Market Trends of Automotive Exhaust Heat Recovery System Industry
Strict Emission Regulations Driving the Market Growth
In April 2023, the Environmental Protection Agency (EPA) revealed updated standards aimed at further decreasing harmful air pollutant emissions from light-duty and medium-duty vehicles, with the initial implementation set for model year 2027. This proposal is built upon EPA's previous federal greenhouse gas emissions standards for passenger cars and light trucks covering model years 2023 through 2026. It harnesses the advancements in clean car technology to deliver a range of benefits to the American population. It includes reduced climate pollution, enhanced public health, and cost savings for drivers due to reduced fuel and maintenance expenses.
The proposed standards are expected to require automakers to further optimize combustion and reduce emissions significantly. To meet these stringent standards, automakers may increasingly turn to exhaust heat recovery systems (EHRS). It is an effective technology to recover waste heat and improve overall engine efficiency, ultimately leading to lower emissions.
As part of these standards, there is an emphasis on improving fuel economy. EHRS can play a crucial role in achieving better fuel efficiency by capturing and utilizing exhaust heat to perform useful work, thus reducing the fuel consumption of vehicles.
Asia-Pacific is Expected to be the fastest growing region
In 2022, Asia-Pacific accounted for the majority of global vehicle sales at 58%, reflecting a significant surge in demand owing to rapid technological innovations in the automotive industry.
Asia-Pacific accounts for almost 60 % of the world's population, and the demand for vehicles is expected to be the highest in the region for the forecasted period. Also, government regulations are becoming strict in the region. For example, BS-VI standards are enforced by Govt. of India to regulate the expelled pollutants from motor vehicles. With the addition of environmental norms, exhaust heat recovery systems will be more in demand as these systems not only reduce the percentage of pollutants coming out from the vehicles but also increase the fuel efficiency of the vehicle. With the growing pollution levels in the region, people are becoming more aware of the environment and more concerned about the emissions from the cars they purchase.
The rapidly progressing and tightening of exhaust emission standards in China is forcing manufacturers to achieve a further sustained reduction in particulate and nitrogen oxide emissions in order to comply with the current Chinese 6a emissions standard. Additional exhaust-gas recirculation measures are thus mandatory for commercial vehicles in the on and off-highway sector.
