Published: Apr, 2017
The global automotive turbochargers market was predominantly consolidated in 2015, when the five leading players took up over 66% of the market. These five, namely BorgWarner Inc., Honeywell International Inc., Mitsubishi Heavy Industries Ltd., IHI Corporation, and Cummins, Inc., have gained solid reputations within the global automotive turbochargers market and are likely to remain influential in the coming years.
However, according to a research report released by Transparency Market Research, the players in the global automotive turbochargers market will face increasingly tough challenges caused by maturation of key regional markets, which is likely to make the automotive turbochargers market more competitive in the coming years. This could allow for the entry of new players. However, established automotive turbocharger manufacturers such as Continental AG, Bosch Mahle Turbo Systems, Eaton Corporation PLC, and Turbo Energy Pvt. Ltd. are likely to show a steady gain in value over the coming years. The global automotive turbochargers market is expected to expand at a CAGR of 10.1% in terms of revenue within the forecast period from 2016 to 2024. The revenue generated from the automotive turbochargers market is thus expected to reach US$20.35 bn by the end of 2024, after ending at US$8.56 bn in 2015.
Increasing Demand for Lighter Vehicles Propels Sales of Turbochargers
Making vehicles lighter by making each component lighter individually has been a popular strategy in automotive design, and research in the automotive turbochargers industry has thus been aimed at making them lighter but more efficient. Lighter cars hold the advantages of reduced volume of metal, less maintenance, better fuel efficiency, and faster speed. The growing stringency of emission restrictions being imposed across the world has also aided research in the automotive turbochargers market. Europe, the leading regional market for automotive turbochargers in 2015, has been especially strict when it comes to controlling fuel consumption and vehicular emissions. This is likely to remain a concrete driver for the global automotive turbochargers market in the coming years.
“Other factors driving the global automotive turbochargers market include the growing penetration of turbochargers in gasoline vehicles. Although they are primarily intended to be used in diesel engines, leading players in the automotive turbochargers industry have already begun developing devices to be used in gasoline vehicles. The growing use of turbochargers in gasoline vehicles could elevate their demand by a staggering degree in the coming years, considering the steady sales of gasoline vehicles in the steadily emerging economies in Asia Pacific,” states a TMR analyst.
Rising Demand for Electric Vehicles Hampers Adoption of Turbochargers
The steady development of electric vehicles over the last few years has now led to a generation of electric vehicles comparable to conventional ones. As a result, the demand for turbochargers has taken a hit. As a greater percentage of vehicle users resort to electric vehicles, manufacturers of turbochargers are expected to suffer a cutback in overall production numbers.
Other factors indirectly hindering the global automotive turbochargers market include the increasing cost of non-renewable fuel, which is forcing several consumers to change to electric vehicles, bicycles, and public transport. At the same time, manufacturers of turbochargers have consistently faced issues regarding turbo lag. The greater time taken to build up the exhaust pressure required to turn the turbocharger’s turbine is becoming more of an issue in comparison to other, more modern emission-reducing technologies.
“A great field of opportunity that manufacturers of turbochargers can look into is the development of electric turbochargers. These can help reduce turbo lag to a negligible level, while also allowing the negation of the kicking effect at lower RPMs. The evolution of electric turbochargers is an opportunity that carries significant potential for leading manufacturers of automotive turbochargers,” said a TMR analyst.
The information presented in this review is based on a Transparency Market Research report titled “Automotive Turbochargers Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Key segments of the Global Automotive Turbochargers Market
Global Automotive Turbochargers Market: By Vehicle Type
- Light Commercial Vehicle(LCV)
- Heavy Commercial Vehicle(HCV)
- Passenger Vehicles
Global Automotive Turbochargers Market: By Technology
- Twin Turbo
- Variable Geometry Turbo(VGT)
- Wastegate Technology
Global Automotive Turbochargers Market: By Fuel Type
Global Automotive Turbochargers Market: By End User
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