Belt-Driven Starter Generator Market

Market Overview

The global belt-driven starter generator market size was valued at USD 892.50 million in 2022. It is estimated to reach USD 2170.80 million by 2031, growing at a CAGR of 10.38% during the forecast period (2023–2031).

A belt-driven starter generator (BSG) is a high-power alternator with a belt drive system. It helps boost mild hybrid capabilities at a low cost with start-stop technology, regenerative braking, and power assist features. Belt-driven starter generators combine the motor and alternator into an electric machine (e-machine) integrated into the Front-End Accessory Drive (FEAD). The belt-driven starter generator produces electricity in generator mode and provides torque to the powertrain in motor mode. The belt-driven starter generator provides nominal power of around 4-6kW and a peak power of around 14-16kW.

A hybrid vehicle's belt-driven generator starter system may contain a motor generator unit (MGU), a second pulley, a second belt, and a first clutch. The first belt encircles a crankshaft pulley and the first pulley of an internal combustion engine. The MGU, which also has a second pulley, works as a generator to charge a battery while the engine is running and as an electric motor while the engine is started. The second belt encircles at least one drive pulley and the second pulley of an accessory device. Depending on how the engine is running, the first clutch will couple or decouple the crankshaft pulley from the second pulley.

Highlights

• 48V BSG dominates the product type segment
• Mild hybrid dominates the application segment
• Liquid-cooled dominates the cooling type segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global Belt-Driven Starter Generator Market Drivers:

Growing Demand for Optimum Fuel Efficiency

The rising fuel efficiency demand is a significant growth driver for the belt-driven starter generator market. The need for fuel efficiency is high in countries with high fuel costs. Consumer willingness to pay a high price for fuel economy highly depends on fuel prices. For instance, consumers are willing to pay slightly higher to save driving costs in the long run if fuel prices are relatively higher or continuously rising. Hence, the high petrol/gasoline prices drive the demand for MHEVs and contribute to the growth of the global belt-driven starter generator market.

Additionally, the accelerating demand for technologies that promote fuel efficiency is attributable to the increasing traffic congestion in various big cities. The surge in traffic congestion has made consumers' need to turn off their cars a roadblock. Consequently, the demand for belt-driven starter generators is increasingly gaining momentum as it automatically switches off the engine when vehicles are stopped due to a roadblock. Thus, all these factors will accelerate the demand for the product in the market.

Strict Emission Regulations

Several countries are undertaking various initiatives and setting up regulations to minimize carbon emissions. The increasing stringency of emission regulations in various countries and regions drives the demand for technologies or solutions that cost-effectively reduce carbon emissions. Therefore, the accelerating demand for belt-driven starter generators in multiple countries is expected to propel the market's growth during the forecast period.

Global Belt-Driven Starter Generator Market Restraint:

Growing Demand for BEVs and PHEVs 

Most auto parts manufacturers, including Continental and Valeo, have manufacturing units in Europe and Asia. Hence, vendors must import raw materials from China, a major steel and aluminum producer. The fluctuations in currency exchange rates also adversely affect vendor margins. Fluctuations in currency exchange rates, raw material prices, risk net revenues, and operating margins of global manufacturers are major growth impediments for the market. The rising metal prices will likely pressure the profit margins of vendors offering belt-driven starter generators vendors.

Global Belt-Driven Starter Generator Market Opportunities:

Increasing Production of MHEVs

The global automotive market is undergoing significant transformations with the shift in demand from combustion engines to electric-powered powertrains. However, vehicles with Internal Combustion Engine (ICE) dominate the global automotive market. The sudden change toward complete EVs for fuel efficiency seems a distant thing. Therefore, hybrid vehicles such as MHEVs are likely to witness tremendous growth during the forecast period, providing significant growth opportunities to vendors in the market. In addition, belt-driven starter generators are mainly used in MHEVs. The demand for MHEVs is increasingly gaining momentum as it is the first move toward electrification.

Furthermore, governments across various countries are undertaking several initiatives to boost electrification, which will drive the demand for MHEVs. For instance, the governments of several countries, such as Japan and Cape Verde, have decided to phase out polluting fossil fuel vehicles, providing tremendous growth opportunities for MHEVs. Automobile manufacturers such as Jaguar and Mercedes-Benz are integrating belt-driven starter generators with their MHEVs, which will provide significant growth opportunities for vendors in the market.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global belt-driven starter generator market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe is the most significant global belt-driven starter generator market shareholder and is anticipated to exhibit a CAGR of 8.77% during the forecast period. The increasing popularity of mild hybrid architectures is expected to propel the market's demand for belt-driven starter generators. European automakers are increasingly focusing on MHEV systems with 48V architecture. By 2030, MHEVs are projected to replace ICE vehicles nationwide altogether. In addition, the growth of MHEVs is attributable to the declining share of diesel and gasoline vehicles across the country. The other segments in the graph include HEV, PHEV, and BEV. Likewise, MHEV is growing at a relatively faster rate as compared to other EV segments, such as PHEV or BEV. Hence, the demand for belt-driven starter generators is expected to hold a significant revenue share in the European market. Furthermore, European brands, including BMW, Mercedes-Benz, and others, are getting into large-scale MHEV production to tap the market. Hence, the demand for belt-driven starter generators is projected to witness considerable year-over-year growth in the European market.

Asia-Pacific is estimated to exhibit a CAGR of 12.28% over the forecast period. The tightening of emission regulations in countries such as China and Japan is accelerating the region's demand for belt-driven starter generators. The air quality across the country ranges from moderate to unhealthy for sensitive groups. The rising air pollution in China is attributable to the high concentration of industries in the country, leading to a growing demand for solutions to curb emissions and protect the environment. Hence, the need for belt-driven starter generators is increasingly gaining momentum among vehicle manufacturing companies to achieve higher fuel efficiency and reduce vehicle emissions. Therefore, the demand for belt starter generators is likely to be high across various countries in the region. The rising popularity of MHEVs is expected to drive the demand for various components used in the production of MHEVs across the region. Therefore, the region's need for belt-driven starter generators is expected to be high.

North America is growing significantly owing to rising demand for MHEVs across the region. The focus on electrification across the region could be faster than in Europe and China. As a result, the need for fully electric vehicles is growing slower. However, the increasing demand for MHEVs is attributable to initiatives to minimize greenhouse gas emissions and protect the environment. Moreover, the cheaper fuel costs in the US are blocking the shift from gasoline/petrol vehicles. Thus, the tremendous opportunities for adopting MHEVs are expected to accelerate the demand for belt-driven starter generators in the US and Canada.

Latin America is one of the lowest revenue contributors to the global belt-driven starter generator market. Countries such as Brazil and Mexico account for the region's highest demand for belt-driven starter generators and are expected to grow significantly. This growth is mainly attributable to the increased penetration of ICE vehicles, lack of awareness regarding carbon emissions and their environmental impact, and tough competition from other developed countries. However, the region is expected to witness substantial growth during the forecast period due to the gradually rising consumer awareness of the importance of fuel efficiency.

The Middle East and Africa is the lowest contributor to the global belt-driven starter generator market. Countries like Saudi Arabia and the UAE generate the highest demand in the region. The presence of several impoverished countries in the African region is offsetting the need for MHEVs, hampering the market for belt-driven starter generators. However, to reduce environmental emissions and achieve fuel efficiency, MHEVs are likely to be one of the best options in the electrification category at a lower cost. Also, South Africa and Turkey hold a significant share of automotive production, which is expected to contribute substantially to the growth of the belt-driven starter generator market.

Segmental Analysis

The global belt-driven starter generator market is segmented by product type, vehicle type, and cooling type.

Based on product type, the global belt-driven starter generator market is bifurcated into 48V BSG and 12V BSG. 

The 48V BSG segment dominates the global market and is projected to exhibit a CAGR of 11.01% over the forecast period. A 48V BSG offers a high power advantage over the 12V BSG variant. These starter generators are mostly combined with 48V technology, which finds its application in mild hybrid electric vehicles. Due to the increasing penetration of MHEVs, the 48V belt starter generator will likely gain momentum during the forecast period. A 48V belt-driven starter generator offers around 10%-15% of fuel efficiency. A 48V belt-driven starter generator provides a power rating of 10kW.

Moreover, this belt-driven starter generator is more fuel-efficient than a 12V belt-driven starter generator. Hence, high efficiency and better performance are projected to drive the demand for 48V belt-driven starter generators in the market during the forecast period. Various automobile manufacturers increasingly use the 48V belt-driven starter generator in different vehicles. For instance, Audi has equipped its MHEV (Audi A8) with a 48V belt-starter generator. Hence, the rise in usage of a 48V belt-starter generator is likely to propel its demand in the market.

A 12V belt-driven starter generator offers around 5%-8% of fuel efficiency and a power rating below 10kW. This belt-starter generator majorly finds a significant application in micro-hybrid electric vehicles. In Arab countries, due to the relatively lower fuel prices, the penetration of ICE vehicles remains high. However, several government initiatives and a rise in consumer awareness will likely encourage customers to adopt advanced technologies that minimize fuel consumption and environmental impact. Thus, such factors will accelerate the demand for micro-hybrid vehicles, driving the sales of belt-driven starter generators with a power rating of up to 10 kW.

Based on vehicle type, the global belt-driven starter generator market is divided into mild hybrid and micro-hybrid. 

The mild hybrid segment is responsible for the largest market share and is anticipated to exhibit a CAGR of 10.93% over the forecast period. Mild Hybrid Electric Vehicles (MHEVs) consist of an electric propulsion motor and an Internal Combustion Engine (ICE). The energy is generated by regenerative braking, captured, and stored within a small battery. These vehicles do not need to be charged with a plug-in method. In MHEVs, an electric motor supports the main engine instead of powering the vehicle independently. MHEVs consist of a 48V battery and a belt-driven integrated starter generator that facilitates switching off the engine during braking and coasting and restarts the engine while releasing the accelerator. Thus, a belt-integrated starter generator helps in saving fuel and minimizes carbon emissions. Such factors have accelerated the sales of MHEVs and the demand for belt-driven integrated starter generators in the market.

Micro hybrid vehicles use a 12V-24V belt-driven starter generator system. These vehicles are equipped with start-stop technology and a regenerative braking energy system. It also replaces the alternator function by providing energy and shutting off the engine during high-speed decelerations and other functions. Micro hybrids feature relatively faster engine restarts than conventional starters. Various micro hybrids have been developed in the market using different batteries. For instance, several micro-hybrid vehicles use 12V systems with lead-acid batteries and 12V or 24V systems with NiMH or Li-ion batteries or small ultracapacitors.

Based on cooling type, the global belt-driven starter generator market is segmented into air-cooled, liquid-cooled, and hybrid-cooled. 

The liquid-cooled segment owns the highest market share and is estimated to exhibit a CAGR of 11.42% during the forecast period. The growth of the liquid-cooled segment is attributable to the relatively enhanced performance of liquid-cooled belt-driven starter generators over their air-cooled counterparts. A belt-driven starter generator with a liquid-cooled system uses a coolant to maintain the temperature of the system's internal parts. Furthermore, a liquid-cooled belt-driven starter generator uses the water in the system, preventing excessive heating and ensuring the correct temperature maintenance. This type of belt-driven starter generator requires a comparatively higher investment than air-cooled starter generators. The aforementioned positive factors are likely to drive market growth.

The growth of the air-cooled segment is attributable to the low cost of products. The belt-driven starter generator consists of a rotor and a stator. The heat generated in the stator (which consists of a coil) must be brought down. These starter generators use air circulation and lower the airflow and temperature for cooling. These systems are subject to overheating in case of usage over a long period. In addition, the maintenance of an air-cooled system is easier. These systems are available at a relatively lower price, and air-cooled manufacturing systems are comparatively easier. A few market vendors that offer air-cooled belt-driven starter generators are BorgWarner, Vitesco Technologies, Continental, and Sona Comstar.

Recent Developments

• March 2023- Nexteer Automotive announced the debut of a new eDrive product line with the introduction of a 48-volt integrated belt-driven starter generator (iBSG) that, according to the company, "hybridizes" traditional internal combustion engine (ICE) automobiles.

• March 2023- Mercedes-Benz provided minor updates to two compact crossovers: the GLA, with a sportier personality, and the GLB, with a more conventional SUV appearance. Both models receive considerable improvements for 2024, including an updated external appearance, a new multimedia display, and a standard mild hybrid drivetrain.