In response to the current and future energy and environment challenges, the automotive industry is strongly focusing on improving the fuel efficiency of vehicles. Although the electrification of automotive powertrains is clearly the principal path towards sustainable transportation, many opportunities still exist to improve the fuel economy of conventional vehicles. However, some of the technical solutions representing the state of the art in research and advanced development are difficult to benchmark in terms of their potential benefits for fuel consumption improvement. A greater understanding of the fuel energy utilization on the vehicle (here intended as a ‘system’ ) is therefore necessary in order to identify the readily available opportunities for efficiency improvements and, ultimately, to develop automobiles which are more fuel efficient. To this extent, this paper presents a review of the state of the art and technology trends in the field of energy management and recovery for automotive systems, with the primary focus on conventional powertrains. An understanding of the fuel energy utilization and dissipation associated with the vehicle subsystems (the engine, transmission, and chassis) is provided, as well as an overview of the opportunities and potential challenges in improving the fuel economy through system-level energy management, recovery, and harvesting. Finally, an overview of the most important solutions for managing energy dissipation, energy recovery, and harvesting is presented, discussing their potential for fuel economy improvement, technical readiness, and challenges. Wherever possible, projections on fuel economy improvements, based on either experimental data or simulations, are reported to provide opportunity for the assessment and comparison of current and future technologies.