Global Automotive Turbochargers Market: Snapshot
The extremely high demand for lighter vehicles can be felt across the world. Lighter vehicles not only add to the speed at which a vehicle can be driven, but are also highly economical in nature, due to the lower use of metals and a better ration between fuel consumption to distance travelled. Additionally, the global automotive turbochargers market is being driven by the growing use of turbochargers in gasoline engines and the increasingly stringent CAFÉ standards and emission norms. The global automotive turbochargers market is, however, currently hindered by the growing competitive from electric vehicles as well as design difficulties such as turbo lag.
The global automotive turbochargers market is expected to expand at a CAGR of 10.1% within a forecast period from 2016 to 2024, in terms of revenue. This revenue is expected to reach US$20.35 bn by the end of 2024, after ending at US$8.56 bn in 2015.
Turbocharger Demand in Europe to Mature
From a geographical standpoint, the global automotive turbochargers market is currently being led by Europe. This region holds developed countries that follow highly stringent emission norms and quite a large market for diesel vehicles. In 2015, Europe took up 38.2% of the global automotive turbochargers market in terms of value. Owing to several challenges faced in the implementation of turbochargers in this region, its demand for them is expected to fall over the coming years. The European demand for turbochargers has already matured and the automotive market is showing a very strong pull towards electric and hybrid vehicles.
Meanwhile, Asia Pacific, which was second in terms of demand within the global automotive turbochargers market for 2015, is expected to show a phenomenal rise in its demand over the coming years. The emission norms, while not as stringent as Europe, are tightening for a lot of countries within the Asia Pacific region, and automotive manufacturers are looking towards turbochargers to help solve the issue of increasing fuel efficiency and lowering emissions.
VGT Leads Global Automotive Turbochargers Market in Demand
The three core technologies used to manufacture automotive turbochargers are wastegates, variable geometric technology, and twin turbo. Each technology has been introduced into the global automotive turbochargers market at different times and come with their own set of advantages and disadvantages. Of the three key technologies, the global automotive turbochargers market has so far been dominated by variable technology turbochargers. VGT, also known as variable turbine turbochargers, are equipped with minute vanes that are highly flexible. They help direct the air flow of the exhaust along a turbine at different angles. One of the key advantages of VGT is that is providers a highly wide and flat torque curve and therefore becomes a highly preferred form of turbocharger within an RPM range that applies to a lot of diesel vehicles. Variable geometry turbocharger technology is expected to expand at a CAGR of 9.4% between 2016 and 2024, in terms of value.
The top players associated with the global automotive turbochargers market today, include BorgWarner Inc. (U.S.), Mitsubishi Heavy Industries Ltd (Japan), Honeywell International Inc. (U.S.), Continental AG (Germany), IHI Corporation (Japan), Eaton Corporation PLC (Ireland), Cummins, Inc. (U.S.), Rotomaster, Inc. (Spain), Bosch Mahle Turbo Systems (Germany), and Turbo Energy PVT LTD (India).
Global Automotive Turbochargers Market: Overview
Automotive Turbochargers are forced induction techniques that induces forced compressed into the vehicles combustion engine for added power. Turbochargers are generally prominent among diesel engines as this type of engine lack proper air required for combustion, thus depends upon a turbochargers to cope up with its drawbacks. Moreover a turbocharger even aids in reducing emission and provide better fuel efficiency. Rising emission norms and fuel efficiency standards is giving rise to the use of a turbochargers to comply with the norms.
Automotive turbochargers find its application in a number of vehicle segments such as heavy commercial vehicle (HCV), light commercial vehicles (LCV), passenger cars, sports cars and off-highway vehicles. Passenger cars holds the leading market share among the segments. Based on the technology type the automotive turbochargers market is segmented into twin turbo, variable geometry technology and wastegate technology. Variable geometry technology (VGT) turbochargers held the prime market share in 2015, with the increasing popularity of turbochargers with low turbo lag is basically going to drive the variable geometry technology turbochargers during the forecast period from 2016 – 2024. Additionally the, global automotive turbochargers market is divided into fuel type which includes gasoline and diesel. In terms of end users, the global automotive turbochargers market is bifurcated into original equipment manufacturers (OEMs) and aftermarket.
Turbochargers were first introduced for diesel engine to deliver higher power output, less emissions and increase fuel efficiency as diesel engines were generally used in commercial vehicle. After gaining importance in diesel engines’, turbochargers are also being favored to increase engine efficiency for gasoline engines. Automotive turbochargers market has huge scope and opportunity in the emerging markets of Asia Pacific and Latin America in countries such as India, China, Japan and Brazil among others. Rising penetration of turbocharged gasoline engine in Asia Pacific and turbocharged diesel cars in Latin America region is going to drive the automotive turbochargers market.
Global Automotive Turbochargers Market: Drivers and Competitive Landscape
The major drivers driving the global automotive turbochargers market includes rise in adoption of engine downsizing, and increasing emission and fuel efficiency standards is going to drive the market throughout the forecast period. Engine downsizing improves the vehicle’s fuel efficiency just because they can achieve higher power output with a smaller engine cylinder that utilizes less fuel intake at the time of combustion. Thus the above mentioned reason of downsizing a vehicle’s engine is going to drive the market for automotive turbochargers market during the forecast period from 2016 – 2024.
The competitive profiling of the key players in the global automotive turbochargers market across four broad geographic regions is included in the study. These include different business strategies adopted by the leading players and their recent developments as in the field of automotive turbochargers. The value chain analysis of the market has been provided in the report, in order to offer a deep insight of global automotive turbochargers market.
Global Automotive Turbochargers Market: Research Methodology
A comprehensive analysis of the market dynamics that is inclusive of market drivers, restraints and opportunities is included in the purview of the report. Market dynamics are the factors which impact the market growth, thereby helping to understand the ongoing trends of the global market. Therefore, the report provides the forecast of the global market for the period from 2016 to 2024, along with offering an inclusive study of the automotive turbochargers market. Moreover additional comparison of naturally aspirated engine versus a turbocharged engine and different emission and fuel efficiency norms set up by organizations from all around the World is going to give a better understanding about the penetration of global automotive turbochargers in vehicles.
Some of the major players in the global automotive turbochargers market include BorgWarner Inc. (U.S.), Honeywell International Inc. (U.S.), Mitsubishi Heavy Industries Ltd (Japan), IHI Corporation (Japan), Continental AG (Germany), Cummins, Inc. (U.S.), Eaton Corporation PLC (Ireland), Bosch Mahle Turbo Systems (Germany), Rotomaster Inc (Spain) and Turbo Energy PVT LTD (India).
The global automotive turbochargers market has been segmented into:
Global Automotive turbochargers Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of MEA
- Latin America (LATAM)
- Rest of LATAM
Global Automotive Turbochargers Market: By Vehicle Type
- Heavy Commercial Vehicle (HCV)
- Light Commercial Vehicle (LCV)
- Passenger Vehicles
- Sports Cars
- Off-Highway Vehicles (Mining and Agriculture)
Global Automotive Turbochargers Market: By Technology
- Twin Turbo
- Variable Geometry Technology (VGT)
Global Automotive Turbochargers Market: By Fuel Type
Global Automotive Turbochargers Market: By End User