Global Exhaust Heat Recovery System Market to Reach USD 60,400.83 Million by 2032 | CAGR of 7.1%
Category : Aerospace and Defence | Published Date : Jan 2025 | Type : Press Release
Exhaust Heat Recovery System Market Scope & Overview:
As per the Consegic Business Intelligence newly published report, the Exhaust Heat Recovery System Market is projected to grow from USD 36,371.41 million in 2024 to USD 60,400.83 million by 2032, at a CAGR of 7.1% during the forecast period. Exhaust heat recovery systems (EHRS) capture and repurpose waste heat generated by internal combustion engines, enhancing fuel efficiency, reducing emissions, and improving overall energy utilization. These systems are widely adopted in passenger vehicles, heavy commercial vehicles, and hybrid electric vehicles.
EHRS technology includes exhaust gas recirculation (EGR), thermoelectric generators (TEGs), turbochargers, and organic Rankine cycles, which are extensively utilized across the automotive, industrial, and energy sectors. The market is driven by stringent emission standards, advancements in heat recovery technologies, and the growing demand for fuel-efficient solutions.
The report comprises the Exhaust Heat Recovery System Market Share, Size & Industry Analysis, based on Component (Turbine, TEG Module, Compressor, EGR Valve, EGR Cooler, Expander, Pump, Condenser, Heat-Exchanger, Evaporator), Vehicle Type (Passenger Vehicles, Heavy Commercial Vehicles, Light Commercial Vehicles), Technology (Exhaust Gas Recirculation, Organic Rankine Cycle, Turbocharger, Thermoelectric Generator), Sales Channel (OEMs, Aftermarket), and Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa), and Forecast, 2025-2032.
The report contains detailed information on Exhaust Heat Recovery System Market Trends, Opportunities, Value, Growth Rate, Segmentation, Geographical Coverage, Company Profiles, In-depth Expert Analysis, Revenue Forecast, Competitive Landscape, Growth Factors, Restraints or Challenges, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, and Cost Analysis.
The increasing enforcement of stringent emission standards is a primary driver of the market, compelling automotive manufacturers to integrate EHRS for nitrogen oxide (NOx) reduction. Additionally, advancements in heat recovery systems for power generation and CO₂ emission reduction present significant growth opportunities.
Segmental Analysis :
Based on component, the market is segmented into turbine, TEG module, compressor, EGR valve, EGR cooler, expander, pump, condenser, heat-exchanger, and evaporator.
- The EGR valve segment accounted for the largest market share in 2024, as it effectively reduces NOx emissions by redirecting a portion of exhaust gases back into the engine's intake. This process helps lower combustion temperatures and improve fuel efficiency.
- The thermoelectric generator segment is expected to register the highest CAGR during the forecast period, driven by its capability to convert waste heat into usable electricity, enhancing energy efficiency in industrial and automotive applications.
Based on vehicle type, the market is segmented into passenger vehicles, heavy commercial vehicles, and light commercial vehicles.
- The heavy commercial vehicles (HCVs) segment held the largest revenue share of 48.21% in 2024, owing to the increasing adoption of EHRS in trucks, buses, and large transport vehicles to reduce fuel consumption and emissions.
- The passenger vehicles segment is projected to grow at the fastest CAGR, as hybrid and electric vehicles integrate advanced heat recovery systems to optimize power usage and minimize energy loss.
Based on technology, the market is segmented into exhaust gas recirculation, organic Rankine cycle, turbocharger, and thermoelectric generator.
- The exhaust gas recirculation (EGR) segment accounted for the largest revenue share in 2024, as it plays a critical role in reducing greenhouse gas emissions and improving fuel economy in diesel and gasoline engines.
- The turbocharger segment is anticipated to witness the highest CAGR, driven by its ability to enhance engine performance and fuel efficiency by recycling exhaust gases to boost power output.
Based on sales channel, the market is segmented into OEMs and aftermarket.
- The OEMs segment dominated the market in 2024, as automotive manufacturers increasingly integrate EHRS during vehicle production to comply with global emission regulations.
- The aftermarket segment is expected to witness steady growth, fueled by rising demand for EHRS retrofitting in older vehicles to improve energy efficiency and reduce fuel consumption.
Based on regions, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
- Asia-Pacific held the largest market share in 2024, valued at USD 12,162.50 million, with China accounting for 32.5% of regional revenue. The region’s growth is attributed to rapid industrialization, stricter emission norms, and increased adoption of EHRS in commercial fleets.
- North America is projected to reach USD 16,127.02 million by 2032, driven by government policies promoting energy efficiency, tax incentives, and the rapid expansion of hybrid vehicle adoption.
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 60,400.83 Million |
| CAGR (2025-2032) | 7.1% |
| Component | Turbine, TEG Module, Compressor, EGR Valve, EGR Cooler, Expander, Pump, Condenser, Heat-Exchanger, Evaporator |
| Vehicle Type | Passenger Vehicles, Heavy Commercial Vehicles, Light Commercial Vehicles |
| Technology | Exhaust Gas Recirculation, Organic Rankine Cycle, Turbocharger, Thermoelectric Generator |
| Sales Channel | OEMs, Aftermarket |
| By Region | North America(U.S., Canada, Mexico) Europe(U.K., Germany, France, Spain, Italy, Russia, Benelux, Rest of Europe) APAC(China, South Korea, Japan, India, Australia, ASEAN, Rest of Asia-Pacific) Middle East & Africa(GCC, Turkey, South Africa, Rest of MEA) LATAM(Brazil, Argentina, Chile, Rest of LATAM) |
Top Key Players & Competitive Landscape :
The competitive landscape encompasses major innovators, aftermarket service providers, industry giants, and niche players, all of which are thoroughly examined by Consegic Business Intelligence in terms of their strengths, weaknesses, and value-addition potential. This report includes detailed profiles of key players, market share analysis, mergers and acquisitions, resulting market fragmentation, and emerging partnership trends and dynamics.
List of prominent players in the Exhaust Heat Recovery System Industry:
- John Wood Group Plc (UK)
- Ormat Technologies Inc. (USA)
- General Electric Co. (USA)
- Mitsubishi Heavy Industries Ltd. (Japan)
- Faurecia (France)
- Continental (Germany)
- Echogen Power Systems Inc. (USA)
- Econotherm Ltd. (UK)
- Thermax Limited (India)
- Calsonic Kansei (Japan)
- Siemens AG (Germany)
- Cool Energy Inc. (USA)
Recent Industry Developments :
- February 2024: Cemex and Orcan Energy partnered to decarbonize cement production using waste heat recovery technology, expanding EHRS applications beyond the automotive industry.
- September 2023: TITAN and Orcan Energy collaborated to scale up waste heat conversion into clean energy, strengthening the industrial application of EHRS for power generation.
