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Exhaust Heat Recovery System Market
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Exhaust Heat Recovery System Market

Author: Swarup Sahu - Senior Consultant, Report ID - DS2001006, Published - January 2025

Segmented in Vehicle Type (Passenger Cars, Commercial Vehicles), System Type (EGR, Turbocharger, ORC, TEG), Component, Technology and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Exhaust Heat Recovery System
Market Outlook

The market for Exhaust Heat Recovery Systems (EHRS) is witnessing changes due to growing environmental awareness and the push for energy efficiency in response to strict emission regulations in the automotive industry. The market, for Exhaust heat recovery system was estimated at $77.2 billion in 2024. It is anticipated to increase to $151.5 billion by 2030 with projections indicating a growth to around $265.7 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 11.9% over the forecast period. 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 Size Forecast & Key Insights

2019
$77.2B2024
2029
$237B2034

Absolute Growth Opportunity = $160B

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.

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 Market

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.

Growth Opportunities in North America and Europe

Europe Outlook

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.

North America Outlook

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.

North America Outlook

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.

Europe Outlook

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.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, Germany, Japan, China, India are expected to grow at 8.7% to 12.5% CAGR

2

Emerging Markets : Brazil, India, South Africa are expected to grow at 11.4% to 14.9% CAGR

Market Analysis Chart

The main factors influencing the market for Exhaust Heat Recovery Systems (EHRS) are primarily related to the growing need for saving energy and reducing emissions in response to issues and government regulations focused on emissions control. As concerns about the environment continue to rise and regulations become stricter regarding emissions control standards,​​​​​​​ more efficient utilization of energy becomes crucial in various sectors such as automotive and industrial fields.

Recent Developments and Technological Advancement

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.

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.

Impact of Industry Transitions on the Exhaust Heat Recovery System Market

As a core segment of the Automotive 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 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.

1

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

2

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.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Automotive industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Automotive industry cascade into the Exhaust Heat Recovery System market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

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.

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.

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

Raw Material Suppliers

BASF

Dow Chemicals

Component & System Manufacturers

Bosch

Delphi Technologies

Distribution & Aftermarket Services
Robert Bosch Ltd / MAHLE GmbH
End User Industries
Automotive / Power Generation
Raw Material Suppliers

BASF

Dow Chemicals

Component & System Manufacturers

Bosch

Delphi Technologies

Distribution & Aftermarket Services

Robert Bosch Ltd

MAHLE GmbH

End User Industries

Automotive

Power Generation

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Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Automobile Manufacturing
Automotive
Bosch
The company focuses on innovation and technology-driven solutions. They integrate exhaust heat recovery systems with the car engines for fuel efficiency and reduced carbon emissions.
Industrial Heat Processing
Manufacturing
General Electric
GE uses a strategy of offering customized solutions tailored to the industrial requirements. They focus on systems that use waste heat for power generation, thereby enhancing energy efficiency.
Energy Generation
Energy
Siemens
Siemens uses a strategy of sustainable energy solutions. They offer systems that convert exhaust heat into useable energy, contributing to overall power generation and reducing carbon footprint.
Commercial Buildings
Construction
Johnson Controls
Johnson Controls offers integrated HVAC systems with exhaust heat recovery. The strategy involves reducing operational costs, enhancing sustainability, and increasing the efficiency of energy management in buildings.

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Exhaust Heat Recovery System market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Exhaust Heat Recovery System in Marine, Automotive and Industrial Waste Heat Recovery

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.

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.

Exhaust Heat Recovery System vs. Substitutes:
Performance and Positioning Analysis

An Exhaust Heat Recovery System repurposes the heat wasted by engines to enhance efficiency; electric and hybrid power options aim to reduce heat generation from the start as well. The demand for EHRS is projected to surge due, to increasing fuel expenses and stricter environmental policies.

Exhaust Heat Recovery System
  • Waste Heat to Power Systems /
  • Organic Rankine Cycle /
  • Thermoelectric Generators
    Increases fuel efficiency, lowers harmful emissions
    High installation costs, complex integration requirements
    Improved fuel efficiency, low installation cost
    Dependence on engine operating conditions, high maintenance cost

Exhaust Heat Recovery System vs. Substitutes:
Performance and Positioning Analysis

Exhaust Heat Recovery System

  • Increases fuel efficiency, lowers harmful emissions
  • High installation costs, complex integration requirements

Waste Heat to Power Systems / Organic Rankine Cycle / Thermoelectric Generators

  • Improved fuel efficiency, low installation cost
  • Dependence on engine operating conditions, high maintenance cost

An Exhaust Heat Recovery System repurposes the heat wasted by engines to enhance efficiency; electric and hybrid power options aim to reduce heat generation from the start as well. The demand for EHRS is projected to surge due, to increasing fuel expenses and stricter environmental policies.

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Research Methodology

This market research methodology defines the Exhaust Heat Recovery System market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Automotive ecosystem, we analyze Exhaust Heat Recovery System across Passenger Cars and Commercial Vehicles Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:


We benchmark competitors such as Faurecia, BorgWarner Inc, and Denso Corporation by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Raw Material Suppliers, Component & System Manufacturers, and Distribution & Aftermarket Services. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Automotive revenues to estimate the Exhaust Heat Recovery System segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Raw Material Suppliers (BASF, Dow Chemicals), Component & System Manufacturers (Bosch, Delphi Technologies), and Distribution & Aftermarket Services. Our parallel substitute analysis examines Waste Heat to Power Systems, Organic Rankine Cycle, and Thermoelectric Generators, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Faurecia, BorgWarner Inc, and Denso Corporation, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Exhaust Heat Recovery System market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Exhaust Heat Recovery System Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 86.3 billion
Revenue Forecast in 2034USD 237 billion
Growth RateCAGR of 11.9% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 202477.2 billion
Growth OpportunityUSD 160 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 202477.2 billion USD
Market Size 2027108 billion USD
Market Size 2029135 billion USD
Market Size 2030151 billion USD
Market Size 2034237 billion USD
Market Size 2035265 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredVehicle Type, System Type, Component, Technology
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledFaurecia, BorgWarner Inc, Denso Corporation, Continental AG, MAHLE GmbH, Valeo SA, Robert Bosch GmbH, Calsonic Kansei Corporation, Hitachi Ltd, Schaeffler AG, Magneti Marelli S.p.A and Dana Incorporated
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Exhaust Heat Recovery System Market Size, Opportunities & Strategic Insights, by Vehicle Type

4.1Passenger Cars
4.2Commercial Vehicles
Chapter 5

Exhaust Heat Recovery System Market Size, Opportunities & Strategic Insights, by System Type

5.1EGR
5.2Turbocharger
5.3ORC
5.4TEG
Chapter 6

Exhaust Heat Recovery System Market Size, Opportunities & Strategic Insights, by Component

6.1Valves
6.2Heat Exchangers
6.3EGR Coolers
6.4EGR Valves
Chapter 7

Exhaust Heat Recovery System Market Size, Opportunities & Strategic Insights, by Technology

7.1Conventional
7.2Hybrid
Chapter 8

Exhaust Heat Recovery System Market, by Region

8.1North America Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Exhaust Heat Recovery System Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Faurecia
9.2.2BorgWarner Inc
9.2.3Denso Corporation
9.2.4Continental AG
9.2.5MAHLE GmbH
9.2.6Valeo SA
9.2.7Robert Bosch GmbH
9.2.8Calsonic Kansei Corporation
9.2.9Hitachi Ltd
9.2.10Schaeffler AG
9.2.11Magneti Marelli S.p.A
9.2.12Dana Incorporated