Automotive Energy Recovery Systems Market Analysis APAC,North America,Europe,South America,Middle East and Africa - US,Canada,China,India,Germany - Size and Forecast 2023-2027

Automotive Energy Recovery Systems Market Size 2023-2027

The Global Automotive Energy Recovery Systems Market size is estimated to increase by USD 13.39 billion and grow at a CAGR of 9.35% between 2023 and 2027. Rising traffic congestion and jams are fueling the need for regenerative braking systems, alongside the expanding presence of electronic vehicles. Government mandates aimed at curbing automobile emissions further propel market expansion. However, operational challenges and the relatively elevated costs pose hurdles. Complexities in design could result in suboptimal performance, while semiconductor chip shortages impede growth. Despite these obstacles, the market is poised for advancement as stakeholders prioritize sustainability and compliance with environmental regulations. Efforts to address operational inefficiencies and cost concerns, coupled with innovations to streamline design complexities, are essential for driving sustained growth in the automotive energy recovery sector amid evolving transportation landscapes. China, India, Germany, the US, and Canada are the top five countries contributing to the market growth. China held the largest market share projecting an annual revenue of USD 5.69 billion.

Ucappower is one of the top market players in the market.  The company offers automotive energy recovery systems such as Start-Stop Systems with Brake Energy Regeneration. Besides analyzing the current market scenario, our report examines historic data from 2017 to 2021.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation by Product, Type, Geography

This market report extensively covers market segmentation by Product (regenerative braking system, turbocharger, and exhaust gas recirculation), Type (passenger cars, commercial vehicles, and electric vehicles), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.

Product Analysis

The regenerative braking system segment is estimated to witness significant growth during the forecast period. The market encompasses technologies that enable the capture and utilization of energy lost during braking in Electric Vehicles (EVs), electric passenger cars, electric buses, and heavy vehicles. This energy can be used immediately, stored in batteries, or employed for heating in turbochargers. 

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The regenerative braking system segment was the largest segment and was valued at USD 8.22 billion in 2017. Safety features such as electronic stability control and low-emission cars benefit from energy recovery systems. Battery technology plays a crucial role in the adoption of EVs, including Plug-in Hybrids and Hybrid Electric Vehicles. Motorsport and e-axles also utilize energy recovery systems. Regulations, production costs, and incentives influence the market's growth. Fuel prices, operating costs, and adoption costs are significant factors affecting the complexity of implementing energy recovery systems in various vehicle types. Valve blocks and standards are essential components in the design and production of these systems. 

Type Analysis 

Based on Type, the market is fragmented into passenger cars, commercial vehicles, and electric vehicles. The market has experienced significant growth in recent years due to the increasing analysis of subsystems and propulsion systems in both electric and traditional vehicle applications. In the context of passenger vehicles, this market holds importance for light commercial and heavy commercial applications. Advanced technology, such as energy recovery systems, contributes to enhanced fuel efficiency and reduced emissions. The electric vehicle sector, in particular, benefits significantly from these systems. The expanding middle-class population in emerging economies and the increasing popularity of ride-sharing platforms further fuel the demand for these systems in commercial vehicles.

Region Analysis

APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia-Pacific (APAC) region plays a significant role in the global market, mainly driven by the widespread adoption of electric vehicles (EVs) in China and Japan. The market is primarily driven by the increasing adoption of Electric Vehicles (EVs) in the APAC region, particularly in China and Japan. EV infrastructure development, including the production of electric passenger cars and electric buses, is a significant factor. Turbocharger heating and energy recovery systems are essential for heavy vehicles and electric school buses, enhancing safety features such as electronic stability control. Low-emission cars, including Plug-in Hybrids and Hybrid Electric Vehicles, utilize automotive energy recovery technology to improve fuel efficiency and driving range. Battery technology advancements and regulations are influencing the market's growth. Key players focus on reducing production costs through complex valve blocks and motor innovations, such as E-axles and Brembo systems. Fuel prices, operating costs, and adoption costs are essential considerations for market growth. Regulations and incentives continue to shape the market landscape.

Market Dynamics and Customer Landscape

The market encompasses advanced technologies that enable the capture and utilization of energy during various automotive operations. These systems, including regenerative braking and hybrid powertrains, are integral to Electric Vehicles (EVs) and Plug-in Hybrids (PHEVs), enhancing their overall Efficiency and reducing Fuel emission regulations. Battery technology plays a pivotal role in energy recovery systems, with continuous advancements in battery capacity and charging infrastructure driving market growth. Engine technologies, such as the E-axle and Motor, are also evolving to optimize energy recovery and improve Performance. Exhaust gases are another potential energy source, with Exhaust Gas Recovery Systems (EGRS) gaining traction in the market. Accessories like regenerative braking systems and motor-generators are increasingly being adopted to capture electrical energy during deceleration and braking. Motorsport applications are also exploring energy recovery systems, with Formula One's Energy Recovery System (ERS) being a notable example. The Technology behind these systems is continually evolving, with a focus on maximizing Energy efficiency and minimizing emissions. In summary, the market is witnessing significant growth due to the increasing demand for sustainable and efficient transportation solutions. The integration of battery technology, engine technologies, and exhaust gas recovery systems is driving innovation and improving the overall Efficiency and Performance of vehicles. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The increasing traffic congestion and traffic jams pushing demand for regenerative braking are driving market growth. In the context of increasing traffic congestion worldwide, the use of Electric Vehicles (EVs) is gaining significance. During stop-and-go traffic, the engine idles for extended periods, leading to energy loss. AERS facilitates the conversion of kinetic energy generated during braking into electrical energy. This energy can be stored in a battery or utilized during acceleration. The efficiency of AERS varies, with an average of 60%-70% achievable. Subsystem analysis reveals that AERS are essential for both light and heavy commercial vehicles in propulsion analysis, enhancing overall energy efficiency. Hence, such factors will boost the growth of the market during the forecast period.

Significant Market Trends

Technological innovations such as waste energy recovery in automotive are a key trend in the market. In the automotive sector, Energy Recovery Systems (ERS) are gaining significance as they capture and utilize excess heat generated by the engine, thereby enhancing energy efficiency and decreasing fuel consumption. This results in reduced emissions, contributing to sustainable transportation. Analyzing subsystems and propulsion systems in both electric and conventional vehicles reveals the potential of ERS in light and heavy commercial vehicles. The market growth for ERS in the automotive industry is driven by the increasing focus on energy efficiency and eco-friendliness during the forecast period. Hence, such factors will boost the growth of the market during the forecast period. 

Major Market Challenges

The operational issues and relatively higher cost are challenging market growth. In the context of automotive transportation, energy recovery systems offer significant benefits for both propulsion analysis and vehicle analysis, particularly in stop-and-go traffic. These systems enhance braking efficiency, thereby improving fuel efficiency and decreasing carbon emissions. Furthermore, they optimize engine energy usage, minimizing energy waste. However, the market expansion may be constrained due to their high cost. This expense is a significant consideration for both light and heavy commercial vehicles during the manufacturing process and in aftermarket installations. The implementation of these systems involves advanced electronic components and controllers, leading to substantial installation costs. Subsystem analysis reveals that the high initial investment is a major challenge for market growth during the forecast period. Hence such factors will pose a hindrance to market growth during the forecast period.

Key Automotive Energy Recovery Systems Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Stellantis- The company offers automotive energy recovery systems such as Regenerative Braking System, the Turbocharger, and the Exhaust Gas Recirculation System.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Autoliv Inc., BorgWarner Inc., Continental AG, Cummins Inc., Gentherm Inc., Hitachi Ltd., Honeywell International Inc., Hyundai Motor Co., IHI Corp., Mitsubishi Motors Corp., Rheinmetall AG, Ricardo Plc, Robert Bosch GmbH, Skeleton Technologies GmbH, Stellantis NV, Tenneco Inc., UCAP Power Inc., ZF Friedrichshafen AG, DENSO Corp., and Panasonic Holdings Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments

• Product Outlook 
  • Regenerative braking system
  • Turbocharger
  • Exhaust gas recirculation
• Type Outlook
  • Passenger cars
  • Commercial vehicles
  • Electric vehicles
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

Automotive Energy Recovery Systems (AERS) are gaining significant attention in the global automotive industry due to increasing focus on reducing carbon emissions and improving fuel efficiency. These systems recover energy that is otherwise lost during braking and regenerative processes, and convert it into electrical energy that can be used to power vehicle systems or recharge batteries. The market is driven by stringent emission norms and rising demand for electric and hybrid vehicles. The market is segmented based on technology, vehicle type, and region. The most common technologies used in AERS include regenerative braking, engine waste heat recovery, and flywheel energy recovery. The market is expected to grow at a steady pace due to increasing adoption of these systems in both conventional and electric vehicles. The market is also witnessing significant investments from automakers and component suppliers to develop more efficient and cost-effective systems. AERS offer several benefits, including improved fuel efficiency, reduced carbon emissions, and extended battery life in electric vehicles. The systems also help in reducing the load on the engine, leading to improved vehicle performance and longer engine life. In conclusion, the market is poised for growth due to increasing demand for fuel-efficient and low-emission vehicles, and the development of more efficient and cost-effective systems by automakers and component suppliers.

Automotive Energy Recovery Systems Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 9.35%
Market growth 2023-2027	USD 13.39 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	8.42
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 51%
Key countries	US, Canada, China, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Autoliv Inc., BorgWarner Inc., Continental AG, Cummins Inc., Gentherm Inc., Hitachi Ltd., Honeywell International Inc., Hyundai Motor Co., IHI Corp., Mitsubishi Motors Corp., Rheinmetall AG, Ricardo Plc, Robert Bosch GmbH, Skeleton Technologies GmbH, Stellantis NV, Tenneco Inc., UCAP Power Inc., ZF Friedrichshafen AG, DENSO Corp., and Panasonic Holdings Corp.
Market dynamics	Parent market analysis, market forecasting, Market growth inducers and obstacles, Recycling, Fuel Cell Electric Vehicles Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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