Automotive Turbocharger Market

[316 Pages Report] The automotive turbocharger is projected to grow from USD 15.0 billion in 2023 to USD 22.2 billion by 2028, at a CAGR of 8.1%. The automotive turbocharger market is driven by decreasing emission limits and increased demand for high-performance vehicles. With the shift from diesel to gasoline in light-duty vehicles and growing vehicle hybridization, gasoline and electric turbochargers would be the future potential markets for turbocharger manufacturers.

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Market Dynamics

DRIVER: Stringent emission norms and increase in sales of gasoline passenger cars

There are various reasons for the decline in the growth of diesel engines. Some of them are rising fuel prices, rising global warming, and higher prices of diesel vehicles than petrol vehicles. In countries like India, South Korea, and Indonesia, diesel vehicles have witnessed a slowdown, whereas petrol engine demand has increased. Various emission norms such as Euro-6, China-VI, and PROCONVE P-8 have propelled the market for gasoline engines. This has accelerated the growth of passenger car turbochargers production and caused a less polluting environment.

RESTRAINT: Higher maintenance cost and more cooling oil requirements

Adding a turbocharger to the engine has its benefits, but the system tends to work more rigorously, resulting in wear and tear of the system. The turbocharger must withstand hot exhaust gases with temperatures as high as 1200°F. Hence, it becomes essential to circulate cooling oil as often as possible to keep the turbocharger cool. Thus, a turbocharged engine has a high maintenance cost due to the cooling oil requirement.

The replacement of turbos is also expensive. Poor maintenance of the turbochargers can lead to premature failures, which increases the load on engine cooling oil. However, advancements in water-cooled turbochargers will make them consumer friendly.

OPPORTUNITY: Development of electric turbochargers

Electric turbochargers offer more power and better fuel efficiency due to turbo lag elimination. Electric turbochargers combine a high-powered turbine and a motor-driven compressor, which operate as soon as the driver presses the pedal. Electric turbos offer various benefits and fewer technical challenges. Various major players, such as Garrett Motion Inc. (Switzerland), BorgWarner (US), and IHI Corporation (Japan), have been successful in launching their 48V e-turbos in the market. These e-turbos are fuel-efficient and offer better power output. Therefore, the demand for these turbochargers will be high in the coming years.

CHALLENGE: Turbo lag

Turbo lag is a major challenge with conventional turbochargers. Turbo lag is when a turbocharger takes to produce a positive pressure from when the exhaust gases hit the turbine blades. As there are frictional and thermal losses, it takes time for a turbocharger to generate enough pressure to suck the air in. If a turbocharger is not installed properly, it will also create leakages, worsening the turbo lag. Most diesel engines are equipped with conventional turbos, which have this lag.

Automotive Turbocharger Market Ecosystem.

The major OEMs of the automotive turbocharger market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the automotive turbocharger market are Garrett Motion Inc. (Honeywell) (Switzerland), BorgWarner Inc. (US), Mitsubishi Heavy Industry (Japan), and IHI Corporation (Japan).

Gasoline-powered vehicles are the largest application for automotive turbochargers.

Gasoline-powered vehicles in the passenger car segment have the largest market share, which has grown due to reduced emission limits in new emission regulations. Currently, Euro 6d went into effect in January 2020 and applies to all new vehicles sold in Europe, setting NOx: 80 mg/km for petrol vehicles and 114.4 mg/km for diesel vehicles, and Particulate Matter: 0.0045 g/km for petrol vehicles and 0.005 g/km for diesel vehicles. Soon these will be replaced by the Euro 7 standards in July 2025. To achieve the emission limits, most of the vehicles are equipped with GDI and are also turbocharged.

The automakers in the Asia Pacific region are also adopting the new technologies of turbochargers such as Toyota (Japan), Honda (Japan), Hyundai (South Korea), Mitsubishi (Japan), and Nissan (Japan) have been using turbocharging technology in some of the gasoline engines to improve the performance and fuel efficiency of the vehicles.

Cast iron will dominate the Automotive Turbocharger Material market.

Cast iron can withstand high temperatures up to 900°C, a popular material used for the turbine housing and intake and exhaust manifold in many turbochargers because of its ability to withstand high temperatures and its durability. This cast iron finds its application mostly in the turbine housing. Mitsubishi Heavy Industries (MHI) provides turbine housings made of cast iron, which can withstand an allowable temperature of 700°C, and austenitic stainless cast steel that resists temperatures exceeding 1,000°C. The models offered by Ford, for instance, the F-Series Super Duty (line of heavy-duty pick-up trucks), use turbocharged diesel engines with cast iron turbine housings. Considering all the factors and importance, cast iron is assumed to dominate the material type segment in the automotive turbocharger market.

North America is the fastest-growing aftermarket for automotive turbochargers.

The growth of turbochargers in the North American aftermarket is mainly due to increasing demand for high-performance vehicles and the need to meet the fuel economy and emissions standards set by the Environmental Protection Agency (EPA). Other factors impacting this aftermarket turbocharger growth include increasing average vehicle life, changing consumer preferences for high-power vehicles, and replacement/maintenance awareness in Europe and North America. North America also holds the largest market for LCVs in the world due to the high sales of pick-up trucks in the US. However, North American LCVs are mostly gasoline-powered, which is the key reason for the low penetration of turbochargers. However, the North American LCVs may create new opportunities in the turbocharger aftermarket as operators and owners seek ways to improve vehicle performance and efficiency.

The LCV segment is projected as the fastest growing automotive turbocharger market.

LCVs with small-scale businesses or in urban areas mainly prefer diesel engines due to their high engine performance and adequate torque in the vehicle. Turbochargers are becoming more common in LCVs because they offer several advantages, including improved fuel efficiency, increased power, and reduced emissions. According to the AECC, the leading countries in the sales of diesel-based LCVs are China, with 1.5 million units, and India, with 500 thousand units in which Diesel turbocharged LCV sales volume in the Asia Pacific region is expected to reach 2.5 million units by 2025 with a CAGR of 6.5% from 2020 to 2025. The demand for LCVs is rising due to growing urbanization in Asia Pacific. People are more likely to use LCVs for logistics and transportation as they move into cities. The growing e-commerce sector is also contributing to the growth of the LCV market. E-commerce companies use LCVs to deliver goods to customers, which drives demand for LCVs.

Key Market Players

The automotive turbocharger market is consolidated. Garrett Motion Inc. (Honeywell), BorgWarner, IHI Corporation, MHI, and Cummins Inc. are the key companies operating in the automotive turbocharger market. These companies adopted new product launches, partnerships, and joint ventures to gain traction in the automotive turbocharger market.

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Scope of the Report

Recent Developments

• In May 2022, Garrett Motion Inc (Honeywell) launched TR25R, TR30R, AND TR35R, the new housings made of titanium and had a water-cooled function for efficient working and maximum protection.
• In April 2022, Garrett Motion Inc. (Honeywell) launched Next-Generation E-Boosting Technologies in an auto expo held in Shanghai, which will be used for hybrid fuel cell vehicles to increase fuel economy and reduce exhaust emissions.
• In May 2021, Cummins Inc. launched the HOLSET M turbocharger specially designed for heavy-duty and off-highway applications. It features a range of sizes and configurations to meet the needs of different applications.
• In October 2020, BorgWarner Inc. showcased their S410, an upgraded version of the S410 turbocharger for the Mercedes-Benz Novo Actros extra heavy truck.
• In March 2020, Cummins Inc. launched HOLSET HE200, a variable geometry turbocharger designed and developed for all small engines used in building passenger cars and light-duty trucks. It features a variable geometry turbine for improvising the responsiveness and efficiency of the engines.

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