Exhaust Heat Recovery Systems Market Size & Growth Analysis to 2030

The global Exhaust Heat Recovery Systems Market size is anticipated to grow at a significant CAGR of around 10% during the forecast period from 2023 to 2030. The market is driven by factors such as stringent energy efficiency regulations, growing emphasis on sustainability, cost and fuel savings, the expanding automotive sector, industrial applications, and technological advancements. Governments’ strict energy efficiency regulations and emissions standards encourage the adoption of these systems. The rising demand for sustainability and the need to reduce carbon footprints contribute to the market growth. Exhaust heat recovery systems offer cost and fuel savings, making them attractive to end-users. The automotive industry’s growth and the industrial sector’s utilization of waste heat also drive market expansion. Ongoing technological advancements further enhance the efficiency and performance of these systems.

Market Snapshot:

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Market Drivers:

• Energy Efficiency Regulations: Stringent energy efficiency regulations and emissions standards imposed by governments and regulatory bodies worldwide are a significant driving force for the adoption of exhaust heat recovery systems. These systems help reduce fuel consumption and greenhouse gas emissions, making them crucial for meeting environmental targets.
• Increasing Focus on Sustainability: The growing emphasis on sustainability and the need to reduce carbon footprints have propelled the demand for exhaust heat recovery systems. These systems allow for the recovery and utilization of waste heat, converting it into useful energy, which aligns with sustainable practices.
• Cost and Fuel Savings: Exhaust heat recovery systems offer cost and fuel savings by capturing waste heat from exhaust gases and utilizing it for various purposes, such as generating electricity or preheating fluids. These systems improve overall energy efficiency and help reduce operational costs for end-users.
• Growing Automotive Sector: The automotive industry plays a significant role in the exhaust heat recovery systems market. The increasing production of vehicles, coupled with the rising demand for fuel-efficient and eco-friendly automobiles, drives the adoption of exhaust heat recovery systems in both conventional and electric vehicles.
• Industrial Applications: Industries, including manufacturing, power generation, and heavy machinery, can benefit from exhaust heat recovery systems. The utilization of waste heat from industrial processes for power generation or heat exchange applications can lead to substantial energy savings and improved operational efficiency.
• Technological Advancements: Ongoing advancements in exhaust heat recovery system technologies, such as improved heat exchangers, advanced materials, and innovative thermal management solutions, are driving market growth. These advancements enhance the efficiency and performance of exhaust heat recovery systems, making them more attractive to end-users.

Market Insights:

Market Analysis by Technology:

The global exhaust heat recovery systems market is bifurcated into technology, application, vehicle type, and geography. On the basis of technology, the market is further segmented into turbochargers, heat exchangers, organic rankine cycle (ORC) systems, and thermoelectric generators. The heat exchangers segment held the largest revenue share of the global market in 2022 and expected to grow at the same trend over the forecast period. Heat exchangers play a crucial role in efficiently transferring heat from the exhaust gases to a working fluid. This recovered heat can be utilized for various applications, such as space heating, water heating, or power generation. Heat exchangers offer versatility and can be tailored to meet specific requirements across different industries, including automotive, industrial, and residential sectors. Their widespread use and established technological advancements contribute to their dominant position in the market. Additionally, heat exchangers are often considered a reliable and cost-effective solution for harnessing waste heat, further solidifying their prominence in the Exhaust Heat Recovery Systems market.

Turbochargers: Turbochargers are a common technology used in exhaust heat recovery systems. They harness the energy from exhaust gases to drive a turbine, which then compresses the incoming air into the engine, resulting in increased power and improved fuel efficiency.

Heat Exchangers: Heat exchangers are another essential technology in exhaust heat recovery systems. They facilitate the transfer of heat from the exhaust gases to a working fluid, such as water or oil. This recovered heat can be utilized for various purposes, such as space heating, water heating, or power generation.

Organic Rankine Cycle (ORC) Systems: ORC systems utilize organic fluids with low boiling points to generate power from waste heat. The exhaust gases heat the organic fluid, causing it to vaporize and drive a turbine, which, in turn, generates electricity. ORC systems are commonly used in industrial and large-scale applications.

Thermoelectric Generators: Thermoelectric generators (TEGs) directly convert heat energy into electricity using the Seebeck effect. These generators consist of thermoelectric materials that generate voltage when subjected to a temperature gradient. TEGs can be integrated into exhaust systems to capture waste heat and produce electricity, providing an efficient and compact solution.

Market Analysis by Application:

On the basis of application, the exhaust heat recovery system market is segmented into automotive, industrial, residential, and commercial sectors. The automotive sector is considered the dominant segment in the global market. The automotive industry has witnessed a significant focus on improving fuel efficiency and reducing emissions, driven by regulatory requirements and growing environmental concerns. Exhaust heat recovery systems play a vital role in achieving these goals by capturing and utilizing waste heat from the vehicle’s exhaust gases.

By implementing exhaust heat recovery systems in automobiles, manufacturers can improve engine efficiency, reduce fuel consumption, and lower emissions. The recovered waste heat can be utilized for various purposes, such as engine or cabin heating, or even powering ancillary systems. Additionally, the automotive sector represents a large market with substantial production volumes, making it a significant driver for the demand and adoption of exhaust heat recovery systems. Moreover, advancements in technology and increasing investments in research and development within the automotive industry further support the dominant position of the automotive segment in the Exhaust Heat Recovery Systems market.

Automotive: The automotive sector represents a significant application area for exhaust heat recovery systems. These systems are employed in both conventional and electric vehicles to recover waste heat from the exhaust gases and utilize it for purposes such as engine heating, cabin heating, or power generation. The automotive industry’s focus on improving fuel efficiency and reducing emissions drives the adoption of exhaust heat recovery systems.

Industrial: The industrial sector is another key application segment for exhaust heat recovery systems. Industries such as manufacturing, power generation, and heavy machinery produce significant amounts of waste heat that can be captured and utilized through heat recovery systems. This recovered heat can be used for various industrial processes, including preheating fluids, generating steam, or powering turbines.

Residential: Exhaust heat recovery systems find applications in residential settings, particularly in heating and ventilation systems. These systems recover heat from the exhaust air, typically from appliances like boilers, furnaces, or water heaters, and use it to preheat the incoming fresh air. This improves energy efficiency and reduces heating costs in residential buildings.

Commercial: The commercial sector, including offices, retail spaces, hotels, and hospitals, can also benefit from exhaust heat recovery systems. These systems recover waste heat from commercial HVAC (Heating, Ventilation, and Air Conditioning) systems or other exhaust sources and utilize it for space heating, water heating, or other energy-intensive processes. This helps in reducing energy consumption and operating costs for commercial establishments.

The exhaust heat recovery systems market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Technology:

• Turbochargers
• Heat Exchangers
• Organic Rankine Cycle (ORC) Systems
• Thermoelectric Generators

By Application:

• Automotive
• Industrial
• Residential
• Commercial

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Off-road Vehicles

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

On the basis of region, Europe is considered a dominant region in the exhaust heat recovery systems market. The region has a robust automotive industry and stringent regulations related to emissions and fuel efficiency, which have driven the adoption of exhaust heat recovery systems. European countries have implemented measures to reduce greenhouse gas emissions, promoting the use of energy-efficient technologies like exhaust heat recovery systems.

Moreover, Europe has witnessed significant investments in research and development, leading to technological advancements and innovative solutions in the field of heat recovery. Several automotive manufacturers in Europe have incorporated exhaust heat recovery systems in their vehicle models, further propelling the market growth.

Additionally, Europe has a well-established industrial sector that recognizes the importance of energy efficiency. Industries in sectors such as manufacturing, power generation, and heavy machinery have adopted exhaust heat recovery systems to optimize energy consumption and reduce operational costs.

Competitive Assessment:

Some of the major market players operating in the global exhaust heat recovery systems market are BorgWarner Inc., Continental AG, Cummins Inc., Denso Corporation, and Faurecia SA. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• BorgWarner Inc.
• Continental AG
• Cummins Inc.
• Denso Corporation
• Faurecia SA
• Gentherm Inc.
• Mahle GmbH
• Robert Bosch GmbH
• Tenneco Inc.
• Valeo SA

Key Questions Answered by Exhaust Heat Recovery Systems Market Report

• Global exhaust heat recovery systems market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Exhaust heat recovery systems submarket forecasts from 2023-2030 covering the market by technology, application, vehicle type, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level exhaust heat recovery systems markets from 2023-2030
• Competitive Landscape and market positioning of top 10 players operating in the market