|Fastest Growing Market:||Asia Pacific|
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The automotive turbocharger market was valued at over USD 278 million in 2020, and it is expected to reach over USD 400 million by 2026, while registering a CAGR of more than 8.5% during the forecast period, 2021-2026.
COVID-19 affected the industry by forcing the manufacturers to shut down assembly lines and pushed the economy down. With almost zero vehicular movements, there were no new requirements for turbochargers to be installed into new vehicles and spare turbochargers for replacements in already present vehicles.
However, with the increasing demand for performance and luxury cars, the market is looking to get back up into a stable economic condition with good sales projections to meet the potentially high demand.
Many car manufacturers consider turbochargers a viable option to keep internal combustion (IC) engines cleaner, thus increasing the share of turbocharged vehicles every year. At the current pace, about half of the cars rolling out of production are expected to be turbocharged by 2022, thereby influencing automakers and tier-1 suppliers to introduce more technologically advanced products.
Scope of the Report
A turbocharger is a turbine-driven forced induction device that increases the internal combustion (IC) engine efficiency and energy output by sending extra compressed air into the combustion chamber. The automotive turbocharger market study covers the penetration of turbochargers into passenger cars and commercial vehicles, latest product developments, government regulations pertaining to the use of turbochargers, and market shares of the players operating in the industry.
The automotive turbocharger market is segmented by vehicle type (passenger cars and commercial vehicles), fuel type (gasoline and diesel), sales channel (OEM and replacement/aftermarket), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market sizes and forecasts in value (USD million) for all the above-mentioned segments.
|Sales Channel Type|
Key Market Trends
Increased Adoption in Petrol Engines
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, and this trend is expected to pick up the pace during the forecast period.
A few more reasons have 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. The diesel car sales witnessing a declining trend in the region and the Volkswagen emission scandal resulting in a call back of all faulty vehicles have further resulted in the decline in 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.
In the United Kingdom, car buyers prefer downsized petrol engines, which emit nearly 100g/km CO2, as a feasible, efficient alternative to diesel engines. Currently, global players, such as Ford, Opel/Vauxhall, Volkswagen, and Hyundai, offer similarly downsized petrol engines, many emitting around 100g/km of CO2. Petrol-powered engines are moving from naturally aspirated engines to turbocharged engines at a faster rate than ever before. 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 market revenue from diesel turbochargers is slowly shifting toward petrol superchargers, and this shift has been beneficial for the market, considering the emission norms.
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Europe Accounts for the Largest Market Share
The modern car industry is governed by fuel economy and efficiency, which, in turn, is driven by the EU legislation on the fuel economy and emissions targets. The Kyoto Protocol required the world to pull its 1990-level emissions back to 8% by 2012, which led to the start of the Euro I vehicle emissions standards of 1993. It covered mostly nitrous oxide and particulate emissions, which increased diesel-engine vehicle sales. However, to reach EU targets on NOx, diesel-engine vehicles shifted to turbocharging. This, in turn, resulted in improving the efficiency of the vehicles and reducing the price of turbochargers.
High costs associated with turbochargers, along with the increasing focus on BEVs in the European market, are restraining the growth of the market in the region. However, the advent of electric turbochargers is expected to add a significant growth dimension to the market during the forecast period.
The European automotive turbocharger market is highly competitive, as some market players have niche and better technologies. In 2018, the European market was dominated by BorgWarner, Honeywell, and Continental AG.
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The automotive turbocharger market is highly consolidated among seven players, Honeywell, BorgWarner, IHI, MHI, Cummins, Bosch-Mahle, and Continental AG. Honeywell constitutes a significant share of the market, followed by BorgWarner, IHI, MHI, Cummins, etc. Bosch and Mahle produce turbochargers under the Bosch-Mahle joint venture.
Honeywell produces and sells turbochargers under various subsidiaries, such as Honeywell Korea, Honeywell Automotive Part Service Shanghai Co. Ltd, Honeywell Garrett, Honeywell International Inc., Honeywell Technologies SRL, and Honeywell Turbo SRO.
In November 2018, the Honda F1 division entered a two-year partnership with IHI to develop turbochargers.
In 2020, BorgWarner acquired Delphi Technologies aiming to be a market leader in automotive systems manufacturing. BorgWarner believes that Delphi brings in world-class electronics technology and a talent pool helpful enough to achieve certain global targets for BorgWarner and make profits.
In November 2020, Continental announced extension of its line of turbochargers for the aftermarket for BMW, MINI and VW group. These models use Continental's sophisticated RAAX turbine technology, which improves engine response and reduces emissions by increasing efficiency.
In November 2020, Cummins introduced new compressor stage to Series 800 Holset turbocharger. The Series 800 Turbocharger takes a leap forward and has been revitalized to deliver significant improvements in performance, flow range, temperature capability and seal robustness.
In September 2020, BorgWarner has announced the supply of its state-of-the-art variable turbine geometry (VTG) turbocharger to a global OEM for numerous vehicle models. The VTG turbocharger offers benefits for modern hybrid and combustion engines such as improved power output, reduced emissions, and higher temperature capabilities.
In August 2020, Cummins Turbo Technologies (CTT), a leading manufacturer of commercial turbochargers, has developed the 7th generation 400 series Variable Geometry Turbocharger (VGT) to help engine manufacturers meet upcoming emission standards and offer best in class fuel economy.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 Fuel Type
5.3 Sales Channel Type
5.4.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.4.4 Rest of the World
22.214.171.124 South Africa
126.96.36.199 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 BorgWarner Inc.
6.2.2 Continental AG
6.2.3 Cummins Inc.
6.2.4 Delphi Technologies
6.2.5 Honeywell International Inc.
6.2.6 Magnum Performance Turbos
6.2.7 Mitsubishi Heavy Industries Ltd
6.2.8 Precision Turbo and Engine
6.2.9 IHI Turbo America
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. ASSESSMENT OF THE COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Automotive Turbocharger Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Turbocharger Market?
The Automotive Turbocharger Market is growing at a CAGR of >8.5% over the next 5 years.
What is Automotive Turbocharger Market size in 2018?
The Automotive Turbocharger Market is valued at 278 Million USD in 2018.
What is Automotive Turbocharger Market size in 2026?
The Automotive Turbocharger Market is valued at 400 Million USD in 2026.
Which region has highest growth rate in Automotive Turbocharger Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Turbocharger Market?
Europe holds highest share in 2020.
Who are the key players in Automotive Turbocharger Market?
Honeywell International Inc., BorgWarner Inc., Delphi Technologies, Cummins Inc., Continental AG are the major companies operating in Automotive Turbocharger Market.