Automotive Exhaust Heat Recovery (EHR) System Market Size, Share, Growth, And Industry Analysis, By Type (Exhaust Gas Heat Recovery (EGHR), Rankine Cycle Systems, Thermoelectric Generator, and Electric Turbo Compounding (ETC)), By Application (Passenger Cars and Commercial Vehicles), and Regional Forecast To 2032

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AUTOMOTIVE EXHAUST HEAT RECOVERY (EHR) SYSTEM MARKET REPORT OVERVIEW

The global Automotive Exhaust Heat Recovery (EHR) System Market size is USD 0.16 billion in 2024 and is expected to reach USD 0.55 billion by 2032, growing at a compound annual growth rate (CAGR) of about 16.3% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the automotive exhaust heat recovery (EHR) system market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The waste heat produced by a car's exhaust gases can be collected and used by automotive exhaust heat recovery (EHR) systems. An enormous quantity of energy is wasted as heat through the exhaust system in a conventional internal combustion engine. In order to increase the overall efficiency of the vehicle and lower fuel consumption, EHR systems work to recover some of this wasted heat and transform it into useful energy. EHR systems can be in a variety of shapes and sizes, but the most popular method includes employing a heat exchanger to convert heat from exhaust gases to a working fluid, including water or a refrigerant. Then, numerous operations within the vehicle can be carried out using this working fluid.

Numerous factors contribute to the expansion of the automotive exhaust heat recovery (EHR) system industry. The demand for energy-efficient technologies has increased due to a number of factors, including the strong global focus on lowering greenhouse gas emissions and increasing fuel economy. A second factor motivating automakers to use EHR systems is the government's strict restrictions and pollution limits. Thirdly, improvements in the systems technology, such as better heat exchangers and more effective energy conversion systems, are making these systems more economically viable and consumer-friendly. These elements are boosting the market for the systems in the automobile sector.

COVID-19 Impact: Disruptions in Global Supply Chain Led to Manufacturers Experiencing Shortage of Raw Materials

Due to disruptions in global supply chains brought on by the pandemic, EHR system manufacturers experienced shortages of raw materials and component parts. As a result, there were more automotive exhaust heat recovery (EHR) systems on the market less frequently and manufacture was delayed. Due to lockdown procedures and a decline in consumer demand, numerous automotive manufacturers had temporary shutdowns or restricted production capacities. This decrease in auto production had a direct impact on the demand for EHR systems.

LATEST TRENDS

"Incorporation of Thermoelectric Technology to Improve the Overall Efficiency and Lower the Vehicle Fuel Usage"

The incorporation of thermoelectric technology is the most recent innovation in the automotive exhaust heat recovery (EHR) system industry. A viable strategy to raise the effectiveness of EHR systems is to use thermoelectric materials, which can convert heat directly into power. To increase the efficiency and effectiveness of these systems while lowering their cost, producers and researchers are investigating improvements in thermoelectric materials and designs. Waste heat can be directly transformed into electrical energy by adding thermoelectric modules to EHR systems, improving overall efficiency and lowering vehicle fuel usage.

AUTOMOTIVE EXHAUST HEAT RECOVERY (EHR) SYSTEM MARKET SEGMENTATION

By Type Analysis

According to type, the market can be segmented into exhaust gas heat recovery (EGHR), Rankine cycle systems, thermoelectric generator, and electric turbo compounding (ETC)

By Application Analysis

Based on application, the market can be divided into passenger cars and commercial vehicles.

DRIVING FACTORS

"Increasing Emission Laws is Leading to Greater Demand for the Heat Recovery Systems "

In an effort to address climate change and lower air pollution, governments all over the world are enacting stricter emission laws. EHR systems, which increase fuel efficiency and lower greenhouse gas emissions, are essential for aiding automakers in complying with these laws. The waste heat from the exhaust gases that would otherwise be lost is recovered by EHR systems and transformed into usable energy. EHR systems become a crucial technology for automakers to meet regulatory standards since this results in fewer emissions and fuel consumption.

"Increasing Consumer Demand for Sustainable Solutions is Driving the Automotive Systems Industry"

Customers are paying more attention to environmental issues and looking for sustainable solutions when making purchases. The deployment of automotive exhaust heat recovery (EHR) systems is fueled by the growing need for greener and more environmentally friendly vehicles. Automobile manufacturers are pushed to include EHR systems in their product lineups as consumers place an emphasis on sustainability and demand low-emission automobiles. Consumer demand for sustainable and ecologically friendly transit solutions is driving the industry expansion.

RESTRAINING FACTORS

"High Upfront Cost of the EHR Systems is a Major Limiting Factor to the Market Expansion"

The high upfront cost of installing EHR systems is one issue limiting the automotive exhaust heat recovery (EHR) system market growth. Significant investments in manufacturing, research, and development are needed to integrate EHR technology. Some automakers may be put off by the expense of creating effective heat exchangers, cutting-edge materials, and sophisticated energy conversion systems. Additionally, the additional expense of installing EHR systems in vehicles may limit market acceptance and affordability, especially in areas that are sensitive to price.

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AUTOMOTIVE EXHAUST HEAT RECOVERY (EHR) SYSTEM MARKET REGIONAL INSIGHTS

"Strong Presence of the Automotive Industry is Causing Asia Pacific to Dominate the Market"

The Asia Pacific dominated the automotive exhaust heat recovery (EHR) system market share for multiple reasons. Japan, South Korea, China, and India are just a few of the major automakers that are based in the Asia Pacific region. These nations, which account for a sizable portion of the global automotive market, have been quick to adopt new technology that increase fuel efficiency and conform to emission regulations. A favorable climate for the deployment of EHR systems is created by the focus on efficiency and sustainability. In the Asia Pacific area, customers are becoming more and more aware of environmental concerns and the necessity of sustainable transportation. Automobiles with higher fuel efficiency and reduced pollutants are in high demand. As a result, to meet consumer expectations and distinguish their products in the market, automakers in the area are using EHR systems.

KEY INDUSTRY PLAYERS

"Key Players Are Investing in R&D to Advance the EHR Technology"

Key competitors are concentrating on numerous methods to rule the EHR system market. They are spending money on R&D to advance EHR technology, boost heat exchanger effectiveness, and enhance energy conversion technologies. In order to incorporate the systems into their vehicles, these businesses are also developing strategic alliances with automakers. They are also entering emerging regions and taking advantage of government incentives to grow their worldwide presence. Players hope to develop market dominance and gain a competitive edge by providing EHR solutions that are both creative and economical.

List of Top Automotive Exhaust Heat Recovery (EHR) System Companies

• DANA (U.S.)
• Faurecia (France)
• SANGO (Japan)
• Borgwarner (U.S.)
• T.RAD (Japan)
• Futaba Industrial (Japan)
• BOSAL (Belgium)

REPORT COVERAGE

This report covers the automotive exhaust heat recovery (EHR) system market. The CAGR expected to be in during the forecast period, and also the USD value in 2020 and what it is expected to be in 2031. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.