Energy Regenerative Braking Market By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle), By System (Electric Regenerative Braking System, Hydraulic Regenerative Braking System, and Kinetic Regenerative Braking System), By Propulsion Type, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Energy Regenerative Braking Market size is expected to be worth around USD 31.5 Bn by 2032 from USD 6.7 Bn in 2022, growing at a CAGR of 17.2% during the forecast period from 2023 to 2032.

Regenerative braking is a technique that is used in electric vehicles (EVs) to store energy that the vehicle has due to its motion. It is also known as the energy recovery method that slows down the moving vehicle by converting its kinetic energy into a form that is either used immediately or stored in the batteries. In this system, excess kinetic energy is stored in batteries with the help of rheostatic brakes. The energy regenerative braking system improves the overall efficiency of the vehicle and extends the life of the braking system.

Driving factors

Increasing Demand for Fuel-Efficient Vehicles Driving the Growth of Global Regenerative Braking Market

The demand for alternative automotive such as electric vehicles battery , hybrid electric vehicles, and plug-in hybrid electric vehicles is increasing to reduce the carbon footprint generated by automobile emissions. Using regenerative braking systems in vehicles reduces the amount of power required from the utility. The regenerative braking system increases the vehicle's fuel economy and extends the battery charge, thus the demand for regenerative braking systems in electrical vehicles is increasing.

The regenerative braking system technology is used in hybrid electric vehicles to recharge the battery that powers the vehicle and improves the mileage of vehicles. The regenerative braking system minimizes the loss of energy by converting kinetic energy into electric energy. The energy regenerative braking market is driving due to significant benefits such as it helps in improving the performance of the vehicle and reducing the wear and tear of braking systems.

The automobile industries such as Toyota, BMW, and Tesla introduced regenerative braking systems in their vehicles. Also, the efficiency of regenerative braking systems is more than 70% thus car manufacturers are focusing on the adoption of regenerative braking systems in cars. The Formula 1 racing supercar use a regenerative braking system known as a kinetic energy recovery system (KERS), thus demand is expected to increase in the energy regenerative braking market. The regenerative braking system is an emerging braking technology in the automotive industry, which is applicable in both electric vehicles and conventional vehicles.

Restraining Factors

The Regenerative Braking System Causes Wear and Tear of Breaks Led to High Maintenance Cost of Vehicle

While traveling when the vehicle's speed is less, it produces less kinetic energy, due to this energy production is decreased and the charge supply to the battery reduces. The regenerative braking system creates wear and tear at the surface of breaks which increases the maintenance cost of the vehicle, which has a negative impact on energy regenerative braking market growth.

Vehicle Type Analysis

The passenger Car Segment is Dominant in the Market with Largest Market Revenue Share

On the basis of vehicle type, the energy regenerative braking market is classified into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment was dominant in the market with the largest market revenue share of 38% in 2022. The growth of the segment is propelled by rising disposable income and increasing adoption of vehicles worldwide. The energy regenerative braking system converts about half of the energy produced during braking into electricity, which is then stored in electric batteries thus demand for this system is increasing in passenger cars.

The passenger cars such as electric-powered cars, sport utility vehicles, light trucks, pick-up trucks, and mini vans use energy-regenerative braking systems. The light commercial car segment is expected to grow at the fastest CAGR in the forecast period due to the increasing buying power of consumers. The demand for heavy commercial vehicles is also expected to increase during the forecast period due to increasing transportation and logistics activities.

System Analysis

The Electric Regenerative Braking System Segment is Dominant in the Market with Largest Revenue Share

By system, the energy regenerative braking market is segmented into hydraulic regenerative braking systems, kinetic regenerative braking systems, and electric regenerative braking systems. The electric regenerative braking system segment was dominant in the energy regenerative braking market with the largest market revenue share of 41% in 2022. The growth of the segment is attributed to increasing technological advancements in the automotive sector for batteries and increasing trends in battery electric vehicles, plug-in electric vehicles, and hybrid electric vehicles.

The electricity generated in the regenerative braking system is used in battery charging. The energy is transformed from kinetic energy to electrical energy, and then into chemical energy in the regenerative braking system. This electric battery helps the vehicle to charge immediately and helps in improving the vehicle's mileage. The hydraulic regenerative braking system segment is expected to grow at the fastest CAGR in the forecast period. The hydraulic regenerative braking system is that when a vehicle decelerates, it stores the kinetic energy that was originally momentum as the potential energy in the form of pressure.

Propulsion Type Analysis

The Battery Electric Vehicle segment is Dominant in Market

Based on propulsion type the energy regenerative braking system market is classified into hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and battery electric vehicle (BEV). The BEV segment was dominant in the market with the largest market revenue share of 36% in 2022. The governments in several countries implemented strict regulations on the emission of hazardous gases driving the demand for battery electric vehicles in the market. Battery electric vehicles have significant emission benefits as compared to conventional vehicles.

Battery electric vehicles do not emit any hazardous gases with helps in reducing carbon footprint in the environment. Battery electric vehicles convert over 77% of electric energy from regenerative braking systems.  The plug-in hybrid electric vehicle (PHEV) segment is expected to grow at the fastest CAGR during the forecast period due to increasing technological advancements in PHEV. The PHEV vehicles rely on a regenerative braking system to recharge the battery.

Key Market Segments

By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By System

• Electric Regenerative Braking System
• Hydraulic Regenerative Braking System
• Kinetic Regenerative Braking System

By Propulsion Type

• Battery Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Hybrid Electric Vehicle

Growth Opportunity

The Increasing Government Regulations on the Emission of Gases are Expected to Create Lucrative Growth opportunities in the Market

The increasing government regulations on the emission of hazardous gases such as carbon dioxide and carbon monoxide in the environment drive the need for battery electric vehicles in the market, which is expected to create lucrative growth opportunities in the energy regenerative braking market. The emerging key players are adopting this technology in car braking to overcome increasing consumer demand for hybrid electric vehicles, and plug-in hybrid electric vehicles.

The costs of fuels such as petrol and diesel are increasing and these are non-renewable sources of energy. Thus due to increasing fuel costs and rising carbon emissions individuals are shifting towards electric vehicles which is expected to drive the market during the forecast period.

Latest Trends

The Demand for Battery Electric Vehicles is Increasing in the Market due to Increasing Consumer Demand

Currently, passenger cars and commercial vehicles use the energy-regenerative braking system to improve fuel economy and reduce carbon emissions. The sale of electric vehicles is increasing due to people’s awareness regarding the environment.  The costs of petrol and diesel are increasing, due to this the consumers are shifting towards electric vehicles to reduce fuel costs.

The key players in the automotive regenerative braking market are focusing on market strategies such as merging, acquisition, and collaboration to obtain a competitive edge in the market. These are some key market trends currently observed in the global energy regenerative braking market.

Regional Analysis

Asia Pacific Region is Dominant in the Market with Largest Market Share

The Asia Pacific region was dominant in the market with the largest market share of 39% in 2022. The growth of the region is propelled by increasing sales of electric vehicles in the region. About 7.84 million electric cars were sold in China in the base year 2021. The presence of major key companies in the regenerative braking market such as Shanghai Automotive Industry Corporation (SAIC) driving the regional growth of the market. SAIC Motor is one of the leading electric vehicle manufacturers company in China.

The Chinese government initiatives have invested more and more in electric vehicle research and development, earning the highest Roland Berger’s e-mobility index score in 2021. Also, the increasing demand for plug-in hybrid electric vehicles in India, China, And Japan driving the energy regenerative braking market growth. The North America region is expected to show the fastest growth and holds the largest market size during the forecast period due to increasing advancements in technologies.

The increasing demand for electric vehicles in developed countries such as the United States and Canada is expected to drive the market during the forecast period. The Europe region is also expected to show steady growth during the forecast period due to increasing regulations on emissions and rising trends towards zero-emission vehicles.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

key market players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Major Key industry players in the energy regenerative braking market include Advics Co Ltd., ASIAN CORPORATION, Continental AG, DENSO CORPORATION, Robert Bosch GMBH, ZF Friedrichshafen AG, Mazda Motor Corporation, Hyundai Mobis Co Ltd, Maxwell Technologies Inc., Tesla Inc., Delphi Automotive, Aisin Seiki Co. Ltd., Eton Corporation Plc, and Other Key Players.

Top Key Players in Energy Regenerative Braking Market

• Advics Co Ltd.
• ASIAN CORPORATION
• Continental AG
• DENSO CORPORATION
• Robert Bosch GMBH
• ZF Friedrichshafen AG
• Mazda Motor Corporation
• Hyundai Mobis Co Ltd
• Maxwell Technologies Inc.
• Tesla Inc.
• Delphi Automotive
• Aisin Seiki Co. Ltd.
• Eton Corporation Plc
• Other Key Players

Recent Development

• In 2020, the ZF Friedrichshafen AG completes its acquisition of WABCO, which will be integrated into ZF as its commercial electric vehicle control system division.
• In February 2019, electric vehicle and clean energy company Tesla Inc. announced that it planned to acquire Maxwell Technologies.

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