Turbocharger Market Analysis

Turbocharger Market Overview:

The turbocharger market was valued at USD 17.04 billion in 2023. The turbocharger industry is projected to grow from USD 18.57 Billion in 2024 to USD 36.01 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.6% during the forecast period (2024 - 2030). Enhanced engine performance and fuel efficiency, government regulations, and engine downsizing to reduce vehicle weight are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Presently, fuel efficiency is the biggest concern among consumers, as fuel prices are skyrocketing on a regular basis, owing to the limited availability of fuel. The performance of the vehicle also depends on the engine. Hence, vehicle manufacturers are forced to manufacture efficient engines, that can satisfy both requirements and deliver improved performance & fuel efficiency at the same time. Car turbos are primarily turbo-boosted engines that are compact in size and specifically designed to increase fuel efficiency in compliance with the Corporate Average Fuel Economy standards, which are applicable worldwide. Hence, improved engine performance and fuel efficiency are considered one of the prime reasons for the strong demand for turbochargers.

• In June 2023, the new X300-L series of Car turbos from Accelleron were introduced for two-stroke engines. The platform-based and simple-service concept combined with Accelleron's Turbo Insights digital technology establishes a new standard for turbocharging and gives ship operators the flexibility to adapt to the uncertainty surrounding the fuels they will use and how they will run their vessels in the future.

Turbocharger Market Trends

• Development of electric turbochargers to boost the market growth

A dynamic growth in the production and sales of automobiles will positively influence the industry outlook. Over the last few decades, the automotive sector has emerged as a more flexible, reliable, efficient, and strong business. Automakers and automobile product manufacturers across the globe, particularly in the developed nations of North America, are dedicating significant resources and investments for optimum capacity utilization. Improvements in consumer finance, better credit availability, revived consumer spending and novel trends in the automotive sector will help consolidate product demand.

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.

Turbocharger Market Segment Insights:

Turbocharger Type Insights

The turbocharger market segmentation, based on sales channels, includes OEM and aftermarket. The aftermarket segment held the majority share 2021 of the turbos market revenue. This is primarily owing to the increasing installation rate of components such as Car turbos in commercial and passenger vehicles due to overuse during the large distance of travel. However, OEM is the fastest-growing category over the forecast period. OEMs are focusing on energy-efficient systems to reduce their overall carbon footprint and comply with ambitious targets for reducing greenhouse gases. This scenario represents lucrative business prospects for manufacturers.

Turbocharger Fuel Type Insights

The turbocharger market segmentation, based on fuel type, includes diesel and gasoline. The diesel segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. The diesel engine produces less carbon dioxide, which helps in improving the turbo efficiency, provides high durability and increases fuel efficiency. However, gasoline is the fastest-growing category over the forecast period. Gasoline-powered engines and Car turbos continue to have significant manufacturing and customer preference because of their high RPM capabilities in passenger vehicles. Hence, high PRM capabilities and engine performance positively impact market growth.

Turbocharger Technology Insights

The turbocharger market data has been bifurcated by technology into VGT/VNT, wastegate, and electric turbochargers. The wastegate segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2030. The majority of automotive manufacturers use wastegate Automotive turbos in their engines as they control the sudden boost levels through electric actuated bypass valves. However, VGT is the fastest-growing category over the forecast period. The advantages of implementing a VGT Automotive turbos are a higher air-fuel ratio and higher peak torque at low engine speeds, improved vehicle accelerations without the need to resort to turbines with high pumping loss at high engine speeds, and the ability to provide engine braking.

Figure 2: Turbocharger Market, by Technology, 2021 & 2030 (USD Million)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Turbos Regional Insights

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, MRFR 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.

Automotive Turbos Key Market Players & Competitive Insights

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.

List of the Key Companies in the Turbocharger market include

• Cummins Inc


• Eaton Corporation


• Honeywell International Inc


• Bosch Mahle Turbo Systems GmbH


• Precision & Turbo


• BorgWarner and Inc


• Rotomaster International


• Mitsubishi Heavy Industries


• Continental AG, among others

Automotive turbos Industry Developments

January 2021: ABB Turbocharging, Hyundai Heavy Industry's Engine & Machinery Division (HHI-EMD), and Hyundai Global Service (HGS) have established a 'total service solution' for Hyundai & ABB customers. The solution delivers optimal efficiency and emissions performance across the entire vessel. Under the agreement, HGS can access ABB's global network of turbocharging service stations.

November 2020: Continental extended its line of Automotive turbos for the aftermarket. The company offers Automotive turbos for numerous models of premium brands such as MINI, BMW, and Volkswagen Group.

June 2021: Garrett Motion Inc announced that it plans to expand and modernize its existing production facility in Wuhan, China, to meet increasing customer demand.

Turbocharger Market Segmentation:

Car Turbos Sales Channel Outlook

• OEM


• Aftermarket

Car Turbos Fuel Type Outlook

• Diesel


• Gasoline

Automotive Turbos Technology Outlook

• VGT/VNT


• Wastegate


• Electric Turbocharger

Automotive Turbos Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America