Automotive Turbochargers Market

2021 Analysis and Review: Automotive Turbochargers Market by Fuel Type – Gasoline and Diesel for 2021-2031

Automotive Turbochargers Snapshot

As per Future Market Insights (FMI) analysis, the automotive turbochargers market revenue totaled US$ 9.6 Bn in 2021. Increasing applications of automotive turbochargers in gasoline engines are augmenting the market growth, leading to steady expansion at 8.8% CAGR between 2021 and 2031.

Growth prospects are expected to be positive as automotive turbochargers sales exhibit year on year growth of over 6.5% in 2021. Top players, comprising Garrett Motion (Formerly Honeywell), BorgWarner, IHI, Mitsubishi Heavy Industries account for approximately 85% of the market share.

Key Points Covered in Automotive Turbochargers Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Automotive Turbochargers Market and how to Navigate
  • Recommendation on Key Winning Strategies

Automotive Turbochargers Market Historic Sales Compared to 2021-2031 Forecast Outlook

The automotive turbochargers market experienced sluggish growth during 2016-2020, registering a compound annual growth rate (CAGR) at 1.8%.

In 2020, the automotive turbochargers sales witnessed a slump in growth due to the negative impact of the COVID-19 outbreak. Restrictions in movement and halted production activities acted as a challenge to the market, affecting sales and demand simultaneously.

However, with gradual recovery in operations and improvements in the supply chain, the automotive turbochargers market will continue gaining momentum in the upcoming decade, exhibiting a CAGR of 8.8% over the assessment period, projects ESOMAR-certified consulting firm FMI.

As per FMI’s analysis, key trends such as increasing applications of variable geometry turbochargers and dominance of e-turbochargers in hybrid vehicles for optimal performance enhancement will augment market growth during the assessment period.

How will Stringent Emission Regulations Impact Automotive Turbochargers Sales?

Growing concerns regarding air quality and greenhouse emissions across various regions have compelled manufacturers to focus heavily on technological advancements to control emission from automotive turbochargers. 

Application of automotive turbocharges in heavy-duty, light-duty, passenger cars, and off-road machinery will augment the market growth in the upcoming decade. Automotive turbochargers are also being installed in diesel and high-performance spark-ignition engines subsequently, leading to increased sales over the forecast period.

Regulations imposed by bodies including the United States Environment Protection Association (EPA) and the National Highway Traffic Safety Administration (NHTSA) have made it mandatory for light-duty and passenger vehicles to abide by the greenhouse gas emission standards.

Due to such regulations, manufacturers have introduced various innovative technologies including selective catalytic reduction and exhaust gas circulation to fall in line with the emission targets.

Engine downsizing has also emerged as a key trend in smaller vehicle types, such as electric and hybrid vehicles. This has provided lucrative opportunities to manufacturers for launching electronic turbochargers with added emission control technologies, aiding growth of the market.

How is the Market Gaining from Advent of E-Turbochargers?

Increasing shift towards electric turbochargers can be attributed to their principal advantages over their conventional counterparts. Electric turbochargers generate power from the alternator, eliminating turbo lag with increased fuel efficiency.

Conventional turbochargers produce torque at low engine speed, which in turn increases the turbine wheel space and applies subsequent pressure on the engine. On the other hand, electronic turbochargers add close to two inches in length to a turbocharger, leaving scope for larger turbines.

In response to the growing interest in electric turbochargers, leading turbocharger manufacturer Garett Motion (formerly Honeywell) also supported the notion, hinting at production of nearly 60% turbocharged engines by 2030, owing to their superiors characteristics.

Additionally, in March 2021, the company announced the launch of its latest turbogenerator which can run on biofuel, including Honeywell Green Jet Fuel, which has similar chemically similar but more sustainable than fossil fuel.

These turbogenerators are capable of charging high-power electric motors and charge batteries in air taxis and commuter aircraft. The technology will be later downsized for applications in high-performance passenger and commercial vehicles, with ongoing development and innovations.

Driven by the aforementioned advantages, manufacturers operating in the automotive turbochargers market are rapidly adopting e-turbo technology to achieve improved fuel efficiency, complying with CO2 emission standards and aiding the market growth.

Variable Geometry Turbocharging is Emerging as a Key Trend

Emission regulations across the globe have generated demand for downsized and down-speeded turbocharging systems for application in small and medium-sized vehicles. This factor has increasingly endorsed the preference for variable geometry technology in turbochargers.

Variable geometry technology (VGT) has been optimally employed in a wide range of vehicles including passenger, on and off-highway, railways and marine. Growing popularity of VGT can be attributed to a noteworthy boost in supply and the elimination of lag or build-up in all engine speeds.

However, high costs associated with additional components and specialized materials required for coping with high temperatures in the engines make VGT an expensive option. Additionally, VGT usually finds application in heavy-duty diesel engine-powered vehicles, while in petrol-powered engines, VGT is only applied in high-performance luxury and sports cars.

As VGT offers increased low-end torque and improves turbine efficiency, downsizing of engines appears as a lucrative option for manufacturers in order to leverage the innovative technology in passenger vehicles.

Various manufacturers are considering engine downsizing as it enables enhanced fuel efficiency and allows the incorporation of VGT to improve car performance. Based on these factors, FMI projects high demand outlook for VGT in the automotive turbocharger market.

Country-wise Insights

What are the Factors Supporting Turbocharger Uptake in U.S.?

The automotive turbochargers market is anticipated to experience steady growth in the U.S., owing to increasing demand for fuel-efficient vehicles in the country. Sales of automotive in the U.S. are already high, due to increasing population and high disposable income, which in turn is augmenting growth in the automotive turbochargers market simultaneously.

Prevalence of high fuel pricing in the U.S. is another factor that is compelling manufacturers to focus on manufacturing aftermarket turbocharger fitment options and upgrade the existing models with technological advancements.

Additionally, the pressing need to abide by stringent emission standards by the EPA and NHTSA are also triggering innovations in the automotive turbochargers market, to achieve better fuel efficiency and low carbon footprint.

Driven by these factors, manufacturers in the U.S. are increasingly adopting superior turbochargers in passenger and lightweight vehicles. Furthermore, growing demand for e-turbochargers for application in hybrid vehicles will drive growth in the market.

Automotive Turbochargers Market Witnessing Favourable Outlook in Germany

Germany is exhibiting lucrative growth opportunities due to increasing demand for hybrid and electric vehicles, coupled with stringent emission control restrictions across the country.

Presence of leading manufactures in Germany, including Cummins, Mitsubishi, and BorgWarner is acting as a key factor driving the market growth. The presence of leading manufacturers has also made Germany the hub of research & development and product innovation.

Trends such as automotive performance tuning and engine remapping, and additive manufacturing are also gaining traction in Germany, encouraging manufactures to incorporate these trends to innovate superior automotive turbochargers.

With the growing need for revolutionary automotive turbochargers, manufacturers are also focusing on partnerships with consumers to gain insights into fuel economy, engine downsizing, and emission control.

These collaborations are intended to derive benefits such as lower prices, green solutions, enhanced safety, and better driving experience, further boosting sales in the global automotive turbochargers market.

How is the Automotive Turbochargers Market Expanding Across China?

With tough carbon emission and fuel economy regulations in China, the automotive turbocharger market will experience steady growth, as per FMI’s analysis.

Consumer demand regarding passenger cars in China is largely based on fuel efficiency, increased engine power, and easy navigation to support driving in unfavorable terrains.

As automotive turbochargers significantly consume less fuel and improve engine performance in passenger cars, the demand and sales are projected to rise in China during the forecast period.

Demand for electric vehicles (EV) in China is also gaining significant momentum, pushing manufacturers to come up with technological advancements in e-turbochargers and incorporating favorable technologies in existing models.

Additionally, China is one of the largest producers of automotive parts in the world. This acts as an opportunity for global manufacturers to expand their footprint in the country and capitalize through strategic collaborations with regional manufacturers for producing optimal automotive turbochargers.

Category-wise Insights

Why Will Variable Geometry Technology Dominate the Product Segment?

As per FMI’s analysis, the variable geometry technology segment is anticipated to remain dominant during the forecast period, owing to its growing popularity and increasing applications in hybrid vehicles.

Owing to the advantages offered by VCT such as enhanced performance and improved fuel efficiency, the segment is projected to account for more than 70% of the revenue in the global automotive turbochargers market between 2021-2031.

Additionally, twin-turbo technology will experience an upward trend in application and adoption, due to increasing energy extraction from four-cylinder profiles.

How will Passenger Vehicle Segment Witness Lucrative Growth?

On the basis of vehicle type, passenger vehicles will account for majority of sales in the global automotive turbochargers market, owing to recent developments and increasing sales of passenger vehicles in the automotive industry, accounting for 3/5th of the total sales.

Growing demand for fuel-efficient vehicles has led the manufacturers to commercialize and innovate turbochargers to deliver clean air to batteries, thus enhancing the performance and power generation in passenger vehicles.

Driven by increasing consumer preference towards vehicles that offer enhanced driving experience, application of automotive turbochargers in passenger vehicles is experiencing healthy growth, propelling sales in the global market simultaneously.

In addition, application of diesel-powered turbochargers in commercial vehicles is also picking up pace, making commercial vehicles a growing segment in the global automotive turbochargers market.

Competitive Landscape

As per FMI’s analysis, the global automotive turbochargers market is dynamic in nature, with leading players accounting for 85% of the total market share in 2021.

Some of the preferred strategies opted by players operating in the market include product innovations, strategic collaborations, and manufacturing facility expansions. For example:

  • In November 2020, Continental AG extended its line of turbochargers for new car models made by MINI, BMW, and Volkswagen Group. The company's offerings are aimed towards covering additional high-volume models and making original products available to workshops and aftermarket.
  • In June 2021, BorgWarner announced a partnership with Alpine F1 Team in addition to their long-time collaboration on propulsion technologies. The collaboration is aimed to combine expertise and identify technologies to enhance Alpine Cars' power units.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Fuel Type, Vehicle Type, Product Type, Sales Channel, Actuators, and Regions

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current automotive turbochargers market value?

    The automotive turbochargers market surpassed a valuation of US$ 9.6 Bn in 2021.

  • At what rate did the automotive turbochargers market grow between 2016 and 2020?

    The automotive turbochargers market experienced sluggish growth at around 1.8% CAGR between 2016 and 2020.

  • What are the key trends driving automotive turbochargers sales?

    Increasing adoption of variable geometry turbochargers and growing popularity of e-turbochargers in hybrid medium-sized vehicles are the key trends driving automotive turbochargers sales.

  • Who are the leading players in the automotive turbochargers market?

    Leading players operating in the automotive turbochargers market are Garret Motion (formerly Honeywell), BorgWarner, IHI Corporation and Mitsubishi Heavy Industries.

  • What will be the demand outlook for North America automotive turbochargers market?

    North America automotive turbochargers market is anticipated to expand at around 9.8% CAGR during 2021-2031.

  • What is the market share of leading players in automotive turbochargers market?

    The top 5 players, comprising Garrett Motion (Formerly Honeywell), BorgWarner, IHI, Mitsubishi Heavy Industries will account for 85% of global market share in the year 2021.

  • At what rate will automotive turbochargers demand rise in Europe?

    The automotive turbochargers market in Europe will expand at approximately 6.2% CAGR between 2021 and 2031.

  • Which are the top countries driving the automotive pillar market sales?

    Top countries in terms of automotive pillar sales are China, the U.S. and Germany.

  • What is the current market share of Japan and South Korea in the global automotive turbochargers market?

    Japan and South Korea, collectively, will account for 6% of global market share in 2021.

Automotive Turbochargers Market by Category

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV
  • Agricultural Machinery
  • Construction Machinery 

By Product Type:

  • Wastegate
  • Variable-geometry Technology
  • Twin Turbo

By Fuel Type:

  • Gasoline
  • Diesel

By Sales Channel:

  • OEM
  • Aftermarket

By Actuators:

  • Hydraulic
  • Pneumatic
  • Electric

By Region:

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • Asia Pacific excluding Japan
  • Japan
  • Middle East and Africa (MEA)

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