Automotive Energy Recovery Systems Market Trends

Growth Drivers

• Growing Demand for Electric Vehicles (EV) – It was observed that global electric vehicles sales in 2021 were estimated to reach 6.75 million units globally.
• With most of the electric vehicles being equipped with a regenerative braking system. The increasing demand for EVs is expected to boost demand for automotive energy recovery systems as regenerative braking recovers some of the kinetic energy that would otherwise turn into heat and instead converts it into electricity.
• Increasing R&D Spending in the Automotive Sector – it was found that in 2020, global R&D spending reached more than USD 135 billion in the automotive sector.
• Increase in New Light Vehicle Sales—New light vehicles sales to reach 16 million units in 2021 worldwide, representing a 12.5% increase over 2020, as per estimates.
• Emerging Emission Norms & Standards – According to reports, to reduce the level of tailpipe pollutants, in India the emission of only 10 parts per million (ppm) of Sulphur is permissible as per the updated Bharat Stage (BS)-VI, which is applicable from 2020.

Challenges

• High Cost of Overall Vehicle Production - Automotive energy recovery systems increase the cost of automobiles since they can convert waste materials into heat and energy. Furthermore, it can also convert the chemical energy into mechanical energy. Hence, automotive energy recovery systems are very expensive and its commercial availability is quite difficult. Hence, this factor may hamper the growth of the market over the forecast period.
• High Maintenance Cost
• Concern about the Availability of Low-cost Faux Systems