The off-highway turbochargers market stood at US$ 2.5 Billion in 2023 and is likely to grow at a modest CAGR of 2.8% in the long run to reach US$ 3.2 Billion in 2030.
The energy industry has been shifting to the renewables trend for the past few years, and the rising electrification trend is creating a demand for turbochargers for grid balancing from ICE. Unremitting demand from new data centers that require turbochargers for emergency power is likely to give a thrust to market growth.
In 2020, Imperial and Mitsubishi launched a turbocharger center to develop cleaner engines and more efficient through innovative designs for turbochargers. Detailed research will be carried out to improve engine performance and operation and enable low-carbon engine technology.
In 2021, Rolls-Royce and MAN Energy Solutions signed an agreement for a strategic partnership under which MAN's PBST brand will distribute state-of-the-art MTU turbochargers, developed and produced in-house by Rolls-Royce Power Systems, these turbochargers will thus be made available in additional markets.
In 2022, Accelleron, formerly known as ABB Turbocharging, and Japan Engine Corporation (J-ENG) have inked an agreement allowing Accelleron turbochargers to be utilized in UE Engines, one of the top three manufacturers of low-speed marine engines worldwide.
In 2022, Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd. (MHI-MME) concluded a licensing agreement, giving Mitsui E&S Machinery Co., Ltd. rights to manufacture and sell its MET turbochargers.
In 2022, the new TCT axial-turbocharger series from MAN Energy Solutions was licensed by Mitsui E&S Machinery for Mitsui's two-stroke engines. The new TCT axial-turbocharger series will be provided by MAN Energy Solutions under the terms of the 10-year contract.
Increasing demand for large commercial ships owing to a rise in international trade. The average useful life of a turbocharger is 20-30 years, usually, they are highly customized.
Within the marine segment, commercial ships captured the largest chunk. Low- & medium-speed engines are highly preferred in commercial ships.
For rail, turbocharging can provide up to 400% more power than a naturally aspirated engine of a similar size, enabling manufacturers to use smaller engines without an impact on performance.
Radial turbochargers are more used in the 0.5-6,000 KW range, for both auxiliary as well as main medium-speed engines.
Radial turbochargers are generally simpler and cheaper to manufacture and maintain and are particularly beneficial in applications where rapid start-up is important, due to their compact size and robust blades.
Key players are the Accelleron (ABB), Mitsubishi Heavy Industries, MAN Energy Solutions, etc.
Usage of axial turbochargers is expected to grow in two-stroke engines with the increase in the penetration of low & medium speed engines.
A single turbo takes up much less space than a twin turbo and cools better. The single turbo itself, as well as its installation, is more cost-efficient. As opposed to twin-turbo, it produces a maximum boost at higher RPM (revolutions per minute).
A single turbo is preferably used in powerboats and cruise applications.
Two-stroke engines are more often used for low-speed engines, especially in marine applications.
Electric assist turbo is mainly used in low-speed engines, and it helps in reducing emissions and noise coming from engines.
Low & medium-speed engines are the major market category in marine, whereas high-speed engines are preferred in the energy category.
Low-speed engine is preferred in commercial ships, especially merchant ships with single engine sizes of 8-80 MW. The medium-speed engine is preferred for coastal and inland vessels, offshore vessels, ferries, and cruise ships (2-20 MW single engine size).
Huge commercial shipbuilding in three countries (China, South Korea, and Japan).
Asia-Pacific is expected to maintain a 50% share of global primary energy demand and a 60% share of global carbon emissions by 2050.
Key players in the region are Mitsubishi Heavy Industries, BorgWarner Turbo Systems, Cummins Inc., Acelleron (ABB), and MAN Energy Solutions.
The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with this Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Market Dynamics
The marine industry has been experiencing the most disruptive journey in the past few decades, with the key emerging trends being net zero emissions, fuel efficiency, alternative fuels, and increasing lifespan. There was a fleeting demand surge in 2023, predominantly fueled by incessant strengthening demand for the merchant marine and the gas compression business. This boom is anticipated to seep well into the first half of 2024. The momentum is anticipated to start normalizing by the second half of the year.The energy industry has been shifting to the renewables trend for the past few years, and the rising electrification trend is creating a demand for turbochargers for grid balancing from ICE. Unremitting demand from new data centers that require turbochargers for emergency power is likely to give a thrust to market growth.
Recent Market Collaborations/Partnerships
A huge number of strategic collaborations have been performed over the past few years:In 2020, Imperial and Mitsubishi launched a turbocharger center to develop cleaner engines and more efficient through innovative designs for turbochargers. Detailed research will be carried out to improve engine performance and operation and enable low-carbon engine technology.
In 2021, Rolls-Royce and MAN Energy Solutions signed an agreement for a strategic partnership under which MAN's PBST brand will distribute state-of-the-art MTU turbochargers, developed and produced in-house by Rolls-Royce Power Systems, these turbochargers will thus be made available in additional markets.
In 2022, Accelleron, formerly known as ABB Turbocharging, and Japan Engine Corporation (J-ENG) have inked an agreement allowing Accelleron turbochargers to be utilized in UE Engines, one of the top three manufacturers of low-speed marine engines worldwide.
In 2022, Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd. (MHI-MME) concluded a licensing agreement, giving Mitsui E&S Machinery Co., Ltd. rights to manufacture and sell its MET turbochargers.
In 2022, the new TCT axial-turbocharger series from MAN Energy Solutions was licensed by Mitsui E&S Machinery for Mitsui's two-stroke engines. The new TCT axial-turbocharger series will be provided by MAN Energy Solutions under the terms of the 10-year contract.
By End-Use Industry Type
Marine is expected to remain dominant whereas rail is anticipated to be the fastest-growing end-use industry of the market during the forecast period
Turbochargers are used in a wide array of marine vessels such as bulk carriers, container ships, recreational boats, military vehicles, and cruise ships.Increasing demand for large commercial ships owing to a rise in international trade. The average useful life of a turbocharger is 20-30 years, usually, they are highly customized.
Within the marine segment, commercial ships captured the largest chunk. Low- & medium-speed engines are highly preferred in commercial ships.
For rail, turbocharging can provide up to 400% more power than a naturally aspirated engine of a similar size, enabling manufacturers to use smaller engines without an impact on performance.
By Mode of Operation Type
Radial turbochargers are expected to remain the dominant and faster-growing mode of operation of the market during the forecast period
The market is segmented into radial turbochargers and axial turbochargers.Radial turbochargers are more used in the 0.5-6,000 KW range, for both auxiliary as well as main medium-speed engines.
Radial turbochargers are generally simpler and cheaper to manufacture and maintain and are particularly beneficial in applications where rapid start-up is important, due to their compact size and robust blades.
Key players are the Accelleron (ABB), Mitsubishi Heavy Industries, MAN Energy Solutions, etc.
Usage of axial turbochargers is expected to grow in two-stroke engines with the increase in the penetration of low & medium speed engines.
By Technology Type
Single turbo maintained an unequivocal lead in the market from 2018-2023 and is expected to continue dominating the market during the forecast period as well
The market is segmented into single turbo, twin-turbo, electro-assist turbo, and variable geometry turbo.A single turbo takes up much less space than a twin turbo and cools better. The single turbo itself, as well as its installation, is more cost-efficient. As opposed to twin-turbo, it produces a maximum boost at higher RPM (revolutions per minute).
A single turbo is preferably used in powerboats and cruise applications.
Two-stroke engines are more often used for low-speed engines, especially in marine applications.
Electric assist turbo is mainly used in low-speed engines, and it helps in reducing emissions and noise coming from engines.
By Engine Type
Low- & medium-speed engines maintained an unequivocal lead in the market from 2018-2023 and are expected to continue dominating the market during the forecast period as well
The market is segmented into low- & medium-speed engines and high-speed engines.Low & medium-speed engines are the major market category in marine, whereas high-speed engines are preferred in the energy category.
Low-speed engine is preferred in commercial ships, especially merchant ships with single engine sizes of 8-80 MW. The medium-speed engine is preferred for coastal and inland vessels, offshore vessels, ferries, and cruise ships (2-20 MW single engine size).
Regional Analysis
Asia-Pacific is expected to remain the largest market for off-highway turbochargers during the forecast period
Asia-Pacific to hold its unassailable lead by 2030.
Increasing presence of all major turbocharger manufacturers for both products and services.Huge commercial shipbuilding in three countries (China, South Korea, and Japan).
Asia-Pacific is expected to maintain a 50% share of global primary energy demand and a 60% share of global carbon emissions by 2050.
Key players in the region are Mitsubishi Heavy Industries, BorgWarner Turbo Systems, Cummins Inc., Acelleron (ABB), and MAN Energy Solutions.
Key Players
The market is moderately consolidated with the presence of < 50 players globally. Established companies with a long history in the industry have a competitive advantage due to their technological know-how, research & development, and established customer relationships. To enhance their market position and expand their offerings, companies partake in collaborations or partnerships. The following are the key players in the off-highway turbochargers marketHere is the list of the Top Players (Based on Dominance)
- Accelleron (ABB LTD.)
- BorgWarner Turbo Systems Gmb
- Cummins Inc.
- Kompressorenbau Bannewitz GmbH
- Mitsubishi Heavy Industries Engine & Turbocharger, Ltd
- MAN Energy Solutions SE
- MTU Friedrichshafen GmbH
- Wabtech Corporation
Report Feature
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global off-highway turbochargers market is segmented into the following categories:
Off-Highway Turbochargers Market, by End-Use Industry Type
- Marine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Energy (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Rail (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Turbochargers Market, by Mode of Operation Type
- Radial Turbocharger (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Axial Turbocharger (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Turbochargers Market, by Technology Type
- Single Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Twin Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Electro-Assist Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Variable Geometry Turbo (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Turbochargers Market, by Engine Type
- Low- & Medium-Speed Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- High-Speed Engine (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Turbochargers Market, by Sales Type
- Products (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Services (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Off-Highway Turbochargers Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, Italy, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)
Research Methodology
This strategic assessment report from this research provides a comprehensive analysis that reflects today’s off-highway turbochargers market realities and future market possibilities for the forecast period.The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with this Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Table of Contents
Overview of Research Scope, Methodology, and Data Collection
2. Market Environment Analysis: Study of Factors Affecting the Market Dynamics
3. Off-Highway Turbochargers Market Assessment (2018-2030) (US$ Million)
4. Off-Highway Turbochargers Market Segments’ Analysis (2018-2030) (US$ Million)
5. Competitive Analysis
6. Strategic Growth Opportunities
7. Company Profile of Key Players
8. Appendix
Companies Mentioned
- Accelleron (ABB LTD.)
- BorgWarner Turbo Systems GmbH
- Cummins Inc.
- Kompressorenbau Bannewitz GmbH
- MAN Energy Solutions SE
- Mitsubishi Heavy Industries Engine & Turbocharger, Ltd.
- MTU Friedrichshafen GmbH
- Wabtech Corporation
Methodology
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