Global Exhaust Heat Recovery System Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• September 2019, MAHLE GmbH has announced the release of their innovative EHRS technology, which recovers waste heat from exhaust gases via a heat exchanger. The method is intended to boost the efficiency of internal combustion engines while lowering their carbon impact.

• May 2021, Cummins has introduced a new exhaust heat recovery system (EHRS) for diesel engines, which is intended to enhance fuel efficiency and reduce pollutants. A thermoelectric generator is used in the system to convert waste heat into electrical energy.

• January 2020, Denso Corporation has announced the development of a novel EHRS that recovers waste heat from exhaust fumes using a Rankine cycle. The technology is intended to enhance fuel efficiency and lower emissions in hybrid and gasoline-powered automobiles.

The Global Exhaust Heat Recovery System Market is poised for substantial growth, driven by advancements in automotive technology, increasing environmental concerns, and a growing focus on energy efficiency. The market outlook from 2024 to 2030 is characterized by significant expansion, with key factors such as stringent emission regulations and the rising demand for fuel-efficient vehicles propelling the adoption of exhaust heat recovery systems across various regions.

Technological segmentation plays a crucial role in understanding the dynamics of the market. Exhaust Gas Recirculation (EGR), turbocharging, Organic Rankine Cycle (ORC), and Thermoelectric Generators (TEG) represent prominent technologies driving the growth of exhaust heat recovery systems. These technologies offer diverse approaches to harness waste heat from vehicle exhaust gases, thereby improving fuel efficiency and reducing emissions.

The segmentation by components provides insights into the intricate components that constitute exhaust heat recovery systems. Components such as EGR valves, EGR coolers, turbines, compressors, evaporators, condensers, expanders, pumps, thermoelectric modules, and heat exchangers form the backbone of these systems, each contributing to the overall efficiency and performance of the system.

Global Exhaust Heat Recovery System Segmnet Analysis

In this report, the Global Exhaust Heat Recovery System Market has been segmented by Technology, Component, Vehicle Type, Hybrid Vehicles, Off-Highway Vehicles and Geography.

Global Exhaust Heat Recovery System Market, Segmentation by Technology

The Global Exhaust Heat Recovery System Market has been segmented by Technology into EGR, Turbocharger, ORC and TEG.

Exhaust Gas Recirculation (EGR) systems are commonly used in internal combustion engines to reduce nitrogen oxide (NOx) emissions by recirculating a portion of exhaust gases back into the combustion chamber. By reintroducing exhaust gases, EGR systems lower combustion temperatures, thereby reducing the formation of harmful pollutants. In addition to emission control, EGR systems also contribute to fuel efficiency by improving engine thermal management, making them a key technology in the automotive and transportation sectors.

Turbocharger technology utilizes exhaust gases to drive a turbine, which in turn compresses intake air before it enters the combustion chamber. By recovering waste energy from exhaust gases, turbochargers increase engine efficiency and power output, resulting in improved fuel economy and performance. Turbocharging is widely used in both automotive and industrial applications, where it enhances the power density and responsiveness of internal combustion engines while reducing emissions.

Global Exhaust Heat Recovery System Market, Segmentation by Component

The Global Exhaust Heat Recovery System Market has been segmented by Component into EGR Valve, EGR Cooler, Turbine, Compressor, Evaporator, Condenser, Expander, Pump, Thermoelectric Module and Heat exchanger.

These components include the Exhaust Gas Recirculation (EGR) Valve, EGR Cooler, Turbine, Compressor, Evaporator, Condenser, Expander, Pump, Thermoelectric Module, and Heat Exchanger. Each component contributes uniquely to the EHRS's function, making it a comprehensive and effective solution for recovering waste heat in various applications. The EGR Valve and EGR Cooler are essential components in EHRS, responsible for controlling the recirculation of exhaust gases into the engine's intake system. By reintroducing a portion of exhaust gases, these components help lower combustion temperatures, reducing nitrogen oxide emissions and improving engine efficiency. The Turbine and Compressor work together in a turbocharger system to recover waste heat from exhaust gases and convert it into mechanical energy to enhance engine power output and fuel efficiency.The Evaporator and Condenser components are integral parts of EHRS in systems utilizing organic Rankine cycles (ORC) or absorption refrigeration cycles (ARC) to recover waste heat for power generation or air conditioning purposes. These components facilitate the transfer of heat from exhaust gases to a working fluid, which is then used to drive a turbine or provide cooling. The Expander, Pump, and Heat Exchanger further enhance the efficiency of ORC and ARC systems by optimizing fluid circulation, heat transfer, and energy conversion processes.

Global Exhaust Heat Recovery System Market, Segmentation by Vehicle Type

The Global Exhaust Heat Recovery System Market has been segmented by Vehicle Type into Passenger cars, LCVs, Truck and Bus.

Passenger cars represent a significant portion of the EHRS market, driven by the increasing demand for fuel efficiency and environmental sustainability in the automotive industry. EHRS technology in passenger cars aims to capture and utilize waste heat from the exhaust system to improve overall vehicle efficiency. Manufacturers are integrating EHRS into their vehicles to meet stringent emissions regulations and enhance the performance of internal combustion engines, thereby reducing fuel consumption and greenhouse gas emissions.

Light Commercial Vehicles (LCVs) also play a crucial role in the EHRS market, particularly in the context of urban delivery and transportation services. With the rise of e-commerce and last-mile logistics, there is growing pressure on LCV operators to minimize operating costs and carbon footprints. EHRS solutions for LCVs offer opportunities to recover waste heat and convert it into usable energy, contributing to lower fuel consumption and emissions while maintaining vehicle performance and reliability.

Global Exhaust Heat Recovery System Market, Segmentation by Hybrid Vehicles

The Global Exhaust Heat Recovery System Market has been segmented by Hybrid Vehicles into EVs and PHEVs.

Electric Vehicles (EVs) represent a rapidly expanding segment of the automotive market, driven by concerns over air pollution and climate change. EHRS plays a crucial role in EVs by capturing and utilizing waste heat from the exhaust system to improve overall energy efficiency. By incorporating EHRS technology, EV manufacturers can enhance the range and performance of their vehicles while reducing reliance on fossil fuels, thereby accelerating the transition to cleaner transportation alternatives.

Plug-in Hybrid Electric Vehicles (PHEVs) combine elements of both conventional internal combustion engines and electric propulsion systems, offering increased flexibility and extended driving range. EHRS in PHEVs serves a dual purpose, capturing waste heat from the internal combustion engine during operation and from the electric motor during regenerative braking. This recovered energy can be utilized to supplement vehicle power requirements, further improving fuel efficiency and reducing emissions.

Global Exhaust Heat Recovery System Market, Segmentation by Off-Highway Vehicles

The Global Exhaust Heat Recovery System Market has been segmented by Off-Highway Vehicles into Construction Equipment and Agriculture Tractors.

The segmentation of the Global Exhaust Heat Recovery System Market by Off-Highway Vehicles into Construction Equipment and Agriculture Tractors highlights the specialized needs and applications within these industries. Off-highway vehicles, including construction equipment and agriculture tractors, operate in demanding environments and often require efficient solutions to manage waste heat generated by their engines.

Construction equipment, such as excavators, loaders, and bulldozers, are vital components of infrastructure development projects worldwide. These machines typically have high-power engines that produce significant amounts of heat during operation. Exhaust heat recovery systems offer a sustainable solution to harness this wasted energy, converting it into useful power for auxiliary functions or improving overall fuel efficiency. By implementing exhaust heat recovery systems, construction equipment manufacturers and operators can enhance productivity, reduce fuel consumption, and lower emissions, thereby meeting regulatory requirements and environmental standards.

Agriculture tractors play a crucial role in modern farming practices, facilitating various tasks from plowing and planting to harvesting and transportation. The agricultural sector is increasingly focused on sustainability and resource efficiency, driving the adoption of innovative technologies such as exhaust heat recovery systems. By capturing and utilizing exhaust heat, these systems can power auxiliary equipment on the tractor, such as hydraulic systems or cabin heating, reducing the reliance on conventional fuel sources and improving overall energy efficiency. Additionally, exhaust heat recovery systems can contribute to the reduction of greenhouse gas emissions, aligning with environmental stewardship initiatives within the agriculture industry.

Global Exhaust Heat Recovery System Market, Segmentation by Geography

In this report, the Global Exhaust Heat Recovery System Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Exhaust Heat Recovery System Market Share (%), by Geographical Region, 2024

North America emerged as a prominent market for exhaust heat recovery systems, accounting for a significant share of the global market. This can be attributed to stringent emission regulations and increasing emphasis on energy efficiency in the region, particularly in sectors such as automotive, manufacturing, and power generation. Additionally, growing awareness about the environmental impact of exhaust emissions has spurred demand for heat recovery systems as a means to reduce greenhouse gas emissions and improve overall energy utilization.

Europe also held a substantial market share in the global exhaust heat recovery system market in 2023. The region has been at the forefront of environmental initiatives and has implemented stringent emission standards across various industries, driving the adoption of heat recovery technologies. Moreover, supportive government policies and incentives aimed at promoting energy efficiency and reducing carbon emissions have further fueled the deployment of exhaust heat recovery systems in Europe, particularly in sectors like automotive, aerospace, and industrial manufacturing.

This report provides an in depth analysis of various factors that impact the dynamics of Global Exhaust Heat Recovery System Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Growing Emphasis on Fuel Efficiency
• Emissions Reduction
• Increasing Stringency of Environmental Regulations : The Global Exhaust Heat Recovery System Market is experiencing a significant upsurge, primarily fueled by the increasing stringency of environmental regulations worldwide. Governments and regulatory bodies are imposing stricter emissions standards on industries, particularly automotive and manufacturing sectors, to mitigate pollution and combat climate change. In response, businesses are turning to exhaust heat recovery systems as a key solution to reduce greenhouse gas emissions and improve energy efficiency in their operations. Exhaust heat recovery systems capture waste heat generated during combustion processes in various industrial and automotive applications. By harnessing this otherwise wasted thermal energy, these systems can significantly enhance overall efficiency and reduce fuel consumption. This is especially critical in sectors like automotive manufacturing, where stringent emissions standards drive the need for innovative technologies to minimize environmental impact while maintaining performance and competitiveness. The automotive industry, in particular, is witnessing a surge in the adoption of exhaust heat recovery systems as automakers strive to meet stringent emissions regulations and improve fuel economy across their vehicle fleets. Technologies such as turbochargers, organic Rankine cycle (ORC) systems, and thermoelectric generators (TEGs) are being integrated into vehicles to recover waste heat from exhaust gases and convert it into usable energy for powering auxiliary systems or improving propulsion efficiency.

Restraints

• High Initial Investment Costs
• Technical Challenges in Integration
• Existing Systems : The global exhaust heat recovery system market for existing systems is witnessing robust growth driven by the increasing emphasis on energy efficiency and sustainability across various industries. These systems are designed to capture and utilize waste heat generated by engines, turbines, and industrial processes, thereby improving overall energy utilization and reducing greenhouse gas emissions.One key driver of the market is the rising awareness among industries about the potential benefits of exhaust heat recovery systems. As businesses strive to minimize their environmental footprint and comply with stringent regulations, there is a growing demand for technologies that can recover waste heat and convert it into usable energy. Existing systems are being retrofitted or installed in industrial facilities, power plants, and commercial buildings to harness this untapped energy resource. Advancements in exhaust heat recovery technology are enhancing the efficiency and performance of existing systems.Innovations such as improved heat exchanger designs, advanced thermoelectric materials, and integrated control systems are enabling higher levels of heat recovery and energy conversion. These technological developments are driving the adoption of exhaust heat recovery systems across a wide range of applications, from automotive exhaust systems to industrial boilers and cogeneration plants.

Opportunities

• Rising Adoption of Waste Heat Recovery Technologies
• Expansion of Automotive
• Emerging Markets : The Global Exhaust Heat Recovery System Market is witnessing significant growth, particularly in emerging markets, driven by several key factors. These regions, including countries in Asia, Latin America, and Africa, are experiencing rapid industrialization and urbanization, leading to increased energy consumption and environmental concerns. As a result, there is a growing focus on energy efficiency and sustainability, creating favorable conditions for the adoption of exhaust heat recovery systems.Industries such as automotive, manufacturing, and power generation are prominent users of exhaust heat recovery systems. These systems capture waste heat from exhaust gases emitted by engines or industrial processes and convert it into usable energy, such as electricity or heat, thereby improving overall efficiency and reducing emissions. As emerging market economies strive for greater competitiveness and environmental compliance, the demand for exhaust heat recovery solutions is expected to surge across various sectors. Government initiatives and regulations play a crucial role in driving the adoption of exhaust heat recovery systems in emerging markets. Many governments are implementing policies aimed at promoting energy efficiency and reducing greenhouse gas emissions, which incentivizes industries to invest in technologies like exhaust heat recovery. Incentive programs, tax credits, and subsidies provided by governments further encourage businesses to adopt these systems, thus accelerating market growth in emerging economies.