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The automotive turbocharger market is a dynamic sector that experiences fluctuations influenced by various factors, shaping its supply, demand, and overall trends. Fundamentally, this market is shaped by technological innovations, regulatory standards that include fuel efficiency requirements and consumer preferences along with conditions on the global economic front.
Manufacturing methods and material innovations largely influence supply dynamics in the automotive turbocharger market. Another factor that is critical for manufacturing turbochargers entails the availability of raw materials like steel, aluminum and other alloys. They also impact supply, as innovations in precision engineering and assembly processes allow manufactures to produce turbochargers efficiently and cost-effectively.
Global automotive production trends and consumer preferences are affectors of demand dynamics for turbochargers in the automobile industry. Demand is also driven considerably by the increase in production and adoption of vehicles equipped with downsized engines that use turbochargers to improve power and fuel efficiency. Also, governments across the world have tightened fuel efficiency and emission standards forcing automakers to move towards turbocharged engines in order to comply with these requirements.
Demand forces within the turbocharger market are influenced by consumer preferences for stronger vehicles that consume less fuel. Buyers look for enhanced engine performance without losing on fuel economy, which turbocharged offer by increasing the power of their engines through utilization of exhaust gases. Also, the emerging trend among consumers for sportier models of vehicles increases demand on turbocharged engines as they provide greater performance rating.
Automotive turbochargers market dynamics are largely affected by regulative standards and environmental issues. Automakers have resorted to introducing turbocharging technology as a solution for compliance with emission regulations and standards, which seek reductions in greenhouse gas emissions and improved fuel efficiency. Manufacturers need to keep innovating turbocharger designs that not only meet these stringent standards but also perform optimally.
Competitive dynamics is one of the main factors that contribute to a small turbocharger market. The global players of the industry compete on technological innovation, product efficiency and pricing strategies. Manufacturers of turbochargers will always invest in research and development, so that they can produce advanced and more efficient products for the market whenever possible.
Besides, the aftermarket segment is of crucial importance for turbocharger market trends. Once the consumers are looking to improve their vehicles’ performance, they usually refer to aftermarket turbocharger kits which in its turn creates an alternative market where competition and innovation stand between numerous various aftermarket suppliers.
Global economic conditions and market trends also shape the dynamics of the automotive turbocharger market. Factors like economic growth, fluctuating oil prices, and shifts in consumer purchasing power influence vehicle sales and, consequently, the demand for turbocharged engines.
Automotive Turbocharger Market Highlights:
Automotive Turbocharger Market Overview:
Automotive Turbocharger Market Size was valued at USD 5.5 billion in 2022. The automotive turbocharger market is projected to grow from USD 6.05 Billion in 2023 to USD 10.78 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.10% during the forecast period (2024 - 2030). The emerging trend of light-weighting engines in commercial vehicles is leading the shift toward natural gasoline. Owing to the rising imposition of stringent automotive emission norms globally, these are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Turbocharger Market Trends
Increased Adoption of Petrol Engines is driving the market growth
Diesel engines have emerged as the dominant fuel type for car companies, as diesel engine emits low CO2 and offers great performance. However, on the other hand, the diesel proportion of new registrations has been falling gradually for some time, as modern petrol-powered cars are popular and have become better at delivering similar benefits. This trend is expected the growth Market CAGR during the forecast period.
A few more reasons propelled the market for gasoline-type engines, for instance, the Volkswagen diesel emissions scandal in 2015, when Volkswagen supplied around 11 million defective diesel engine cars globally, including eight million in Europe. Diesel car sales are witnessing a declining trend in the Region. The Volkswagen emission scandal resulting in a callback of all faulty vehicles, has further resulted in declining sales of the company's vehicles. The revelations resulted in a sharp fall in demand for diesel-engine cars, which aided in the rise in the demand for gasoline-engine cars. Petrol-powered engines are moving from naturally aspirated engines to turbocharged engines faster. It has been estimated that over the forecast period, 50% of the cars sold may have turbochargers, and similar growth is expected to continue.
The tendency to use turbochargers for diesel engines for improved fuel efficiency and engine performance is slowly changing. The automotive turbocharger market revenue from diesel turbochargers is slowly shifting toward petrol superchargers, and this shift has benefited the market, considering the emission norms.
Additionally, it supports increasing the power output by recovering thermal energy discharges from the engine. The use of turbos in the automotive engine facilitates acceleration by light pedal action and allows driving with modest engine loads. It acts as one of the major components in reducing particulate matter emission, thereby leading to a cleaner exhaust.
Automotive Turbocharger Market Segment Insights:
Automotive Turbocharger Type Insights
Based on Type, the Automotive Turbocharger Market segmentation includes gasoline, diesel, and new energy engine. The gasoline segment dominated the market; the rapid adoption of Turbocharged Gasoline Direct Injection Engines (TGDI) in gasoline vehicles is expected to drive the segment, as mentioned above, demand. OEMs rapidly shift from diesel to gasoline engines to curb the particulate matter level in automobile exhaust gases. This, in turn, will support OEM in maintaining the emission standards imposed by the regulatory bodies. The factors mentioned above are expected to restrict the growth of the diesel engine turbochargers market. Rising penetration of alternate fuel vehicles owing to advantages such as cleaner energy sources, better fuel efficiency, and lower cost than conventional fuel is expected to drive the growth.
March 2022: Mercedes-Benz announced the launch of sales of its new Mercedes-AMG C 43 4MATIC with a price starting at EUR 71,460 for the Saloon and EUR 73,245 for the Estate. In this completely redeveloped model performance of the agile, 300 kW (408 hp) AMG engine is enhanced by an electric exhaust gas turbocharger. The belt-driven starter generator (RSG) offers an additional short-term boost of 10 kW (14 hp) in certain driving situations.
April 2022: Daimler Trucks announced that the third generation of its OM 471 heavy-duty engine is now available to order and available from October 2022. With the third generation of the OM 471, Mercedes-Benz Trucks is introducing two new turbochargers developed and manufactured in-house. The second turbocharger variant has an engine rating of up to 390 kW (530 hp).
Figure1: Automotive Turbocharger Market, By Type, 2022& 2030(Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Automotive Turbocharger Application Insights
Based on application, the Automotive Turbocharger Market segmentation includes passenger vehicles and commercial cars. The passenger vehicles segment dominated the market. The growing need for passenger vehicles among a huge pool population coupled with the expansion of worldwide auto manufacturers into new emerging markets is adding to the segment's growth. On the other hand, the commercial car segment is likely to grow at a high CAGR for the increase in commercial activities like goods and public transportation globally.
Automotive Turbocharger Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North automotive turbocharger market area will dominate this market. The emerging trend of light-weighting engines in commercial vehicles is leading the shift toward natural gasoline. The rising imposition of stringent automotive emission norms will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Automotive Turbocharger Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's automotive turbocharger market accounts for the second-largest market share because the modern car industry is governed by fuel economy and efficiency, which, in turn, is driven by the EU legislation on fuel economy and emissions targets. Further, the German automotive turbocharger market held the largest market share, and the UK automotive turbocharger market was the fastest-growing market in the European Region.
The Asia-Pacific automotive turbocharger market is expected to grow at the fastest CAGR from 2024 to 2030. Rising automotive production levels in Asian economies supplement this. Moreover, China’s automotive turbocharger market held the largest market share, and the Indian automotive turbocharger market was the fastest-growing market in the Asia-Pacific region.
Automotive Turbocharger Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive Turbocharger market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive turbocharger industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive turbocharger industry to benefit clients and increase the market sector. The automotive turbocharger industry has offered some of the most significant advantages in recent years. Major players in the automotive turbocharger market, including Cummins, Inc.( U.S.), BorgWarner Inc. (U.S), Mitsubishi Heavy Industries Ltd (Japan), Fengcheng Xindongli Turbocharger Co. Ltd.( China), Honeywell International Inc. (U.S.), IHI Corporation (Japan), Bullseye Power LLC (U.S.), Precision Turbo and Engine (U.S.), Continental AG (Germany), Bosch Mahle (Germany)and others, are attempting to increase market demand by investing in research and development operations.
Mercedes-Benz, commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG is headquartered in Stuttgart, Baden-Württemberg, Germany. Mercedes-Benz announced the launch of sales of its new Mercedes-AMG C 43 4MATIC with a price starting at EUR 71,460 for the Saloon and EUR 73,245 for the Estate. In this completely redeveloped model performance of the agile, 300 kW (408 hp) AMG engine is enhanced by an electric exhaust gas turbocharger. The belt-driven starter generator (RSG) offers an additional short-term boost of 10 kW (14 hp) in certain driving situations.
Daimler Truck AG is one of the world's largest commercial vehicle manufacturers, with over 35 locations worldwide and approximately 100,000 employees. Daimler Truck AG is headquartered in Leinfelden-Echterdingen, Germany. It was part of Daimler AG from November 2019 to December 2021. Daimler Trucks announced that the third generation of its OM 471 heavy-duty engine is now available to order and available from October 2022. With the third generation of the OM 471, Mercedes-Benz Trucks is introducing two new turbochargers developed and manufactured in-house. The second turbocharger variant has an engine rating of up to 390 kW (530 hp).
Key Companies in the automotive turbocharger market include
- Cummins ( U.S.)
- BorgWarner Inc. (U.S)
- Mitsubishi Heavy Industries Ltd (Japan)
- Fengcheng Xindongli Turbocharger Co. Ltd.( China)
- Honeywell International Inc. (U.S.)
- IHI Corporation (Japan)
- Bullseye Power LLC (U.S.)
- Precision Turbo and Engine (U.S.)
- Continental AG (Germany)
- Bosch Mahle (Germany)
Automotive Turbocharger Industry Developments
November 2021: several media sources reported that Cummins has been investing BRL 170 million to produce new Euro 6 engines to meet the demands of the P8 phase of the Proconve program for heavy vehicles, which will become effective in Brazil in 2022. The engines will be equipped with Holset turbochargers. The resources were also used to increase the nationalization of components for Euro 6 engines, a process that required the development of new local suppliers.
October 2021: Fiat presented its all-new Pulse SUV in Brazil, as dealers now accept orders nationwide. Produced at the Betim plant, the Pulse debuts with the 130 hp1.0-liter Turbo 200 Flex engine, featuring BorgWarner's low inertia turbocharger, which generates 130 hp of maximum power with ethanol (125hp with gasoline) and 200 Nm (20.4 kgf.m) of torque, regardless of fuel.
October 2021: Angka-Tan Motor (ATM) officially launched the JMC Vigus Pro pick-up truck in Malaysia with starting price of MYR 98,888. 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 turbo diesel engine with a variable geometry turbocharger.
Automotive Turbocharger Market Segmentation:
Automotive Turbocharger Type Outlook
- Gasoline
- Diesel
- New Energy Engine
Automotive Turbocharger Application Outlook
- Passenger Vehicles
- Commercial Cars
Automotive Turbocharger Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Africa
- Latin America
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