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Automotive Energy Recovery Systems Market

Market Study on Automotive Energy Recovery Systems: In the Backdrop of Growing Advancements in Energy Storage Technologies, PMR Foresees a Wealth of Opportunities for Automotive Energy Recovery Systems Arising on the Horizon

A Detailed Analysis of the Automotive Energy Recovery Systems Market Based on Growing Adoption of Hybrid and Electric Vehicles, Rising Technological Advancements, and Concerns About Cost, Reliability, and Performance

Automotive Energy Recovery Systems Market

The global automotive energy recovery systems market is forecast to expand at a CAGR of 7.1% and thereby increase from a value of US$19.3 Bn in 2023, to US$ 31.2 Bn by the end of 2030.

Attributes

Key Insights

Automotive Energy Recovery Systems Market Size (2023E)

US$19.3 Bn

Projected Market Value (2030F)

US$31.2 Bn

Global Market Growth Rate (2023 to 2030)

7.1%

Historical Market Growth Rate (2018 to 2022)

5.7%

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Market Introduction and Definition

Automotive energy recovery systems (ERS) are innovative technologies designed to capture and reuse energy that is typically wasted during vehicle operation. The primary aim of these systems is to enhance overall energy efficiency in automobiles, contributing to reduced fuel consumption and lower emissions.

Common ERS implementations include regenerative braking systems, which convert kinetic energy during braking into electrical energy for storage and reuse, thereby improving the overall sustainability of automotive transportation. As the automotive industry increasingly prioritizes environmental sustainability, the integration of ERS aligns with the broader goal of creating more energy-efficient and eco-friendly vehicles.

The market outlook for automotive energy recovery systems from 2023 to 2030 is promising, driven by several key factors. Rising concerns about climate change and environmental sustainability have spurred a growing demand for energy-efficient transportation solutions. Stringent government regulations promoting cleaner and greener technologies in the automotive sector further propel the adoption of ERS.

Additionally, advancements in ERS technologies, such as improved energy storage systems and more efficient energy recovery methods, present new opportunities for market growth. As automakers focus on developing electric and hybrid vehicles, the integration of sophisticated ERS becomes pivotal, creating a favorable landscape for market expansion and innovation in the coming years.

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Market Growth Drivers

Advancements in Energy Storage Technologies

The automotive energy recovery systems market is experiencing accelerated growth due to continuous advancements in energy storage technologies. As battery technologies evolve, the ability to efficiently capture, store, and release energy in vehicles improves, enhancing the overall effectiveness of ERS.

Advanced energy storage systems, such as high-capacity batteries and supercapacitors, enable more efficient energy recuperation during braking and acceleration. This progress not only extends the range of electric and hybrid vehicles but also fosters the widespread adoption of energy recovery systems across various automotive segments. The symbiotic relationship between energy storage advancements and the ERS market drives innovation, making these systems more robust, cost-effective, and appealing to both manufacturers and consumers.

In addition, the global automotive industry's heightened focus on sustainability, coupled with stringent environmental regulations, acts as a powerful driver for the Automotive Energy Recovery Systems market. Governments worldwide are implementing policies to reduce carbon emissions and promote eco-friendly transportation. ERS plays a pivotal role in achieving these goals by minimizing energy waste and enhancing fuel efficiency.

Automakers are compelled to incorporate energy recovery systems into their vehicles to comply with regulations, foster a greener image, and meet the growing consumer demand for environmentally conscious transportation. As sustainability becomes a key differentiator, the integration of ERS aligns with industry trends, creating a synergistic relationship between regulatory compliance, consumer preferences, and the accelerated growth of the Automotive Energy Recovery Systems market.

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Market Restraints

Prevalent Supply Chain Disruptions

The automotive energy recovery systems (ERS) market may face challenges due to supply chain disruptions, impacting the availability and production of essential components. The global supply chain for automotive technologies is intricate, involving numerous suppliers for key elements like batteries, capacitors, and electronic components. Any disruptions, whether caused by geopolitical tensions, natural disasters, or unforeseen events can lead to shortages and increased costs.

Such disruptions can hinder the seamless production of ERS-equipped vehicles, affecting market performance. To mitigate these risks, industry stakeholders need robust contingency plans, diversified sourcing strategies, and collaborative efforts to enhance the resilience of the supply chain, ensuring a more stable and reliable market performance for Automotive Energy Recovery Systems.

Integration Complexity, and Standardization Challenges

The significant challenge facing the automotive energy recovery systems (ERS) market is the complexity of integrating these systems seamlessly into diverse vehicle architectures. Standardization across the industry is essential for widespread adoption, yet the lack of uniformity in ERS technologies and specifications poses integration challenges for automotive manufacturers. Varied vehicle designs, powertrain configurations, and the absence of standardized interfaces can impede interoperability.

Achieving consensus on common standards is crucial to overcoming integration complexities, ensuring compatibility, and facilitating the widespread adoption of ERS across different vehicle models. Industry collaboration and regulatory initiatives are pivotal in addressing this challenge and promoting a more streamlined and interoperable ERS landscape.

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Opportunities

Growing Integration of ERS in Autonomous Vehicles

The evolving landscape of autonomous vehicles presents a significant revenue opportunity for the automotive ERS market. As the automotive industry moves towards autonomy, vehicles equipped with advanced driver assistance systems (ADAS) and full autonomy can benefit from ERS to optimize energy usage. The constant acceleration and deceleration patterns in autonomous driving scenarios provide ample opportunities for energy recovery during braking and acceleration.

Integrating ERS into autonomous vehicle designs not only enhances overall energy efficiency but also aligns with the sustainability goals of future transportation. This symbiotic relationship between autonomous technology and ERS presents a strategic avenue for market players to capitalize on the growing demand for energy-efficient solutions in the evolving automotive landscape.

Moreover, collaborations between the automotive sector and other industries present another lucrative opportunity for revenue growth in the Automotive Energy Recovery Systems market. Partnering with energy storage companies, technology firms, and infrastructure developers can lead to innovative solutions and expanded applications for ERS. For example, collaborations with smart grid initiatives can enable the bidirectional flow of energy between vehicles and the power grid, creating new revenue streams through vehicle-to-grid (V2G) systems.

Similarly, partnerships with renewable energy providers can explore synergies between ERS and sustainable energy sources, further enhancing the market's appeal. These cross-industry collaborations foster innovation, diversify revenue streams, and position ERS as a key player in the broader ecosystem of sustainable and intelligent transportation solutions.

Market Segmentation

Which is the Leading Subsystem Category?

Regenerative Braking System Dominant with Widespread Adoption in EVs

Within the AERS market, the regenerative braking system (RBS) emerges as the dominated category, particularly owing to its widespread adoption in electric vehicles (EVs). The RBS efficiently captures and stores energy during deceleration, aligning seamlessly with the growing emphasis on electrification. Its integral role in enhancing EV range and efficiency solidifies its dominance.

Simultaneously, the fastest-growing category is the turbocharger subsystem, driven by the surge in hybrid powertrains. Turbochargers play a pivotal role in optimizing internal combustion engine efficiency, meeting the demands of hybrid powertrains for higher power outputs without compromising fuel economy.

What Vehicle Type is at the Forefront?

EVs Register the Largest Revenue Share

The electric vehicles (EVs) emerge as the dominated category. The inherent integration of energy recovery systems is a defining attribute, positioning EVs at the forefront of energy efficiency in automotive transportation. As the automotive industry undergoes a paradigm shift towards electrification, EVs seamlessly incorporate advanced energy recovery technologies, such as regenerative braking systems, contributing significantly to their overall efficiency and sustainability.

The fastest-growing category encompasses commercial vehicles, driven by increasing efforts to enhance fuel efficiency and reduce emissions in the commercial transportation sector, fostering a demand surge for energy recovery systems in this vehicle segment.

Top Regional Markets

Stringent Environmental Regulations, and Strong Sustainability Commitment Sustain Europe’s Top Position

As a result of its status as a center for renowned automobile manufacturers such as those based in France, Italy, and Germany, Europe is emerging as a dominating region in the automotive energy recovery systems market due to a confluence of factors. Stringent environmental regulations and a strong commitment to sustainability have propelled the adoption of energy-efficient technologies in the automotive sector.

European countries are at the forefront of embracing electric mobility, with a significant emphasis on reducing carbon emissions. The region's robust infrastructure for electric vehicles, coupled with substantial investments in research and development, positions it as a hub for innovation in energy recovery systems.

Additionally, government incentives and favorable policies supporting the transition to cleaner transportation further stimulate the market. Europe's proactive approach to environmental concerns and the growing electric vehicle market make it a dominant force in shaping the future of automotive energy recovery systems.

Dynamic Electrification Drive, and Robust Expansion of Automotive Industry Unlock Opportunity in South Asia, and Oceania

South Asia, and Oceania emerges as the fastest-growing region in the automotive energy recovery systems market due to its dynamic electrification drive and the robust expansion of the automotive industry. The region is witnessing a surge in electric vehicle adoption, driven by government initiatives promoting cleaner transportation, increasing environmental awareness, and a growing emphasis on reducing carbon footprints.

As the largest automotive market globally, Asia Pacific experiences a substantial demand for energy recovery systems to enhance the efficiency of both electric and hybrid vehicles. The burgeoning automotive manufacturing landscape, particularly in countries like China, and India, fuels the rapid integration of energy recovery technologies. This intersection of a strong electrification push and a thriving automotive sector positions South Asia, and Oceania as the front-runner in the swift evolution of the automotive energy recovery systems market.

Analyst’s Viewpoint

The automotive energy recovery systems market is undergoing a transformative phase, marked by significant advancements and widespread adoption. As an analyst, the future outlook appears promising, driven by the global automotive industry's commitment to sustainability and efficiency. The dominance of regenerative braking systems, especially in electric vehicles, showcases a clear shift towards energy-conscious transportation.

Europe's leading role in embracing these technologies, propelled by stringent environmental regulations, positions it as a pivotal market. Simultaneously, the Asia Pacific region, with its rapid electrification drive and robust automotive industry, stands out as the fastest-growing hub. Challenges, such as supply chain complexities, need to be addressed collaboratively.

Overall, the market's trajectory is characterized by innovation, strategic collaborations, and a collective effort to shape a more sustainable future in the automotive landscape. As technology continues to evolve, the automotive energy recovery systems market remains a key player in steering the industry towards a greener and more efficient tomorrow.

Supply-side Dynamics

The supply-side dynamics in the automotive energy recovery systems market are intricate and shaped by several key factors. Technological advancements and innovation fuel the development of more efficient and cost-effective ERS technologies, positioning suppliers at the forefront of market demands. A resilient global supply chain, influenced by geopolitical factors and raw material prices, plays a pivotal role in ensuring the smooth production and availability of ERS components.

Collaborations and partnerships among ERS technology providers, automotive manufacturers, and other stakeholders are crucial for integrated solutions and standardized components, enhancing the efficiency of the supply chain. Regulatory compliance and certification are imperative, with suppliers investing in meeting stringent standards to gain market acceptance.

Production capacity, scalability, and cost competitiveness are vital considerations for suppliers aiming to meet the growing demand for energy-efficient solutions in the automotive sector. Successfully navigating these factors allows ERS suppliers to contribute significantly to the evolving landscape of sustainable and technologically advanced automotive energy recovery systems.

China plays a pivotal role as a major supplier in the automotive energy recovery systems market, significantly influencing supply-side dynamics. The country's dominance in the global automotive industry, coupled with its strong manufacturing capabilities and technological prowess, positions it as a key contributor to ERS production. Chinese suppliers, leveraging their extensive supply chains and economies of scale, are crucial in meeting the growing demand for energy-efficient solutions in the automotive sector.

With a focus on electric vehicle adoption and stringent environmental regulations, China has become a hub for ERS innovation and production. Additionally, the government's support through incentives and policies promoting green technologies further enhances China's role in shaping the supply-side landscape of automotive energy recovery systems, impacting not only the domestic market but also exerting a significant influence on the global ERS market.

Competitive Intelligence and Business Strategy

Competitive intelligence in the automotive energy recovery systems market involves a systematic gathering and analysis of information about key market players, their strategies, strengths, weaknesses, and market dynamics. Prominent organizations, including BorgWarner Inc, Robert Bosch GmbH, Hyundai Motors Group, Mitsubishi Electric Corporation, Cummins Inc, are at the vanguard of this sector. Understanding competitors' product offerings, market share, technological advancements, and customer preferences is crucial for staying ahead.

Continuous monitoring of industry trends, regulatory changes, and emerging technologies provides valuable insights for strategic decision-making. By comprehensively assessing the competitive landscape, companies in the automotive ERS market can identify opportunities, anticipate challenges, and position themselves strategically for sustainable growth.

In the automotive energy recovery systems market, a robust business strategy is essential for long-term success. Companies need to align their business objectives with market trends, technological advancements, and regulatory developments. A well-defined strategy should encompass product innovation, cost optimization, and market diversification. Leveraging partnerships, collaborations, and acquisitions strategically can enhance market presence.

Additionally, understanding customer needs and preferences is crucial for tailoring products and services effectively. An agile business strategy that adapts to changing market dynamics and focuses on sustainability will enable companies to navigate challenges and capitalize on opportunities in the competitive market.

Key Recent Developments

New Product Launch

In April 2022, Mercedes-Benz announced the launch of the Mercedes-AMG C 43 sport sedan with an electric turbocharger which is equipped with Garrett E-Turbo technology that makes the car both faster and more efficient. The instant boost of the E-Turbo enables the engine to run advanced combustion techniques, and the electric regeneration capability allows it to harvest exhaust energy.

Market Impact: Mercedes-Benz's introduction of the Mercedes-AMG C 43 with an electric turbocharger, featuring Garrett E-Turbo technology, marks a notable advancement in the automotive energy recovery systems market. The electric turbocharger enhances performance, allowing advanced combustion and exhaust energy harvesting. This move reflects a broader industry trend towards integrating innovative energy recovery systems for increased efficiency and sustainability. Mercedes-Benz's adoption sets a potential industry standard, stimulating competition and innovation in the quest for more energy-efficient and high-performance vehicle.

(Source: car&bike)

In November 2021, Continental AG introduced the MK C2, a regenerative braking system specifically designed for compact and lightweight vehicles. This system aims to enhance performance and extend the range of electric vehicles. With two independent partitions, the MK C2 boasts a redundant fallback level to boost system availability, which could be advantageous for automated driving. Additionally, the MK C2 provides the functional scope for automated valet parking.

Market Impact: Continental AG's MK C2 regenerative braking system launch is poised to reshape the automotive energy recovery systems market. Tailored for compact vehicles, it promises heightened performance, extending the range of electric vehicles. The incorporation of two independent partitions for redundancy enhances system availability, addressing concerns in automated driving. Additionally, the system's compatibility with automated valet parking further positions it as a pioneering solution, potentially influencing market trends and setting new benchmarks for efficiency and automation in the automotive sector.

(Source: Continental)

In July 2020, Ford unveiled the all-electric MUSTANG MACH-E 1400 prototype in partnership with RTR Vehicles, showcasing the potential performance of electric propulsion. The MUSTANG MACH-E 1400 features an electronic brake booster that enables the integration of a series regenerative braking system with ABS and stability control to enhance the vehicle's braking capabilities. This innovative braking system was developed by Brembo.

Market Impact: Ford's launch of the all-electric MUSTANG MACH-E 1400 prototype, featuring a series regenerative braking system developed by Brembo marks a significant impact on the automotive energy recovery systems market. The integration of an electronic brake booster, combining regenerative braking with ABS and stability control, showcases the performance possibilities of electric propulsion. This innovation not only enhances braking efficiency but also underscores automakers' commitment to optimizing energy recovery in electric vehicles, setting a precedent for advanced technologies in the electric automotive landscape.

(Source: Ford Media)

Automotive Energy Recovery Systems Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Oceania
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Subsystem
  • Vehicle Type
  • Region

Key Companies Profiled

  • BorgWarner Inc
  • Robert Bosch GmbH
  • Hyundai Motors Group
  • Mitsubishi Electric Corporation
  • Cummins Inc
  • Tenneco Inc.
  • Honeywell International Inc.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Automotive Energy Recovery Systems Market Research Segmentation

By Subsystem:

  • Regenerative Braking System
  • Turbocharger
  • Exhaust Gas Recirculation

By Vehicle Type:

  • Passenger Cars
  • Commercial Vehicles
  • Electric Vehicles

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • BorgWarner Inc
  • Robert Bosch GmbH
  • Hyundai Motors Group
  • Mitsubishi Electric Corporation
  • Cummins Inc
  • Tenneco Inc.
  • Honeywell International Inc.

- Frequently Asked Questions -

The global market for automotive energy recovery systems is anticipated to grow at a CAGR of 7.1% during the projected period, 2023 - 2030.

As of 2023, the automotive energy recovery systems market size is approximately US$19.3 Bn.

The Germany currently holds the largest market revenue share in 2023.

Some of the prominent players in this market are BorgWarner Inc, Robert Bosch GmbH, Hyundai Motors Group, Mitsubishi Electric Corporation, and Cummins Inc.

Passenger vehicles continue to represent the fastest-growing vehicle type segment in the market through 2030-end.

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