Automotive Turbocharger Market

According to Stratistics MRC, the Global Automotive Turbocharger Market is accounted for $12.49 billion in 2022 and is expected to reach $21.65 billion by 2028 growing at a CAGR of 9.6% during the forecast period. The efficiency of the engine is increased by turbochargers, which are regarded as essential parts of modern automobiles. In order to power the turbine, the system uses engine exhaust gas produced during combustion. With the aid of a shaft, this turbine turns the compressor wheel. The outside air is drawn in, compressed, and sent to the engine via the compressor wheel. With more power and fuel savings, the compressed air burns the fuel more effectively.

According to ATM, the Vigus Pro, which is CKD locally assembled at Tan Chong's Serendah plant, is a new value proposition among pick-up trucks sold in Malaysia. Power comes from a 'Puma' 2.0-liter turbodiesel engine with a variable geometry turbocharger.



Market Dynamics:

Driver:

Increased demand for improved fuel economy

Automobile turbochargers are turbine-driven induction equipment that boosts the performance and efficiency of IC engines. If the vehicle's air pressure is unable to maintain the desired output, these devices are deployed to feed more fuel into the combustion chamber. Automobile manufacturers consider turbochargers to be a valuable commodity that they rely on to maintain fossil fuel engines as clean as possible. The main factors fuelling the market expansion are an increase in urbanisation; industrialization, the construction of road infrastructure, and an increase in the level of living globally are propelling the market growth.

Restraint:

Rise in the utilization of electric vehicles

Electric vehicles are replacing traditional gasoline vehicles in the worldwide automobile sector. The crisis of air pollution and global warming is being exacerbated by the rising emissions brought on by the fuels of the automobiles. The well-known auto manufacturers are moving more and more in the direction of renewable energy. Vehicle manufacturers are adopting the electric mode of energy and investing extensively in research to create vehicles with cutting-edge technologies. The market may suffer as a result of people's growing preference for zero-emission vehicles thereby hinder the growth of the market.

Opportunity:

Increasing automotive sales and production

The factors responsible of the automotive industry's growth are the rise of urbanisation, industrialisation, the development of road infrastructure, and an improvement in living standards. The automotive market is also being driven forward by the increase in disposable income. The market for automotive turbochargers is eventually being driven up by the push for low emission and fuel efficient vehicles. In order to innovate and create sophisticated technology in autos, provide their consumers with the newest technologically equipped vehicles, and maintain a strong market position, the well-known automotive manufacturing businesses are substantially spending in research by enhancing the market growth.

Threat:

High maintenance cost and more cooling oil requirements

Although adding a turbocharger to an engine offers advantages, the system tends to operate more arduously, causing system wear and tear. The exhaust gases from the turbocharger must tolerate heat up to 1200F. Thus, it becomes crucial to circulate cooling oil often in order to maintain the turbocharger's cooling. A turbocharged engine therefore requires more cooling oil, which raises the expense of maintenance. Additionally, inadequate turbocharger maintenance can result in early breakdowns that put more strain on the engine's engine cooling oil hamper the market.

Covid-19 Impact

The COVID-19 epidemic had an impact on the sector because it forced manufacturers to shut down production lines and weakened the economy. There were hardly any vehicle transfers, thus there were no new requirements for spare turbochargers to be fitted in existing vehicles or for new turbochargers to be installed in new vehicles. There were no new requirements for turbochargers to be installed in new cars and spare turbochargers to be replaced in previously existing vehicles because there were essentially no vehicle movements. Consequently, this is probably going to decline the global market for vehicle turbochargers.

The Gasoline segment is expected to be the largest during the forecast period

The Gasoline segment is estimated to have a lucrative growth, due to an internal combustion engine that can be forced to receive more air thanks to a gasoline engine turbocharger. By adding more air, the exhaust gas' oxygen content rises to a level where burned fuel may continue to ignite and provide more power. In other words, it improves performance of engines with restricted capacity by faking higher pressure inside the cylinders while the engine is running. Spark-ignited gasoline and diesel engine types are compatible with gasoline engine turbochargers, but big trucks and other vehicles that run on compressed natural gas (CNG) don't perform as well thus gasoline engine turbocharger are utilized due to their growing applications in the market.

The variable geometry turbocharger segment is expected to have the highest CAGR during the forecast period

The variable geometry turbocharger segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the market for automobile variable geometry turbochargers is expanding mostly due to electric turbochargers. Additionally, rising consumer demand for gasoline-powered passenger automobiles and lowering pollution standards in impending emission laws boost market expansion. The automotive variable geometry turbocharger industry, however, is constrained by high maintenance costs, an increase in cooling oil use, and a decline in vehicle production, whilst turbo lag will pose a threat to market expansion.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the market for turbochargers in this region is expanding as a result of the presence of some of the economies with the fastest economic growth, including China and India, which are the top nations for automobile sales and manufacturing. Rapid urbanisation, increased industrialisation, better infrastructure, and a rise in disposable income are the main drivers of market expansion.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the quick adoption of sophisticated technologies in turbochargers. Additionally, strict rules and requirements have been implemented by the Environmental Protection Agency (EPA) in the United States to limit fuel emission. The government has made it mandatory for automakers to create cleaner, more fuel-efficient engines. European advances like engine remapping and performance tuning for automobiles are gaining momentum, and manufacturers are responding by incorporating these trends into the creation of better car turbochargers which drives the market growth in this region.



Key players in the market

Some of the key players profiled in the Automotive Turbocharger Market include BorgWarner Inc., Mitsubishi Heavy Industries Ltd, Continental AG, Garrett Motion Inc, IHI Corporation, Rotomaster International, Keyyang Precision Co., LTD, Turbo Energy Private Limited, BMTS Technology GmbH & Co. KG, Magnum Performance Turbos, Cummins Inc., Eaton Corporation PLC, Honeywell International, Precision Turbo & Engine Inc, ABB, Robert Bosch GmbH and Marelli Corporation

Key Developments:

In Jan 2023, Bosch agreed to acquire roughly 12 percent shares in Husqvarna in total, Husqvarna also includes the Gardena subsidiary and its Flymo brand, both of which are also partners in the Bosch Power Tools division’s “Power for All Alliance”.

In Dec 2022, ABB partners with Boliden to reduce carbon footprint of its industrial products, the aim is to reduce greenhouse gas (GHG) emissions while driving the transition to a more circular economy.

In Sep 2022, ABB to acquire PowerTech Converter to expand its traction offering, ABB and PTC’s combined efforts to innovate and develop more energy efficient solutions,” said Edgar Keller, President of ABB’s Traction division.

In August 2022, ABB and Hydrogen Optimized expand hydrogen partnership, including a strategic investment; combined technological offerings will include Hydrogen Optimized’s RuggedCell™ high-power water electrolyzers and ABB’s high-power rectifiers.

Vehicle Types Covered:
• Passenger
• Light Commercial Vehicles
• Trucks
• Buses & Couches
• Off-Road Vehicles
• Industrial Vehicles

Engine Types Covered:
• Gasoline
• Diesel
• Other Engine Types

Operations Covered:
• Conventional Turbocharger
• E-Turbocharger

Materials Covered:
• Cast Iron
• Aluminum
• Other Materials

Technologies Covered:
• Variable Geometry Turbocharger
• Wastegate Turbocharger
• Electric Turbocharger
• Other Technologies

Sales Channel Types Covered:
• OEM
• Replacement/Aftermarket

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances