Automotive Regenerative Braking System Market Trends [2031]

Report Description

Automotive Regenerative Braking System Market Outlook 2031

The global automotive regenerative braking system market size was valued at USD 7.54 Billion in 2022 and is likely to reach USD 27.37 Billion by 2031, expanding at a CAGR of 15.4% during 2023 – 2031. The market's growth is attributed to stringent vehicular emission norms & regulations.

Stringent vehicular emission norms & regulations are expected to boost the demand for the automotive regenerative braking system. The regenerative braking system captures kinetic energy and transfers it into the car's batteries, reducing the amount of energy wasted through braking, which results in improved fuel economy and reduced CO2 emissions. Therefore, imposition of strict guidelines for less emission is estimated to fuel the market.

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A regenerative braking system is an energy recovery mechanism that converts heat generated by friction in brakes into electrical energy. This system drives motor wheels during acceleration or cruising and the wheels drive the motor while decelerating. Regenerative braking systems are installed in new electric and hybrid cars to conserve energy. It is used in BEV, HEV, and PHEV propulsion vehicles.

The COVID-19 pandemic hampered the demand for the automotive regenerative braking system market. The disruption in the supply chain due to the closure of international borders and trade barriers affected the automobile industry. Manufacturers started shutting down their production facilities, which impeded the demand for automotive regenerative braking system, as it is used in vehicles to recover, store, and re-use some of the vehicle's braking energy to improve fuel efficiency. For instance,

• On March 18, 2020, General Motors, a multinational automotive manufacturing company, announced the temporary suspension of manufacturing operations in North America due to rising Covid-19 infection.

Impact of Artificial Intelligence (AI) on Automotive Regenerative Braking System

The continuous development in technology and the introduction of artificial intelligence are expected to create a lucrative opportunity in the market. AI in regenerative braking systems can monitor the surrounding area in front of the car, helping to reduce damage caused by collisions. AI in these braking systems uses a microcontroller to control the speed of the vehicle based on the detection pulse information.

Companies are investing in R&D activities to develop and introduce AI-enabled automotive regenerative braking systems, which creates an immense opportunity in the market.

Automotive Regenerative Braking System Market Dynamics

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Major Drivers

Increasing adoption of electric vehicles is estimated to boost the demand for regenerative braking systems. These braking systems are used in electric vehicles (EVs) to boost the range of vehicles by capturing the kinetic energy from braking and converting it into the electrical power that charges the vehicle's high-voltage battery. Thus, rising demand for EVs is propelling the market.

• According to the International Energy Agency, 26 million electric cars were present on the road in 2022, 60% up from 2021.

Rising fuel prices are projected to drive the market. Consumers are demanding fuel-efficient technology in vehicles for which automobile manufacturers are installing regenerative braking systems to offer fuel efficiency functionality. Regenerative braking systems in vehicles store and reuse extra vehicle braking energy to improve fuel efficiency, which increases their adoption in vehicles.

Existing Restraints

High cost associated with regenerative braking systems is expected to restrict the market. The cost of a regenerative braking system is expensive as it involves complex technologies and components such as a transducer, a process sensor, and a microprocessor. Moreover, regenerative braking requires peak acceleration power for converting low-energy inputs to high-energy levels, which is projected to hamper the market.  

Emerging Opportunities

Increasing investment in R&D activities by key players in the market to develop and introduce a new regenerative braking system, especially for electric vehicles to increase the range and everyday usability of EVs creates an immense opportunity in the market.

For instance, on January 26, 2021, ZF Friedrichshafen AG a global technology company that supplies systems for passenger cars and commercial vehicles announced the launch of a new regenerative braking system for EVs. These braking systems will be offered in Volkswagen’s ID.3 and ID.4 models.

Scope of the Automotive Regenerative Braking System Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Regenerative Braking System Market Segment Insights

Vehicle Type Segment Analysis

Based on vehicle type, the automotive regenerative braking system market is categorized into two-wheelers, passenger cars, and commercial vehicles. The passenger cars segment held a large share of the market in 2022 due to the enhanced standard of living in emerging countries and technologically advanced features.

The regenerative braking system in passenger cars uses electric motors rather than a traditional friction braking system to stop and slow down a car, which improves fuel efficiency and increases the range of the car. It also reduces CO2 emissions from the vehicle which encourages its adoption in passenger cars.

The commercial vehicles segment is projected to grow at a quick pace in the coming years owing to greater storage capacity and rising logistic services.  The regenerative braking system is utilized in electric trucks to replenish a little bit of range by capturing excess energy that the vehicle has due to its motion. This system in commercial vehicles improves fuel efficiency which increases the demand for regenerative braking systems in commercial vehicles.

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Propulsion Type Segment Analysis

Based on propulsion type, the automotive regenerative braking system market is segregated into BEV, HEV, and PHEV. The BEV segment accounted for a major share of the market in 2022 due to the implementation of stringent emission standards and rising government incentives. BEV vehicles do not require oil changes or other fluids such as engine oil and have very few moving parts that require very little maintenance, which increases their demand.

The PHEV segment is expected to grow at a robust pace during the assessment period owing to growing awareness regarding environmental pollution and less CO2 emission. Charging times of PHEV vehicles are considerably lower than BEV vehicles as they use Level 1 and Level 2 chargers. It also has a bigger battery that can cover more miles in 100% electric mode, which encourages consumers to adopt PHEV vehicles.

Regional Outlook

In terms of region, the automotive regenerative braking system market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market in 2022 due to rising stringent emission norms and a surge in fuel prices.

Surge in fuel prices and government initiatives in the region is encouraging people to adopt BEV and PHEV vehicles, which increases the demand for regenerative braking systems as these systems are majorly used in BEV and PHEV vehicles to replenish the vehicle's batteries by converting the vehicle's kinetic energy into electrical energy. For instance,

• According to the China Association of Automobile Manufacturers, China sold 6.9 million electric cars in 2022, an increase of 93.4% compared to the prior year.

The market in North America is anticipated to expand at a high CAGR during the projected year owing to rising technological advancements in electric vehicles and the presence of key market players such as BorgWarner Inc., Tesla, Eaton, and ADVICS CO., LTD. Moreover, rising demand for electric vehicles is propelling the market as the regenerative braking system is used in EVs to boost the range of vehicles by storing and reusing the vehicle's braking energy. For instance,

• As per the report published by the International Energy Agency, 1 million electric vehicles were sold in the US in 2022 and is expected to reach 2.46 million in 2028

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