New Delhi, Feb. 27, 2024 (GLOBE NEWSWIRE) -- The global automotive turbocharger market is projected to grow from US$ 15.40 billion in 2023 to surpass US$ 34.79 billion by 2032, expanding at a compound annual growth rate (CAGR) of 9.6% during the forecast period of 2024–2032.
The global automotive turbocharger market is growing at an impressive rate. It’s fueled by a number of factors including strict emissions regulations, the high demand for fuel efficient vehicles, and rapid technological advancements. In 2023 it was valued at over $15.40 billion, and is predicted to grow even more especially in emerging markets like India and Southeast Asia. Turbochargers are becoming increasingly important as they help with engine downsizing, allow for power and torque gains from smaller engines, and improve fuel economy by up to 40%. By 2030, these chargers are likely to be standard for new cars as all new vehicles will be expected to have them on the road. Current turbochargers are incredibly smart featuring twin-scroll designs, variable geometry turbines (VGT), and coming soon electric turbochargers that’ll optimize performance while making things easier on your car battery. They’re essential in diesel engines but are slowly becoming crucial in gasoline applications as well. Though the Asia-Pacific market is growing at the highest rate in the market, consumer perceptions and localized regulatory landscapes may challenge companies that are looking to grow region-specifically.
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While there’s no doubt that the benefits of using turbochargers far outweigh any setbacks or competition they might face, it’s still imperative that industry players stay ahead of their niche competitors and constantly develop new technology based insights within this ever-changing market according to Astute Analytica.
Emerging Markets Fuel Turbocharger Boom
The landscape of the global automotive turbocharger market is changing, and it’s happening fast with emerging markets. This change is spearheaded by China and India, which are driven by their enormous vehicle markets and increasingly strict emissions controls. China VI regulations (Emission standards comparable to Euro VI) being put in action has analysts projecting a 15% increase in annual turbocharger sales growth through 2026. Not to mention that the Chinese government also offers subsidies to those who adopt turbocharged engines. These engines can generate more power per displacement ratio while reducing emissions. When we look at Eastern Europe as well, we can see it becoming an important manufacturing hub for globally supplied turbochargers. Even South America holds potential, as Brazil and Argentina are expected to see a rise in demand for these parts in the automotive turbocharger market.
Turbochargers still have their rightful place in the world even though electric vehicles are growing rapidly. Because they help optimize hybrid vehicle efficiency when charging stations aren’t around. They also provide a significant aftermarket segment for improvements and replacements when looking at used-vehicle markets in emerging nations. With success coming from understanding things like regional nuance in emission standards, local competition like China’s Kangyue Technology that’s been dominating the sector for quite some time now, performance expectations and price sensitivity.
Key Findings in Global Automotive Turbocharger Market
| Market Forecast (2032) | US$ 34.79 Billion |
| CAGR | 9.6% |
| Largest Region (2023) | Europe (37.8%) |
| By Turbo Type | Twin-Turbo (26.7%) |
| By Propulsion Type | Diesel (47.3%) |
| By Vehicle Type | Passenger (56.9%) |
| By Distribution Channel | OEM (83.2%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Niche Competitors are Bringing Innovation: Top 6 Leaders Captures More than 86% Revenue Share of Automotive Turbocharger Market
The automotive turbocharger market is dominated by 6 major suppliers like Garrett Motion, BorgWarner, Mitsubishi Heavy Industries Engine & Turbocharger, IHI, Continental, and Bullseye Power. However, one key segment to highlight in the market share of this industry is that there are lots of smaller niche competitors. These specialized businesses account for roughly 5-8% of the overall market and compete with a variety of strategies such as focusing on high-performance aftermarket applications (such as Precision Turbo), catering to specific regional needs (for example Hunan Tyen in China) or specializing in commercial vehicle requirements. Another aspect to highlight are the cost-effective remanufacturing companies which include Melett.
Niche competitors typically benefit from cost advantages over large firms, flexibility in customization and deep regional expertise. Many also provide specific components or specialized turbocharger solutions and subassemblies to larger partners. In addition to selling their products exclusively through partnerships with other companies, these niche competition sellers can also have their own distribution channels for different products under completely new brand names.
Looking ahead, Astute Analytica finds that niche players are pursuing a number of research and development areas including advanced materials and bearings, as well as turbocharger optimization for hybrid powertrains. They face growth headwinds however from major OEMs expanding their own in-house R&D capabilities while simultaneously growing through acquisition.
Twin-Turbochargers Poised for Continued Dominance, Revenue Share Hits 26.7%
The demand for twin-turbocharged engines is skyrocketing in the global automotive turbocharger market. Automakers are turning to smaller engines to lower emissions while keeping power high. The only way to do this is by adding more turbochargers. More turbos mean higher power-to-size ratios which can't be matched by naturally aspirated engines, no matter their size. In order to get a car moving instantly when accelerated, these turbochargers remove any signs of lag, which is a trait that will always catch a performance-minded buyer’s attention. There are several automakers that have implemented twin-turbocharging across all their cars. For instance, BMW uses them in it’s performance models and even some regular ones as well. Then there's Audi, Volvo and surprisingly Ford as well with EcoBoost engines.
Not only can they make a fast car even faster but they can also help hybrid vehicles save fuel. By reducing the size of an internal combustion engine placed in a hybrid powertrain, end users get both power and efficiency boosts from a set of twin-turbos. It looks like luxury automakers such as Porsche and Mercedes-Benz are beginning to put them inside hybrids too in the automotive turbocharger market. There’s still more growth coming for these systems though! Variable geometry turbochargers (VGTs) will make them smoother at various engine speeds but at the same time give you more torque when you need it most. A similar system uses electric motors instead of compressors right on the turbo shaft for zero lag and better low rpm performance. The market is likely to expect those improvements soon.
Passenger Car Turbocharger Market Booms: Growth Projected to Exceed $20.28 Billion
The passenger car turbocharger market is on the rise. It’s expected to surpass $20.28 billion by 2032 with a CAGR of 9.9%. This growth isn’t from one source, but rather many. More than anything, strict regulations and expensive fuels are pushing automakers to adopt turbocharged engines in an attempt to save money on gas and reduce emissions. On top of that, they also fulfill consumer’s desires for high-performance cars without taking up too much space under the hood. Though Europe is at the center of this surge (with it being the key demand center) in the automotive turbocharger market, it's important to note that many Asian markets have shown high adoption rates as well. Car makers across all segments are beginning to realize how beneficial turbochargers can be for both them and their buyers.
To be fair, turbochargers do add complexity to engines. But manufacturers are doing everything they can to improve reliability designs while integrating them into user-friendly systems. BorgWarner, Garrett (Honeywell), Mitsubishi Heavy Industries, and IHI make up most of the competitive landscape right now. Each company has its own unique approach to creating these amazing pieces of technology at low costs; making it easier for everyday people to buy a turbocharged car if they want one.
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Europe's Turbocharger Dominance: Driving Innovation and Fueling Market Growth
Europe has become the leader in worldwide automotive turbocharger adoption. Strict emissions regulations and a consumer-led demand for fuel-efficient vehicles, especially after the Euro 6 standards, have elevated this need. Statistics show that almost 38% of the global turbocharger market belongs to Europe. Furthermore, over 65% of all new passenger cars sold within Europe are fitted with turbocharged engines. And it doesn’t look like their dominance is going away anytime soon as forecasts expect faster growth than any other global region.
To make such wide adoption possible, technological advancements were crucial. Improvements in design, materials, and the creation of variable geometry turbochargers (VGTs), paved the way for efficiency and reliability improvements as well as better responsiveness from these systems. The results meet consumers’ demands by squeezing performance out of smaller engines while saving fuel and reducing emissions. In fact, studies have shown that a turbocharged engine can increase fuel economy by up to 20% when compared to naturally aspirated units.
Europe’s competitive landscape in the global automotive turbocharger market is vast enough to discourage monopolies. Giants like BorgWarner (US) and IHI (Japan) share significant market space alongside local suppliers Continental and Bosch. This collaboration across borders highlights how globally intertwined companies have become when manufacturing their products.
Market size alone would not justify such fast-paced industry evolution had it not been for Europe's long-standing used car segment which continues providing a demand outlet for replacements and performance upgrades. If anything, this thriving secondary market speaks volumes about the technology’s relevance and potential for future growth. But despite all the good news brought on by widespread adoption there is one downside: cost implications. Automakers shrug off concerns by claiming they will offset this premium through manufacturing efficiency gains but government incentives also play an important role within some European countries since subsidies are awarded only if vehicle manufacturers meet specific emissions standards - something made possible with turbocharging.
While questions about electric cars are turning more heads towards things like batteries, turbochargers still hold an important role in hybrid vehicles in the automotive turbocharger market. They allow for optimisation of smaller internal combustion engines as the industry continues the transition away from traditional powerplants. As it stands, turbine compressors will continue being produced and sold even as EV adoption accelerates across Europe since they can still be used to maximise performance and efficiency on traditional cars.
Global Automotive Turbocharger Market Key Players
- BorgWarner Inc.
- Bullseye Power Turbo Chargers
- Continental AG
- Cummins Inc.
- Garrett Motion Inc.
- HKS Co., Ltd
- Mitsubishi Heavy Industries Engine & Turbocharger
- IHI Corporation
- Magnum Performance Turbos Inc.
- Hitachi Astemo, Ltd.
- Precision Turbo and Engine
- Man Energy Solutions
- MAHLE GMBH
- Melett Ltd.
- Other Prominent Players
Key Segmentation:
By Turbo Type
- Single-Turbo
- Twin-Turbo
- Twin-Scroll Turbo
- Variable Geometry Turbo
- Variable Twin Scroll Turbo
- Wastegate
- Electric Turbo
By Vehicle Type
- Passenger
- Commercial
- Sports Car
By Propulsion Type
- Petrol
- Diesel
- CNG & LPG
By Distribution Channel
- OEM
- Aftermarket
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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