Stringent vehicle emission rules and regulations, the surge in the number of electric vehicles & EVSE infrastructure, and the trend of engine downsizing have boosted the growth of the global automotive energy recovery system market to grow at 7.4% CAGR till 2030.
According to the recently published a report by Allied Market Research, titled - Automotive energy recovery system market by vehicle type, product type - global opportunity analysis and industry forecast, 2020-2030, the market accounted for $22.44 billion in 2020 and is expected to reach $45.51 billion by 2030.
High repair & maintenance costs and a surge in the overall weight of vehicles hinder the market growth. On the contrary, rising government rules & regulations and advancements in technology would open new opportunities in the future.
Major market players include BorgWarner, Cummins, Continental, Honeywell International, Faurecia, IHI Corporation, Hyundai Motor Group, Robert Bosch GmbH, Mitsubishi Heavy Industries and Tenneco.
The COVID-19 pandemic created uncertainty across the automotive sector due to the closure of assembly plants and large-scale manufacturing interruptions, which led to a decline in demand for automobiles.
Governments across several regions announced lockdown and border closures that restricted the movement of transportation & logistics services.
However, the service activities registered steady and favourable recovery post-pandemic due to relaxation of restrictions by the governments.
Commercial Vehicles
Due to the rise in demand for using kinetic energy top power in heavy commercial vehicles, the commercial vehicles segment held the largest share in 2020, accounting for nearly three-fourths of the global automotive energy recovery system market. However, the electric vehicles segment is expected to register the highest CAGR of 11.6% during the forecast period due to increased demand for electric vehicles across the globe, the report said.
Regenerative Braking
By product type, the regenerative braking system segment held the lion's share in 2020, contributing to nearly half of the global automotive energy recovery system market. In addition, the segment is estimated to manifest the highest CAGR of 8.7% from 2021 to 2030 due to the rise in production & sales of electric vehicles, which include regenerative braking systems to convert the kinetic energy to other forms of energy. The report consists of analysis of other segments such as turbocharger and exhaust gas recirculation.
Asia-Pacific
By region, the global automotive energy recovery system market across Asia-Pacific dominated in 2020, holding more than two-fifths of the market. In addition, the region is projected to portray the highest CAGR of 8.2% during the forecast period, owing to increased sales of electric and advanced vehicles across Asian countries. The report includes an analysis of the market across North America, Europe, and LAMEA.
Courtesy: Allied Market Research. Photo is representational; courtesy: BorgWarner.