Exhaust Heat Recovery Systems Market - Global Forecast 2025-2032

The Exhaust Heat Recovery Systems Market is rapidly evolving as industries and automakers across the globe prioritize enhanced energy efficiency, lower emissions, and sustainable operations. As stricter environmental regulations and decarbonization targets transform supply chains and processes, decision-makers are increasingly turning to advanced exhaust heat recovery solutions to drive operational resilience and comply with new standards.

Exhaust Heat Recovery Systems Market Snapshot

The Exhaust Heat Recovery Systems Market grew from USD 35.53 billion in 2024 to USD 38.13 billion in 2025. It is projected to expand at a CAGR of 7.90%, reaching USD 65.33 billion by 2032. This growth is propelled by technological advancements, global policy shifts emphasizing decarbonization, and expanding applications across automotive, industrial, and energy-intensive sectors. Market participants are investing in innovation, value chain integration, and tailored solutions to address the unique challenges posed by evolving regional regulations and dynamic supply chains.

Scope & Market Segmentation

This report delivers a comprehensive analysis of the exhaust heat recovery systems market through qualitative and quantitative perspectives, spanning detailed market segments, core technologies, leading regions, and primary end-use applications. Critical segmentation areas include:

• Component Type: Control systems, heat exchangers, power electronics
• Technology: Kalina cycle, organic Rankine cycle, steam Rankine cycle, thermoelectric generators, waste heat to power
• Vehicle Type: Commercial vehicles, off-highway vehicles, passenger vehicles
• System Type: Active systems, passive systems
• Product Type: Integrated systems, standalone systems
• Application: Automotive, cement production, chemical manufacturing, energy generation, petroleum refining
• Geographic Coverage: Americas, Europe, Middle East & Africa, Asia-Pacific, with subregional and country-level breakdowns
• Companies Profiled: ABB Ltd., Alfa Laval AB, Benteler International AG, BorgWarner Inc., Continental AG, Cummins Inc., Dana Incorporated, Denso Corporation, Eberspächer Gruppe GmbH & Co. KG, Eminox Ltd., FORVIA SE, Gentherm Incorporated, Hitachi Ltd., Honeywell International Inc., IHI Corporation, Johnson Matthey Group, Katcon Global S.A. de C.V., Kelvion Holding GmbH, MAHLE GmbH by Mahle Stiftung GmbH, Marelli Holdings Co. Ltd., Mitsubishi Heavy Industries Ltd., Robert Bosch GmbH, Sango Co. Ltd., Schaeffler Group, Siemens AG, Tenneco Inc., Valeo S.A., Yutaka Giken Company Limited

Key Takeaways for Strategic Decision-Makers

• Regulatory mandates are accelerating adoption of exhaust heat recovery systems, especially as decarbonization and energy recuperation become top priorities worldwide.
• Technological advances such as organic Rankine cycles and thermoelectric generators continue to expand efficiency thresholds and integration possibilities for multiple industries.
• Collaboration across the value chain—through joint ventures and research partnerships—is strengthening product innovation pipelines and streamlining supply networks.
• End-users are shifting toward modular system architectures that permit both integrated and standalone deployments, enabling flexibility in installation and future upgrades.
• Emerging markets and established industrial regions are adopting tailored solutions that respond to local emissions targets, infrastructure readiness, and energy cost pressures.

Impact of 2025 U.S. Tariffs on Supply Chains and Innovation

Recent changes to U.S. tariffs have increased costs for key imported components such as heat exchangers, power electronics, and specialized alloys. This regulatory shift is prompting organizations to reassess sourcing strategies, including dual-sourcing, regionalizing manufacturing, and investing in alternative materials to offset added expenses. As a result, new partnerships and supply models are emerging, optimizing domestic value and strengthening resilience amid regulatory volatility.

Methodology & Data Sources

This report integrates qualitative insights from expert interviews with quantitative market data, providing a balanced, rigorous view. Primary and secondary datasets underpin analysis of trends and segment dynamics, while in-depth case studies and site audits enrich understanding of real-world challenges and solution performance across industries.

Why This Report Matters

• Enables senior decision-makers to identify emerging business models, partnership opportunities, and competitive technology pathways in the exhaust heat recovery sector.
• Supports strategic planning with data-driven insights into regional adoption patterns, regulatory impacts, and supply chain adjustments essential for risk mitigation.
• Delivers actionable recommendations for innovation, system modularity, and effective stakeholder engagement, positioning organizations for sustainable growth.

Conclusion

The exhaust heat recovery systems market is reshaping industry benchmarks for operational efficiency and emissions control. Decision-makers equipped with this intelligence will be best positioned to drive sustainable transformation and capture competitive advantage in a rapidly evolving landscape.

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