Automotive Turbocharger Market Size, Share & Industry Analysis, By Technology Type (Variable Geometry Turbocharger, Wastegate Turbocharger, and Electric Turbocharger), By Fuel Type (Gasoline and Diesel), By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) and Regional Forecasts, 2019-2032

The global automotive turbocharger market size was valued at USD 8.20 billion in 2018 and is projected to reach USD 10.0 billion by 2032, exhibiting a CAGR of 1.5% during the forecast period. The market is surging due to the escalating demand for fuel-efficient vehicles, stringent emission norms, and the automotive industry's continuous focus on performance enhancement, driving market growth.  

Turbochargers are considered to be a vital automotive component in today’s time as they increase the efficiency of the engine. The System uses exhaust gas from the engine during the combustion to drive the turbine. This turbine drives the compressor wheel with the help of a shaft. The compressor wheel draws the outside air, compresses it, and sends the compressed air to the engine. This compressed-air burns the fuel more efficiently for greater power and saves fuel.

The automotive turbochargers mainly consist of three types, namely, variable geometry turbocharger, wastegate turbocharger, and electric turbochargers. Engine downsizing has become the most lucrative aspect in the automotive industry. The use of small engines in automobiles is gaining popularity in the market as it helps in controlling the fuel emission efficiently. Turbochargers are helping the automotive industry to meet the government’s standards and regulations regarding the emission of exhaust gases such as carbon dioxide and other harmful gases from the vehicle. Turbochargers are considered to be more economical and environmentally friendly. Prominent manufacturers are investing heavily in research to adopt advanced technology and develop designs and mechanisms of automotive turbochargers to improve the complete performance of the engine and reduce fuel consumption. Moreover, the increasing number of sales and production of vehicles is creating a high demand in the market for automotive turbochargers.

MARKET TRENDS

Downsizing of Engines is Accelerating the Automotive Turbocharger Market

Automotive engine downsizing has been a prevalent trend in the automotive industry in recent years. The automotive turbocharger system enhances the output power of engines without any change in the piston displacement. This factor leads to the downsizing of engines with better fuel efficiency and greater performance. Manufacturing companies are downsizing engines by reducing piston displacement and the number of cylinders, and are integrating turbochargers which would provide more power and torque through the engine. The rising popularity of engine downsizing in automobiles is penetrating the growth of the automotive turbocharger market. Engine downsizing will contribute to enhanced safety, low cost, high durability, and greater fuel efficiency. It is estimated to boost the market growth of these turbochargers during the forecast period.

MARKET DRIVERS

Stringent Emission Regulations for Improving Fuel Efficiency is Expected to Drive Growth

A significant factor fueling the growth of the market is the improved fuel efficiency of vehicles via the adoption of automotive turbochargers. It will boost the internal combustion and power output of engines by letting more air intake to the combustion engine of powertrains. These turbochargers provide high efficiency and are environment friendly as they offer high engine power without increasing the piston displacement. Moreover, optimum utilization of resources, minimal waste production, and greater efficiency are the foremost factors that are driving the market growth of automotive turbochargers. The government has imposed stringent norms and regulations to curb the increasing fuel emission. Also, the government is imposing various laws and is setting emission standards for the manufacturing companies to manufacture vehicles abiding by the set standards.

All these factors are driving the automotive turbocharger market growth.

• China’s 13th Five-Year (2016–2020) Plan for Economic and Social Development describes the country’s ‘Vehicle Emission Standards’ as follows:
  
  
  
  • According to the law, automotive manufacturers are enforced with laws that state that the pollutants discharged by motor vehicles, automobiles, and the off-road vehicle must not exceed the stipulated emission standards.
  
  
  
  


• The Government of India has upgraded the BS-IV emission norms to BS-VI emission norms (skipping BS-V) to keep a check on the vehicular emission.

Increasing Automotive Production and Sales to Augment Growth

Globally, the increasing urbanization, expansion in industrialization, developing road infrastructures and, improvement in the standard of living are the foremost factors that are leading the growth of the automotive industry. The rise in disposable income is also propelling the automotive market. The trend for low emission and fuel economy vehicles are ultimately boosting the market of an automotive turbocharger.

Moreover, the prominent automotive manufacturing companies are investing heavily in research to innovate and develop advanced technology in automobiles, to serve their customers with the latest technologically equipped vehicles, and maintain a good position in the market.

Furthermore, the government is also taking various initiatives and providing subsidies to promote the use of automobiles across the world. The government is also investing in research to boost the automotive industry. The transition from BS-IV to BS-VI emission norms is expected to boost the production and sale of automotive vehicles in the coming years.

• The Government of India is aiming to project the country as an international manufacturing center. The government has hence, come up with reforms such as tax benefits and ease of doing business rankings to boost the growth of the automotive industry.

MARKET RESTRAINT 

Increasing Adoption of Electric Vehicles to Obstruct Growth

The global automotive industry is experiencing a shift from conventional fuel vehicles to electric vehicles. The increasing emission caused by the fuels of the vehicles is leading to air pollution and the global warming crisis. The prominent automotive manufacturing companies are inclining more towards sustainable sources of energy. Manufacturers are spending heavily on research to develop vehicles with advanced technology and are adopting the electric mode of energy in vehicles. The increasing inclination of people towards zero-emission vehicles may adversely affect the market.

SEGMENTATION

By Technology Type Analysis

Wastegate Turbocharger Segment is Expected to Dominate the Market

Based on technology type, the turbocharger market is segmented into variable geometry turbocharger, wastegate turbocharger, and electric turbochargers. The wastegate turbochargers segment is expected to dominate this market. These turbochargers generate maximum torque as well as maximum engine power and are more economical as compared to the variable geometry turbochargers.

The majority of the automotive manufacturers use wastegate turbochargers in their engines as they control the sudden boost levels through electric actuated bypass valves. As these turbochargers operate at higher temperatures, they are often cooled down by the water and are constructed by using high-temperature aerospace capable alloys. Moreover, the wastegate turbocharger requires smaller space, reduces turbo lags, is lightweight, and provides optimum engine performance. These are some of the foremost reasons for its dominance in the market.

By Fuel Type Analysis

Diesel Segment is Expected to Hold the Largest Market Share

Based on the fuel type, the market is segmented into gasoline and diesel. The diesel fuel segment holds the maximum automotive turbocharger market share and is expected to maintain its dominance in the forecast period. Diesel engines are easier to customize for attaining optimum performance. The diesel turbocharger enhances transit performance, lowers the speed of torque, and increases the usage of automotive turbocharger which can decrease the size of diesel engines. Diesel engines also emit less carbon dioxide as compared to other fuels which help in better turbo efficiency, increases fuel efficiency, and provides high durability. Manufacturers are expected to scale up their investment in the forecast period to meet the surging customer needs in the diesel segment.

By Vehicle Type Analysis

Passenger Cars Segment is Expected to Hold the Largest Market Share

In terms of vehicle type, the market is segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The passenger car segment holds the largest share of the global turbocharger market owing to the increasing inclination of consumers towards greater performance and highly fuel-efficient automobiles.

Moreover, the rise in disposable income is eventually increasing the sales and production of passenger cars across the globe. Prominent car manufacturers are spending a high percentage of developing engines that would provide greater performance and less emission. Furthermore, stringent emission regulations and policies imposed by the government are expected to further propel the growth of the market.

REGIONAL ANALYSIS  

Asia Pacific holds the largest share of the automotive turbocharger market owing to the high volume of passenger cars in this region. Some of the rapidly growing economies such as India and China are the leading countries that hold the maximum number of sales and production of automotive which is further propelling the growth of the turbocharger market in this region. Rapid urbanization, expansion of industrialization, improvement in the infrastructure, and rise in disposable income are the major factors contributing to the growth in the market. Furthermore, the stringent government norms and emission standards are penetrating the growth of turbochargers in this region. The recent implementation of BS-VI in India is also estimated to boost the market for an automotive turbocharger.

North America is expected to show exponential growth during the forecast period owing to the enthusiastic adoption of automotive turbochargers in this region. The rapid adoption of advanced technology in turbochargers is expected to boost the market of the automotive turbocharger in this region. Moreover, the Environmental Protection Agency (EPA) in the U.S. has imposed stringent norms and standards to reduce fuel emission. The government has enforced the automotive manufacturing companies to develop cleaner and fuel-efficient engines.

KEY INDUSTRY PLAYERS

BorgWarner Expands Turbocharger Product Line

BorgWarner, a prominent partner in the independent aftermarket (IAM), provides 17 new turbochargers for diesel vehicles to the globally renowned automakers. The company has enhanced its portfolio for supporting the growing demand for high-quality replacement turbochargers. 

LIST OF KEY COMPANIES PROFILED:

• Garrett Motion


• Continental GT


• Aptiv PLC


• Turbonetics


• ABB


• Cummins Inc.


• Ningbo Motor Industrial Co. Ltd.


• Precision Turbo and Engine Inc.


• Robert Bosch GmbH


• Mahle


• Rotomaster International


• Mitsubishi Heavy Industries. Ltd


• IHI Corporation


• Kompressorenbau Bannewitz GmbH


• Fuyuan Turbocharger Co, Ltd


• Marelli Corporation


• Turbo Dynamics

KEY INDUSTRY DEVELOPMENTS

• In June 2021, MAN Energy Solutions and Rolls-Royce signed a strategic partnership agreement that will see MAN's PBST brand distribute state-of-the-art mtu turbochargers. With this partnership, the companies combine their competencies, such as Rolls-Royce's latest high-efficiency mtu turbocharger technology for high-speed diesel and gas engines and PBST’s global sales structure for turbochargers.


• In January 2021, ABB Turbocharging, Hyundai Heavy Industry’s Engine & Machinery Division (HHI-EMD), and Hyundai Global Service (HGS) has established a ‘total service solution’ for Hyundai & ABB customers. The solution delivers optimal efficiency and emissions performance across the entire vessel. Under the agreement, HGS will be able to access ABB’s global network of turbocharging service stations.


• In April 2021, BorgWarner Inc. announced an extension of its offering by introducing three new BorgWarner turbochargers for passenger car applications. The newly launched turbochargers are for Opel, BMW, and Peugeot


• In November 2020, Continental extended its line of turbochargers for the aftermarket. The company is offering turbochargers for numerous models of premium brands such as MINI, BMW, and Volkswagen Group.

REPORT COVERAGE

The automotive turbocharger market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation