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Automotive Turbocharger Market

Market Study on Automotive Turbocharger: With the persistent Pursuit of Fuel Efficiency, Stringent Emission Norms, and the Accelerating Adoption for Both ICE and Electric Vehicles, PMR Foresees Multiple Opportunities Arising on the Horizon

A Detailed Analysis of the Automotive Turbocharger Market Based on a Growing Shift Towards Electric Turbochargers, Increased Focus on Hybridization for Performance Enhancement and Emission Reduction, and Advances in Variable Geometry Turbocharger Technology for Optimum Response and Engine Efficiency

Automotive Turbocharger Market

The global automotive turbocharger market is forecast to expand at a CAGR of 7.8% and thereby increase from a value of US$17.2 Bn in 2023, to US$29.1 Bn by the end of 2030.

Attributes

Key Insights

Automotive Turbocharger Market Size (2023E)

US$17.2 Bn

Projected Market Value (2030F)

US$29.1 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

7.8%

Historical Market Growth Rate (CAGR 2018 to 2022)

6.9%

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Market Introduction and Definition

The term automotive turbocharger denotes a forced induction apparatus that increases the power output and efficacy of an internal combustion engine through the introduction of additional air into the combustion chamber. Resultantly, this procedure, turbocharging, fuel economy and overall engine performance are enhanced. Composed of a turbine and a compressor, turbochargers are held together by a common shaft.

Compressing the air that enters the engine permits a greater quantity of fuel to be consumed, thereby enhancing output. Turbochargers, being an essential element of contemporary automotive engineering, serve a pivotal function in maximizing engine output and satisfying the industry's continuous pursuit of increased power and efficiency.

The worldwide automotive turbocharger market is undergoing substantial expansion, predominantly driven by multiple significant contributing factors. Primarily due to the imposition of rigorous emission regulations on a global scale, manufacturers are compelled to embrace turbocharging technology to improve fuel economy and reduce emissions.

Furthermore, the market growth is substantially influenced by the automotive industry's ongoing pursuit of downsized engines and the rising demand for high-performance vehicles. Furthermore, increased consumer consciousness regarding the advantages attributed to turbocharged engines, including enhanced fuel economy and power output, is stimulating a surge in their implementation.

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Market Growth Drivers

Strict Emission Regulations Set by Governments Worldwide

The global automotive turbocharger market is being significantly propelled by two key factors: the growing concern for environmental sustainability and the strict emission regulations enforced by governments across the globe. In the pursuit of environmental sustainability and carbon footprint reduction, the automotive sector recognizes turbocharging technology as a crucial instrument for attaining improved engine efficiency and adherence to emission regulations.

Worldwide, governmental bodies are implementing rigorous emission regulations to mitigate the environmental consequences of the automotive industry and combat air pollution. In the backdrop of these regulations, the automotive industry is obligated to investigate novel technologies that not only improve performance but also aid in the mitigation of detrimental emissions.

In this context, turbochargers are of the utmost importance because they allow automakers to strike a delicate equilibrium between increased engine efficiency and decreased emissions. As an outcome of the forced induction facilitated by turbochargers, fuel combustion in engines is enhanced, leading to a decrease in carbon emissions relative to the output power. This is consistent with the overarching objective of promoting a sustainable automotive future and reducing greenhouse gas emissions.

Consumer preferences and awareness regarding environmentally favorable vehicles, coupled with regulatory pressure, are contributing to the increased prevalence of turbocharging technology. The increasing environmental awareness among consumers has generated a rising need for vehicles that strike a harmonious equilibrium between performance and ecological benevolence.

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Market Restraints

Heavy Initial Capital Investments for Implementation

One of the primary factors restraining the growth of the worldwide automotive turbocharger industry is the substantial financial investment required to implement and integrate turbocharging technology into automobiles. Although turbochargers provide considerable advantages in terms of enhanced engine performance and efficiency, the additional costs associated with their installation can be a substantial deterrent for both manufacturers and consumers.

The intricate design and manufacturing procedures that are entailed in the production of turbochargers significantly augment their overall expense. Automobile manufacturers are subsequently confronted with the difficulty of balancing the incorporation of turbocharging technology with the imperative to manufacture economically viable vehicles.

Potential Concerns Regarding Reliability and Durability

An enduring concern that exerts a substantial influence on the worldwide automotive turbocharger market is the reliability and durability of turbochargers. Although turbocharging technology does provide considerable advantages in terms of efficiency and performance, manufacturers and consumers face significant obstacles due to the inherent difficulties associated with the durability and dependability of turbochargers.

Over time, the elevated temperatures and rotational velocities at which turbochargers operate can subject them to significant strain. Frequently, turbine or compressor wheel fatigue, bearing deterioration, and lubricant contamination result from this stress.

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Opportunities

Swift Developments in Electric Turbocharger Technology

The rapid advancement of electric turbocharger technology is a material opportunistic factor propelling the worldwide automotive turbocharger market. In the light of the ongoing transition towards electrification in the automotive sector, electric turbochargers offer a distinctive prospect to augment the efficiency and performance of conventional internal combustion engines as well as nascent electric powertrains.

Electrically assisted turbochargers, or electric turbochargers, function through the integration of an electric actuator that assists the conventional turbocharger. This innovation effectively mitigates the intrinsic limitation of latency observed in conventional turbochargers, which pertains to the time required for the turbocharger to attain peak speed and produce enhanced airflow.

By delivering an instantaneous boost via the electric motor, electric turbochargers surmount this obstacle, thereby eradicating lag and substantially enhancing throttle response. This technological advancement not only improves the operational efficiency of conventional internal combustion engines but also exhibits tremendous potential for electric vehicles (EVs) and hybrid automobiles.

Within the realm of electric propulsion systems, electric turbochargers augment the performance capabilities and range of electric vehicles by optimizing the air-fuel mixture, thereby contributing to enhanced energy efficiency.

Analyst’s Viewpoint

The worldwide market for automotive turbochargers is anticipated to experience substantial expansion, propelled by multiple pivotal factors that highlight the industry's energy. An important factor influencing this expansion is the worldwide tightening of emission regulations. To reduce vehicular emissions, governments and regulatory agencies are implementing rigorous standards, which are compelling automakers to implement turbocharging technology.

In addition to minimizing emissions and optimizing engine efficiency, turbochargers are essential for satisfying these regulatory requirements. The escalating environmental concerns are anticipated to generate a heightened demand for turbocharged engines, thereby driving the market's progress. The interplay between manufacturers and consumers significantly influences the dynamics of the market.

In response to consumers' changing preferences and concerns, manufacturers are proactively interacting with them. The increasing recognition among consumers of the advantages associated with turbocharged engines, including enhanced performance and improved fuel economy, is exerting an impact on their purchasing choices. In addition, manufacturers are strategically aligning their product offerings with the increasing demand for sustainable and eco-friendly vehicles as environmental awareness increases.

The adoption of this cooperative methodology by manufacturers and consumers is facilitating the incorporation of turbocharging technology into a wide variety of automobiles, spanning from compact cars to large commercial vehicles. Regarding the expansion of the market, it is expected that emerging regions, specifically South Asia, and Oceania, will have a significant impact. Fueled by rising disposable income and urbanization, the expanding automotive industry in these regions provides an ideal environment for turbocharger adoption. With the convergence of global trends and the maturation of these markets, it is anticipated that the demand for turbocharged vehicles will increase.

Overall, environmental regulations, consumer awareness, technological innovation, and regional expansion are propelling the global automotive turbocharger market toward a trajectory of robust growth. The industry's responsiveness to evolving trends and the collaborative efforts of manufacturers and consumers establish turbocharging technology as a fundamental component in the pursuit of environmentally responsible, high-performing, and fuel-efficient vehicles.

Supply-side Dynamics

The existence of significant industry participants, including Honeywell International Inc., BorgWarner Inc., and Mitsubishi Heavy Industries distinguishes the Automotive Turbocharger Market. These prominent companies in their respective industries have positioned themselves as prevailing entities, utilizing their technological expertise and extensive international presence to mold the dynamics of the market.

The adoption of turbocharging technology is most prevalent in Germany, China, and the United States. Germany, due to its prominent automotive industry, has been an early adopter of turbocharger technology for high-performance vehicles. China, being the largest automotive market globally, strongly influences the implementation of turbochargers due to its imperative for improved fuel efficiency. A concentration on rigorous emission regulations has resulted in extensive implementation, specifically within the pickup vehicle industry in the United States.

The dominant players are significantly influencing the industry landscape in the automotive turbocharger market via their strategic initiatives and technological advancements. As an example, Honeywell has emerged as a leader in the development of electric turbocharger technology, thereby initiating a fundamental transformation in the industry. The emphasis that BorgWarner places on research and development has yielded groundbreaking resolutions that augment the effectiveness of turbocharging systems.

Prominent in Asia, Mitsubishi Heavy Industries contributes to the expansion of the market through the implementation of state-of-the-art technologies. By actively addressing environmental concerns, enhancing reliability, and investigating novel applications, these participants are exerting an influence on market trends and thereby guiding the industry toward sustainable growth and innovation.

Market Segmentation

Which is the Most Prominent Fuel Type Segment in the Market?

Diesel-based Turbochargers Represents the Largest Fuel Type Category Owing to Frequent Usage in Commercial and Passenger Cars

It is anticipated that the diesel segment will hold the most substantial market share within the automotive turbocharger industry. The ubiquitous implementation of turbocharging technology in diesel engines to improve fuel economy and power output is the reason for this. Diesel engines, which are frequently encountered in commercial vehicles and specific passenger cars, significantly depend on turbochargers for performance optimization. As a result, the diesel segment holds a dominant position in the market.

Contrarily, the gasoline sector is anticipated to experience the most rapid expansion. The increased adoption of downsized engines and turbocharged gasoline powertrains in the automotive industry to comply with stringent emission regulations and improve fuel economy is expected to generate a significant surge in demand for gasoline turbochargers.

The increasing popularity of turbocharged gasoline engines in passenger vehicles fuels the expansion of the gasoline segment, reflecting a broader trend in the automotive industry toward cleaner and more environmentally favorable technologies.

Which Technology Segments Leads the Market?

Variable Geometry Turbocharger Technology Leads for its Ability to Deliver Enhanced Engine Productivity

It is projected that the variable geometry turbocharger sector will hold the most significant portion of the market in the automotive turbocharger industry. The rise in demand for variable geometry turbochargers, which provide the ability to modify the turbine geometry to enhance engine performance across different velocities, is the reason for this. The market dominance of this segment is attributed to the versatility offered by variable geometry turbochargers, which are favored by modern engines for their emphasis on efficiency and responsiveness.

Simultaneously, the automotive turbocharger market is anticipating the most rapid expansion of the electric turbocharger segment. In the current industrial trend towards electrification, electric turbochargers assume a critical function in augmenting the efficiency of conventional internal combustion engines as well as nascent electric powertrains.

The swift progression of electric turbocharger technology, which effectively resolves concerns such as turbo latency and provides immediate acceleration, situates this sector for heightened expansion as automotive manufacturers pursue inventive resolutions to confront the ever-changing automotive environment.

What Type of Vehicle does Record the Maximum Adoption?

Passenger Cars Record the Most Extensive Adoption, LCVs Reflect the Highest Potential

It is anticipated that the passenger car segment will hold the greatest market share in the automotive turbocharger industry. The extensive adoption of turbocharging technology among passenger vehicles, propelled by the need for enhanced fuel economy and performance, establishes this sector as a significant market participant. With the growing prevalence of turbocharged engines in the passenger car sector, their market share will probably continue to be dominant.

At the same time, the light commercial vehicle (LCV) sector is positioned to experience the most rapid expansion. The increasing demand for fuel-efficient and robust LCVs, in conjunction with the expanding global logistics and transportation sector, is propelling the implementation of turbochargers in this industry. LCVs are anticipated to witness rapid and sustained growth in the automotive turbocharger market as the increasing demand for turbocharged engines in LCVs continues to be fueled by a greater emphasis on efficiency and performance.

Top Regional Markets

Europe Remains in the Bandwagon with Strict Regulatory Adherence to Vehicle Emission Standards

It is expected that the European region will hold the largest market share in the worldwide automotive turbocharger market. The widespread adoption of turbocharging technology in the region's established automotive sector is a contributing factor to the region's ability to comply with rigorous emission regulations and thereby enhance fuel efficiency.

The integration of turbochargers into vehicles has been spearheaded by European manufacturers, which has contributed to the widespread adoption of this technology in the region. Moreover, the growing inclination of consumers towards high-performance automobiles serves as an additional factor reinforcing the prevalence of turbochargers within the European automotive sector.

Rising Populace, and the Critically Growing Need for More Fuel-efficient Engines Uplift South Asia, and Oceania

On the contrary, it is anticipated that South Asia, and Oceania will witness the most rapid expansion in the worldwide automotive turbocharger market. The burgeoning automotive industry drives the expansion in the region, which is characterized by a rising populace, rising disposable income, and an increasing need for automobiles.

The need for more fuel-efficient and potent engines is anticipated to increase the demand for turbocharged vehicles in South Asian and Oceanic nations as industrialization, and urbanization increase. In conjunction with a trend toward greener technologies, the expanding automotive market in this region establishes South Asia, and Oceania as a key growth center for the global automotive turbocharger industry.

Competitive Intelligence and Business Strategy

Prominent entities in the fiercely competitive Automotive Turbocharger Market, including Honeywell International Inc., BorgWarner Inc., and Mitsubishi Heavy Industries, utilize a strategic blend of technological advancements, worldwide expansion, and customer-focused methodologies to attain optimal market share.

As the industry authority in turbocharger production on a global scale, Honeywell International Inc. has prioritized ongoing technological development. The organization allocates substantial resources towards research and development to introduce state-of-the-art solutions, placing particular emphasis on electric turbocharger technology.

Honeywell endeavors to augment its market share through the provision of solutions that precisely tackle the obstacles posed by turbo lag and optimize performance, thereby conforming to the sector's progressive demands for efficiency and sustainability.

As a result of a combination of innovation, global expansion, and strategic alliances, these market leaders maintain a competitive edge in the automotive turbocharger sector. Through proactive measures to tackle emergent challenges, a commitment to sustainability, and adjustment to regional market requirements, these participants establish themselves as frontrunners in the industry, influencing the trajectory of automotive propulsion technologies in the years to come.

Key New Developments

New Product Launch

Mercedes-Benz declared the commencement of sales for the Mercedes-AMG C 43 4MATIC in March 2022, with the Saloon priced at EUR 71,460 and the Estate at EUR 73,245. An electric exhaust gas turbocharger augments the performance of the 300 kW (408 hp) agile AMG engine in this entirely redesigned model. Under specific operating conditions, the belt-driven starter generator (RSG) provides an additional short-term boost of 10 kW (14 hp).

Market Impact: The implementation of an electric exhaust gas turbocharger and a belt-driven starter generator (RSG) to provide an additional short-term boost in the Mercedes-AMG C 43 4MATIC represents a notable technological progression within the automotive sector. This advancement is indicative of a more widespread inclination towards integrating cutting-edge technologies, including electric turbocharging, to improve operational effectiveness and fuel economy. The incorporation of these characteristics by a renowned automotive manufacturer such as Mercedes-Benz establishes a standard for the sector, impacting the worldwide marketplace by underscoring the significance of state-of-the-art propulsion technologies in satisfying consumer preferences for fuel-efficient, high-performance automobiles.

(Source: Mercedes-Benz India)

New Product Update

Daimler Trucks declared the third iteration of its OM 471 heavy-duty engine available for purchase beginning in October 2022, effective from April 2022. In the third iteration of the OM 471, two newly developed and manufactured turbochargers are being introduced by Mercedes-Benz Trucks. The maximum output of the engine in the second turbocharger variant is 390 kW (530 hp).

Market Impact: Significant progress has been made in heavy-duty engine technology with the introduction of the third incarnation of the OM 471 heavy-duty engine by Daimler Trucks. This iteration incorporates newly developed and manufactured turbochargers, resulting in a maximum output of 390 kW (530 hp). It establishes a new benchmark for engine efficiency and performance, which has a significant effect on the international market, especially in the commercial vehicle sector. The implementation of sophisticated turbocharger technology by a prominent entity such as Daimler Trucks has a significant impact on the sector by emphasizing the ongoing quest for increased power outputs and improved fuel efficiency, thereby establishing a standard for heavy-duty engines on a global scale.

(Source: Daimler Truck Media)

Automotive Turbocharger Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Fuel Type
  • Technology Type
  • Vehicle Type
  • Region

Key Companies Profiled

  • BorgWarner Inc.
  • Honeywell International Inc.
  • Mitsubishi Heavy Industries Ltd.
  • IHI Corporation
  • Continental AG
  • Cummins Inc.
  • Bosch Mahle Turbo Systems GmbH & Co. KG
  • Eaton Corporation PLC
  • Precision Turbo & Engine
  • Turbo Energy Private Limited

Report Coverage

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

Customization & Pricing

Available upon request

Automotive Turbocharger Market Research Segmentation

By Fuel Type:

  • Gasoline
  • Diesel

By Technology Type:

  • Variable Geometry Turbocharger
  • Mechanical Turbocharger
  • Electric Turbocharger

By Vehicle Type:

  • Passenger Car
  • LCV
  • HCV

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • BorgWarner Inc.
  • Honeywell International Inc.
  • Mitsubishi Heavy Industries Ltd.
  • IHI Corporation
  • Continental AG
  • Cummins Inc.
  • Bosch Mahle Turbo Systems GmbH & Co. KG
  • Eaton Corporation PLC
  • Precision Turbo & Engine
  • Turbo Energy Private Limited

- Frequently Asked Questions -

The market for automotive turbochargers has been anticipated to grow at a CAGR of 7.8% during the projected period, 2023 - 2030.

The automotive turbocharger market size is approximately US$17.2 Bn as of 2023.

The US currently leads the global market for automotive turbochargers.

Some of the leading players in this market are BorgWarner Inc., Honeywell International Inc., Mitsubishi Heavy Industries Ltd., IHI Corporation, Continental AG, and Cummins Inc.

Passenger cars lead in adoption of turbochargers, whereas the LCV segment is expected to exhibit the fastest revenue growth during the forecast period.

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