Automotive Turbocharger Market: Global Industry Analysis and Forecast (2024-2030)

The Automotive Turbocharger Market size was valued at USD 15.01 Billion in 2023 and the total Automotive Turbocharger Market revenue is expected to grow at a CAGR of 8.2 % from 2024 to 2030, reaching nearly USD 26.07 Billion.

Turbochargers have established themselves as a universal component in the automotive industry, primarily due to their ability to enhance the specific power output of internal combustion engines. The interchange between the turbine and compressor, regulating heat transfer, significantly influences the turbocharger's overall performance. In essence, turbochargers are pivotal in enhancing vehicular performance, necessitating continuous technological improvements. Leading players in the automotive turbocharger market are committed to enhancing the capabilities of next-generation turbochargers.To know about the Research Methodology :- Request Free Sample Report

The Automotive Turbocharger industry is experiencing robust growth, fuelled by automakers' recognition of the need for enhanced fuel efficiency and performance. This has prompted increased research and development efforts focused on turbocharger technology improvement. The global Automotive Turbocharger Market is highly fragmented, characterized by intricate technology and robust R&D requirements, which deter new entrants.

The popularity of next-generation turbochargers in automobiles drives the Automobile turbocharger Market demand due to their compact size, and deliver power akin to larger engines while consuming less fuel. For example, a naturally aspirated internal combustion engine producing 200 horsepower with six cylinders can be equalled by a turbocharged engine with just four cylinders. This fuel efficiency advantage is driving demand for the Automotive Turbocharger Market.

Turbocharged engines excel at high altitudes where lower air pressure can disrupt the air-to-fuel ratio. Forced induction by turbochargers allows these engines to maintain excellent performance in such challenging environments. Turbocharged engines emit fewer carbon dioxide and other harmful emissions compared to naturally aspirated counterparts. This eco-friendly attribute aligns with the growing concern for environmental impact, contributing to the Automotive Turbocharger Industry's growth and creating opportunities for automotive turbocharger manufacturers.

In 2001, only 1% of newly manufactured cars came equipped with turbochargers. However, by 2019, over one-third of light-duty vehicles were pre-fitted with turbochargers. Predictions indicate that turbochargers will be standard in approximately 70% of newly manufactured vehicles in the near future. This Automotive Turbocharger Market trend extends beyond the United States, as countries like China and India have also witnessed a surge in turbocharger adoption.

In August 2021, BorgWarner inked a global agreement with a prominent European OEM to supply its eTurbo—an electric turbocharger designed for high-voltage hybrid passenger vehicles. This innovative electric boosting technology is anticipated to bolster fuel economy and performance while aiding compliance with stringent pollution regulations. This marks the first application of BorgWarner's electrically assisted turbocharger in a high-voltage hybrid car. Sales of turbochargers for light vehicles constituted around 24% of BorgWarner's total sales in 2020.

The report covered a detailed analysis of the Automotive Turbocharger Market organized as well as unorganized players by region, government regulation impact on Automotive Turbocharger Market growth, Innovation in Response to Fuel Economy Regulation, technological development, Competitive developments, investments, strategic expansion and demand-supply analysis of Automotive Turbocharger Market.

Competitive landscape

In the competitive landscape of the Automotive Turbocharger Industry, BorgWarner stands as a prominent innovator, boasting an impressive portfolio of 423 filed patents. Their offerings for light vehicles encompass cutting-edge technologies such as the regulated two-stage (R2S®) turbocharging system and advanced turbine geometry (VTG) turbochargers. The VTG turbochargers excel in precise adjustment to engine operative points, thanks to adjustable, electrically actuated vanes controlling turbine pressure. This results in nearly rapid acceleration and optimal power output. Noteworthy competitors include Porsche, Mitsubishi, Honeywell International, IHI, and Toyota, all of which have made significant patent filings in the field of the Automotive Turbocharger Market. Garrett Advancing Motion, formerly known as Honeywell Turbo Technologies, is the market leader, closely followed by BorgWarner, and together, they command a substantial 65% share of the global Automotive Turbocharger Market.
Total Number Of Patent Volumes In Vehicle Turbochargers (2010-2021)


BorgWarner has taken strategic steps to enhance cost efficiency and product differentiation by consolidating its EGR and Turbo business. Additionally, they have collaborated with two European OEMs to develop an E-turbo, set to be launched between 2023 and 2024. Garrett, on the other hand, observed a surge in the adoption of gasoline turbochargers in China during Q2 and Q3 of 2020, driven by new product launches. However, sales volumes in Europe and the Americas remained sluggish, especially in the diesel turbo segment. All of Garrett's GTX model plants resumed production in May 2020, and they have a significant role in Mercedes-AMG's forthcoming hybrid powertrain featuring Garrett's E-Turbo.

A notable trend is the continuous outpacing of turbocharger penetration compared to global auto production. In 2019, Garrett experienced significant growth in its gasoline turbocharger business, driven by increased uptake of gasoline engines and a decline in diesel engines. In anticipation of potential declines in internal combustion engine (ICE) vehicle sales, Garrett has developed a fuel cell compressor adaptable to various fuel cell-based transport applications. As original equipment manufacturers (OEMs) intensify their electrification efforts, turbocharger suppliers must diversify their offerings to include E-Boosting technology. This adjustment aligns with the ongoing trend toward vehicle electrification.

IHI Corporation, formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd, emerges as another top-tier turbocharger manufacturer from Japan, securing its place among the top three in the industry. Mitsubishi Heavy Industries and Cummins Turbo Technologies are also prominent players in this competitive arena. Furthermore, South Korea-based Hyundai-WIA contributes by supplying turbochargers for various Hyundai models, though they faced a 10% decline in sales in 2020 compared to the previous year. Cummins' Turbo Technologies experienced a $120 million decrease in sales, primarily due to reduced demand in North America and Western Europe, partially offset by increased demand in China. These shifts reflect the ever-evolving dynamics of the global vehicle turbocharger market. The report covered the detailed analysis of key Automotive Turbocharger Market players' competition and patent analysis in detailed
Automotive Turbocharger Market Dynamics:
Leading innovation and development in vehicle turbochargers for the automotive industry

As the automotive industry undergoes a profound shift toward more sustainable transportation methods, the utilization of turbochargers as an Automotive Turbocharger Market driver for enhancing engine efficiency and performance has gained remarkable significance. Turbochargers, a technology with nearly a century of history, have evolved considerably since their inception. However, in the face of emerging technologies and evolving consumer preferences, the future prospects for turbochargers are more promising than ever. One ground-breaking development is the introduction of electric turbochargers, commonly referred to as e-turbochargers or superchargers, which drive the Automotive Turbocharger Market demand. Unlike traditional turbochargers relying on exhaust gases, electric turbochargers employ an electric motor to spin the compressor wheel. This innovative approach offers an immediate boost at lower engine speeds, effectively mitigating turbo lag and enhancing engine responsiveness. Consequently, this advancement translates into improved acceleration and fuel efficiency.

An illustrative example of this market-driving technology shift can be found in Mercedes-AMG's announcement in June 2020. They unveiled new electric turbocharger technology, initially developed for Mercedes' Formula 1 engine by AMG's High-Performance Powertrain division. This technology is poised to replace the exhaust-driven turbo setups currently employed in AMG's 2.0-liter four-cylinder and 4.0-liter V8 engines.

Further underlining the significance of turbocharging technology, Garrett Motion Inc., a pioneering force in the automotive industry, showcased an array of advanced technologies at Auto Shanghai 2023. Their portfolio encompasses variable nozzle turbines (VNT), double-axle VNTs (DAVNT), and wastegate turbo technologies, all aimed at amplifying power density and augmenting fuel economy for both gasoline and diesel applications across passenger and commercial vehicles. Notably, VNT turbos for gasoline engines cater to the specific boost requirements of Miller-cycle engines, promising a 5 to 10 percent enhancement in fuel economy while reducing emissions. This technology is particularly beneficial for the burgeoning plug-in hybrid vehicle (PHEVs) sector in China Automotive turbocharger Market.

A prime example of VGT implementation can be found in the 2022 Ford F-150 Raptor, which features a redesigned VGT system. This system employs electronically controlled vanes that adjust exhaust gas flow to the turbine wheel based on engine speed and load, ultimately enhancing low-end torque and high-end power delivery.

Lastly, twin-scroll turbochargers have emerged as an influential technology, employing two separate exhaust gas inlets and turbine scrolls to streamline exhaust gas flow and diminish turbo lag. This design separates exhaust gas pulses from different cylinders, enabling the turbocharger to spool up rapidly and reduce the time needed to generate boost pressure.

The BMW X3 M, introduced in 2019, is a notable example equipped with a twin-scroll turbocharger system. This system significantly enhances engine response and reduces turbo lag, contributing to the vehicle's impressive performance. Powered by a 3.0-liter inline-six engine producing 473 horsepower and 442 lb-ft of torque, the twin-scroll turbocharger system ensures superior low-end torque, throttle response, and increased power output across the entire rpm range.

Turbocharged Innovations and Hybrid Advancements Shaping the Future of the Automotive Industry

The automotive industry is currently developed with promising Automotive Turbocharger Market opportunities, driven by technological advancements and innovations from industry giants like BorgWarner and Cummins. BorgWarner's upgraded S410 turbocharger tailored for the Mercedes-Benz Novo Actros extra heavy truck presents a notable opportunity. This turbocharger, compatible with the OM 460 engine in various power versions, ranging from 450HP to 510HP, offers improved compressor efficiency, reduced air compression temperature, and enhanced fuel consumption.

This innovation not only elevates engine performance but also addresses fuel efficiency concerns, aligning with the industry's focus on sustainability. Cummins, on the other hand, introduces a range of turbochargers, Series 800 Holset, catering to engines spanning from 15L to 28L, with the capability to be paired with additional turbochargers for engines up to 100L. This versatile solution, featuring a thin-walled stainless-steel compressor cover, augments engine capabilities without adding weight or occupying excessive space. Moreover, Cummins' 7th generation 400 series Variable Geometry Turbocharger (VGT) turbos target both on-highway heavy-duty and medium-duty engines, promising a 5% boost in turbocharger efficiency. These advancements present substantial market opportunities in enhancing engine performance across various vehicle segments.

BorgWarner's expansion of its compact Model B01 turbo to the Volkswagen Nivus crossover in the Brazilian market is yet another avenue. The B01 turbocharger, engineered with advanced materials and technologies, withstands high exhaust temperatures, up to 1,050⁰C, while contributing to reduced vehicle emissions. This expansion signifies the potential for environmental solutions in emerging markets, aligning with global sustainability goals. Furthermore, BorgWarner's breakthrough in regulated 2 stage (R2S) turbocharging systems with four turbochargers, integrated with BMW's 3.0L diesel engine, underscores a ground-breaking market opportunity. This innovative system offers enhanced engine efficiency and performance, indicating the potential for collaboration between automotive giants to drive technological advancements and meet evolving industry demands.

Lastly, BorgWarner's delivery of twin-scroll turbochargers to BMW for its 3.0L inline 6-cylinder petrol engine exemplifies the market potential in providing cutting-edge solutions to premium automakers. These turbochargers enhance engine performance and fuel efficiency, contributing to the demand for high-performance vehicles. Notably, BorgWarner's announcement of supplying variable turbine geometry (VTG) turbochargers for a global OEM's 1.0-liter gasoline engines opens up an exciting market opportunity. These turbochargers offer essential boost pressures while reducing emissions, showcasing their relevance in addressing environmental concerns. The ability to endure high exhaust gas temperatures further solidifies their appeal.

1.In November 2021, Kia unveiled its exciting new addition, the Kia Sportage Hybrid, scheduled to make its debut at the 2023 LA Auto Show. This innovative vehicle boasts a hybrid powertrain that combines a 1.6-liter turbocharged engine with a 44kW electric motor, promising a blend of performance and efficiency.

2.Moving back to September 2021, Volkswagen made waves with its announcement of the upcoming 2022 Jetta, featuring an upgraded EA211 turbo engine. With an increased displacement of 1.5 liters, this enhanced engine delivers a boost in horsepower from 147 to 158, setting the stage for an even more exhilarating driving experience.

3.In the same month, Jeep revealed its plans for the 2022 market, starting with the launch of the Jeep Grand Cherokee in North America, followed by a global release later in the year. This impressive vehicle incorporates a 400-volt battery and is powered by a 2.0-liter turbocharged four-cylinder engine, marking a significant step in the evolution of Jeep's offerings

Government Regulations and Fuel Efficiency Drive Turbocharger Market Growth Worldwide

Government regulations pertaining to the use of turbochargers, and market shares of the players operating in the industry. The government is promoting the use of automobiles around the world through various projects and incentives. In order to strengthen the automotive industry, the government is also investing in research. In the following years, the move from BS-IV to BS-VI emission standards is expected to improve automotive vehicle production and sales. In 2025, the automotive industry in the United States will find itself driven by stringent fuel efficiency standards set by government regulations. These standards aim for an ambitious target goal of 87.71 kilometers per hour (kph), reflecting a visionary approach to reducing the nation's dependence on foreign oil. To create a more sustainable future by substantially improving fuel efficiency. By the middle of the next decade, the United States aims to achieve a fuel efficiency of nearly 55 miles per gallon, nearly doubling the current standards.

This monumental shift is expected to bolster the nation's energy security, provide economic benefits to middle-class families, and foster an economy built on sustainable principles to drive the Automotive Turbocharger market demand. At the forefront of this drive for increased fuel efficiency are turbochargers. These innovative devices harness the otherwise wasted exhaust heat, converting it into valuable mechanical energy that forces additional air into the internal combustion engine's reaction chamber. The result is a significant enhancement in engine power output per unit of fuel consumed. In practical terms, turbochargers enable smaller engines to produce the same power output as larger engines without this technology. This transformative capability extends beyond the realm of automobiles and is equally applicable to various combustion engines, including those used in boating and locomotive applications.

Beyond the United States, similar initiatives are underway worldwide to address environmental concerns and promote fuel efficiency. In Europe, for example, the latest emission standard in place is Euro 6d, introduced by the European Union in January 2021. This standard sets strict limits on various emissions, including hydrocarbons (HCs), carbon monoxide (CO), nitrogen oxides (NOx), particulate number (PN), and particulate matter (PM) released into the atmosphere from vehicle exhausts. To meet Euro 6d standards, vehicles must be equipped with advanced exhaust after-treatment systems, such as selective catalytic reduction (SCR) and diesel particulate filters (DPFs). Additionally, these vehicles must feature on-board diagnostic systems that continuously monitor the performance of their emission control systems.
On a global scale, the automotive industry is evolving to embrace these fuel efficiency standards, leveraging technologies like turbochargers and advanced emissions control systems. These innovations represent the industry's commitment to environmental sustainability and energy efficiency, driving the development of cleaner and more economical vehicles for the future.

Turbo Lag and Installation Risks Pose Significant Market Restraints for Turbocharger Systems

Turbo lag represents a significant market restrain that affects virtually every automobile equipped with a turbocharger system. It is characterized by the delay experienced in generating sufficient pressure within the vehicle's combustion chamber before realizing the full potential of the vehicle's performance. The meticulous timing required in racing scenarios is essential to evade untimely turbo lag, which can potentially result in loss of control, especially when negotiating tight corners where tire grip is already compromised. Inadequate installation of turbocharger systems can inflict severe harm on the engine to which they are affixed. Turbochargers are typically evaluated based on their air delivery capacity, denoted in pounds per square inch (PSI). For most cars and trucks, achieving additional power and minor tuning within the range of five to seven PSI is the optimal operational window. However, venturing into the eight to 12 PSI range necessitates reinforced internal components, such as a robust valve train and specialized pistons.

Turbochargers operating above 12 PSI often mandate professional engine modifications to safeguard the engine block and its internal constituents from substantial damage. In certain cases, even meticulously installed and tuned turbocharger systems, if driven carelessly, may fail catastrophically, resulting in irreversible engine damage.

Furthermore, a turbocharger employed without an intercooler can generate excessive heat within the vehicle's engine compartment. This elevated heat can lead to overheating-related breakdowns, the melting of critical plastic engine components, and in extreme cases, even fires. The incorporation of an intercooler can mitigate this issue, albeit at an additional cost that might not always be included as part of the turbocharger system. Intercooler systems are not consistently bundled in kit form with the turbocharger, further adding to the financial burden. Another market challenge arises from the fact that installing an aftermarket turbocharger on a vehicle still under the manufacturer's warranty can result in the complete invalidation of that warranty. Turbochargers are typically considered off-road racing equipment, and most vehicles are not originally designed to accommodate them. Consequently, any damage to the vehicle attributable to the turbocharger would require out-of-pocket expenses for repairs, as warranty coverage would be nullified

Automotive Turbocharger Market Segments

By Fuel Type, Based on market segment Gasoline is expected to dominate the Automotive Turbocharger Market during the forecast period. The market for turbochargers is experiencing robust growth, driven by several key factors. Firstly, there is a surging demand for fuel-efficient vehicles, and turbochargers have emerged as a pivotal solution in this regard. They offer superior fuel economy and performance compared to naturally aspirated engines, making them increasingly attractive to consumers, particularly in the passenger car segment. Furthermore, the imposition of stringent emission norms has accelerated the adoption of turbochargers as they contribute to reduced emissions. Notably, major original equipment manufacturers (OEMs) such as BMW, Mercedes-Benz, Audi, and Porsche are making concerted efforts to strike a balance between fuel economy and high performance. This strategic focus is expected to boost the demand for aftermarket turbochargers in the foreseeable future.
Number of cars sold worldwide from 2010 to 2022(in million units)
Another significant market driver is the growing popularity of diesel engines in developed countries. This shift has prompted consumers to consider gasoline engines equipped with turbochargers as aftermarket add-on devices. Turbochargers have garnered attention from sports car enthusiasts who seek enhanced vehicle performance without resorting to costly modifications or engine rebuilds. These devices elevate horsepower and torque while minimizing exhaust backpressure, making them a favored choice among tuner car owners worldwide. Moreover, turbochargers also enhance efficiency by increasing airflow density, resulting in reduced fuel consumption compared to their naturally aspirated counterparts. This advantage extends across various vehicle types, encompassing passenger cars and light commercial vehicles (LCVs). In sum, the market for turbochargers is being propelled by the collective forces of fuel efficiency, emission regulations, OEM strategies, and consumer preferences for enhanced performance, making it a dynamic and promising sector within the automotive industry.
Automotive Turbocharger Market Regional Insights:
North America is expected to dominate the Automotive Turbocharger Market during the forecast period. U.S. held the largest market share in 2023. The continued growth of turbocharging technologies will be driven by requirements for manufacturers to meet End user's towing requirements and not global environmental regulations. The downsizing of engines in the industry has been going on for the past 11 years. This results in a shift from large naturally aspirated engines to smaller turbocharged ones in less than 3L engine segments. Many V6 and V8 engines powering pickups continue to remain naturally aspirated though. Ford with 56% turbo penetration leads the market in US. GM has about 40% penetration. FCA (Fiat Chrysler Automobiles) with 10% penetration is the least among the leading OEMs in the American Automotive Turbocharger Market.

1.Turbocharger import shipments in the United States stood at 26.7K, imported by 1,833 United States Importers from 2,480 Suppliers.

2.The United States imports most of its Turbocharger from China, India and Germany and is the 2nd largest importer of Turbocharger in the World.

3.The top 3 importers of Turbocharger are India with 132,564 shipments followed by the United States with 26,672 and Vietnam at the 3rd spot with 21,543 shipments.
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Global Automotive Turbocharger Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 15.01 Bn.


Forecast Period 2024 to 2030 CAGR:
8.2%
Market Size in 2030:
US $ 26.07 Bn.


 Segments Covered:
by Vehicle Type
LCV
HCV
Agricultural Machinery
Construction Machinery


by Fuel Type
Gasoline
Diesel


by Technology Type
Variable Geometry Turbocharger/ Variable Nozzle Turbine
Wastegate Turbocharger
Electric Turbocharger


by Sales Channel/Type
OEM
Replacement/Aftermarket



Automotive Turbocharger Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Automotive Turbocharger Market, Key Players are
1. Garrett Motion Inc. (Honeywell) (US)
2. BorgWarner Inc. (US)
3. Mitsubishi Heavy Industries (Japan)
4. IHI Corporation (Japan)
5. Bosch-Mahle Turbo Systems (BMTS) (Germany)
6. Cummins Inc. (US)
7. Voith Turbo (Germany)
8. Continental Automotive Systems (Germany)
9. Turbo Energy Limited (India)
10. Holset Engineering Company (UK)
11. Melett Turbochargers (UK)
12. BorgWarner Turbo Systems India (India)
13. Turbocharged Diesel Systems (TCD) (US)
14. Turbo Dynamics (US)
15. Precision Turbo & Engine (US)
16. Garrett Motion Aftermarket (US)
17. Turbo Systems International (TSI) (US)
18. ABB Turbocharging (Switzerland)
19. MAN Diesel & Turbo (Germany)
20. Napier Turbochargers (UK)
21. Honeywell Performance Materials & Technologies (US)
22. Melett North America (US)
23. turboLAB (Germany)

FAQs:

1. What are the growth drivers for the Automotive Turbocharger Market?
Ans. Stringent government regulations are expected to be the major driver for the Automotive Turbocharger Market.

2. What is the major restraint for the Automotive Turbocharger Market growth?
Ans. Turbo lag is expected to be the major restraining factor for the Automotive Turbocharger Market growth.

3. Which Region is expected to lead the global Automotive Turbocharger Market during the forecast period?
Ans. North America is expected to lead the global Automotive Turbocharger Market during the forecast period.

4. What is the projected Europe Automotive Turbocharger Market size & growth rate of the Automotive Turbocharger Market?
Ans. The Automotive Turbocharger Market size was valued at USD 15.01 Billion in 2023 and the total Anime revenue is expected to grow at a CAGR of 8.2% from 2024 to 2030, reaching nearly USD 26.07Billion.

5. What segments are covered in the Automotive Turbocharger Market report?
Ans. The segments covered in the Automotive Turbocharger Market report are Vehicle, Fuel, Technology and Region