Turbocharger Market

• Development of electric turbochargers to boost the market growth

Further, the increase in the demand for electric turbochargers has enhanced the market CAGR across the globe in recent years. Due to turbo lag elimination, electric turbochargers offer more power and better fuel efficiency. Electric turbochargers combine a high-powered turbine and a motor-driven compressor, which operate as soon as the driver presses the pedal. 

Electric turbos offer several benefits and fewer technical challenges. Prominent players such as Garrett Motion, BorgWarner, and Continental AG have successfully launched their 48V e-turbos. These e-turbos are fuel-efficient and offer improved power output. Therefore, the demand for these Car turbos is anticipated to be high in the coming years and positively impact the turbos market revenue.

Additionally, The emerging trend of lightweight engines in commercial vehicles is leading the shift toward direct gasoline engines, thereby positively influencing the growth of vehicular turbo. Owing to the rising imposition of stringent automotive emission norms across the globe, Original Equipment Manufacturers (OEMs) are employing engine-downsizing strategies to optimize the fuel efficiency of vehicles. This trend is expected to fuel the demand for Car turbos since they play a key role in curbing vehicle emissions and enhancing fuel efficiency.

However, it helps in increasing the amount of energy diesel produces. Therefore, Car turbos reduce emissions by converting a more proportion of fuel into carbon dioxide or water in contrast with toxic emissions. Hence, the rising number of automotive industry players are integrating turbocharging to meet government emission norms.

The Global Turbocharger Market Industry is projected to experience substantial growth over the next decade. With a market value of 18.6 USD Billion in 2024, it is expected to reach 46.1 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 8.62% from 2025 to 2035, indicating a robust demand for turbocharging technologies. The increasing focus on fuel efficiency, coupled with advancements in technology and regulatory support, positions the turbocharger market for significant expansion in the global automotive landscape.

The expansion of the automotive sector is a key driver for the Global Turbocharger Market Industry. As vehicle production increases globally, the demand for turbochargers is likely to rise correspondingly. Emerging markets, particularly in Asia-Pacific, are witnessing a surge in automobile manufacturing, which is expected to bolster turbocharger adoption. The industry's growth is further supported by the increasing popularity of high-performance vehicles that utilize turbocharging technology. This trend is projected to sustain a compound annual growth rate of 8.62% from 2025 to 2035, indicating robust market potential.

The Global Turbocharger Market Industry is experiencing heightened demand for fuel-efficient vehicles, driven by stringent emissions regulations and consumer preferences for sustainability. Turbochargers enhance engine performance while reducing fuel consumption, making them increasingly attractive to manufacturers. In 2024, the market is projected to reach 18.6 USD Billion, reflecting a growing trend towards eco-friendly automotive technologies. As governments worldwide implement policies to curb greenhouse gas emissions, the adoption of turbochargers is likely to surge, positioning the industry for substantial growth in the coming years.

The rise of electric vehicles (EVs) is influencing the Global Turbocharger Market Industry in a multifaceted manner. While traditional turbochargers are primarily associated with internal combustion engines, the integration of hybrid technologies is creating new opportunities for turbocharger applications. As manufacturers develop hybrid models that combine electric and combustion engines, the demand for turbochargers is likely to persist. This trend reflects a broader shift towards electrification in the automotive sector, which may sustain market growth as the industry adapts to evolving consumer preferences.

Government regulations aimed at reducing vehicle emissions are significantly impacting the Global Turbocharger Market Industry. Policies promoting cleaner technologies are encouraging manufacturers to adopt turbocharging solutions to meet compliance standards. As countries implement stricter emissions targets, the demand for turbochargers is likely to increase, as they provide a viable solution for enhancing fuel efficiency and reducing pollutants. This regulatory landscape is expected to drive market growth, with the industry poised to capitalize on the need for sustainable automotive solutions.

Innovations in turbocharger technology are significantly influencing the Global Turbocharger Market Industry. Developments such as variable geometry turbochargers and electric turbochargers are enhancing performance and efficiency. These advancements allow for better power delivery and responsiveness, appealing to both manufacturers and consumers. As the industry evolves, the integration of smart technologies and materials is expected to further improve turbocharger efficiency. This technological evolution is anticipated to contribute to the market's growth, with projections indicating a market value of 46.1 USD Billion by 2035, showcasing the potential for continued innovation.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America turbocharger market accounted for USD 7.47 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is owing to the high volume of commercial vehicles as well as the rapid adoption of automotive electric turbochargers by the automotive industry. Further, the US turbocharger market held the largest market share, and the Canada turbos market was the fastest-growing market in the North America region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Turbocharger Market Share by Region 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe turbocharger market accounts for the second-largest market share owing to the increasing adoption of these electric Automotive turbos by prominent automakers in this region. The stringent emission regulations implemented by the European Union to reduce emission rates as well as increase fuel efficiency are creating a high demand for electric turbos in this region. Further, the Germany turbocharger market held the largest market share, and the UK Turbocharger market was the fastest-growing market in the European region.

The Asia-Pacific turbocharger market is expected to grow at the fastest CAGR from 2024 to 2030. This is owing to the high volume of automobiles in this region. Developing economies such as China and India are the leading countries with the highest number of sales and production of automobiles which is driving the market growth in this region. Moreover, the China turbocharger market held the largest market share, and the India turbocharger market was the fastest-growing market in the Asia-Pacific region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the turbocharger market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive turbos industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the global Car turbos industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The turbocharger market's major players, such as Cummins Inc, Eaton Corporation, Honeywell International Inc, and others, are working on expanding the market demand by investing in research and development activities.

MAN Energy Solutions is the world's leading provider of large-bore diesel and gas engines and turbomachinery. Headquartered in Germany, MAN Energy Solutions employs some 14,000 people at over 120 sites globally. Our after-sales brand, MAN PrimeServ, offers a vast network of service centers to our customers all over the globe. 

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 Automotive turbos. With this partnership, the companies combine their competencies, such as Rolls-Royce's latest high-efficiency mtu Automotive turbos technology for high-speed diesel and gas engines and PBST's global sales structure for Automotive turbos.

Also, BorgWarner, Inc. supplies engineered systems and components specifically for automotive powertrain applications. The company's products are manufactured and sold globally, primarily to original equipment manufacturers of sport utility vehicles, passenger cars, and light trucks. BorgWarner works in manufacturing facilities in North America, Europe, and Asia. In April 2021, BorgWarner Inc. announced an extension of its offering by introducing three new BorgWarner Automotive turbos for passenger car applications. The newly launched Automotive turbos are for Opel, BMW, and Peugeot.