Automotive Regenerative Braking Systems Market Overview
The global automotive regenerative braking systems market is estimated to be valued at $6,555.6 million in 2017, and is expected to witness a CAGR of 18.6% during the forecast period. The industry is driven by the increasing demand of eco-friendly and fuel-efficient vehicles. The rising environmental concerns have forced the automakers to adopt certain technologies that can curb the increasing exhaust gas emissions and fuel consumption by vehicles. The regenerative braking systems (RBS), when deployed as a component in the vehicle, helps in achieving better fuel economy and also reduces these emissions.
On the basis of storage type, the automotive regenerative braking systems market is segmented into battery, flywheel, ultracapacitors, and hydraulics. The battery-based RBS is estimated to hold the maximum share in the regenerative braking systems market, with an estimated contribution of more than 70% in 2017. However, ultracapacitors have better charge-discharge capabilities than batteries, and are able to burst high amount of power even at -40 degrees Celsius. Owing to such differentiating features, ultracapacitors are expected to be the fastest growing energy storage type used in RBS, during the forecast period.
Based on vehicle type, the automotive regenerative braking systems market is categorised into passenger cars and commercial vehicles. Passenger car is expected to be the dominating category in terms of value, during the forecast period. The major reason attributed to this is the growing market of electric and hybrid passenger cars, and extensive usage of RBS systems in these vehicles.
Globally, Asia-Pacific is estimated to hold the largest share in the automotive regenerative braking systems market, with close to 65% contribution in 2017. The market in the region is expected to grow at a robust pace owing to the surge in the demand of fuel-efficient hybrid vehicles, and rising need of long-range battery electric vehicles. The legislative bodies in countries such as China, Japan, South Korea, Singapore, and India are actively working to curb the increasing Greenhouse Gas (GHG) emission and have issued several regulations for the same. The stringent government regulations and increasing demand of RBS for electric vehicles is expected to bolster the growth of the market in the region.
Automotive Regenerative Braking Systems Market Dynamics
Stringent government regulations associated with GHG emission by vehicles is one of the major drivers for the automotive regenerative braking systems market. GHG emission by vehicles is increasing continuously, following which, several environmental agencies, along with the transportation departments of several regions, have imposed regulations to control the increasing carbon level. In 2015, the European Union (EU) issued regulations regarding decarbonized transport system in Europe. The regulation aims at limiting the carbon dioxide emission to 95 grams per kilometer for all the passenger cars, until 2021. The regulation also aims at limiting the carbon dioxide emission to 147 grams per kilometer until 2020, for all commercial vehicles.
A similar trend can be witnessed with other nations; for instance, in the U.S, the Environmental Protection Agency (EPA) launched a program named ‘Tier 3’, aiming at reducing carbon emission by vehicles. As RBS has the capability to control exhaust emission rate by vehicles to a great extent, the automakers are adopting this advanced braking technology in their vehicles to comply with the stringent regulations. The growing inclination of automakers towards RBS is expected to give an impetus to the automotive regenerative braking systems market during the forecast period.
High manufacturing cost is one of the major restraints for the growth of the automotive regenerative braking systems market. A regenerative braking system consists of energy harnessing components that recover energy from the braking parts, and energy storage reservoirs (flywheel, batteries, and ultracapacitors). Due to high functionality and critical nature of these components, the manufacturing cost of these components is greater than that of conventional braking parts, which increases the overall manufacturing cost of RBS when compared with conventional braking systems.
The high cost of RBS may decrease the target customer pool and may hinder the growth of the automotive regenerative braking systems market in the coming years. However, the commencement of mass production, high adoption rate, and technological advancements in RBS are anticipated to result in reduced manufacturing cost in the future.
The high growth of ultracapacitor based RBS segment offers a lucrative opportunity for the automotive regenerative braking systems market growth. The ultracapacitor based RBS segment is expected to grow at the fastest pace when compared with the other RBS types, during the forecast period. The major reason behind this is the better performance capability of ultracapacitor-based RBS. Ultracapacitors, when compared with batteries, are 30% more efficient, achieve up to 60 times more energy, and require low maintenance. Additionally, they can discharge and recharge quickly, efficiently work during peak power demands, and deliver substantial amount of power quickly. Owing to such differentiating features, the adoption rate of ultracapacitor-based regenerative braking systems in the automotive industry is expected to increase.
Automotive Regenerative Braking Systems Market Competitive Landscape
The key players in the global automotive regenerative braking systems market are adopting strategies such as partnerships/agreements/collaborations, business expansions, product launches, mergers and acquisitions, among others. Innovative products and services, pricing strategies, market initiatives, and developing and extending the product lines are some of the initiatives undertaken by the market players to maintain competition in the industry.
Continental AG, Adgero S.A.S, Skeleton technologies, and Denso Corporation are some of the prominent players in the automotive regenerative braking systems market in the years 2016 and 2017. The other key players in the industry include Aisin Seiki Co. Ltd., Autoliv Nissin Brake Systems, Eaton Corporation Plc, Magneti Marelli S.p.A, Maxwell Technologies, Mazda Motor Corporation, Robert Bosch GmbH, Skeleton Technologies., Torotrak Plc, and ZF Friedrichshafen AG.