Automotive Energy Recovery System Market Size - By Propulsion (BEV, HEV, PHEV, FCEV), Vehicle Type (Two Wheelers, Passenger Cars [Sedan, SUV, Hatchback], Commercial [Light, Medium, Heavy]), Product, Growth Prospects, Regional Outlook & Forecast, 2023 - 2032

Automotive Energy Recovery System Market Size

Automotive Energy Recovery System Market size was valued at USD 21.3 billion in 2022 and is anticipated to register a CAGR of over 10% between 2023 and 2032. According to the International Energy Agency, in April 2020, the UK automotive sector received USD 89.7 million in investment for advanced technologies in cutting carbon emissions and safeguarding and an estimated 14,000 jobs. The aim of the funding is also to increase the number of low-emission cars, commercial vehicles, and components. This investment led to the integration of energy recovery systems in vehicles, promoting their use and fostering innovation in this market segment.

Additionally, the focus on low-emission cars and commercial vehicles aligns with the goals of energy recovery systems, which can significantly contribute to reducing emissions & improving fuel efficiency, thus driving market demand.

Several regions are investing in automotive research, development, innovation, environmental protection, and energy efficiency. These investments promote the creation of eco-friendly vehicles & technologies, thus reducing emissions, enhancing sustainability, and driving advancements in energy recovery systems & related components. For instance, in December 2021, the European Commission approved an approx. USD 3 billion Spanish scheme aimed at supporting research, development, innovation, and environmental protection in the electric & connected vehicle value chain. This initiative, partially funded by the Recovery and Resilience Facility, aligns with the goal of advancing sustainable and connected mobility while ensuring fair competition in the European Union.

Concerns about cost, reliability, and performance present challenges in the automotive energy recovery system market. Consumers and automakers often weigh the upfront costs of implementing these systems against long-term fuel savings. There is a need for affordable & dependable systems that consistently deliver improved fuel efficiency and reliability. Overcoming these concerns is crucial to the widespread adoption of energy recovery systems in vehicles, ensuring they provide tangible benefits while addressing cost and reliability issues.

COVID-19 Impact

COVID-19 had mixed impacts on the automotive energy recovery system market. Initially, the pandemic disrupted supply chains and slowed production. However, it accelerated the shift toward electric vehicles and environmental-friendly technologies. Automakers increased their focus on energy-efficient systems to meet evolving consumer preferences and stringent emission standards. This shift created opportunities for the adoption of energy recovery systems, benefiting the market in the long term.

Automotive Energy Recovery System Market Trends

The rising adoption of electric & hybrid vehicles is an emerging trend in the automotive energy recovery system industry. These vehicles incorporate regenerative braking systems that recover and store kinetic energy during braking. This recovered energy can be reused to power various vehicle functions, enhancing overall energy efficiency and reducing fuel consumption. As the automotive industry shifts toward electrification to meet sustainability goals, the demand for energy recovery technologies that complement regenerative braking systems will rise, making it a prominent trend in the market.

Innovation in battery technology is a notable trend in the automotive energy recovery system market. These advancements are pivotal in enhancing the efficiency of energy recovery systems. For instance, in July 2023, Toyota announced its aim to develop superior Electric Vehicle (EV) battery technology, boost aerodynamics, and modernize production processes. Toyota is continuing to focus on a hybrid approach despite the pressure from investors and governments for a complete transition to electric cars. This plan comprises Electric Vehicles (EVs), Plug-in Hybrids (PHEVs), Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs).

Improved batteries enable more effective storage of the energy recovered during braking and deceleration. As a result, vehicles can access and utilize this stored energy when needed, significantly improving fuel efficiency. This trend aligns with the automotive industry's focus on optimizing energy management, reducing emissions, and increasing the range & performance of electric and hybrid vehicles.

Automotive Energy Recovery System Market Analysis

Based on propulsion, the Battery Electric Vehicle (BEV) segment will gain remarkable momentum during the forecast timeline. BEVs rely solely on electric propulsion, making energy recovery critical for maximizing efficiency and range. Regenerative braking and other energy recovery systems are integrated into BEVs to capture & store energy during deceleration and braking. This stored energy is then reused to power the vehicle, significantly extending the driving range and reducing the need for frequent charging, thus propelling the demand for energy recovery solutions in the BEV segment.

Based on vehicle, the commercial segment held around 45% of the automotive energy recovery system market share in 2022. Commercial vehicles, such as buses and delivery trucks, operate in stop-and-go traffic conditions, which are ideal for energy recovery systems. These vehicles benefit significantly from regenerative braking and waste heat recovery technologies. Additionally, businesses are increasingly prioritizing fuel efficiency and emissions reduction in their fleets. As a result, energy recovery systems are becoming integral to the commercial vehicle sector, promoting their adoption, and driving market growth in this segment.

Europe automotive energy recovery system market size dominated more than USD 9.3 billion in 2022. The region's stringent emissions regulations and environmental consciousness are driving the adoption of energy recovery systems to meet sustainability goals. European automakers are actively integrating these systems into their vehicles to enhance fuel efficiency and reduce emissions. Additionally, government incentives & initiatives promoting eco-friendly transportation are encouraging consumers to opt for vehicles equipped with energy recovery technologies.

Automotive Energy Recovery System Market Share

Major companies operating in the automotive energy recovery system industry are:

• Continental AG
• Bosch
• ZF Friedrichshafen
• Asin Seiki Co. Ltd
• Faurecia
• Hitachi Automotive Systems
• Mitsubishi

ZF Friedrichshafen AG and AISIN CORPORATION are dominant players in the automotive energy recovery system industry with a combined market share of around 11%. Their leadership is attributed to their extensive product portfolios and global presence, catering to various vehicle segments. They provide innovative solutions, such as regenerative braking systems and waste heat recovery technologies, which are widely adopted by automakers. Their reputation for reliability, quality, and efficiency positions them as preferred partners, solidifying their market dominance.
 

Automotive Energy Recovery System Industry News

• In January 2022, BYD introduced the Type A electric school bus, a battery-electric vehicle. The energy recovery systems help optimize energy usage by capturing and reusing energy during braking & deceleration, ultimately enhancing the efficiency and range of electric vehicles.
   

The automotive energy recovery system market research report includes in-depth coverage of the industry, with estimates & forecast in terms of Revenue (USD Million) and shipments (Units) from 2018 to 2032, for the following segments:

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Market, By Propulsion

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Market, By Vehicle

• Two wheelers
• Passenger Cars
  • Sedan
  • SUV
  • Hatchback
  • Others
• Commercial
  • Light
  • Medium
  • Heavy

Market, By Product

• Regenerative Braking system
• Electric Turbo Compounding (ETC)
• Start-Stop Systems
• Drag Reduction System
• Exhaust gas recirculation
• Thermoelectric Generators

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Russia
  • Spain
  • Netherlands
  • Poland
  • Netherlands
  • Turkey
  • Poland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia