Global Exhaust Heat Recovery System Market Size Study & Forecast, by Component, Technology, Vehicle Type, and Regional Forecasts 2025-2035

The Global Exhaust Heat Recovery System Market is valued at approximately USD 35.55 billion in 2024 and is anticipated to grow with a robust CAGR of 7.07% during the forecast period 2025–2035. Exhaust Heat Recovery Systems (EHRS) are transformative technologies that aim to capture and repurpose waste heat emitted from internal combustion engines, converting it into useful energy to enhance overall vehicle efficiency. In an industry racing toward decarbonization and stricter fuel economy standards, EHRS have carved a vital niche by enabling OEMs to reduce emissions while optimizing fuel consumption. Their widespread adoption is catalyzed by the exponential demand for energy-efficient propulsion systems, especially in passenger cars and commercial vehicles, where even marginal gains in efficiency translate into significant cost savings and environmental benefits.

With global emission regulations tightening and fuel economy standards becoming more demanding, manufacturers are pushing the envelope on thermal management innovations. Among these, EHRS technologies—such as Thermoelectric Generators (TEGs), Organic Rankine Cycle (ORC), Turbochargers, and Exhaust Gas Recirculation (EGR)—are now pivotal. These solutions not only recycle exhaust energy but also power ancillary vehicle systems or feed the drivetrain directly, thereby reducing reliance on fuel. The integration of such systems is particularly dominant in high-mileage applications like HCVs and LCVs, where durability and cost-effectiveness are paramount. Furthermore, hybrid and plug-in hybrid vehicles are increasingly integrating EHRS modules to balance energy regeneration and consumption.

From a regional standpoint, North America currently leads the EHRS market, largely due to advanced automotive R&D capabilities, strict regulatory mandates such as CAFÉ standards, and a high penetration of hybrid and light-duty diesel vehicles. Europe follows closely, bolstered by its comprehensive sustainability policies, automotive electrification strategies, and significant investments in eco-friendly mobility infrastructure. Meanwhile, the Asia Pacific region is expected to exhibit the highest growth rate throughout the forecast period, with countries such as China, Japan, and India actively investing in emission-reduction technologies and clean transport initiatives. In China, for instance, the government’s New Energy Vehicle (NEV) policy encourages the integration of EHRS in next-gen vehicle architectures, giving a notable thrust to this market.

Major market player included in this report are:
• BorgWarner Inc.
• Mahle GmbH
• Continental AG
• Denso Corporation
• Tenneco Inc.
• Faurecia
• Cummins Inc.
• Eberspächer Group
• IHI Corporation
• Valeo SA
• ABB Ltd.
• Mitsubishi Electric Corporation
• Dana Incorporated
• Hanon Systems
• Robert Bosch GmbH

Global Exhaust Heat Recovery System Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025-2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players.

The detailed segments and sub-segments of the market are explained below:

By Component:
• Turbine
• Thermoelectric Generator (TEG) Module
• Compressor
• Evaporator
• EGR Valve & Cooler
• Condenser
• Others

By Vehicle Type:
• Passenger Car
• Light Commercial Vehicle (LCV)
• Heavy Commercial Vehicle (HCV)

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

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.

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