Europe Automotive Energy Recovery System Market Size, Share, and COVID-19 Impact Analysis, By Subsystem (Turbocharger, Exhaust Gas Recirculation (EGR), and Regenerative Braking System), By Propulsion (ICE and Electric), and Europe Automotive Energy Recovery System Market Insights, Industry Trend, Forecasts to 2035

Europe Automotive Energy Recovery System Market Insights Forecasts to 2035

• The Europe Automotive Energy Recovery System Market Size Was Estimated at USD 19.02 Billion in 2024.
• The Market Size is Growing at a CAGR of 5.43% between 2025 and 2035.
• The Europe Automotive Energy Recovery System market is Anticipated to Reach USD 34.02 Billion by 2035.

According to a research report published by Spherical Insights & Consulting, the Europe automotive energy recovery system market is anticipated to Hold USD 34.02 billion by 2035, growing at a CAGR of 5.43% from 2025 to 2035. The Europe automotive energy recovery system market will see strong opportunities from rising EV and hybrid adoption, stricter emission norms, demand for fuel-efficient technologies, advancements in regenerative braking, and growing investment in sustainable automotive innovation.

Market Overview

The Europe automotive energy recovery system market is experiencing robust growth driven by rising adoption of electric and hybrid vehicles, stringent emission regulations, and increasing focus on fuel efficiency. Energy recovery technologies such as regenerative braking, turbochargers, and exhaust heat recovery systems are becoming essential for automakers aiming to meet EU sustainability targets. Continuous advancements in battery technology, power electronics, and electrified drivetrains further enhance system performance and integration. Additionally, growing investments in green mobility, government incentives for low-emission vehicles, and rapid expansion of EV charging infrastructure support market expansion. Collaboration between automotive OEMs, component manufacturers, and technology providers is accelerating innovation, making energy recovery systems a key enabler of Europe’s transition to cleaner transportation.

Report Coverage

This research report categorizes the market for the Europe automotive energy recovery system market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe automotive energy recovery system market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe automotive energy recovery system market.

Driving Factors

Key driving factors for the Europe automotive energy recovery system market include stringent EU emission norms pushing automakers to adopt energy-efficient technologies, rising demand for hybrid and electric vehicles, and growing consumer interest in fuel-saving features. Advancements in regenerative braking, turbocharging, and waste heat recovery systems enhance vehicle performance while reducing environmental impact. Government incentives supporting EV adoption and increasing investment in sustainable mobility further boost market growth. Additionally, continuous R&D in power electronics and lightweight materials improves system efficiency and integration across vehicle segments.

Restraining Factors

The Europe automotive energy recovery system market faces restraints such as high initial costs of advanced components, integration challenges in conventional vehicles, and reliance on complex electronics. Limited consumer awareness and slow adoption in lower-priced vehicle segments also hinder faster market expansion.

Market Segmentation

The Europe automotive energy recovery system market share is classified into subsystem and propulsion.

• The regenerative braking system segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Europe automotive energy recovery system market is segmented by subsystem into turbocharger, exhaust gas recirculation (EGR), and regenerative braking system. Among these, the regenerative braking system segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Its widespread use in electric and hybrid vehicles combined with rising EV adoption, improved battery efficiency, and stricter emission targets continues to drive rapid market expansion.

• The electric segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Europe automotive energy recovery system market is segmented by propulsion into ICE and electric. Among these, the electric segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The rapid expansion of electric and hybrid vehicles, driven by strict EU emission regulations and growing consumer demand for sustainable mobility, continues to accelerate the adoption of advanced energy recovery technologies in this segment.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe automotive energy recovery system market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Continental AG
• Delphi Automotive
• Eaton (Ireland)
• Robert Bosch GmbH
• Schaeffler AG
• Rheinmetall Automotive AG
• Faurecia (France)
• Mahle GmbH
• ZF Friedrichshafen AG
• RICARDO PLC

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Europe, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Europe automotive energy recovery system market based on the following segments:

Europe Automotive Energy Recovery System Market, By Subsystem

• Turbocharger
• Exhaust Gas Recirculation (EGR)
• Regenerative Braking System

Europe Automotive Energy Recovery System Market, By Propulsion

• ICE
• Electric