Exhaust Heat Recovery System Market Research Report—Global Forecast till 2030

Exhaust Heat Recovery System Market Research Report: Information by Component (Turbine, TEG Module, Compressor, Evaporator, EGR Valve & Cooler, Condenser, and Others), by Vehicle Type (Passenger Car, LCV, and HCV),by Technology[Exhaust Gas Recirculation (EGR), Thermoelectric Generator (TEG), Organic Rankine Cycle (ORC), Turbocharger, and Others], and by Region- Forecast till 2030

ID: MRFR/AM/5194-CR | September 2021 | Region: Global | 154 pages

Exhaust Heat Recovery System Market Overview:


The exhaust heat recovery system market in terms of value is estimated to reach USD 44,617.48 million by 2026, registering an 8.1% CAGR during the forecast period.


An exhaust heat recovery system turns the thermal losses contained in the engine exhaust into energy. The output of this system is either electric energy stored in a battery or mechanical energy transferred to the crankshaft. The utilization of this system is a popular method of increasing fuel efficiency and decreasing pollution simultaneously. Hence, vehicle manufacturers have taken an interest in research & development related to this system.The exhaust heat recovery system market is driven by factors such as the stringent government emission regulations and a rising focus on reducing carbon footprints in various countries across the globe.The rapid adoption of EGR in gasoline vehicles is expected to create growth opportunities for market players. However, an increase in the sale of EVs is expected to restrain the market growth.


COVID-19 Analysis:



  • ECONOMIC IMPACT


With the rapid spread of novel coronavirus (COVID-19) worldwide, automakers have taken extreme measures in the form of plant closures to halt the spread of COVID-19. The situation remains uncertain as more European companies have suspended work and the US and Asia-Pacificautomakers extended shutdown periods. The North American automakers' plans to reduce production are an effort to slow the spread of the COVID-19 virus. However, the region is the global epicenter of the outbreak, with the daily number of confirmed cases surpassing the number in any other region. In the US and Canada, the response of government bodies has been a combination of state or provincial, federal, and local measures. In other regions, governments applied seemingly ever-more stringent conditions on social interaction, travel, and workplace attendance. These regions experienced similar situations, which has a marked effect on the economy and society, causing significant economic disruption, with the automotive industry at the center of this turmoil.



  • IMPACT ON SUPPLY CHAIN


All the countries worldwide are trying to make a fine balance between protecting health, minimizing economic and social disruptions, and respecting human rights. The rapid spread of COVID-19 led to a disruption in the markets. Restrictions to shipping and industrial production affected multiple supply chains. Distribution of components is the key process in manufacturing industries, which faced challenges such as a need for direct distribution, the staffing of warehouses, and more intelligent and responsive allocation across channels due to the pandemic, which led to pressure on supply chains. The impact of the disruptions on the US and Europe was significant, which had a huge effect on the world economy and disrupted global supply chains. The supply chains are currently working efficiently compared to 2020 as the situation in most countries is stabilizing, and vaccinations have started. Followingall the health and safety measures, the supply chains have started functioning again.



  • IMPACT ON RAW MATERIALS


Automotive manufacturing possesses complex processes, with subcomponents required to assemble a single product sourced from several countries worldwide. The raw materials required to manufacture the subcomponents could also come from different countries and continents, and the finished products will again be transported all over the globe. Steel, iron, and various ceramics are the main raw material used to produce exhaust heat recovery systems. Some iron, ceramic, and steel plants that previously closed are now opened up. The dependence on exhaust heat recovery systems makes importing and exporting raw materials and finished products more complex due to disruptions in supply chains.


Market Dynamics:


Drivers:



  • STRINGENT EMISSION REGULATIONS


With the increasing focus on the effects of climate change strikes and the UN warning that the planet has a narrow 12-year window within which to act, several industry verticals, including the automotive industry, are taking steps to reduce their CO2 footprint. According to the WHO, the transportation sector is the fastest-growing contributor to greenhouse gas emissions across the board. This is mostly because of land and air transport, but the vehicle manufacturing process is considered as damaging as the driving itself.The EU maintains its focus on achieving greenhouse gas emission reductions planned for the second commitment period of the Kyoto Protocol for 2013 to 2020. The target to achieve in 2020 was a 20% GHG reduction compared to the base year 1990. For the following years, the EU committed within the Paris Agreement (COP21) to a GHG reduction target for the period from 2021 to 2030. The commitment for 2030 is a reduction of 40% of GHG emissions compared to 1990. Thus, the stringent emission regulations introduced by governments across the globe are expected to drive the growth of the global exhaust heat recovery system market during the forecast period.



  • RISING FOCUS ON REDUCING CARBON FOOTPRINTS


Carbon footprint refers to the amount of CO2 emissions associated with all the activities of a person or other entity (e.g., building, corporation, and country). It includes direct emissions, such as those that result from fossil-fuel combustion in manufacturing, heating, and transportation, as well as emissions required to produce the electricity associated with goods and services consumed. Additionally, the carbon footprint concept often includes the emissions of other greenhouse gases, such as methane, nitrous oxide, or chlorofluorocarbons (CFCs).As climate change and other environmental issues gain increased focus and impact all areas of life, automotive companies are taking the initiative to reduce their carbon footprint. Even small actions can have a big environmental impact.


Restraint:



  • INCREASE IN THE SALE OF EVS


The sales of electric vehicles (EVs) are growing rapidly due to the rising awareness regarding environmental protection and government subsidies and schemes. The awareness concerning the impact of gasoline vehicles on the environment has created a high demand for electric vehicles globally. Government initiatives, such as subsidies, grants, improved charging infrastructure, and increased vehicle range, help promote the adoption of electric vehicles. For instance, in September 2017, the Indian Ministry of Road Transport and Highways announced several non-fiscal incentives to ensure that electric vehicles account for 15% of the total vehicle sale in the country in the next five years. Moreover, key automotive OEMs are moving toward electrification, with a focus on the development of hybrid, battery electric vehicles, and plug-in hybrid vehicles. Thus, the growing demand for EVs is expected to restrict the growth of the global exhaust heat recovery system market during the forecast period as the system is not used in EVs.


Opportunity:



  • RAPID ADOPTION OF EGR IN GASOLINE VEHICLES


External exhaust gas recirculation (EGR) has been used in diesel engines for decades and gasoline engines in the past. It is recently reintroduced on gasoline engines to improve fuel economy at mid and high engine load conditions, where EGR can reduce throttling losses and fuel enrichment. Fuel enrichmentcauses fuel penalty and high soot particulates, as well as hydrocarbon (HC) emissions, all of which are limited by emissions regulations.Under stoichiometric conditions, gasoline engines can be operated at high EGR rates (>20%); however, more than diesel engines, its intake gas, including external EGR, needs extreme cooling (down to ~50°C) to gain the maximum fuel economy improvement. However, external EGR and its problems at low temperatures (fouling, corrosion & condensation) are well known. To avoid this, a coated Gasoline Particulate Filter (cGPF) is introduced in the EGR loop to clean the EGR gas by removing particulates, HC, NOx, and CO, such that only CO2, N2, and H2O remain. After cooling the cleaned EGR gas, water condensation is clear without particulates and with neutral pHvalues, otherwise being dirty and acidic.


Segmentation:


The global market for exhaust heat recovery system has been segmented based on component, vehicle type, and technology.


Based on component, the global exhaust heat recovery system market is divided into EGR valve & cooler, turbine, compressor, evaporator, condenser, TEG module, and others.The EGR valve is the main component of the EGR system and is normally closed. It connects the exhaust manifold to the intake manifold and is controlled by either a vacuum or a built-in electric step motor. A turbine is one of the main components of the exhaust heat recovery system. The exhaust heat is recirculated on the turbine to generate power. This power can be further used in various applications. Compressors are responsible for pumping the gas to high pressure and high temperature. Furthermore, this gas is delivered to the heat exchanger (condenser). The evaporator is an important component in the Organic Rankine Cycle (ORC)-based Exhaust Heat Recovery (EHR) system since the effective heat transfer of this device reflects the system's efficiency. A more effective means of exhaust heat transfer is a condensing heat exchanger. It utilizes a colder heat sink with a greater entering temperature difference than exhaust stream gases. Thermoelectric generators (TEGs) have been identified as promising solid-state devices to recover exhaust waste in internal combustion engines (ICEs).


Based on vehicle type, the global exhaust heat recovery system market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. A passenger car is a road motor vehicle, other than a moped or a motorcycle, intended for the carriage of passengers and designed to seat no more than nine persons. Light commercial vehicles are motor vehicles with at least four wheels used for the carriage of goods. Mass given in tons (metric tons) is used as a limit between light commercial vehicles and heavy trucks. A heavy commercial vehicle refers to any vehicle, whether mechanically propelled or not, which is constructed or adapted for the carriage of goods and has a maximum gross weight exceeding 7.5 tons.


Based on technology, the global exhaust heat recovery system market is segmented into exhaust gas recirculation (EGR), turbocharger, organic rankine cycle (ORC), thermoelectric generators (TEG), and others.Exhaust gas recirculation (EGR) is an effective strategy to control NOx emissions from diesel engines. The EGR reduces NOx by lowering the oxygen concentration in the combustion chamber and through heat absorption. In a combined exhaust heat recovery system, an exhaust gas turbocharger by pass drives a power turbine, which enhances the total energy output from the system. The ORC waste heat power generation system is built and optimized based on recovering expansion preheater after exhausting high-temperature steam. The thermoelectric generator (TEG) is a device that converts some of the waste heat of an internal combustion engine (IC) into electricity using the Seebeck effect.


Regional Analysis:


Based on region, the report on the exhaust heat recovery system market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World.


Asia-Pacific has one of the largest automotive markets, owing to the automotive industry's rapid growth in countries such as China, India, and Japan. The increased demand for exhaust heat recovery systems in the region can be credited to factors such as the rise in demand for fuel-efficient technologies. Asia-Pacific has the presence of abundant raw material suppliers, low labor costs, and favorable government guidelines in countries such as China, Japan, and South Korea. China is the leading market in terms of global vehicle sales. The country is one of the most attractive markets for exhaust heat recovery system manufacturers investing by forming joint ventures with local vehicle brands. However, India's automotive industry is well-positioned in terms of contribution to the overall GDP due to continuous growth in the demand for passenger cars. India is one of the key exporters of vehicles in Asia-Pacific due to a high production rate, low labor cost, growing ease-of-doing business rating, a position as an emerging economy, and globally recognized engineering capabilities.


Governments and other organizations in North America are continuously working on decreasing vehicular emissions by encouraging the use of fuel-efficient components in automobiles. For instance, in August 2018, the US Department of Transportation (DOT) and the Environmental Protection Agency (EPA) proposed the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule to revise the existing Corporate Average Fuel Economy (CAFE) and tailpipe CO2 emission standards for passenger cars and light trucks. This is expected to further boost the demand for the exhaust heat recovery system market in the US during the forecast period. However, the Canadian Government is increasing its focus on developing vehicular emission standards that are in sync with the US 2025 emission standards. Furthermore, in 2017, Canada signed a Comprehensive Economic and Trade Agreement (CETA) with the EU and a free trade agreement with South Korea for vehicle exports, which is expected to offer promising growth opportunities for the exhaust heat recovery system market in Canada during the forecast period.


Competitive Landscape:


The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Continental AG, Delphi Technologies, Denso Corporation, Hella GmbH, Faurecia, and Mahle GmbH are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider product launch as a key strategy in the Global exhaust heat recovery system market. Although the international players are dominating the market, regional and local players with small market shares also have a significant presence. The international players may strengthen their presence in the global market by heavily investing in product development during the forecast period.


Key Competitors:


The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. Continental AG, Delphi Technologies, Denso Corporation, Hella GmbH, Faurecia, and Mahle GmbH are some of the key players operating in the global market.


Recent Developments:



  • November 2020: Dana Inc. announced that it signed a definitive agreement to purchase a portion of the thermal-management business of Modine Manufacturing Company's automotive segment. The transaction further strengthened its Power Technologies business unit.

  • October 2020: BorgWarner Inc. has completed its acquisition of Delphi Technologies. The combination of BorgWarner and Delphi Technologies is expected to strengthen BorgWarner’s electronics and power electronics products, capabilities, and scale, creating a leader in electrified propulsion systems that BorgWarner believes is well-positioned to take advantage of future propulsion migration.

  • July 2018: BorgWarner launched an innovative exhaust heat recovery system (EHRS). Using heat from the exhaust gas, which would normally be diverted through the exhaust pipes and wasted, the company’s technology reduces engine warm-up time, enhances efficiency, improves fuel economy, and reduces emissions.


Report Overview:


The global exhaust heat recovery system market has been segmented based on component, vehicle type, and technology.The exhaust heat recovery system market is driven by factors such as the stringent government emission regulations and a rising focus on reducing carbon footprints in various countries across the globe. However, an increase in the sale of EVs is expected to restrain the market growth. The rapid adoption of EGR in gasoline vehicles is expected to create growth opportunities for market players.


Market Segmentation



  • By Component (Turbine, TEG Module, Compressor, Evaporator, EGR Valve & Cooler, Condenser, and Others)

  • Vehicle Type (Passenger Car, LCV, and HCV)

  • Technology (Exhaust Gas Recirculation (EGR), Thermoelectric Generator (TEG), Organic Rankine Cycle (ORC), Turbocharger, and Others)



Report Scope:
Report Attribute/Metric Details
  Market Size

  • USD 44,617.48 million
  • 2030 : Significant value
  •   CAGR   8.1% CAGR (2022 to 2030)
      Base Year   2021
      Forecast Period   2022 to 2030
      Historical Data   2019 & 2020
      Forecast Units   Value (USD Billion)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Component, Technology and Vehicle Type
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   Faurecia (France), Mahle (Germany), Continental (Germany), Denso (Japan), Valeo (France), Dana (US), Calsonic Kansei (Japan), Delphi Technologies (UK), Mitsubishi Electric (Japan), Hitachi Ltd. (Japan), Bosal (Belgium), Tenneco Inc. (US), Borgwarner Inc. (US)
      Key Market Opportunities   The commercial vehicle segment have been highly instrumental
      Key Market Drivers   Increasing demand for diesel vehicles


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    Frequently Asked Questions (FAQ) :


    The key drivers of the market are stringent government norms to reduce carbon emissions and the increasing demand for diesel vehicles.

    The key players of the market are MAHLE, BorgWarner, Denso, Continental, Faurecia, Valeo, Dana, Hitachi, Tenneco inc. and Calsonic Kansei.

    The EGR valve market has a high demand it is the most crucial segment of the market.