Automotive Regenerative Braking System Market Expected to Reach $23.2 Billion by 2030

According to a new report published by Allied Market Research, titled, “Automotive Regenerative Braking System Market," The automotive regenerative braking system market was valued at $5.66 billion in 2020, and is estimated to reach $23.2 Billion by 2030, growing at a CAGR of 15.5% from 2021 to 2030.

Asia-Pacific dominates the market in terms of revenue, followed by Europe, North America, and LAMEA. China dominated the market 2020. However, Europe is expected to grow at a significant rate during the forecast period, due to technological developments across the region.

The automotive regenerative braking system is a kinetic energy recovery system employed in energy-saving vehicles that recovers the energy lost during braking and then uses this energy to recharge the  battery of vehicle. The amount of recoverable energy depends upon vehicle speed & stopping pattern. Furthermore, 5%-10% of transmitted energy can be saved by using a regenerative braking system. Presently, energy recovery systems in vehicles are used in passenger as well as commercial vehicles to improve fuel economy & reduce vehicular emissions. As a result, the need for regenerative braking system market has evolved to develop a better fuel economy, gaining significant growth in the global automotive industry. 

In addition, the automotive regenerative braking system market has witnessed significant growth in recent years, owing to adoption of regenerative braking system in every automobile, increase in sales of electric cars, and proliferation of component manufacturers in Asia-Pacific. Asia-Pacific held over 75% of the market revenue share in 2020, which was driven by multiple electric vehicle manufacturers, including Toyota, SAIC, BAIC, and Mitsubishi Motors Corporation & Honda Motor Co., Ltd. Furthermore, industry participants expand their production facilities in India, Japan, and China to serve a more extensive consumer base. For instance, in 2021, the AISIN Corporation announced its business expansion plan by 2025 with the investment of 110 billion yen to ensure the target of reducing carbon emissions by developing the economy of EVs with the improvements in electric units, thermal management, cooperative regenerative braking system, and body products. Thus, increase in adoption and implementation of strategies to enhance vehicle efficiency significantly boost the growth of regenerative braking system during the forecast period.

The automotive regenerative braking system market is categorized on the basis of system, vehicle type, propulsion type, and region. Depending on the system, it is categorized into electric, hydraulics, and others. According to vehicle type, it is segmented into two-wheeler, passenger car, and commercial vehicle. As per propulsion type, the market has been classified into BEV, HEV, and PHEV. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Factors such as stringent vehicular emission norms & regulations and rise in the number of electric vehicles & EV infrastructure are expected to drive the growth of the automotive regenerative braking system market. However, factors such as  increase in overall cost & weight of vehicles and high repair & maintenance costs hinder the market growth. Moreover, technological advancement in the two-wheeler-based regenerative braking system and the adoption of the regenerative braking system in heavy vehicles is expected to provide ample opportunities for the growth of the market across the globe.

KEY FINDINGS OF THE STUDY

• By system, the electric segment is expected to register a significant growth during the forecast period.
• Depending on vehicle type, the commercial vehicle segment is anticipated to exhibit significant growth in the near future.
• On the basis of propulsion type, the BEV segment is projected to lead the global automotive regenerative braking system market owing to higher CAGR.
• Europe is anticipated to register the highest CAGR.

COVID-19 IMPACT ANALYSIS

• The COVID-19 pandemic had an adverse effect on the overall automotive industry and electric vehicle industry.
• As per the data released by the Society of Electric Vehicle Manufacturers (SMEV), new EV registration of all types of electric vehicles during FY21 dropped by 20 % compared with the number of new EV registrations in FY20.
• In addition, amid pandemic numerous players are trying to devise different approaches to keep up with the condition by using electric vehicles for medical supplies as it provides affordable transportation with excellent maneuverability.
• Moreover, the overall service activities of market players have declined, owing to drastic fall of demand in the cash usage to prevent the risk of contamination.
• Presently, world is getting back on track slowly with the new restriction and policies along with a significant recovery in product sales across the retail sector. These factors may assert a positive influence on the electric vehicle market to support the economic activities across all industries

The key players operating in automotive regenerative braking system market includes Advics Co., Ltd., AISIN Corporation, Continental AG, DENSO Corporation, Faurecia, Hyundai Mobis, Maxwell Technologies, Robert Bosch GmbH, ZF Friedrichshafen AG, and Mazda Motor Corporation.