Exhaust Heat Recovery System Market: Global Industry Analysis and Forecast (2023-2029)

Exhaust Heat Recovery System Market was valued at US$ 17.22 Bn. in 2022 and the total revenue is expected to grow at 6.3 % of CAGR through 2023 to 2029, reaching nearly US$ 26.41 Bn.
Exhaust Heat Recovery System Market Overview:
The Exhaust Heat Recovery Systems transform waste heat energy from exhaust gases into either electric or mechanical energy for the crankshaft. The heat generated by the engine is utilized to heat car fluids such as engine oil and coolant, thus reducing harmful gas emissions. Automobile manufacturers are required to create fuel-efficient automobiles because of stringent rules regulating vehicle emissions in many countries.

The primary factors that can influence these restrictions are fuel economy and carbon emissions. Making fuel-efficient automobiles and lowering Green House Gas (GHG) emissions from internal combustion has led to a number of improvements in this competitive exhaust heat recovery system market. The Exhaust Heat Recovery System (EHRS) is essential for increasing powertrain effectiveness, which drives the exhaust heat recovery market.

Also, Exhaust heat recovery systems are expected to experience rapid growth thanks to the usage of exhaust heat for auxiliary applications such as oil cooling and heating, ventilation, and air conditioning (HVAC). Additionally, increased use of the turbocharger and exhaust gas recirculation (EGR) in gasoline-powered cars would open up opportunities for the growing market of exhaust heat recovery systems. There are also chances in the increasing research and development to use new technologies to minimize pollution from fuel gas emissions. As a result, the market has several opportunities for development.To know about the Research Methodology:-Request Free Sample Report
Exhaust Heat Recovery System Market Dynamics:
Supply chain annlysis

Globally, all countries attempt to maintain a proper balance between maintaining public health, limiting social and economic instability, and protecting human rights. The market disruption was resulted from COVID-19's quick spread. Multiple supply chains were impacted by limitations on transportation and industrial activity. The distribution of components is the primary activity in the manufacturing sector. As a result of the pandemic, supply chains were put under pressure and faced challenges like the requirement for direct distribution, the staffing of warehouses, and more intelligent and responsive channel allocation. The US and Europe were significantly impacted, which had a tremendous impact on the world economy and disrupted international supply lines.

Compared to 2020, supply chains are functioning more effectively now because vaccination programs have started and the situation in most countries is stabilized. After implementing all the health and safety measures, the supply chains have resumed operation. Automotive manufacturing involves complicated processes, requiring the sourcing of parts from several countries around the world in order to build a single product. The raw materials needed to make the discrete components may originate from many countries and continents, and the finished goods will once again be shipped across the world. The primary raw materials utilized to create exhaust heat recovery systems include steel, iron, and different types of ceramics. Some steel, iron, and ceramic facilities that had previously closed have recently reopened. Importing and exporting raw materials and finished goods are complicated by the reliance on exhaust heat recovery systems and finished products are more complex due to disruptions in supply chains.

OMEs are more focused to reduce carbon footprints

The target is net zero by 2050. However, countries must also show how they will get there. The mobilization of climate money for developing countries must be done in addition to efforts to achieve net-zero emissions. Powering economies with clean energy is an important factor. Polluting coal, gas, and oil-fired power plants must be replaced with renewable energy sources, like wind or solar farms. Carbon emissions would significantly decrease as a result.

In addition, renewable energy is often typically less expensive than fossil fuels while also being cleaner. A massive shift to renewable energy-powered electric transportation would also significantly reduce emissions while also reducing air pollution in the world's largest cities, which drive the exhaust heat recovery system market. As this more common global trend to engage in environmental initiatives with the aim of balancing carbon footprints gains popularity, an increasing number of carbon offset companies have jumped to adopt net zero emission.

The main objective of carbon offset providers is to reduce future emissions through investments in clean energy technology, tree planting, and the purchase and reimbursement of carbon emissions through emissions trading programs. For example, General Motors wants all of its global products and operations to be carbon-neutral by 2040. The biggest manufacturer in the US wants to reach its goals by switching to zero-emission vehicle technology, obtaining renewable energy, and utilizing the fewest possible offsets or credits.

A significant purchaser of carbon offsets is Delta Air Lines. The global aviation sector is one of the most difficult to reduce because of its inherent difficulty in decarbonizing. To counterbalance over ten months in 2020, the airline will spend more than $30 million. Additionally, this company is committed to stopping global warming and attaining net-zero emissions of greenhouse gases by 2050.

EGR in a gasoline vehicle creat new opportunities for market players

Diesel engines have utilized external exhaust gas recirculation (EGR) for many years, as have earlier gasoline engines. For gasoline engines, it has lately been reintroduced to increase fuel efficiency during mid- and high-engine load levels, when EGR can lessen throttling losses and fuel enrichment. Fuel enrichment results in significant soot particle emissions, a fuel penalty, and hydrocarbon (HC) emissions, all of which are subject to emission limits.

Gasoline engines can function at high EGR rates (>20%) under stoichiometric circumstances, but more so than diesel engines, their intake gas, including external EGR, requires significant cooling (down to 50°C), in order to get the greatest fuel economy increase. However, external EGR and associated issues (fouling, corrosion, and condensation) at low temperatures are well known. To prevent this, the EGR loop now contains a coated Gasoline Particulate Filter (cGPF), which cleans the EGR gas by eliminating particles, HC, NOx, and CO, leaving just CO2, N2, and H2O remaining. The water condensation that results from cooling the cleaned EGR gas is clear, pH-neutral, and free of particles, in a contrast to being unclean and acidic before, which drives the exhaust heat recovery system market.
Exhaust Heat Recovery System Market Segment Analysis:
Based on Type, the Exhaust Heat Recovery System Market is segmented into Exhaust Gas Recirculation, Turbocharger, and Organic Rankine Cycle. Exhaust Gas Recirculation is expected to dominate the exhaust heat recovery market during the forecast period. The key component of the EGR system is the EGR valve, which is generally closed. It joins the exhaust and intake manifolds and is regulated by a vacuum or an electric step motor installed within the engine.

The EGR valve's function is to regulate the flow of recirculated exhaust gas based on engine load, which drives the demand for the exhaust heat recovery system market. Most car manufacturers are putting EGR technology into their vehicles since it helps minimize harmful gas emissions. EGR provides vehicle manufacturers with a cost-effective, compact, and dependable technique for reducing vehicle emissions and increasing fuel efficiency. It is quickly becoming a typical method for increasing the economy of gasoline and hybrid propulsion systems. Increased demand for EGR technology due to its benefits is expected to drive the EGR valve in the exhaust heat recovery system market during the forecast period.

The EGR valve extends the life of the engine by lowering the temperature in the combustion chamber, which increases engine efficiency and fuel economy. This is a primary driver of energy gas recirculation in the exhaust heat recovery system market. The rapid accumulation of pollution caused by the continual usage of automobiles in urban environments is a serious problem that might hamper the EGR valves industry. The increase in the number of vehicles fuels the demand for EGR valves in order to achieve fuel economy. These aspects are expected to provide the substantial potential for the industry in the coming years.

Stringent emission standards for vehicles are expected to increase the EGR in the exhaust heat recovery market, owing to its capacity to improve internal combustion engine efficiency in terms of power and fuel economy. EGR optimizes the intake and exhaust gases and cycles them through the cylinder until they completely burn, lowering emissions. To meet stringent pollution standards, automakers are replacing traditional systems with EGR systems. As a result, the global market for automobile EGR valves is growing in the exhaust heat recovery system market.

Based on the Application, the Exhaust Heat Recovery System Market is segmented into passenger cars, trucks, light commercial vehicles, and busses. The truck held the largest market share in 2022. Global greenhouse gas (GHG) emissions are primarily and continuously increasing from the movement of products. On-road transportation, or the use of heavy-duty vehicles, makes up a substantial portion of the freight transportation modal split (HDVs).

Increasing freight demand under the restrictions put forward by energy security and climate change, enhancing fuel effectiveness of HDVs is a subject of growing concern for policymakers. Ones that the United States, Japan, China, and Canada are the only four countries possessing gasoline at the moment. Despite the fact that many other countries and areas now lack HDV efficiency criteria are thinking about implementing such standards. Set fuel efficiency standards required fuel efficiency goals for the sales of new vehicles. Targets are achieved by manufacturers building and promoting trucks with improved fuel efficiency, which drive the exhaust heat recovery system market.
Exhaust Heat Recovery System Market Regional Insights:
The Asia Pacific dominated the market with a 56 % share in 2022. The Asia Pacific is expected to witness significant growth through the forecast period. Government rules are getting more stringent in the region; for example, is the BS-VI standards that the Indian government has implemented to control the emissions that motor vehicles produce. Exhaust heat recovery systems will become more popular as environmental regulations are added since they not only lower the number of pollutants that are emitted from automobiles but also improve their fuel economy. People are becoming increasingly environmentally conscious and concerned about the emissions from the cars they buy as a result of the area's rising pollution levels.

Manufacturers are being forced to achieve a further sustained decrease in particulate and nitrogen oxide emissions as a result of China's quickly developing and strictening exhaust emission rules. to satisfy the current Chinese 6a emissions standard. Commercial vehicles operating on and off-highways must thus comply with additional exhaust-gas recirculation regulations.
Competitive Landscape
To remain ahead of competitors, companies are forming new strategic alliances, spending heavily on R&D initiatives, and introducing new products to the marketplace. For example, in January 2020 BorgWarner announced that they will be purchasing Delphi Technologies in an all-share deal, with a USD 3.3 billion valuation for Delphi Technologies. BorgWarner's reach into new markets and customer base will both grow as a result of this agreement. In terms of providing manufacturers and the aftermarket for light and commercial vehicles, the combination is expected to be among the best.

In February 2020, BorgWarner introduced EGR technology which follows India’s BS-VI and CAFÉ (Corporate Average Fuel Economy) regulations. It is supplying the new developed components to a market leader in India and to its European plant for its 1.5 L gasoline engine, designed to meet the new BS-VI emission norms. The technology will help the automaker to meet India CAFÉ CO2 emission standards which are currently set at 130 g/km, which are expected to fall at 113 g/km by 2022.

In June 2019, Rheinmetall Automotive received USD 171 million order from a Chinese manufacturer through the Pierburg subsidiary. This deal has enabled the company to include China's fourth renowned commercial vehicle manufacturer among its customers adding to expand its customer base and increasing its revenue.
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Exhaust Heat Recovery System Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 17.22 Bn.


Forecast Period 2023 to 2029 CAGR:
6.3%
Market Size in 2029:
US $ 26.41 Bn.


 Segments Covered:
by Mode
Exhaust Gas Recirculation
Turbocharger
Organic Rankine Cycle


by Vehicle Type
Passenger cars
Light Commercial Vehicle
Truck
Buses


by Components
EGR Component
Turbocharger Component
Organic Ranking Cycle Component
Thermoelectric Generator Component


by Technology
EGR
Turbocharger
ORC
TEG


by Hybrid Vehicle
HEVs
PHEVs



by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players are:
1. Siemens AG
2. Mitsubishi Heavy Industries, Ltd.
3. General Electric
4. ABB
5. Boustead International Heaters
6. Forbes Marshall
7. Promec Engineering
8. Terrapin
9. Wood Plc (Amec Foster Wheeler)
10.Climeon; BoschIndustriekessel GmbH
11.AURA GmbH & Co.
12.Exergy S.p.A.
13.IHI Corporation

Frequently Asked Questions:

1] What segments are covered in the Global Exhaust Heat Recovery System Market report?
Ans. The segments covered in the Exhaust Heat Recovery System Market report are based on Product Type and End User.

2] Which region is expected to hold the highest share in the Global Exhaust Heat Recovery System Market?
Ans. The North America region is expected to hold the highest share in the Exhaust Heat Recovery System Market.

3] What is the market size of the Global Exhaust Heat Recovery System Market by 2029?
Ans. The market size of the Exhaust Heat Recovery System Market by 2029 is expected to reach US$ 16.2 Bn.

4] What is the forecast period for the Global Exhaust Heat Recovery System Market?
Ans. The forecast period for the Exhaust Heat Recovery System Market is 2023-2029.

5] What was the market size of the Global Exhaust Heat Recovery System Market in 2022?
Ans. The market size of the Exhaust Heat Recovery System Market in 2022 was valued at US$ 17.22 Bn.