Automotive Turbocharger Market Size By Vehicle (PCV, LCV, HCV), By Technology (VGT/VNT, Wastegate, Twin Turbo), By Fuel (Gasoline, Diesel), By Distribution Channel (OEM, Aftermarket) Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Poland, Netherlands, China, Japan, India, South Korea, Australia, Thailand, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: March 2018 | 300 Pages | Report ID: GMI2463 Report Format: PDF
Automotive Turbocharger Market size valued at USD 11 billion in 2016 and is estimated to exhibit over 9% CAGR from 2017 to 2024.
U.S. Automotive Turbocharger Market, By System, 2016 & 2024, (Thousand Units)
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Rising demand for turbocharging technologies from the OEMs to deliver enhanced and fuel-efficient vehicles will primarily drive the industry growth. Manufacturers are continuously focusing on fulfilling environmental emissions regulations, resulting in their proliferating production. The automobile industry across the globe is consistently putting efforts to ensure enhanced driver’s experience and curbing the environmental emissions. This will positively influence the automotive turbocharger market over the next eight years.
The emerging economies across the globe have witnessed a considerable rise in the product demand owing to international trading and ongoing industrialization activities, paving opportunistic ways for the industry participants. Regular innovations help in their integration into the engines for enhancing the performance and efficiency. The turbochargers increase the amount of air entering the engine to create power. Moreover, they help in enabling the smaller engines to provide relatively higher power than their size. These benefits will further propel the automotive turbocharger market growth till 2024.
Various countries are mandating emission standards for curbing CO2 emissions. This has led to replacement of conventional engines to turbocharged engines, significantly contributing to the revenue generation. Rising deployment of electric vehicles due to increasing government initiatives for promoting their usage is anticipated to hamper the industry growth over the forecast timeframe. The electric vehicles do not require turbochargers as they are already installed with advanced features that regulate fuel consumption.
Engine downsizing is a major trend that has gained traction among the automotive turbocharger market participants. A V8 engine can easily be replaced by V6 engine with usage of a turbocharger, Similarly, a V6 engine can be replaced by V4 with turbocharger usage. This replacement can be done without any effect on fuel economy, efficiency, and power. A downsized engine equipped with turbocharger results in 20% increase in efficiency. Variable geometry turbochargers (VGT) have gained higher prominence than the counterparts owing to its technical benefits and cost effectiveness. These trends are likely to offer stable growth prospects to the industry.
Automotive Turbocharger Market, By Vehicle
Automotive turbocharger market from PCVs are expected to dominate the industry, accounting for more than 60% of the overall revenue share till 2024 owing to their substantial production across the globe. High demand for these vehicles, especially from the emerging economies of Asia Pacific will further escalate the revenue generation. The consumers are increasingly demanding high-power output with minimal loss in fuel economy, resulting in installation of turbochargers. Moreover, rising demand for light weight vehicles will further strengthen the product penetration till 2024.
HCVs are expected to grow significantly, exhibiting over 7% CAGR from 2017 to 2024. Rising domestic and international trading activities across the globe will primarily drive the segment growth. High demand for increasing the durability of these vehicles will further force the OEMs to install these turbochargers in them. Moreover, these vehicles are responsible for high CO2 emissions, thereby supporting the automotive turbo charger market growth from HCVs.
Automotive Turbocharger Market, By Technology
Automotive turbocharger market from VGT turbochargers is expected to grow significantly, witnessing over 8% CAGR over the next eight years. High requirement for precise controlling of particulate and NOx emissions will drive the demand for these turbochargers. Moreover, they help to reduce the lag time and increase the efficiency of the engines. Their technical benefits and cost-effectiveness will further support the industry growth till 2024.
Twin turbo will account for approximately USD 7 billion over the forecast timeline owing to provision of benefits such as superior power and acceleration. This technology makes use of two turbochargers, either in sequential or parallel layout. Moreover, it eliminates the need for piping, that is required for the plumbing of exhaust and intake systems. These factors will further strengthen the market from twin turbo.
Automotive Turbocharger Market, By Fuel
Automotive turbocharger market from diesel will account for highest volume share of more than 60% by the end of 2024. Substantial production of diesel vehicles across the globe will primarily contribute to the revenue generation. Diesel vehicles possess low efficiency, and thereby experience high requirement of turbochargers. Strong prevalence of the fuel in the automobile industry will further support the industry dominance.
Gasoline is likely to grow substantially, exhibiting over 8% CAGR from 2017 to 2024. Shifting preference towards gasoline turbochargers owing to the regular advancements and stringent emission regulations will majorly drive the industry growth. These turbochargers have capability to deliver enhanced performance in extreme temperatures and are manufactured from high-end materials, further contributing significantly towards the revenue generation. The major participants in automotive turbo chargers’ market are indulged in producing enhanced gasoline turbochargers.
Automotive Turbocharger Market, By Distribution Channel
OEMs will contribute around 90% of the automotive turbocharger market volume share by 2024. These systems are pre-installed in the vehicles, for maintaining fuel economy, vehicle weight reduction, and enhancing overall performance. Expansion in vehicle production across the globe will have a significant contribution towards the industry growth.
Automotive turbocharger industry from aftermarket will have rapid growth, exhibiting more than 9% CAGR over the study timeframe. High replacement needs of these integral components of engines, especially in ageing vehicles will contribute to the aftermarket growth over the coming years. Moreover, rising need of lightweight engines and cost effectiveness as compared to the counterpart will further propel the industry growth.
Automotive turbocharger Market, By Region
Europe automotive turbocharger market is likely to showcase dominance over the next eight years. Higher penetration of turbochargers as compared to other regions owing to stringent emissions and fuel efficiency norms will majorly support the revenue generation. The OEMs across the region are increasingly adopting these turbochargers to meet these standards. Established automobile industry across the region will further strengthen the industry penetration.
Asia Pacific will grow significantly, exhibiting more than 8% CAGR from 2017 to 2024. The substantial growth can be attributed to continuously increasing vehicle production across the region. Proliferating demand from the countries including India, Japan, South Korea, and China owing to adoption of turbochargers to cater to the mandatory standards. For instance, in January 2016, the phase IV standard required all the passenger vehicles to enhance their fuel economy considerably. These regulations are anticipated to induce immense growth potential to the market size from Asia Pacific.
Competitive Market Share
Honeywell, BorgWarner, Federal-Mogul, Cummins Turbo Technologies, Mitsubishi Heavy Industries, Linamar, Montupet, Weifang Fuyuan, and IHI Corporation are among the prominent participants in the automotive turbocharger market. Other noticeable players include Bosch Mahle Turbo Systems, Magnum Performance Turbos, Turbonetics, TEL, Turbo Engineering, Precision Turbo and Engine, and Banks Power. New product development is among the prominent strategy adopted by the competitors.
In October 2016, the company introduced reverse rotation turbochargers for installers and fabricators for symmetrical twin turbo set ups. It will reduce the need for extra tubing and offer convenience to the OEMs. Similarly, in December 2017, Mitsubishi Heavy Industries added new turbocharger in its MET MB series for low speed engines. Business expansion is another strategy implemented by the competitors to strengthen their foothold.
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Automotive turbocharger is a forced induction system that uses the energy of exhaust gases released from engines through a turbine. It assists in entry of sufficient air into the combustion chamber. Turbochargers help in achieving enhanced engine power output by expanding the volume of inlet fuel air mixture. They are considered among the most prominent automotive accessories since they curb the harmful CO2 emissions and enhance the vehicle fuel economy.
Rising need for fuel efficient and light weight vehicles will drive the automotive turbocharger industry whereas rising adoption of electric vehicles will hamper the growth. Majority of the OEMs consider turbochargers to be a feasible option for keeping their fossil fuel engine cleaner. They are focusing on manufacturing enhanced turbochargers to meet the customer’s rising demand.
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