The global turbocharger market in 2021 was valued at US$16.55 billion. The market value is expected to reach US$24.38 billion by 2027. A turbocharger is a device fitted to a vehicle’s engine that is designed to improve the overall efficiency and increase performance. In a combustion engine, air, fuel and spark combine to create an explosion which creates power to turn the engine. The market is expected to grow at a CAGR of 6.76% during the forecast period of 2022-2027.
Market Segmentation Analysis:
- By Engine Type: The report provides the bifurcation of the market into three segments based on the engine type: gasoline, diesel and hybrid. In 2021, gasoline segment held a major share in the market. On the other hand, the hybrid segment is expected to grow at a significant CAGR in the forthcoming years owing to the increasing trend of emission reduction along with increased engine economy.
- By Technology: The report provides the bifurcation of the market into four segments based on the technology: Variable geometry technology, twin turbo technology, wastegate technology and others. In 2021, variable geometry technology segment held a major share in the market. This was being followed by twin turbo technology segment. Emission regulations across the globe have generated demand for downsized and down-speeded turbocharging systems for application in small and medium-sized vehicles. This factor has increasingly endorsed the preference for variable geometry technology in turbochargers.
- By Distribution Channel: The report provides the bifurcation of the market into two segments based on the distribution channel: original equipment manufacturer and aftermarket. In 2021, original equipment manufacturer segment held a major share in the market. This was being followed by aftermarket segment. Original equipment manufacturers (OEMs) are implementing engine-downsizing tactics to maximize vehicle fuel efficiency as a result of the increasing adoption of rigorous automobile emission standards around the world. The large scale production of vehicles in different categories such as commercial and passenger vehicles with increasing emphasis on fuel efficiency is expected to aid the growth of original equipment manufacturer segment.
- By Vertical: The report provides the bifurcation of the market into four segments based on the vertical: aerospace & defense, automotive, marine and agriculture & construction. In 2021, aerospace & defense segment held a major share of in the market. This was being followed by automotive segment. Turbochargers used in aviation increases the density of the intake gas, allowing for more power. Factors such as increase in air passenger traffic across the globe, surge in demand for fuel-efficient and downsized engine and increased public investment in defense aircrafts by nations across the world are expected to propel the aircraft and defense turbocharger market in the coming years.
- By Region: The report provides insight into the turbocharger market based on the geographical operations, namely North America, Europe, Asia Pacific, and Latin America, Middle East & Africa (LAMEA). Asia Pacific held the major share in the market, owing to increasing per capita income and stringent government regulations in this region.
- Within North America, the US is leading the market, due to increasing awareness about technology and emission regulations. Whereas, in the Europe region, Germany is dominating the market due to strict pollution control rules and restrictions on high emissions.
Market Dynamics:
- Growth Drivers: One of the most important factors impacting the global turbocharger market is improved engine performance and improved fuel efficiency. Furthermore, the stringent regulations is driving the turbocharger market. Growing concerns regarding air quality and greenhouse emissions across various regions have compelled manufacturers to focus heavily on technological advancements to control emission from automotive turbochargers as the government authorities have been imposing stringent regulations to curb emissions. Furthermore, the market has been growing over the past few years, due to factors such as rapid urbanization, increased disposable income, increasing penetration of turbochargers in diesel vehicles and many other factors.
- Challenges: However, the market has been confronted with some challenges specifically, turbocharger installation & high maintenance costs, etc.
- Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as the increasing adoption of electric turbochargers, rising popularity of variable geometry turbocharging, etc. Emission regulations across the globe have generated demand for downsized and down-speeded turbocharging systems for application in small and medium-sized vehicles. This factor has increasingly endorsed the preference for variable geometry technology in turbochargers Besides, next generation technologies is expected to propel the turbocharger market during forecasted years.
Impact Analysis of COVID-19 and Way Forward:
The novel coronavirus pandemic and the resulting lockdowns have negatively impacted numerous manufacturing and service industries by hampering both the supply-side and demand-side supply chains. The turbocharger market, too, was affected greatly due to the pandemic and lockdowns. The virtual halt on the manufacturing of automobiles during the pandemic drastically brought down the supply of the vehicles, while the travel restrictions brought down the demand for automobiles. This dual shock faced by the automobile industry, in turn, negatively affected the turbocharger market during the pandemic.
Automobile companies have been bearing the brunt of the coronavirus pandemic. New wave in India, China, and the U.K. is compelling stakeholders in the turbocharger market to adopt contingency planning in order to tide over business uncertainties.
Competitive Landscape:
The turbocharger market is consolidated market, where, Garrett Motion, Borgwarner and IHI are major market players.
The key players in the global turbocharger market are:
- ABB GroupMondi plc
- Cummins Inc.
- Eaton Corporation plc
- Wabtec Corporation (Precision And Turbo Inc.)
- BorgWarner Inc.
- Cardone (Rotomaster)
- Mitsubishi Heavy Industries Ltd
- IHI Corporation
- Continental AG
- Turbo Dynamics Limited
- Garrett Motion Inc.
- FountainVest Partners (Bosch Mahle Turbo Systems)
Some of the strategies among key players in the market for turbocharger market are mergers, acquisitions, and collaborations. For instance, in 2022, BorgWarner Inc. and Hubei Surpass Sun Electric (SSE) announced that they have entered into an Equity Transfer Agreement under which BorgWarner has agreed to acquire the Electric Vehicle Solution. Whereas, Cummins Inc. announced the launch of Onan Power Stations, the latest offering in its portfolio of backup power solutions. Cummins Power Stations were created with consumers in mind, providing portable, clean power that is well suited for a variety of indoor and outdoor activities.
Table of Contents
1. Executive Summary
Companies Mentioned
- ABB GroupMondi plc
- Cummins Inc.
- Eaton Corporation plc
- Wabtec Corporation (Precision And Turbo Inc.)
- BorgWarner Inc.
- Cardone (Rotomaster)
- Mitsubishi Heavy Industries Ltd
- IHI Corporation
- Continental AG
- Turbo Dynamics Limited
- Garrett Motion Inc.
- FountainVest Partners (Bosch Mahle Turbo Systems)
Methodology
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