Exhaust Heat Recovery System Global Market Report 2026

An exhaust heat recovery system is a technology used in vehicles and industrial engines to capture waste heat from exhaust gases and convert it into usable energy, such as electrical power or supplemental propulsion. This system enhances overall energy efficiency, reduces fuel consumption, and lowers emissions by utilizing heat that would otherwise be lost.

The key types of exhaust heat recovery systems include heat recovery steam generators, heat exchangers, steam turbines, condensing units, and chillers. Heat recovery steam generators (HRSGs) are energy recovery devices that capture exhaust heat from gas turbines or other industrial processes and convert it into steam, which can then drive steam turbines for power generation or industrial heating applications. Important components of these systems include turbines, thermoelectric generator (TEG) modules, compressors, evaporators, exhaust gas recirculation (EGR) valves and coolers, condensers, and others. These systems are applied across various vehicle types, including passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs), and find applications in industrial, commercial, residential, power generation, and automotive sectors, serving end users such as manufacturing, oil and gas, food and beverage, utilities, and transportation.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the exhaust heat recovery system market by increasing the cost of imported heat exchangers, turbines, thermoelectric modules, control systems, and high-temperature alloys. Automotive and industrial engine manufacturers in Europe, North America, and Asia-Pacific are most affected due to dependence on specialized imported components. These tariffs are raising system integration costs and influencing pricing strategies for OEMs. However, they are also driving localization of component manufacturing, development of alternative materials, and increased collaboration with regional suppliers to strengthen supply chain resilience.

The exhaust heat recovery system market research report is one of a series of new reports from The Business Research Company that provides exhaust heat recovery system market statistics, including exhaust heat recovery system industry global market size, regional shares, competitors with a exhaust heat recovery system market share, detailed exhaust heat recovery system market segments, market trends and opportunities, and any further data you may need to thrive in the exhaust heat recovery system industry. This exhaust heat recovery system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The exhaust heat recovery system market size has grown strongly in recent years. It will grow from $20.79 billion in 2025 to $22.33 billion in 2026 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to increasing fuel efficiency requirements, growth in heavy-duty vehicle production, expansion of industrial power generation, rising focus on emission reduction technologies, availability of advanced heat exchangers.

The exhaust heat recovery system market size is expected to see strong growth in the next few years. It will grow to $30.04 billion in 2030 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to increasing electrification of powertrains, rising adoption of hybrid systems, expansion of industrial energy recovery solutions, growing regulatory pressure on emissions, increasing investments in energy efficiency technologies. Major trends in the forecast period include integration of waste heat recovery technologies, rising use of thermoelectric generators, expansion of exhaust heat recovery in commercial vehicles, growing adoption in industrial engines, enhanced system efficiency designs.

The tightening of emission regulations is expected to enhance the growth of the exhaust heat recovery system market in the coming years. Emission regulations are legally established standards and guidelines set by governmental and regulatory authorities to control and limit the release of harmful pollutants and greenhouse gases from industrial processes, transportation systems, and other sources to protect public health and the environment. The primary factor behind the tightening of emission regulations is the growing focus on environmental sustainability, as increasing awareness of the long term ecological and societal effects of pollution drives regulators to adopt measures that promote cleaner technologies. Exhaust heat recovery systems assist in meeting these stricter standards by capturing and reusing waste heat from exhaust streams, improving energy efficiency, reducing fuel consumption, and lowering harmful emissions. For example, in March 2024, the U.S. Environmental Protection Agency, a U.S. based federal agency, finalized national pollution standards for passenger cars, light duty trucks, and medium duty vehicles for model years 2027 through 2032 and beyond. These standards are projected to prevent more than 7 billion tons of carbon emissions and generate nearly 100 billion dollars in annual net societal benefits, including 13 billion dollars from improved public health due to cleaner air and 62 billion dollars from reduced fuel, maintenance, and repair costs for drivers. Therefore, the tightening of emission regulations is enhancing the growth of the exhaust heat recovery system market.

Prominent companies operating in the exhaust heat recovery system market are focusing on leveraging government initiatives, such as the Electric Program Investment Charge (EPIC), to drive sustainable energy adoption and infrastructure advancement. The Electric Program Investment Charge (EPIC) is a government-funded initiative that supports research, development, and demonstration of innovative clean energy technologies to accelerate low-carbon progress and promote sustainability. For instance, in January 2025, the California Energy Commission (CEC), a US-based state government agency, implemented a low-temperature waste heat recovery system at Searles Valley Minerals in Trona, California. The system captures vented low-pressure steam to dry V-BOR and reduces natural gas consumption while conserving water by recycling cold condensate through a storage tank to address critical water-resource challenges. This initiative achieved a 15% reduction in natural gas use, underscoring the effectiveness of EPIC-supported clean energy innovations.

In April 2024, Mutares SE & Co. KGaA, a Germany-based private equity holding company, acquired a majority stake in Sofinter Group for an undisclosed amount. Through this acquisition, Mutares aims to strengthen its engineering and technology segment and create synergies in the industrial boiler and heat recovery steam generation (HRSG) market. Sofinter Group is an Italy-based company that manufactures industrial boilers and specializes in exhaust heat recovery systems.

Major companies operating in the exhaust heat recovery system market are MAHLE GmbH, Denso Corporation, Forvia Faurecia SE, Continental AG, Robert Bosch GmbH, Mitsubishi Heavy Industries,Ltd., Valeo SE, Tenneco Inc., Eberspacher Gruppe GmbH & Co. KG, Schaeffler AG, Marelli Holdings Co.,Ltd., Siemens AG, Bosal International N.V., Dana Incorporated, GE Vernova, IHI Corporation, Schneider Electric SE, Viessmann Group, Babcock & Wilcox, Senior Flexonics, EnviroKinetics,Inc., Exergy International SRL, GEA Group, Anguil Environmental Systems, Ormat Technologies,Inc

North America was the largest region in the exhaust heat recovery system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the exhaust heat recovery system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the exhaust heat recovery system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The exhaust heat recovery system market consists of sales of exhaust gas recirculation (EGR) coolers, thermoelectric generators, Rankine cycle waste heat recovery units, hybrid exhaust heat recovery modules, and after-treatment heat recovery systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Exhaust Heat Recovery System Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses exhaust heat recovery system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for exhaust heat recovery system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The exhaust heat recovery system market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Heat Recovery Steam Generators; Heat Exchangers; Steam Turbines; Condensing Units
• 2) By Component: Turbine; Thermoelectric Generator (TEG) Module; Evaporator; Condenser; Other Components
• 3) By Vehicle Type: Passenger Car; Light Commercial Vehicle (LCV); Heavy Commercial Vehicle (HCV)
• 4) By Application: Industrial; Power Generation; Automotive
• 5) By End-User: Manufacturing; Oil And Gas; Food And Beverage; Utility; Transportation
• Subsegments:
• 1) By Heat Recovery Steam Generators: Waste Heat Boilers; Once-Through Steam Generators; Firetube Steam Generators; Watertube Steam Generators
• 2) By Heat Exchangers: Shell And Tube Heat Exchangers; Plate Heat Exchangers; Air Cooled Heat Exchangers; Finned Tube Heat Exchangers
• 3) By Steam Turbines: Back Pressure Steam Turbines; Condensing Steam Turbines; Extraction Steam Turbines; Reheat Steam Turbines
• 4) By Condensing Units: Air Cooled Condensers; Water Cooled Condensers; Evaporative Condensers; Hybrid Condensers
• Companies Mentioned: MAHLE GmbH; Denso Corporation; Forvia Faurecia SE; Continental AG; Robert Bosch GmbH; Mitsubishi Heavy Industries,Ltd.; Valeo SE; Tenneco Inc.; Eberspacher Gruppe GmbH & Co. KG; Schaeffler AG; Marelli Holdings Co.,Ltd.; Siemens AG; Bosal International N.V.; Dana Incorporated; GE Vernova; IHI Corporation; Schneider Electric SE; Viessmann Group; Babcock & Wilcox; Senior Flexonics; EnviroKinetics,Inc.; Exergy International SRL; GEA Group; Anguil Environmental Systems; Ormat Technologies,Inc
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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