Exhaust Heat Recovery System Market Size, Share, Growth Analysis, By Technology (Conventional and Future Technology), By Mode(Exhaust Gas Recirculation (EGR), Turbocharger, Organic Rankine Cycle, and Thermoelectric Generator), By Vehicle Type(Passenger Cars, Light Commercial Vehicles, Trucks, and Buses), By Component(EGR Component, Turbocharger Component, Organic Rankine Cycle Component, and Thermoelectric Generator Component), By Application(Automotive, Industrial, Residential, and Commercial Sectors), By Region - Industry Forecast 2024-2031

Drivers

Increased Engine Performance and Fuel Economy Requirements

• Governments around the world mandate fuel-efficient vehicles to reduce pollution and climate emissions from vehicles. For example, the European Union (EU) mandated that the average fuel efficiency of all fleet manufacturers should not reach the US level. 57 miles per gallon (mpg) by 2021, surpassing the U.S. average. 41.9 miles per gallon in 2015 and the U.S. average. 92 miles per gallon by 2030 driven by integration will infuse its vehicles with advanced technology and improve the fleet as well. The performance of a car depends on the engine. Therefore, car manufacturers are urged to develop efficient engines, which can meet both requirements and provide improved performance & fuel efficiency simultaneously. Exhaust heat recovery solutions such as turbochargers and exhaust gas recirculation systems (EGR) are primarily turbo-boosted engines with smaller sizes and are specifically designed to increase fuel efficiency as per industry fuel consumption operate properly in accordance with Euro VI standards.

Engine Downsizing to Reduce Automobile Weight

• Engine downsizing is the technique of the usage of smaller combustion engines over larger ones of the same strength potential when production automobiles within the car industry. It is the result of automakers' efforts to provide extra-green automobiles with lower emissions, which are regularly enforced through authorities' policies. Engine downsizing includes reducing the range of cylinders to lower the engine's general length. By decreasing the range of cylinders, the quantity of friction in the engine is reduced. Advancements in exhaust warmth healing system technology, including using turbocharger and exhaust gasoline recirculation, have decreased general engine length while retaining or increasing energy output.

Growing Demand for Battery Electric Vehicles

• The electric vehicle market is experiencing significant growth due to factors such as climate change and efforts to achieve zero emissions. Moreover, incentives and positive policies introduced by governments of various countries to promote electric vehicles boost the EV industry. For example, the 2021 California Clean Vehicle Rebate Project (CVRP) proposed a clean vehicle rebate in California with rebates ranging from $1,000 to $7,000 for the purchase or lease of a new zero-emission vehicle In after offering, in 2021, New Zealand offered a clean car rebate that gave new car buyers a discount of $8,625 on an electric vehicle (EV) lower than for $80,000, including GST and road costs. For example, according to the IEA report, in the year 2022, EV vehicles will reach 6.7 million worldwide by 2021, and will reach 3.7 million by 2020, representing a market share of 4.1%.

Restraints

Stringent Emissions Regulations

• In April 2023, the Environmental Protection Agency (EPA) published and developed new standards aimed at further reducing harmful air pollution emissions from light and heavy-duty vehicles scheduled for initial implementation in 2027. This proposal precedes EPA -Is established federal Greenhouse gas emission standards for passenger cars and light trucks cover model years 2023 through 2026. Citing advances in clean vehicle technology in use to provide various benefits to Americans. This includes reducing atmospheric pollution, improving public health, and reducing costs for drivers due to reduced fuel and maintenance costs.

• The proposed standards require automakers to further improve combustion efficiency and significantly reduce carbon emissions. To meet these stringent standards, automakers may increasingly turn to exhaust heat recovery systems (EHRS). It is an efficient technology that improves overall engine efficiency by recovering waste heat, ultimately reducing emissions.