As per MRFR analysis, the Automotive Energy Recovery System Market Size was estimated at 5.9 (USD Billion) in 2022. The Automotive Energy Recovery System Market industry is expected to grow from 6.45 (USD Billion) in 2023 to 14.5 (USD Billion) by 2032. The Automotive Energy Recovery System Market CAGR (growth rate) is expected to be around 9.42% during the forecast period (2024 - 2032).
Key Automotive Energy Recovery System Market Trends Highlighted
Key market drivers for automotive energy recovery systems include stringent emission regulations, rising fuel costs, and growing consumer demand for eco-friendly vehicles. Opportunities lie in the development of advanced technologies such as flywheels and supercapacitors, as well as the integration of energy recovery systems with other vehicle components.
Recent trends in the automotive energy recovery system market include the adoption of regenerative braking systems, which convert kinetic energy into electrical energy, and the development of mild hybrid and hybrid electric vehicles, which utilize energy recovery systems to improve fuel efficiency. The market is also witnessing the emergence of wireless power transfer technology for electric vehicles, which allows for the charging of batteries without the use of cables.
Increasing government support for the adoption of energy-efficient vehicles, coupled with advancements in technology and declining costs, are expected to drive the growth of the automotive energy recovery system market in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Energy Recovery System Market Drivers
Increasing Adoption of Electric and Hybrid Vehicles
The growing popularity of electric and hybrid vehicles is a major driver of the automotive energy recovery system market. These vehicles use energy recovery systems to capture and reuse energy that would otherwise be lost during braking. This helps to improve fuel efficiency and reduce emissions. In 2023, the electric and hybrid vehicle market was valued at USD 957.18 billion, and it is projected to grow to USD 2,565.20 billion by 2030, exhibiting a CAGR of 12.8% during the forecast period.
This growth is expected to drive demand for automotive energy recovery systems. The increasing adoption of electric and hybrid vehicles is being driven by a number of factors, including government regulations, consumer demand for more fuel-efficient vehicles, and the declining cost of batteries. Governments around the world are implementing regulations to reduce emissions and promote the adoption of electric vehicles. For example, the European Union has set a target of reducing CO2 emissions from new cars by 37.5% by 2030.
This is driving automakers to invest in the development of electric and hybrid vehicles. Consumer demand for more fuel-efficient vehicles is also driving the adoption of electric and hybrid vehicles. As fuel prices continue to rise, consumers are looking for ways to save money on fuel costs.
Electric and hybrid vehicles offer significantly better fuel efficiency than gasoline-powered vehicles. For example, the 2023 Toyota Prius gets up to 58 mpg in the city and 53 mpg on the highway, while the 2023 Honda Civic gets up to 30 mpg in the city and 40 mpg on the highway. The declining cost of batteries is also helping to drive the adoption of electric and hybrid vehicles.
The cost of batteries has fallen by more than 80% in the past decade. This has made electric and hybrid vehicles more affordable for consumers. As the cost of batteries continues to decline, electric and hybrid vehicles are expected to become even more popular.
Growing Demand for Fuel Efficiency
The rising cost of fuel is another major driver of the automotive energy recovery system market. As fuel prices continue to rise, automakers are looking for ways to improve the fuel efficiency of their vehicles. Energy recovery systems can help to improve fuel efficiency by capturing and reusing energy that would otherwise be lost during braking. This can help to reduce fuel consumption and save money on fuel costs. The growing demand for fuel efficiency is being driven by several factors, including rising fuel prices, government regulations, and consumer demand for more fuel-efficient vehicles.
Governments around the world are implementing regulations to reduce emissions and promote the adoption of fuel-efficient vehicles. For example, the United States has set a fuel economy standard of 54.5 mpg for new cars and light trucks by 2025. This is driving automakers to invest in the development of more fuel-efficient vehicles. Consumer demand for more fuel-efficient vehicles is also increasing. As fuel prices continue to rise, consumers are looking for ways to save money on fuel costs.
Fuel-efficient vehicles can help consumers to save money on fuel costs and reduce their environmental impact. The growing demand for fuel efficiency is expected to continue to drive the growth of the automotive energy recovery system market. As automakers look for ways to improve the fuel efficiency of their vehicles, they are increasingly turning to energy recovery systems.
Government Regulations
Government regulations are also driving the growth of the automotive energy recovery system market. Governments around the world are implementing regulations to reduce emissions and promote the adoption of more fuel-efficient vehicles. These regulations are driving automakers to invest in the development of energy recovery systems.
For example, the European Union has set a target of reducing CO2 emissions from new cars by 37.5% by 2030. This is driving automakers to invest in the development of electric and hybrid vehicles, which often use energy recovery systems to improve fuel efficiency. In addition, many governments are offering financial incentives to consumers who purchase fuel-efficient vehicles.
These incentives can help to reduce the cost of purchasing a fuel-efficient vehicle, making them more affordable for consumers. Government regulations are expected to continue to drive the growth of the automotive energy recovery system market. As governments around the world implement more stringent emissions regulations, automakers will need to invest in the development of more fuel-efficient vehicles. This will drive demand for automotive energy recovery systems.
Automotive Energy Recovery System Market Segment Insights:
Automotive Energy Recovery System Market Vehicle Type Insights
The automotive energy recovery system market is segmented by vehicle type into passenger cars, commercial vehicles, and off-highway vehicles.
Passenger Cars: Passenger cars hold the largest market share due to the increasing demand for fuel-efficient vehicles and stringent emission regulations. In 2023, the passenger car segment was valued at 3.2 billion USD and is projected to reach 7.2 billion USD by 2032, exhibiting a CAGR of 9.8%. The growing popularity of hybrid and electric vehicles, along with government incentives, is driving the growth of the passenger car segment.
Commercial Vehicles: Commercial vehicles, including trucks, buses, and vans, are expected to witness significant growth in the automotive energy recovery system market. The rising demand for energy-efficient commercial vehicles in the logistics and transportation sectors is fueling the growth of this segment. In 2023, the commercial vehicle segment was valued at 1.8 billion USD and is projected to reach 4.1 billion USD by 2032, exhibiting a CAGR of 9.2%. The increasing adoption of energy recovery systems in commercial vehicles to reduce fuel consumption and emissions is driving the growth of this segment.Off-Highway Vehicles: Off-highway vehicles, such as construction equipment, mining vehicles, and agricultural machinery, are also witnessing the adoption of energy recovery systems. The demand for energy-efficient off-highway vehicles is increasing due to the rising concerns about environmental sustainability and the need to reduce operating costs. In 2023, the off-highway vehicle segment was valued at 1.4 billion USD and is projected to reach 3.2 billion USD by 2032, exhibiting a CAGR of 9.0%. The growing adoption of hybrid and electric off-highway vehicles is expected to drive the growth of this segment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Energy Recovery System Market Energy Recovery Technology Insights
The automotive energy recovery system market is segmented by Energy Recovery Technology into Regenerative Braking, FLYBY Wire System and Electro-Hydraulic Systems. Among these, Regenerative Braking is expected to hold the largest market share in the coming years, owing to its ability to capture and reuse energy during braking, leading to improved fuel efficiency.
FLYBY Wire System is another promising segment, projected to witness considerable growth due to its ability to reduce fuel consumption and enhance vehicle performance. Electro-Hydraulic Systems, on the other hand, are expected to gain traction in the market owing to their efficiency and reliability.
The increasing adoption of hybrid and electric vehicles is expected to drive the growth of the Automotive Energy Recovery System Market in the coming years, as these systems play a crucial role in improving the fuel efficiency and performance of these vehicles.
Automotive Energy Recovery System Market Application Insights
The Automotive Energy Recovery System Market is segmented based on Application into Mild Hybrids, Full Hybrids, Plug-in Hybrids, and Electric Vehicles. Among these, the Mild Hybrids segment is expected to hold the largest market share in 2023, owing to the increasing adoption of mild hybrid technology in passenger cars due to its cost-effectiveness and ability to improve fuel efficiency. The Full Hybrids segment is projected to witness the highest growth rate during the forecast period, driven by the growing demand for vehicles with improved fuel economy and lower emissions.
Plug-in Hybrids and Electric Vehicles segments are also expected to contribute significantly to the growth of the Automotive Energy Recovery System Market, as governments worldwide implement stricter emission regulations and promote the adoption of electric vehicles.
Automotive Energy Recovery System Market Regional Insights
The regional segmentation of the automotive energy recovery system market offers valuable insights into the geographical distribution of market growth and opportunities. In 2023, North America held the dominant share of the market, accounting for around 35% of the revenue.
This dominance is attributed to the presence of major automotive manufacturers and a high adoption rate of energy-efficient technologies in the region. Europe follows closely, with a market share of approximately 30%, driven by stringent emission regulations and government incentives for eco-friendly vehicles.
The APAC region is expected to witness significant growth in the coming years, with a projected market share of 25% by 2024. This growth is fueled by the increasing production of electric and hybrid vehicles in countries like China and India. South America and MEA collectively account for the remaining market share, with South America expected to grow at a steady pace due to rising demand for energy-efficient vehicles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Energy Recovery System Market Key Players and Competitive Insights:
Major players in Automotive Energy Recovery System Market are constantly striving to develop innovative technologies and expand their product portfolios. Leading Automotive Energy Recovery System Market players are focusing on strategic partnerships, mergers, and acquisitions to gain a competitive edge.
The Automotive Energy Recovery System Market development is driven by the increasing demand for fuel-efficient vehicles and stringent emission regulations. The Automotive Energy Recovery System Market Competitive Landscape is expected to remain highly competitive in the coming years, with new entrants and established players vying for market share.
Continental AG is a leading Automotive Energy Recovery System Market player with a strong focus on research and development. The company offers a wide range of energy recovery systems, including start-stop systems, regenerative braking systems, and hybrid powertrains. Continental AG has a presence and supplies its products to major automakers. The company has been investing heavily in the development of new energy recovery technologies, such as its 48-volt mild hybrid system.
Denso Corporation is another major Automotive Energy Recovery System Market player with a strong focus on innovation. The company offers a range of energy recovery systems, including alternators, starters, and voltage regulators. Denso Corporation has a presence and supplies its products to major automakers. The company has been investing heavily in the development of new energy recovery technologies, such as its high-efficiency alternator.
Key Companies in the Automotive Energy Recovery System Market Include:
Automotive Energy Recovery System Market Developments
The Automotive Energy Recovery System Market is projected to grow from an estimated USD 6.45 billion in 2023 to USD 14.5 billion by 2032, at a CAGR of 9.42% during the forecast period. The market growth is attributed to rising fuel efficiency concerns, stringent emission regulations, and increasing adoption of electric and hybrid vehicles.
Government initiatives promoting energy-efficient vehicles and technological advancements in energy recovery systems further drive market expansion. For instance, in 2023, the European Union implemented stricter emission standards, Euro 7, which will accelerate the adoption of energy recovery systems in vehicles. Additionally, key players like Continental AG, Robert Bosch GmbH, and Denso Corporation are investing heavily in research and development to enhance the efficiency and performance of automotive energy recovery systems.
Automotive Energy Recovery System Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2022 | 5.9(USD Billion) |
| Market Size 2023 | 6.45(USD Billion) |
| Market Size 2032 | 14.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 9.42% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Schaeffler, Hitachi Automotive Systems, Aisin Seiki, Hyundai Mobis, Tenneco, Valeo, Robert Bosch, Denso, Kyocera, Continental, ZF, JTEKT, BorgWarner, LG Electronics, Magneti Marelli |
| Segments Covered | Vehicle Type, Energy Recovery Technology, Application, Regional |
| Key Market Opportunities | Electrification of vehicles Advanced power electronics Rising fuel prices Government regulations Increasing demand for fuelefficient vehicles |
| Key Market Dynamics | Stringent regulations Advancements in technology Rising fuel prices Increasing consumer awareness Government incentives |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive Energy Recovery System Market is estimated to be around USD 6.45 Billion in 2023.
The Automotive Energy Recovery System Market is projected to grow at a CAGR of 9.42% from 2023 to 2032.
Increasing demand for fuel-efficient vehicles, stringent emission regulations, and advancements in battery technology are some of the key drivers of the Automotive Energy Recovery System Market.
Asia Pacific is expected to hold the largest market share in the Automotive Energy Recovery System Market due to factors such as increasing vehicle production, rising disposable income, and growing awareness of environmental concerns.
Some of the major players in the Automotive Energy Recovery System Market include Robert Bosch GmbH, Continental AG, Denso Corporation, Hyundai Mobis, and ZF Friedrichshafen AG.
Automotive Energy Recovery Systems are primarily used in passenger cars, commercial vehicles, and hybrid and electric vehicles to improve fuel efficiency and reduce emissions.
The Automotive Energy Recovery System Market is expected to reach a valuation of around USD 14.5 Billion by 2032.
High cost of implementation, technical complexities, and lack of consumer awareness are some of the challenges faced by the Automotive Energy Recovery System Market.
Integration of advanced technologies such as artificial intelligence and machine learning, focus on lightweight materials, and development of bi-directional energy recovery systems are some of the emerging trends in the Automotive Energy Recovery System Market.
Government regulations aimed at reducing emissions and improving fuel efficiency are driving the growth of the Automotive Energy Recovery System Market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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