Automotive Turbocharger Market Outlook, 2030

Turbochargers are considered to be a vital automotive component in today’s time as they increase the efficiency of the engine. The System uses exhaust gas from the engine during the combustion to drive the turbine. This turbine drives the compressor wheel with the help of a shaft. The compressor wheel draws the outside air, compresses it, and sends the compressed air to the engine. This compressed-air burns the fuel more efficiently for greater power and saves fuel. Turbochargers, which are devices that force more air into an engine’s combustion chamber, enabling it to burn more fuel and produce more power, were first introduced in the early 20th century.

The automotive turbocharger market is currently experiencing a strong upward trajectory. As of the mid-2020s, demand for turbochargers is being propelled by several key factors, including stricter emission regulations, consumer demand for more fuel-efficient vehicles, and the growing trend of downsizing engines. Turbochargers are viewed as a critical technology for automakers striving to meet stringent emissions targets without sacrificing engine performance. The ability to increase power output while keeping engine displacement smaller helps to reduce fuel consumption and, ultimately, CO2 emissions. This is especially important in regions like Europe, where the European Union's CO2 emissions standards have forced automakers to adopt more fuel-efficient and environmentally friendly technologies. In addition to the regulatory pressures, the growing popularity of electric vehicles (EVs) has also played a role in turbocharger demand. As traditional internal combustion engine (ICE) vehicles compete with EVs, manufacturers are increasingly relying on turbochargers to improve efficiency in the face of stiff competition. The focus on hybrid vehicles, which combine an ICE with an electric motor, has further fueled this trend, as turbochargers help to optimize the performance of the gasoline engine, maximizing both fuel economy and power.

According to the research report 'Global Automotive Turbocharger Market Outlook, 2030,', the Global Automotive Turbocharger market was valued at more than USD 15.89 Billion in 2024, and expected to reach a market size of more than USD 25.67 Billion by 2030 with the CAGR of 8.46% from 2025-2030. Rising fuel prices and growing environmental concerns have led consumers to seek vehicles that offer better fuel efficiency. Turbochargers are essential in meeting this demand. By forcing more air into the engine, turbochargers allow for smaller, more efficient engines that can deliver the same power as larger, naturally aspirated engines.

This helps automakers create vehicles that are both fuel-efficient and powerful, which is especially important in the era of rising fuel costs and environmental consciousness. In the United Kingdom, car buyers prefer downsized petrol engines emitting 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. Turbocharger manufacturers are responding to the market's growing demand by innovating and incorporating cutting-edge technologies into their designs. Newer turbochargers, such as the electric turbo, which is powered by an electric motor instead of exhaust gases, are rapidly gaining traction. Electric turbochargers can spool up faster than traditional designs, which help to eliminate turbo lag and improves throttle response. The rise of advanced driver-assistance systems (ADAS) and autonomous vehicles could also influence the future of the turbocharger market. As vehicles become more complex and incorporate more advanced technologies, the need for high-performance engines that can balance power, efficiency, and environmental impact will likely continue to drive the demand for turbochargers.

Market Drivers

Fuel Efficiency and Emission Regulations: The growing demand for fuel-efficient vehicles and stringent emission regulations globally are primary drivers. Turbochargers play a crucial role in improving engine efficiency and reducing exhaust emissions, making them indispensable in modern internal combustion engines.

Technological Advancements: Advancements in electric turbocharging technologies and the development of better turbos for fuel cell and electric vehicles are boosting the demand in this sector. These innovations help in meeting government standards and regulations governing the emissions of exhaust gases.

Market Challenges

High Costs and Complexity: The high cost and complexity of turbocharger systems can be a barrier to their adoption. The integration of advanced turbocharging technologies requires significant investment and expertise.

Market Maturity and Shift to Hybrid Vehicles: The conventional turbocharger market's development is anticipated to be constrained by a mature market and a quick shift to hybrid vehicles. The automotive industry's transition towards hybrid and electric vehicles poses a challenge for the traditional turbocharger market.

Market Trends

Electrification of Turbochargers: Electric turbochargers eliminate turbo lag, providing instant power and improved throttle response. This leads to a more dynamic driving experience. By optimizing the air-fuel mixture, electric turbochargers can significantly improve fuel efficiency, which is a critical factor for both manufacturers and consumers. Electric turbochargers help in reducing exhaust emissions by ensuring more complete combustion of fuel. This is particularly important in meeting stringent emission regulations. Electric turbochargers are being integrated into electric and hybrid vehicles to enhance their performance and efficiency. This integration is a key trend as the automotive industry moves towards electrification.

Integration with Hybrid Powertrains: Turbochargers in hybrid powertrains help in improving the overall efficiency of the vehicle by providing additional power without significantly increasing fuel consumption. The combination of turbochargers with electric motors in hybrid powertrains results in better acceleration and performance, making hybrid vehicles more appealing to consumers. Turbochargers can be used in conjunction with regenerative braking systems to recover energy that would otherwise be lost, further improving the efficiency of hybrid vehicles.

Variable Geometry Turbocharger (VGT) technology is leading in the global automotive turbocharger industry due to its ability to optimize engine performance across a wide range of operating conditions, providing better fuel efficiency, reduced emissions, and enhanced power delivery.

Variable Geometry Turbocharger (VGT) technology is rapidly becoming the dominant force in the automotive turbocharger industry because it addresses several crucial performance issues related to traditional fixed geometry turbochargers. In conventional turbochargers, the turbine housing has a fixed set of vanes, which work efficiently only at specific engine speeds. This limitation leads to suboptimal performance at both low and high engine speeds, resulting in turbo lag at low RPMs and a lack of power at high RPMs. VGT technology solves these problems by incorporating a set of adjustable vanes in the turbine housing, which can change their angle depending on the engine’s speed and load.

This dynamic adjustment enables the turbocharger to perform efficiently across a wide range of engine conditions, providing optimal airflow at both low and high RPMs, thus improving engine response and reducing turbo lag. In addition to fuel efficiency, VGT technology plays a significant role in reducing harmful emissions. By enabling the engine to operate more efficiently across its entire range of speeds and loads, VGT allows for lower exhaust gas temperatures, which helps reduce the formation of nitrogen oxides (NOx), a major pollutant in automotive emissions. This is crucial in meeting the increasingly stringent emission standards set by regulatory authorities worldwide, such as the Euro 6 and U.S. EPA standards. The ability to reduce NOx emissions without sacrificing power makes VGT an attractive option for manufacturers aiming to comply with these regulations while maintaining vehicle performance. Furthermore, VGT contributes to enhanced power delivery, providing more responsive acceleration and a smoother driving experience. The ability to adjust the turbine’s geometry allows the turbocharger to optimize boost pressure according to the engine’s demand, ensuring that the engine has sufficient power available at all times. This results in improved drivability, particularly for vehicles with smaller engines, as the turbocharger compensates for the inherent lack of displacement by increasing power output when needed.

The passenger vehicle segment is leading in the global automotive turbocharger industry due to the increasing demand for fuel-efficient and high-performance vehicles.

As fuel prices continue to fluctuate and environmental concerns become more pronounced, consumers are seeking vehicles that offer better fuel economy without compromising on performance. Turbochargers play a crucial role in achieving this balance by allowing smaller engines to produce more power, thereby improving fuel efficiency and reducing emissions. Stringent emission regulations imposed by governments worldwide have also significantly contributed to the adoption of turbochargers in passenger vehicles. Regulatory bodies in regions such as Europe, North America, and Asia-Pacific have implemented strict emission standards to curb the release of harmful pollutants from vehicles.

Turbochargers help manufacturers meet these regulations by enhancing the combustion efficiency of engines, which in turn reduces the amount of harmful emissions produced. This has led to a widespread adoption of turbocharged engines in passenger vehicles as automakers strive to comply with these stringent standards. The growing trend of downsizing engines in passenger vehicles is another factor driving the demand for turbochargers. Automakers are increasingly opting for smaller, turbocharged engines to replace larger, naturally aspirated ones. This trend is driven by the need to reduce vehicle weight and improve fuel efficiency without sacrificing power and performance. Turbochargers enable smaller engines to deliver the same or even greater power output as larger engines, making them an attractive option for manufacturers looking to meet consumer demands and regulatory requirements. The rise of hybrid and electric vehicles has also contributed to the growth of the turbocharger market in the passenger vehicle segment. Hybrid vehicles, which combine an internal combustion engine with an electric motor, often use turbocharged engines to maximize efficiency and performance.

Diesel fuel type is leading in the global automotive turbocharger industry due to its inherent efficiency and higher torque output, which are significantly enhanced by turbocharging.

The prominence of diesel fuel in the global automotive turbocharger industry can be attributed to several key factors that collectively underscore its suitability for turbocharging. Diesel engines are inherently more efficient than their gasoline counterparts, primarily due to the higher energy density of diesel fuel and the engine's compression ignition process. This efficiency is further amplified by the use of turbochargers, which enhance the engine's power output and fuel economy. Turbocharging works by forcing more air into the combustion chamber, allowing for a greater amount of fuel to be burned more efficiently.

This results in a significant increase in power and torque, which is particularly beneficial for heavy-duty vehicles and applications that require substantial pulling power and endurance. The durability and longevity of diesel engines also contribute to their dominance in the turbocharger market. Diesel engines are built to withstand higher levels of stress and pressure, which is essential for turbocharged applications. The robust construction of diesel engines allows them to handle the increased power and heat generated by turbocharging, ensuring reliable performance over extended periods. This durability is particularly important for commercial and industrial vehicles that operate under demanding conditions and require engines that can deliver consistent performance without frequent maintenance. Moreover, the global push towards reducing carbon emissions and improving fuel efficiency has further bolstered the adoption of turbocharged diesel engines. Governments and regulatory bodies worldwide have implemented stringent emission standards to curb the release of harmful pollutants from vehicles. Turbochargers help diesel engines meet these regulations by improving combustion efficiency and reducing the amount of unburned fuel and particulate matter in the exhaust. This has led to a widespread adoption of turbocharged diesel engines as automakers strive to comply with these environmental standards while maintaining performance and efficiency.

The Original Equipment Manufacturer (OEM) sales channel is leading in the global automotive turbocharger industry due to the direct integration of turbochargers into new vehicles by automakers, ensuring compatibility, reliability, and compliance with stringent emission regulations, which drives the demand for OEM turbochargers.

The dominance of the Original Equipment Manufacturer (OEM) sales channel in the global automotive turbocharger industry is a result of several key factors that collectively underscore its importance and effectiveness. OEMs are responsible for the direct integration of turbochargers into new vehicles during the manufacturing process. This integration ensures that the turbochargers are perfectly compatible with the vehicle's engine and other components, providing a seamless and reliable performance. Automakers prefer OEM turbochargers because they are designed and tested to meet the specific requirements of each vehicle model, ensuring optimal performance, durability, and compliance with stringent emission regulations.

Governments and regulatory bodies worldwide have implemented stringent emission standards to reduce the environmental impact of vehicles. Turbochargers play a crucial role in helping automakers meet these regulations by improving the combustion efficiency of engines, reducing the amount of harmful emissions produced. OEM turbochargers are specifically designed to work with the vehicle's engine and emission control systems, ensuring compliance with these regulations. This makes them an attractive option for automakers looking to meet regulatory requirements while maintaining performance and fuel efficiency.The growing trend of engine downsizing is another factor driving the demand for OEM turbochargers. Automakers are increasingly opting for smaller, turbocharged engines to replace larger, naturally aspirated ones. This trend is driven by the need to reduce vehicle weight and improve fuel efficiency without sacrificing power and performance. OEM turbochargers enable smaller engines to deliver the same or even greater power output as larger engines, making them an attractive option for automakers looking to meet consumer demands and regulatory requirements.

Asia-Pacific is leading in the global automotive turbocharger industry due to the region's rapid economic growth, increasing vehicle production, and stringent emission regulations, which drive the demand for fuel-efficient and high-performance vehicles equipped with turbochargers.

The Asia-Pacific region's dominance in the global automotive turbocharger industry can be attributed to several key factors that collectively create a favorable environment for the adoption and growth of turbochargers. As more people in these countries can afford to purchase vehicles, the demand for automobiles has skyrocketed, driving the need for advanced technologies like turbochargers that enhance vehicle performance and fuel efficiency. China, in particular, plays a significant role in the Asia-Pacific automotive turbocharger market. As the world's largest producer of passenger cars, China accounts for a substantial share of global vehicle production.

In 2020, China produced approximately 21.4 million passenger cars, representing nearly 30% of the world's total vehicle production. This massive production capacity creates a substantial demand for turbochargers, as automakers seek to equip their vehicles with technologies that improve performance and meet consumer expectations. Another critical factor contributing to the region's leadership in the turbocharger industry is the implementation of stringent emission regulations. Governments across Asia-Pacific are increasingly focused on reducing air pollution and greenhouse gas emissions, leading to the adoption of strict emission standards. Countries like China and India have introduced rigorous regulations that require automakers to produce vehicles with lower emissions and higher fuel efficiency. Turbochargers play a crucial role in helping manufacturers meet these standards by improving the combustion efficiency of engines, reducing the amount of harmful pollutants released into the atmosphere. This regulatory push has accelerated the adoption of turbochargers in the region, as automakers strive to comply with these environmental requirements.

• April 2022: Daimler Trucks announced that the third generation of its OM 471 heavy-duty engine is now available to order and available from October 2022. With the third generation of the OM 471, Mercedes-Benz Trucks is introducing two new turbochargers developed and manufactured in-house. The second turbocharger variant has an engine rating of up to 390 kW (530 hp).
• March 2022: Mercedes-Benz announced the launch of sales of its new Mercedes-AMG C 43 4MATIC with a price starting at EUR 71,460 for the Saloon and EUR 73,245 for the Estate. In this completely redeveloped model performance of the agile, 300 kW (408 hp) AMG engine is enhanced by an electric exhaust gas turbocharger. The belt-driven starter generator (RSG) offers an additional short-term boost of 10 kW (14 hp) in certain driving situations.
• In June 2021, MAN Energy Solutions and Rolls-Royce signed a strategic partnership agreement that will see MAN's PBST brand distribute state-of-the-art mtu turbochargers. With this partnership, the companies combine their competencies, such as Rolls-Royce's latest high-efficiency mtu turbocharger technology for high-speed diesel and gas engines and PBST’s global sales structure for turbochargers.
• In January 2021, ABB Turbocharging, Hyundai Heavy Industry’s Engine & Machinery Division (HHI-EMD), and Hyundai Global Service (HGS) has established a ‘total service solution’ for Hyundai & ABB customers. The solution delivers optimal efficiency and emissions performance across the entire vessel. Under the agreement, HGS will be able to access ABB’s global network of turbocharging service stations.
• In April 2021, BorgWarner Inc. announced an extension of its offering by introducing three new BorgWarner turbochargers for passenger car applications. The newly launched turbochargers are for Opel, BMW, and Peugeot
• In November 2020, Continental extended its line of turbochargers for the aftermarket. The company is offering turbochargers for numerous models of premium brands such as MINI, BMW, and Volkswagen Group.

Considered in this report

• Geography: Global
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Global Automotive Turbocharger market with its value and forecast along with its segments
• Region-wise automotive turbocharger market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology Type

• Variable Geometry Turbocharger
• Wastegate Turbocharger
• Electric Turbocharger

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Fuel Type

• Gasolin
• Diesel

By Sales Channel

• Original Equipment Manufacturer
• Aftermarket

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to automotive turbocharger industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

This product will be delivered within 2 business days.