Market Insights
The off-highway turbocharger market is likely to grow at a healthy CAGR of 2.7%, in the long run, to reach US$ 2.6 Billion in 2028.
Off-highway turbocharger is used in various industries, such as marine, energy, and rail. Turbochargers are also used in off-highway vehicles such as construction equipment, agricultural machinery, marine vessels, mining equipment, and other vehicles that are not used for passenger transportation. Turbochargers are used to improve their power output and efficiency. They do this by using the exhaust gas from the engine to drive a turbine, which in turn drives a compressor. The compressor then forces more air into the engine, which allows it to burn more fuel and produce more power.
The marine industry has been experiencing the most disruptive journey in the past decades, with the key emerging areas being net zero emissions, fuel efficiency, alternative fuels, and increasing lifespan. The energy sector has been shifting to the renewables trend for the past few years, and the rising overall electrification trend is creating demand for turbochargers for grid balancing from ICE. Almost all the major turbocharger manufacturers are putting efforts into the development of turbochargers to address most of these trends.
Growing requirements for minimizing operating cost and increasing engine efficiency, increasing energy transition, electrification trend, shifting inclination towards decreasing fuel consumption and emission level coupled with enhancement in the efficiency of engines, stringent maritime emission regulatory norms, increasing environmental concerns, and strong presence of manufacturers are some of the major factors driving the growth of the market during the forecast period.
Recent Product Developments:
- By 2025, Accelleron will release next-generation axial turbochargers for net-zero carbon fuel applications, such as green ammonia, in low-speed and large medium-speed turbochargers for the marine and power industries.
- In 2020, Accelleron launched the TPX Turbocharger for high-speed diesel and gas engines. It is 30% lighter in weight and requires 16% less space.
- In 2019, MAN Energy Solutions unveiled its new TCT Turbocharger series for marine and power engines. The two-stage turbocharging solution achieves efficiency levels of up to 80%.
- In 2019, ABB (Accelleron) launched the new A255-L and A260-L Turbochargers, optimized for small and medium-bore two-stroke diesel and gas engines.
Recent Market Collaborations:
- In 2022, Accelleron, formerly known as ABB Turbocharging, and Japan Engine Corporation (J-ENG) inked an agreement allowing Accelleron turbochargers to be utilized in UE Engines, one of the top three manufacturers of low-speed marine engines worldwide.
- In 2022, Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd. (MHI-MME) concluded a licensing agreement, giving Mitsui E&S Machinery Co., Ltd. the rights to manufacture and sell its MET turbochargers.
- In 2022, The new TCT axial-turbocharger series from MAN Energy Solutions was licensed by Mitsui E&S Machinery for Mitsui's two-stroke engines. The new TCT axial-turbocharger series will be provided by MAN Energy Solutions under the terms of the 10-year contract.
Segments' Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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End-Use Industry Type
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Marine, Energy, Rail, and Others
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Marine is anticipated to remain the biggest demand generator for turbochargers in the off-highway category in the years to come due to the high usage of turbochargers in commercial ships.
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Mode of Operation
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Radial Turbocharger and Axial Turbocharger
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Radial turbocharger is projected to be dominant in the coming years.
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Technology Type
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Single Turbo, Twin Turbo, Electric-Assist Turbo, and Variable Geometry Turbo.
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Single turbo technology type is estimated to be the most preferred in the forecast period.
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Engine Type
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Low- & Medium-Speed Engine and High-Speed Engine.
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Low & medium-speed engines are the dominant ones due to their high usage in commercial ships.
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Sales-Type Analysis
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Products and Services
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Services are anticipated to be the dominant sales type until 2028.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific is expected to remain the largest market over the next five years, as it is the manufacturing base for marine vessels and the largest power-generating region.
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End-Use Industry Type
The market is segmented into marine, energy, rail, and others. Marine is estimated to remain the dominant end-use industry type during the forecast period due to the expansion of global trade and the increasing demand for large commercial ships. Additionally, for increased power output, commercial ships, especially merchant ships, need a large number of turbochargers for diesel engines. High-speed engines are preferred for recreational and military vessels. Energy is the second largest end-use industry due to the rise in the electrification trend and the shift to renewables.
Mode of Operation Type
The off-highway turbocharger market is segmented into radial turbochargers and axial turbochargers. Radial turbocharger is projected to be the dominant segment of the market owing to its increasing applications in small-sized four-stroke engines during the forecast period. Radial turbochargers are smaller in size and reduce maintenance costs. It is used in the 0.5-6,000 KW range for both auxiliary as well as medium-speed engines. On the other hand, axial turbocharger is estimated to witness a significant growth rate in the market during the forecast period owing to its usage in two-stroke engines and the increase in the penetration of low- & medium-speed engines.
Technology Type
The market is segmented into single turbo, twin-turbo, electric-assist turbo, and variable geometry turbo. Single turbo is estimated to remain the dominant technology type during the forecast period due to the high usage of turbochargers in China and Japan. Single turbos are becoming more and more common throughout Asia-Pacific and Europe. Single turbos are an excellent option for smaller engines since they are affordable and dependable. They are an excellent choice for powerboats and cruise applications because they are less complicated and simpler to maintain than twin turbos. Furthermore, due to its simplicity and lower cost compared to four-stroke engines, two-stroke engines are more frequently utilized for low-speed engines.
Engine Type
The off-highway turbocharger market is segmented into low & medium-speed engines and high-speed engines. Low & medium-speed engines are projected to be the dominant engine type in the market due to the widespread use of low-speed engines, particularly on cargo ships with single engines ranging in capacity from 8 to 80 MW. The medium-speed engine is chosen in military ships and leisure boats, while the high-speed engine is used in coastal and inland vessels, offshore vessels, ferries, and cruise ships (2-20 MW single engine capacity). Low-weight and low-maintenance high-speed engines are available.
Regional Analysis
Asia-Pacific is expected to remain the largest market for off-highway turbochargers during the forecast period. In the Asia-Pacific region, there is a presence of a large number of significant marine OEMs, including Mitsubishi Heavy Industries and MAN Energy Solutions. As a result, the region serves as the marine industry's growth engine. The majority of off-highway turbocharger manufacturers are present in the area to support existing maritime programs to respond to OEMs' urgent needs. Rising international trade with China, Japan, and India is another factor in the expansion of the region.
The off-highway turbocharger market is segmented into the following categories:
By Sales Type
- Products (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Services (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Mode of Operation Type
- Radial Turbocharger (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Axial Turbocharger (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Engine Type
- Low- & Medium-Speed Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- High-Speed Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Technology Type
- Single Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Twin Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Electric Assist Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Variable Geometry Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By End-Use Industry Type
- Marine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Energy (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Rail (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
By Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
Key Players
The market is moderately consolidated, with the presence of a few regional and global players. Most of the major players compete on some of the governing factors including technology, price, product offerings, regional presence, etc. The following are the key players in the off-highway turbocharger market. Most of the major players are providing turbochargers to most of the off-highway industries.
- Accelleron (ABB Ltd.)
- Cummins Inc.
- Mitsubishi Heavy Industries Marine Machinery & Engine Co. Ltd.
- MAN Energy Solutions
- Garrett Motion Inc.
- Wabtec Corporation
- Kompressorenbau Bannewitz GmbH
- MTU Solutions
- BorgWarner Turbo Systems GmbH
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s off-highway turbocharger market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for existing and new players
- Key success factors
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