CAGR: 10.5%Current Market Size: USD 12.03 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
Global Automotive Turbocharger- Market Overview:
The global automotive turbocharger market is expected to grow from USD 12.03 billion in 2021 to USD 26.36 billion by 2029, at a CAGR of 10.5% during the Projection period 2022-2029. The growing adoption of turbocharged gasoline direct injection technology and strict emission norms across the globe has primarily driven the growth of the global automotive turbocharger market.
The turbocharger comprises a compressor wheel and exhaust gas turbine wheel attached by a solid shaft. It is a device fitted to an engine of the vehicle to increase performance and enhance the overall efficiency. Due to such benefits, many auto manufacturers are choosing to turbocharge their vehicles. It is a type of forced induction system that compresses the air flowing into the vehicle's engine. Due to compressing of air, the engine squeezes more air into a cylinder, enabling more fuel to be added. This process causes more power from every explosion in each cylinder. Hence, the engine that uses a turbocharger produces more power than the same-size engine without turbocharging.
Turbocharger offers several advantages, including a significant increase in horsepower, an improved power-to-weight ratio for the engine, better fuel economy, and an increase in the engine's efficiency.
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Market Dynamics:
Drivers:
The turbochargers help to increase the combustion efficiency of an engine. In addition, it helps in increasing the amount of energy diesel produces. Therefore, turbochargers reduce emissions by converting a more proportion of fuel into carbon dioxide or water in contrast with the toxic emissions. Moreover, turbochargers enable the vehicle manufacturers in the global automotive sector to reduce their engine sizes, thus, reducing the emissions while continuing to deliver the demand for performance and power to customers. Hence, the rising number of automotive industry players are integrating turbocharging to meet government emission norms. For instance, in the U.S., the Environmental Protection Agency (EPA) regulates engine emissions. Also, the fuel economy standards in the country are being developed by the National Highway Traffic Safety Administration (NHTSA), an agency within the US Department of Transportation (DOT).
There is a huge demand for passenger cars with gasoline engines. For instance, gasoline is the main U.S. transportation fuel, with about 135 billion gallons of gasoline in 2021. In addition, the gasoline internal combustion engines (ICEs) accounted for nearly 90% of the light vehicle sales by fuel type, including light trucks and cars in the U.S. Turbocharging is the same for diesel and gasoline engines. However, the air-to-fuel ratio required for ignition in gasoline engines is very sensitive and needs precise control. Turbochargers are used in gasoline engines with advanced materials to endure high thermal loading conditions. Therefore, demand for passenger cars with gasoline engines drives the automotive turbochargers market growth.
Restraints:
Turbochargers tend to work more rigorously, which results in wear and tear. For instance, these devices operate at higher speeds and must withstand exhaust gases with temperatures as high as 1200°F. There is a need for regular maintenance of the turbocharger to make the engine perform efficiently and contribute to the safe and optimal operation. This frequent maintenance involves cleaning, disassembling, and balancing. This need for maintenance is expected to hamper the market's growth to some extent during the Projection period.
Opportunities:
Conventional turbochargers utilize exhaust gases to spin a turbine. However, such exhaust-driven turbochargers must reach a certain speed to work effectively. Also, there is a need to reduce turbo lag and make engines more responsive. Such factors have altogether led to the emergence of electric turbochargers. More automakers are integrating such turbocharges into their vehicle systems. For instance, Audi has offered the electric turbochargers in 2020 S6 and S7 in the U.S. at low engine speeds; these electric turbochargers activate and spin at about 70,000 rpm by keeping the power output constant.
Challenges
In conventional turbochargers, turbo lag is a major challenge. This is caused by low engine speeds when the power is not applied, or the vehicle is coasting. In addition, the frictional and thermal losses delay the turbocharger from generating sufficient pressure to suck the air in. On the other hand, the improper installation of turbochargers creates leakages, worsening the turbo lag. Hence, turbo lag in turbochargers is expected to pose a major challenge in the market.
Segmentation Analysis:
The global Automotive Turbocharger market has been segmented based on vehicle, fuel, technology, and regions.
By Vehicle Type
The vehicle type offering segment includes passenger cars, LCVs, trucks, and buses. The passenger cars segment led the automotive turbocharger market with a market share of around 46.5% in 2021. The surge in sales of passenger vehicles across the globe has primarily driven demand for turbochargers. In addition, the features of passenger vehicles, including stylish design, compact size, and economic value, have driven their sales. In addition, emerging countries such as India and China are seeing an increase in the middle-income group population coupled with a rise in the standard of living. This factor has further fueled demand for passenger vehicles, eventually driving the growth of the automotive turbocharger market.
By Fuel Type
The fuel type segment includes gasoline, diesel, and alternate fuel/CNG. The gasoline segment led the automotive turbocharger market with a market share of around 48.07% in 2021. This is mainly attributed to the significant share of gasoline-powered vehicles globally. For instance, according to various studies, in Europe, 61% of vehicles will mainly be powered by gasoline by 2030, while in the U.S, gasoline-powered vehicles are expected to account for about 80% of the automotive market
By Sales Channel
The sales channel segment includes OEM and aftermarket. The OEM segment led the Automotive Turbocharger market with a market share of around 65.02% in 2021. The original equipment manufacturer (OEM) segment dominated the global automotive turbocharger market. OEMs in the global automotive industry are focused on increasing vehicle fuel efficiency. In addition, there are preferences for the OEM turbochargers as automaker usually guarantees OEM turbochargers to be compatible with the vehicle, and installation of the parts may also be guaranteed. Such factors primarily fuel the growth of the OEM segment.
Global Automotive Turbocharger Market- By Regional Analysis:
The regions analyzed for the Automotive Turbocharger market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. The Asia-Pacific region dominated the Automotive Turbocharger market and held a 40.76% share of the market revenue in 2021.
Global Automotive Turbocharger Market- Country Analysis:
Germany's Automotive Turbocharger market size was valued at USD 1.56 billion in 2021 and is expected to reach USD 3.36 billion by 2029, at a CAGR of 10.2% from 2022 to 2029.
Germany is one of the leading nations in the mechanical engineering, manufacturing, automotive, and electrical industries. Also, the country is the leading automotive production and sales market in Europe. The automotive industry represents about 5% of the country's GDP. Moreover, this country is home to major car manufacturers such as Audi, BMW, Ford-Werke GmbH, Porsche, Mercedes-Benz, Opel, and Volkswagen. These manufacturers are focusing on improving the performance of their vehicles. The factors mentioned above boost the growth of the automotive turbocharger market in this country.
China Automotive Turbocharger market size was valued at USD 2.53 billion in 2021 and is expected to reach USD 5.39 billion by 2029, at a CAGR of 10.1% from 2022 to 2029. China is the largest vehicle market globally, with the Chinese government expecting automotive output to reach 30 million units by 2020 and 35 million by 2025. This has created a huge market for turbocharger production in the country. For instance, in December 2020, Garrett Motion Inc., a technology provider for the automotive industry, achieved a key operating milestone of delivering its 20 millionth turbocharger produced in China.
India Automotive Turbocharger market size was valued at USD 0.84 billion in 2021 and is expected to reach USD 1.87 billion by 2029, at a CAGR of 10.7% from 2022 to 2029. In India, the automotive industry is significantly focusing on reducing tailpipe emissions of vehicles due to stricter government norms. For instance, the government of India has mandated that all vehicles sold from April 1, 2020, must stick to BS6 emission norms and reduce NOx emissions by about 25-70%. Due to such norms, manufacturers focus on turbocharged engines, fuelling the growth of the Indian automotive turbocharger market.
Key Industry Players Analysis:
To increase their market position in the global automotive turbocharger business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
10.5% |
Market Size |
12.03 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
Vehicle type, fuel type, technology type, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
ABB, Garrett Motion Inc., Cummins Inc., Continental AG, BorgWarner Inc., Mitsubishi Heavy Industries, BMTS Technology, Delphi Technologies, TEL, and IHI Corporation among others |
By Vehicle Type |
|
By Fuel Type
|
|
By Technology Type
|
|
By Sales Channel
|
|
Regional scope |
|
Scope of the Report
Global Automotive Turbocharger Market by Vehicle Type:
Global Automotive Turbocharger Market by Fuel Type:
Global Automotive Turbocharger Market by Technology Type:
Global Automotive Turbocharger Market by Sales Channel:
Global Automotive Turbocharger Market by Region:
Global automotive turbocharger market size is USD 12.03 billion in 2021 and it will grow to USD 26.36 billion by 2029, at a CAGR of 10.5%
Sales channel are OEM and aftermarket. The OEM segment led the Automotive Turbocharger market with a market share of around 65.02% in 2021. The original equipment manufacturer (OEM) segment dominated the global automotive turbocharger market. OEMs in the global automotive industry are focused on increasing vehicle fuel efficiency. In addition, there are preferences for the OEM turbochargers as automaker usually guarantees OEM turbochargers to be compatible with the vehicle, and installation of the parts may also be guaranteed. Such factors primarily fuel the growth of the OEM segment.
Asia-Pacific region dominated the Automotive Turbocharger market and held a 40.76% share of the market revenue in 2021
Leading market players active in the ABB, Garrett Motion Inc., Cummins Inc., Continental AG, BorgWarner Inc., Mitsubishi Heavy Industries, BMTS Technology, Delphi Technologies, TEL, and IHI Corporation, among others.
In conventional turbochargers, turbo lag is a major challenge. This is caused by low engine speeds when the power is not applied, or the vehicle is coasting. In addition, the frictional and thermal losses delay the turbocharger from generating sufficient pressure to suck the air in. On the other hand, the improper installation of turbochargers creates leakages, worsening the turbo lag. Hence, turbo lag in turbochargers is expected to pose a major challenge in the market.
The global Automotive Turbocharger market has been segmented based on vehicle type, fuel type, technology type, sales channel, and regions.
Political Factors- The rising number of automotive industry players are integrating turbocharging to meet government emission norms. For instance, in the U.S., the Environmental Protection Agency (EPA) regulates engine emissions. Also, the fuel economy standards in the country are being developed by the National Highway Traffic Safety Administration (NHTSA), an agency within the US Department of Transportation (DOT). For instance, the government of India has mandated that all vehicles sold from April 1, 2020, must stick to BS6 emission norms and reduce NOx emissions by about 25-70%. Due to such norms, manufacturers focus on turbocharged engines, fuelling the growth of the Indian automotive turbocharger market.
Economic Factors- The surge in sales of passenger vehicles across the globe has primarily driven demand for turbochargers. In addition, the features of passenger vehicles, including stylish design, compact size, and economic value, have driven their sales. In addition, emerging countries such as India and China are seeing an increase in the middle-income group population coupled with a rise in the standard of living. This factor has further fueled demand for passenger vehicles, eventually driving the growth of the automotive turbocharger market.
Social Factor- The Asia-Pacific region witnessed a major share. In Asia-Pacific, rapid Urbanization, along with the increased demand for mobility across the countries such as China and India, has led to a surge in vehicle production. This has primarily driven the growth of the automotive turbocharger market. On the other hand, in May 2022, Hyundai Motor Company introduced Hyundai Motor Manufacturing Indonesia, a factory in Southeast Asia with an annual production capacity of about 250,000 units per year. Such business expansions of leading regional players are opportunistic for the market's growth.
Technological Factors- Conventional turbochargers utilize exhaust gases to spin a turbine. However, such exhaust-driven turbochargers must reach a certain speed to work effectively. Also, there is a need to reduce turbo lag and make engines more responsive. Such factors have altogether led to the emergence of electric turbochargers. More automakers are integrating such turbocharges into their vehicle systems. For instance, Audi has offered the electric turbochargers in 2020 S6 and S7 in the U.S. at low engine speeds; these electric turbochargers activate and spin at about 70,000 rpm by keeping the power output constant.
Environmental Factors- Therefore, turbochargers reduce emissions by converting a more proportion of fuel into carbon dioxide or water in contrast with the toxic emissions. Moreover, turbochargers enable the vehicle manufacturers in the global automotive sector to reduce their engine sizes, thus, reducing the emissions while continuing to deliver the demand for performance and power to customers.
Legal Factors- In April 2021, Garrett Motion Inc., a technology provider for the automotive industry, announced to the introduction of its next-generation electric-boosting technologies at the 19th Shanghai International Automobile Industry Exhibition. According to the company, these E-boosting technologies are anticipated to enhance vehicle performance, reduce exhaust emissions, and increase fuel economy. Continental AG, the technology company, extended its turbochargers business line to make more turbochargers available to the automotive aftermarket. The company has started offering automotive turbochargers for leading automotive models made by MINI, BMW, and the Volkswagen Group.
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