Advancements are primarily driven by increasingly stringent emissions regulations worldwide, propelling the development of highly efficient catalytic converters and selective catalytic reduction SCR systems for diesel engines. Gasoline particulate filters GPFs are rapidly becoming standard for direct injection gasoline vehicles.
Emerging technologies emphasize lightweighting through sophisticated stainless steel alloys and composite materials, crucial for improving fuel economy and reducing overall vehicle weight. Intelligent exhaust systems are integrating advanced sensors for real time monitoring, diagnostics, and predictive maintenance capabilities. Active noise cancellation is gaining traction, enhancing cabin comfort. Furthermore, waste heat recovery WHR systems represent a significant growth area, converting exhaust heat into usable energy, thereby boosting overall vehicle efficiency and contributing to sustainable mobility solutions across various powertrain types, including hybrids.
Global Exhaust System Market Regional Analysis
Global Exhaust System Market
Trends, by Region

Asia-Pacific Market
Revenue Share, 2025
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Dominant Region
Asia Pacific · 41.2% share
Asia Pacific stands as the dominant region in the global exhaust system market, capturing a significant 41.2% market share. This strong position is primarily fueled by the burgeoning automotive industries within countries like China, India, Japan, and South Korea. Rapid urbanization and increasing disposable incomes in these nations have led to a surge in vehicle production and sales. Furthermore, stringent emission regulations being implemented across the region are driving demand for advanced and more efficient exhaust systems, including catalytic converters and particulate filters. The presence of major automotive manufacturers and a robust supply chain further solidifies Asia Pacific's leadership, making it a pivotal hub for innovation and growth in the exhaust system sector.
Fastest Growing Region
Asia Pacific · 6.2% CAGR
Asia Pacific is poised to be the fastest growing region in the global exhaust system market, projecting a robust CAGR of 6.2% from 2026 to 2035. This accelerated expansion is primarily fueled by the burgeoning automotive manufacturing sector across countries like China, India, and Southeast Asia. Increasing vehicle production, coupled with the rising adoption of stringent emission regulations, compels automakers to integrate advanced and efficient exhaust systems. Furthermore, the burgeoning aftermarket demand for replacement and performance enhancing exhaust components contributes significantly to this growth. Rapid urbanization, improving economic conditions, and a growing middle class capable of purchasing vehicles further solidify Asia Pacific's leading position in market expansion.
Impact of Geopolitical and Macroeconomic Factors
Geopolitically, supply chain resilience is paramount. Trade tensions, particularly between major manufacturing blocs, can disrupt raw material sourcing for steel and specialized alloys, impacting production costs and delivery times. Geopolitical instability in resource-rich regions further threatens steady material flow. Environmental regulations, influenced by international agreements and national policies, are key drivers. Stricter emissions standards worldwide necessitate continuous innovation in exhaust system design and materials, favoring manufacturers with advanced R&D capabilities and production technologies for complex catalytic converters and particulate filters.
Macroeconomically, global economic growth directly influences new vehicle sales, a primary market for exhaust systems. A robust global economy supports increased consumer spending on vehicles, while slowdowns curtail demand. Inflation, especially for key commodities like steel, palladium, and rhodium, directly raises manufacturing costs. Interest rate hikes in major economies can dampen auto sales by increasing financing costs, further impacting market demand. Exchange rate fluctuations also affect the profitability of international trade for components and finished systems, influencing market competitiveness and pricing strategies.
Recent Developments
- March 2025
Magna International launched a new range of lightweight exhaust systems designed for electric vehicles (EVs), focusing on noise reduction and thermal management. This strategic initiative aims to capture a larger share of the evolving EV market, where exhaust systems still play a crucial role in managing battery and motor temperatures.
- October 2024
Tenneco announced a strategic partnership with a leading Asian automotive manufacturer to co-develop advanced exhaust aftertreatment systems for commercial vehicles. This collaboration will focus on meeting stricter Euro 7 and equivalent emission standards, leveraging Tenneco's expertise in emissions control technologies.
- January 2025
Faurecia completed the acquisition of a specialized sensor technology firm, enhancing its capabilities in smart exhaust systems for real-time emissions monitoring and diagnostics. This acquisition is a strategic move to integrate advanced sensor technology directly into their exhaust solutions, offering richer data and improved compliance for OEM partners.
- November 2024
Bosal unveiled a new product line of modular exhaust systems for hybrid vehicles, emphasizing ease of installation and reduced manufacturing complexity. This product launch addresses the growing demand for flexible and cost-effective exhaust solutions in the rapidly expanding hybrid vehicle segment.
Key Players Analysis
Key players like Tenneco and Faurecia dominate the global exhaust system market, offering advanced emission control technologies and lightweight designs. Honda and Nissan, as major OEMs, drive demand for efficient, quiet systems. Strategic partnerships and acquisitions, alongside a focus on hybrid and electric vehicle exhaust solutions, fuel market growth. Denso and Magna International are crucial suppliers, innovating with materials and manufacturing processes.
List of Key Companies:
- Magna International
- Honda Motor
- Faurecia
- Sango
- Walker Exhaust Systems
- Nissan Motor
- Calsonic Kansei
- Denso
- Tenneco
- Bosal
- Delphi Technologies
- Eberspächer
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 85.4 Billion |
| Forecast Value (2035) | USD 115.2 Billion |
| CAGR (2026-2035) | 4.6% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 2: Global Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 3: Global Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 4: Global Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 5: Global Exhaust System Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 7: North America Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 8: North America Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 9: North America Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 10: North America Exhaust System Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 12: Europe Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 13: Europe Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 14: Europe Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 15: Europe Exhaust System Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 17: Asia Pacific Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 18: Asia Pacific Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 19: Asia Pacific Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 20: Asia Pacific Exhaust System Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 22: Latin America Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 23: Latin America Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 24: Latin America Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 25: Latin America Exhaust System Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa Exhaust System Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 27: Middle East & Africa Exhaust System Market Revenue (USD billion) Forecast, by Exhaust System Type, 2020-2035
Table 28: Middle East & Africa Exhaust System Market Revenue (USD billion) Forecast, by Material Type, 2020-2035
Table 29: Middle East & Africa Exhaust System Market Revenue (USD billion) Forecast, by Technology, 2020-2035
Table 30: Middle East & Africa Exhaust System Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035