Regenerative Braking System Market Size, Share & COVID-19 Impact Analysis, By Component (Battery, Motor, ECU, and Flywheel), By Propulsion Type (BEV, PHEV, and FCEV), By Vehicle Type (Passenger Car, Light Commercial Vehicle (LCV), and Heavy Commercial Vehicle (HCV)), and Regional Forecasts, 2022-2029

The global regenerative braking system market size was valued at USD 5.44 billion in 2021 and is projected to grow from USD 6.0 billion in 2022 to USD 11.98 billion by 2029, exhibiting a CAGR of 9.02% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with regenerative braking system experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 12.11% in 2020 as compared to 2019.

Regenerative braking system is a kinetic energy recovery system employed primarily on pure electric and hybrid vehicles that recover the energy lost during braking & deceleration and then use this energy to recharge the vehicle's battery. In this system, the motor drives the wheels during acceleration or cruising, but the wheels drive the motor while decelerating. This two-way energy flow allows the motor to act as a generator, resisting the rotation of the wheels and creating electricity to recharge the vehicle's battery. The energy recovered depends upon the speed of the vehicle & braking pattern; almost 5%-10 % of transmitted energy can be recovered by using this type of 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 such a braking system has evolved to develop a better fuel economy, gaining significant growth in the global automotive industry. In the present situation, the demand from the automotive sector is increasing the sales of vehicles, especially electric vehicles, and their products globally, resulting in increased emissions of pollutants. The government is also forcing automakers to adopt advanced technologies that can help shrink vehicle fuel consumption and exhaust gas emissions. This can boost the global regenerative braking system market growth. Moreover, the market is also expanding due to the rising demand for this system and the increasing engagement of commercial and passenger vehicles to reduce vehicular emissions and improve fuel economy.

COVID-19 IMPACT

Disruption in the Supply Chain of Vehicle Parts Hampered Market Growth

The COVID-19 pandemic severely affected the automobile industry as manufacturing facilities were shut down. From 2020 to 2021, the automotive sector faced delays due to axle‐load reforms, shift to shared mobility, liquidity crunch, and many other factors. The companies also reduced or stopped their investment in the research & development of regenerative braking due to lack of funding and implementation of cost-cutting measures.

The market depends on the electric vehicles market as the system is installed with electric or hybrid vehicles. Pandemic-induced semiconductor chip shortage impacted various industries greatly, especially the automotive industry.

• For instance, Ford was bound to decrease the production of its F-150 truck in the first half of 2020, which accounts for a significant portion of the company’s profits. Similarly, General Motors temporarily stopped production in March, and Toyota announced its plan to cut annual production by 40% in 2021 due to the semiconductor shortage.

Electric vehicles rely on various electronic systems such as autonomous driving systems, battery management systems, advanced braking system sensors, LiDAR, control units, and others. All these systems are essential and mandatory for efficient and safe working. Therefore, delays in the availability of semiconductor chips also affected the launch of EVs, further hampering the market proliferation. In response to the semiconductor shortage, the U.S. and European Union increased localized production to reduce dependency on Asian supply chains.

• For instance, as part of the National Defense Authorization Act (NDAA) FY2021, the Biden administration signed the CHIPS and Science Act to alleviate short-term shortages and provide more incentives to encourage semiconductor chip manufacturing in the U.S.

LATEST TRENDS

Adoption of Innovative Strategies in Regenerative Braking in EVs is the Current Technological Market Trend

Brakes are an essential part of the vehicle’s safety system. Braking systems are an exciting area for development within the automotive industry, with a number of technologies competing to improve safety and overall efficiency. Electrification and autonomy, considering the emission strategies, motivate technological innovation in the braking sector, and regenerative brakes are realized as an integral part of driving toward autonomous vehicles in the future. Nowadays, hydraulic systems such as hydraulic steering are replaced by power steering; similarly, hydraulic braking systems are replaced by electric ones to boost the efficiency of the systems. 

• For instance, Hyundai Mobis has already introduced its new braking system, Integrated Mobis Electronic Brake (iMEB). Hyundai Mobis iMEB system generates a 13% rise in brake responsiveness and a 5% reduction in weight. This makes 30% cost saving in comparison to separate hydraulic systems.

ZF’s Integrated Brake Control (IBC) technology uses an Electronic Brake System (EBS) with a vacuum-independent method for distributing the brake boost, providing increased deceleration and achieving increasingly stringent regulatory requirements for functions such as automatic emergency braking.

DRIVING FACTORS

Increasing Fuel Prices and Surging Demand for Fuel-efficient Vehicles to Drive Market Growth

This braking system is utilized in electric vehicles and plug-in hybrid electric vehicles (BEVs & HEVs). The kinetic energy utilized in braking and decelerating is transformed into electrical energy, stored in batteries for propelling the vehicle as required. Increasing fuel prices are generating demand for fuel-efficient vehicles, thus contributing to market growth. Considering rising fuel prices, demand for fuel-saving systems is increasing among consumers and manufacturers of automotive vehicles. Automotive regenerative braking system reduces excessive fuel usage and increases driving range, thus reducing pollution.

The vehicle can generate more torque as the brake pedal is released by using regenerated energy immediately. This braking system can be efficiently coupled with Antilock Braking System (ABS), load sensing system, and Anti-Slip Reduction (ASR). Once the regenerative brakes capture the energy, the energy is used to recharge the vehicle’s batteries. As this energy would normally be lost, vehicles will remain charged for longer periods. In pure electric vehicles, this principle also holds, sending electrical energy back into the battery every time deceleration is in action to allow the system to activate.

Rising Adoption of Electric Vehicles to Aid Market Expansion

Electric vehicles have gained popularity over the past years due to technological advancements, reducing costs, and preference for emission-free technologies. The market is slated to grow significantly owing to rising concerns regarding vehicle emissions. This has attracted several institutions to invest in this sector. According to the study published by EV-Columes.com, around 6.75 million electric vehicles were sold across the globe in 2021, a 108% rise from 2020. There is also significant investment seen in EV infrastructure development.

• For example, in June 2021, the Canadian government invested USD 2.35 million for the installation of chargers in the country.

The increase in sales of electric vehicles globally contributes to the growth of the global market. A regenerative braking system is found in electric and PHEVs and recharges the battery during braking and deceleration. This technology is utilized in EVs to mitigate energy loss during braking and deceleration. The rise in adoption of these EVs by customers across the globe is predicted to increase the demand for this system.

RESTRAINING FACTORS

Increase in the Overall Cost of Vehicles to Restrain Market Growth

The main components of regenerative braking systems are disk, flywheel, motor generators, batteries, Electronic Control Unit (ECU), and connecting cables. This complete system increases the total weight of the vehicle. These extra components also increase repair and maintenance costs, increasing fuel consumption in the vehicle, thus hindering market proliferation.

SEGMENTATION

By Component Analysis

Requirement for Increased Efficiency and Range to Energize Battery Segment Growth

As per component, the market is segmented into battery, motor, ECU, and flywheel.

The battery segment is the fastest-growing segment owing to rapid technological advancement in the automotive sector for batteries and emerging trends in BEVs, PHEVs, and FCVs. In addition, a surge in global transportation demand is boosting battery demand.

The motor segment is the second fastest-growing segment in the market due to the development of a lightweight material casing that will increase the motor's efficiency and braking system. For instance, the aluminum casing provides a lightweight structure with high thermal conductivity and efficiency.

 ECU and flywheel segments have also shown significant growth during the forecast period. In recent years, growth in connected vehicles trends and utilization of advanced systems in flywheels have increased their demand in the market.

By Propulsion Analysis

Increasing Trend for Pure Electric Zero Emission Propelled BEV Demand

As per propulsion, the market is split into PHEV, BEV, and FCEV. The BEV segment accounted for the highest market share of the global market. Government subsidies, purchase incentives, and implementation of stringent emission standards are favoring fully-electric vehicles. For instance, purchase incentives are significantly higher for BEVs than PHEVs in Germany, the U.K., and France.

• For instance, in the U.S., BEVs accounted for around 75% of new EV sales, which is 55% higher than in 2016. Similarly, BEVs accounted for approximately 82% of recent EV sales in China, with more than 2.9 million sales in 2021.

PEVs are also a growing segment after BEVs in the market. The average battery capacity of PHEVs will be around 15 kWh in 2021. Charging times are considerably lower using Level 1 or Level 2 chargers comfortably. Hence, the increasing penetration of SUVs will contribute to an even greater demand for systems.

FCEVs are also in the developing stage and are expected to grow at a significant rate being more emission-free.

By Vehicle Type Analysis

Growing Sales of Passenger Cars Owing to Rising Disposable Income Boosted Segment Growth

According to vehicle type, the market is categorized into Passenger Car (PC), Light Commercial Vehicle (LCV), and Heavy Commercial Vehicle (HCV). The passenger car segment was dominant in 2021 and is estimated to grow in the near future. The rise of technological advancements and advanced driver comfort in premium passenger cars, such as the integration of systems with Internet of Things (IoT) and real-time information solutions, are accelerating the growth of the PC segment. LCV consists of smaller trucks and goods carrier buses, mainly utilized for shorter distances and lesser loads than other segments. The volumes of these segments are higher than HCVs.

HCVs are also increasing as the investment in HCV manufacturing is expected to increase the demand for HCVs over the forecast period. For example,

• In April 2021, Beijing Foton Daimler Automobile Co. signed a bank loan agreement in Beijing to support its local production of Mercedes-Benz heavy-duty trucks in China.

REGIONAL INSIGHTS

Increasing Stringent Emission Norms to Propel Market Growth in Asia Pacific

Regionally, this market is categorized into North America, Europe, Asia Pacific, and the rest of the world.

Asia Pacific led the regenerative braking system market share in 2021 and is expected to grow during the forecast period. It also showcases the fastest growth rate compared to other regions. This region's increasingly stringent emission norms are expected to fuel the demand for BEVs, PHEVs, and FCVs over the forecast period. China primarily led the increase in battery demand in Asia Pacific in 2021. More than 3.3 million electric vehicles were sold in China in 2021 compared to the entire world in 2020.

North America is the second dominant region in the market. Increasing demand for safe vehicle driving, less stress, and efficient travel among the populace is driving the adoption of the regenerative braking in electric vehicles in the region.

Europe and the rest of the world have also shown remarkable growth in the market. Europe is focused on improving its position in the market through strategies such as early regularization of autonomous vehicle use. The government is responsible for implementing autonomous vehicles by providing funding and programs.

KEY INDUSTRY PLAYERS 

Upgrading of Product Portfolio to Bolster Market Augmentation

ZF Friedrichshafen AG was established in Friedrichshafen, Germany in 1915. ZF Friedrichshafen AG is a German auto components manufacturer. It currently has presence at 181 production sites in 31 countries. It provides parts such as Electric Park Brake (EPBn), Electronic Stability Control (ESC), Integrated Brake Control (IBC), and Secondary Brake Module (SBM) in a regenerative braking system. It has updated its system for the highest comfort and safety requirements with its usability in all-electric vehicles. It will recover more energy and thus increase vehicle range.

• For instance, In January 2021, ZF introduced a new regenerative braking system, especially for electric vehicles. These latest brake control systems will be standard in Volkswagen’s ID.3 and ID.4 global models under the MEB platform.

Continental AG, established in 1871 is headquartered in Hanover, Germany. It has presence in 58 countries across the globe. Continental Automotive provides hydraulic brake systems, hose lines for brake systems, hydraulic lines, and hydraulic force transmission systems.

• In November 2021, Continental AG announced the MK C2, an updated version of MK C1 brake-by-wire technology. The MK C2 is upgraded, more compact, and lighter, allowing it to be used in small vehicles. Moreover, the number of components has been reduced, resulting in a lower overall cost.

Hyundai Mobis has also introduced its new braking system, Integrated Mobis Electronic Brake (iMEB). Hyundai Mobis iMEB system generates 13% rise in brake responsiveness and 5% deduction in weight. This makes 30% cost saving in comparison to separate hydraulic systems.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Germany)


• Denso Corporation (Japan)


• Continental AG (Germany)


• ZF Friedrichshafen AG (Germany)


• BorgWarner Inc. (U.S.)


• Hyundai Mobis (South Korea)


• Eaton (Ireland)


• Brembo S.P.A (Italy)


• Skeleton Technologies GmbH (Germany)


• Advices Co. Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• January 2022: Advics Co., Ltd. declared that its Electric Parking Brake (EPB) and the regenerative coordinated braking system would be supplied for the GAC Group's GS8 hybrid vehicle. This is the first time Advics’ products will be provided to the GAC Group model, and the adoption was based on the company's market experience and performance in electrification products.


• April 2022: Brembo was announced as the main supplier of whole brake caliper assembly by Faraday Future Intelligent Electric Inc. for its FF 91 EV model. Brembo will be providing specialized caliper assembly for the FF 91. This will include assembly, pistons, calipers, and pads along with the electronic parking brake.


• June 2021: Mazda announced a joint venture. As part of its Sustainable Zoom-Zoom 2030 plan, with Toyota and Denso developing EVs, Mazda will invest 5% in a joint venture. The partnership includes developing powertrains, advanced braking systems, and platforms for their EVs.


• July 2020: AIWAYS, the Shanghai-based personal mobility provider, confirmed working with Robert Bosch, an automotive technology supplier from Europe, to develop the U5 all-electric SUV. The company will be supplying regenerative braking systems for U5 models.


• February 2019: Hyundai Mobis also introduced its new braking system, Integrated Mobis Electronic Brake (iMEB). Hyundai Mobis iMEB system generates 13% rise in brake responsiveness and 5% deduction in weight. This provides 30% cost saving in comparison to separate hydraulic systems.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, end-users, design, and technology. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion), Volume (Units)
By Component	Battery Motor ECU Flywheel
By Propulsion	BEV PHEV FCEV
By Vehicle Type	Passenger Car (PC) Light Commercial Vehicle (LCV) Heavy Commercial Vehicle (HCV)
By Geography	North America (By Component, By Propulsion, and By Vehicle Type) U.S. (By Component, By Propulsion) Canada (By Component, By Propulsion) Mexico (By Component, By Propulsion) Europe (By Component, By Propulsion, and By Vehicle Type) Germany (By Component, By Propulsion) France (By Component, By Propulsion) U.K. (By Component, By Propulsion) Rest of Europe (By Component, By Propulsion) Asia Pacific (By Component, By Propulsion, and By Vehicle Type) China (By Component, By Propulsion) Japan (By Component, By Propulsion) India (By Component, By Propulsion) South Korea (By Component, By Propulsion) Rest of Asia Pacific (By Component, By Propulsion) Rest of the World (By Component, By Propulsion, and By Vehicle Type)