Global Exhaust Heat Recovery System Market Outlook
Revenue, 2024
$77.2B
Forecast, 2034
$237B
CAGR, 2025 - 2034
11.9%
The Exhaust Heat Recovery System industry revenue is expected to be around $86.3 billion in 2025 and expected to showcase growth with 11.9% CAGR between 2025 and 2034. This innovative technology plays a role, in reducing emissions and fuel consumption while contributing to a greener future by lowering the carbon footprint.
The Engine Heat Recovery System (EHRS) harnesses wasted energy from exhaust emissions to enhance engine performance by converting heat loss into power effectively. The growing popularity of plug in hybrid cars has increased the need for EHRS to maximize energy usage efficiency.
Market Key Insights
- The Exhaust Heat Recovery System market is projected to grow from $77.2 billion in 2024 to $237 billion in 2034. This represents a CAGR of 11.9%, reflecting rising demand across Automotive, Marine and Industrial Waste Heat Recovery.
- Faurecia, BorgWarner Inc, Denso Corporation are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Exhaust Heat Recovery System market and are expected to observe the growth CAGR of 8.7% to 12.5% between 2024 and 2030.
- Emerging markets including Brazil, India and South Africa are expected to observe highest growth with CAGR ranging between 11.4% to 14.9%.
- Transition like Emergence of hybrid vehicles is expected to add $9 billion to the Exhaust Heat Recovery System market growth by 2030.
- The Exhaust Heat Recovery System market is set to add $160 billion between 2024 and 2034, with manufacturer targeting Turbocharger & ORC System Type projected to gain a larger market share.
- With Advancements in technology, and Regulatory push for efficient energy consumption, Exhaust Heat Recovery System market to expand 208% between 2024 and 2034.
Opportunities in the Exhaust Heat Recovery System
The growing demand for companies to comply with environmental regulations is also driving a push towards reducing energy usage and cutting carbon emissions in industries today and in the future. Enhanced Heat Recovery Systems (EHRS) are seen as a solution to enhance overall energy efficiency and lower fuel consumption in response to these regulatory pressures. Industries such, as manufacturing and power generation that generate amounts of heat as a byproduct stand to benefit from EHRS technology by achieving notable energy savings and reducing CO2 emissions significantly.
Growth Opportunities in North America and Europe
In North America's industry the Exhaust Heat Recovery sector is expanding quickly because of the strict emission regulations prompting car manufacturers to explore options like exhaust heat recovery technology. The market faces competition, from both international giants and local players. Opportunities exist in advancing technology to utilize exhaust heat sources.
In Europe's sector the Exhaust Heat Recovery market is thriving due to strict emission regulations rising environmental worries and advancements in vehicle power systems. The competition is fierce with many global companies vying for a share of the market. Ongoing research and development efforts present prospects, for enhancing exhaust heat recovery systems efficiency.
Market Dynamics and Supply Chain
01
Driver: Advancements in Technology, and Increase in Automotive Industry Demand
In years there have also been significant technological advancements in Exhaust Heat Recovery Systems leading to increased demand, across various industries. These systems now feature materials that can also convert waste heat into electrical power effectively improving overall efficiency and driving market growth. In the world of cars and trucks Exhaust Heat Recovery Systems have also become quite popular among manufacturers looking to make vehicles more fuel efficient. With the automotive sector expanding the need for these systems is also also on the rise leading to notable progress, in the market.
Governments around the world are also increasingly focusing on using energy efficiently to protect the environment from harm caused by carbon emissions and other pollutants in order to promote a healthier environment, for future generations.
02
Restraint: High Installation Cost
The considerable costs involved in setting up and maintaining Exhaust Heat Recovery Systems pose an obstacle to their market expansion growth. Because the system employs technology that demands trained professionals, for installation and operation. Thereby escalating the total operational expenses. It often deters small and medium enterprises from pursuing such substantial investments and limits their market penetration.
03
Opportunity: Expanding Electric Vehicle Market
The increasing focus on eco transportation has led to a surge in the popularity of electric cars in recent times. Nevertheless maintaining energy efficiency continues to be a pressing issue within the electric vehicle (EV) industry. In this scenario the integration of exhaust heat recovery systems (EHRS) could prove to be a solution that enables these vehicles to better harness and recycle wasted heat ultimately improving the overall efficiency of their propulsion systems. This overlooked use case offers growth prospects, for the EHRS sector especially as more car manufacturers seek out innovative ways to boost EV performance.
04
Challenge: Foiled by Fuel Efficiency
Significant progress in the development of engines and improvement in fuel efficiency present a challenge for the Exhaust Heat Recovery System industry sector as engines generate less waste heat with enhanced efficiency levels resulting in reduced demand, for exhaust heat recovery systems which may impede the growth and relevance of this market segment.
Supply Chain Landscape
1
Raw Material Suppliers
BASFDow Chemicals
2
Component & System Manufacturers
BoschDelphi Technologies
3
Distribution & Aftermarket Services
Robert Bosch LtdMAHLE GmbH
4
End User Industries
AutomotivePower Generation
1
Raw Material Suppliers
BASFDow Chemicals
2
Component & System Manufacturers
BoschDelphi Technologies
3
Distribution & Aftermarket Services
Robert Bosch LtdMAHLE GmbH
4
End User Industries
AutomotivePower Generation
Use Cases of Exhaust Heat Recovery System in Automotive & Marine
Automotive : Exhaust heat recovery systems (EHRS) have been widely used in the sector to improve engine efficiency by harnessing waste heat from exhaust gases and transforming it into electricity. This helps decrease fuel usage and lower carbon emissions. Major players in the market such as Faurecia and Denso are leading the way, in refining this technology for vehicles to appeal to aware consumers.
Industrial Waste Heat Recovery : In settings a large quantity of heat is wasted through exhaust fumes. Energy Harvest and Reuse Systems (EHRS) are employed in these situations to capture and reuse this wasted heat for generating power or heating processes within the facility. This practice significantly reduces energy expenses. Promotes environmental sustainability. Notable companies such as Bosch Thermotechnology and General Electric are leading the way, in implementing this technology.
Marine : Interest in using Electronic Health Record Systems (EHRS) for purposes is, on the rise to enhance ship performance optimization techniques efficiently capturing waste heat from ship engines to power auxiliary systems onboard and ultimately cut down fuel usage while promoting eco friendly marine transportation solutions.
Recent Developments
In years there has been significant growth in the Exhaust Heat Recovery Systems (EHRS) market due to the increasing focus worldwide on energy efficiency and cutting down carbon emissions. Automotive manufacturers are increasingly incorporating these recovery systems into their designs in response, to this trend. One notable trend driving EHRS demand is the hybridization of vehicles.
December 2024 : Bosch Limited launched its advanced Exhaust Heat Recovery System for commercial vehicles, leading to much improved energy efficiency in the fleet sector
October 2024 : Cummins Inc unveiled their Exhaust Heat Recovery System technology designed to enhance fuel efficiency in large trucks.
August 2024 : Denso Corporation has revealed a collaboration with Global Thermoelectric Inc. focusing on creating an innovative Exhaust Heat Recovery System aimed at promoting energy sustainability, in the automotive industry.
Impact of Industry Transitions on the Exhaust Heat Recovery System Market
As a core segment of the Automotive & Mobility industry,
the Exhaust Heat Recovery System market develops in line with broader industry shifts.
Over recent years, transitions such as Emergence of hybrid vehicles and Adoption of stringent emission norms have redefined priorities
across the Automotive & Mobility sector,
influencing how the Exhaust Heat Recovery System market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Emergence of hybrid vehicles
The rising popularity of cars is having a significant impact on the Exhaust Heat Recovery System (EHRS) market as these vehicles are now preferred for their fuel efficiency and lower carbon footprint This trend is leading to a growing demand for exhaust heat recovery systems that enhance the overall performance of hybrid cars by converting waste heat into usable energy thereby fueling their increasing usage, in this industry This industry transition is expected to add $9 billion in the industry revenue between 2024 and 2030.
02
Adoption of stringent emission norms
There has been a shift in the EHRS market due to the increasing implementation of stricter emission standards across the globe by various governments aiming to address climate change concerns This has led to increased expectations, for automotive companies to develop vehicles that are more fuel efficient and have reduced emissions.