Automotive Turbocharger Market

Automotive Turbocharger Market Insights

"The global automotive turbocharger market was estimated at USD 12 billion in 2021 and is likely to grow at a CAGR of 10.44% during 2022-2028 to reach USD 24.28 billion in 2028."

Introduction

An automotive turbocharger is a device used in automotive engines to increase power output by forcing more air into the combustion chamber. This increased air supply allows more fuel to be burned, resulting in greater power production without the need for a larger engine.

The basic principle behind an automotive turbocharger is simple: it utilizes the energy of exhaust gases exiting the engine to spin a turbine. This turbine is connected to a compressor wheel through a shaft. As the turbine spins, it drives the compressor wheel, which draws in fresh air and compresses it before delivering it to the engine's intake manifold.

By compressing the air before it enters the engine, the automotive turbocharger increases the air density, allowing more oxygen molecules to be present during combustion. This enables the engine to burn more fuel efficiently, resulting in increased power output.

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Automotive Turbocharger Market Dynamics

Automotive Turbocharger Market Drivers

Growth in the Automotive Industry

Turbochargers are vital components in many modern engines (petrol, diesel, and hybrid engines, etc.) that help in enhancing engine performance, reducing emissions, and improving fuel efficiency. The growing automotive production (including passenger cars and light-weight vehicles) that is estimated to grow from 89 million units in 2024 to ~96 million units by 2030, is a major driver for the automotive turbocharger market, since manufacturers also focus on engine downsizing and technological innovation, further accelerating the market expansion globally.

Increasing number of commercial vehicles

Commercial vehicles including trucks, buses, and other public transports having diesel engines are experiencing commendable growth worldwide. Turbochargers are preferred by diesel engines because of its simpler intake systems to mix fuel and air and tougher engine blocks to hold immense air pressure generated by turbos. The growing demand for commercial vehicles further demands turbochargers for optimal vehicle efficiency.

Popularity of gasoline direct injection (GDI)

The gasoline direct injection enhances mobility, fuel efficiency, thermal efficiency, and global emission regulations. Turbochargers are integrated with GDI engines to create more powerful and efficient automotive technologies.  This integration not only improves engine capabilities but also contributes to an overall reduction of fuel consumption.

Automotive Turbocharger Market Challenges

Growing demand for EVs

The rise of EVs is affecting the turbochargers’ market by creating obstruction in its business and sales globally. Turbochargers are exclusive to internal combustion engines (ICE), which are declining in market share due to EV adoption. As automakers shift focus to EVs turbocharger demand for traditional vehicles will decrease over time.

Elevating petrol and diesel prices

Petrol and diesel prices are escalating globally due to supply chain disruptions and geopolitical constraints, leading consumers to find cheaper alternatives which ultimately leads to a decline in purchasing internal combustion engines equipped with turbochargers worldwide.

Automotive Turbocharger Market Opportunities

Sustainable manufacturing

The global shift towards sustainability is driving the demand for turbochargers, as these systems enhance thermal efficiency and reduce emissions. Stringent environmental regulations are accelerating turbocharger production, while innovation in compressed natural gas (CNG) and hydrogen-powered engines is enabling manufacturers to expand into green technology solutions.

Industrial applications

Industries like construction and agriculture require heavy diesel-operated equipment and vehicles. Heavy-duty machinery like bulldozers, cranes, and loaders and agricultural machinery like tillage equipment, threshers, and harvesters require turbochargers for intensive output tasks like ploughing and harvesting. Rapid industrialization is driving the demand for high-performance machinery, thereby driving the adoption of turbocharger technologies across the industrial sector.

Segments' Analysis

Vehicle Insights

"The passenger car segment accounted for the largest market share."

The market is segmented into on-highway vehicles: passenger cars, light-duty vehicles, medium-duty vehicles, and heavy-duty vehicles; and off-highway vehicles: tractors and construction equipment. Passenger cars dominated the overall market with a share of more than 55% in 2021.

 Fuel Insights

"The fuel type segment accounted for the largest market share."

The market is segmented into gasoline and diesel. The gasoline fuel type is expected to dominate the market, and it held a revenue share of more than 45% in 2021 and is likely to expand at a CAGR of nearly 8.5% over the forecast period.

Technology Insights

 "VGT/VNT is a more efficient automotive turbocharger and will continue to gain market share during the forecast period."

This market is segmented as VGT/VNT, wastegate, and twin turbo. VGT/VNT is more efficient than traditional wastegate automotive turbochargers and will continue to gain market share during the forecast period. VGT/VNT is well suited for both diesel- and gasoline-powered engines.

Regional Insights

"Asia-Pacific accounted for the largest market share."

Asia-Pacific is likely to remain the largest market share with an 11% CAGR growth during the forecast period, driven by demand in emerging economies, such as China and India. The European market is likely to witness a market share of more than 50% in 2021. This region owns the world’s largest turbo diesel fleet and the highest automotive turbocharger installation rates worldwide.

• China is the world’s fastest-growing automotive market and is projected to increase the automotive turbocharger installation rates in its new vehicles from 25% to 47% in the year 2028. This will lead to an almost twofold increase in the demand for automotive turbochargers in China in five years.

• North America is another growing market for automotive turbochargers, driven by the demand for lightweight engines and engine downsizing in new vehicles to meet the CAFÉ standards.

Most of the major automotive turbocharger manufacturers have already set up their manufacturing plants in China to tap the regional growth potential. India, Japan, and South Korea have also joined the row and are projected to increase the installation rates of automotive turbochargers in the new vehicles. Apart from China, significant demand for automotive turbochargers is expected to be generated from these countries in the next five years.

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Key Players

Transportation industry stakeholders are continuously trying hard to address the challenges related to automotive turbochargers, which are the production of cost-effective automotive turbochargers without sacrificing their performance and mitigating the noise generated by automotive turbochargers.

The supply chain of this market comprises raw material suppliers, automotive turbocharger component manufacturers, automotive turbocharger manufacturers, distributors, and automotive OEMs.

The key On-highway OEMs are-

• Daimler

• General Motors

• Toyota

• Nissan

• Ford

And the key off-highway OEMs are-

• Caterpillar

• Hitachi Construction Machinery

• Komatsu

• Hitachi Construction Machinery

• Hyundai Heavy Industries

• Volvo Construction Equipment.

The global automotive turbocharger market in the transportation industry is highly consolidated.

The following are the key players in the automotive turbocharger market:

• BorgWarner

• Cummins

• Continental AG

• Honeywell International

• IHI Corporation.

• Mitsubishi Heavy Industries

New product development, custom product offerings, and regional expansion are the key strategies adopted by the key players to gain a competitive edge in the market

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

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 market dynamics and will enable strategic decision-making for 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, Service 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 the existing and new players.

• Key success factors.

Market Segmentation

This report studies the market, covering 12 years of trends and forecasts. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive turbocharger market is segmented into the following categories:

By Vehicle Type

• On-Highway Vehicles

• Passenger Car

• Light Duty Vehicles

• Medium & Heavy-Duty Vehicles

• Off-Highway Vehicles

• Tractor

• Construction Equipment

By Charger Type

• Automotive Turbocharger

• Supercharger

By Fuel Type

• Gasoline

• Diesel

By Technology Type

• VGT / VNT

• Wastegate

• Twin Turbo

By Region

• North America (Country Analysis: The USA, Canada, Mexico)

• Europe (Country Analysis: Germany, France, United Kingdom, Italy, Russia, Rest of Europe)

• Asia-Pacific (Country Analysis: China, Japan, South Korea, India, Rest of Asia-Pacific)

• Rest of the World (Latin America, Middle East)

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s automotive turbocharger market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner 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.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)

• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players based on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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