Growing passenger car production featured with turbo engines

Global vehicle ownership per capita in 2010 was 148 vehicles in operation per 1000 people. The United States has the largest fleet of motor vehicles globally, with 239.8 million by 2010. China has the second-largest automobile fleet in the world, with slightly more. The automotive industry has been experiencing steady growth in the demand for and sales of passenger and commercial vehicles. The gradual shift from transportation to comfortable/convenient transportation and convenient transportation to luxurious and safe transportation has propelled the companies to produce turbo engine vehicles. Globalization and commercialization further helped increase connectivity and broaden the overall automotive industry's presence of luxury vehicles in the market. With the growing company of international automobile manufacturers and brands, and the consumers’ ability to purchase new cars and maintain those, the consumers have been willing to buy more than one passenger car to suit their various daily needs and travel purposes. The increasing domestic demand and the increasing flow of investments in the passenger car segment will propel the forecast period's market growth.

Heavy investment into R&D & modernization will create new opportunities for the automotive charge air cooler market in the forecast period. The automotive manufacturers are making heavy investments into R&D to develop a technology that will improve the vehicle's efficiency. Also, the rapid increase in passenger and commercial vehicles sale is a new opportunity for market growth. Besides, an increase in environmental concerns is fueling the demand for thermoelectric generators in the vehicle, which is expected to enhance engine efficiency. This, in turn, is projected to boost the automotive charge air cooler market across the globe.

Various governments worldwide have enacted stringent regulations about vehicle emissions, which is likely to be an opportunity for the market across the globe. Moreover,  the development of the all-nylon charge air cooler for automotive applications is further creating a new opportunity for market growth. The preliminary experimental results of an all-nylon charge air cooler development for automotive application are presented. The results achieved during the project deployment in terms of performance comparison between metal and nylon charge air coolers are reported. Significant market opportunities, such as the integration of telematics services, are expected to drive the market. Telematics and connectivity are revolutionizing operations, owing to which numerous original equipment manufacturers (OEMs) have launched vehicles equipped with several connected services. Connected vehicles provide numerous benefits, including enhanced safety and preventing unauthorized access to cars, thereby avoiding vehicle abuse and wear and tear. 

The global automotive charge air cooler market has witnessed a negative impact on the product demand in recent months due to the lockdowns imposed in most countries due to the outbreak of COVID-19. Global economies have contracted by 5% to as much as 20% during the first half of 2020. The international trade volumes are projected to decline between 13% and 32% in 2020 due to the novel coronavirus. With limited room to cut fixed costs, some OEMs have low liquidity to power through a long period of missing revenues. The automotive charge air cooler market is mostly dependent on OEMs. Due to the recent lockdowns, the automotive production facilities are closed, resulting in lower demand for charger air coolers in automotive OEMs. The market is also witnessing a decline in aftermarket demand. Low vehicle travel coupled with the reduced outing, close racing, and sports activities, and several other factors hampered the demand for automotive parts, including intercoolers. Supply chain disruptions are another key implication of the novel coronavirus on the charge air cooler market. Starting in China, suppliers around the globe placed production lines in quarantine or shut them down completely. Also, legal and trade restrictions, such as closed borders, increased the shortage of required parts and limited supplies distribution.

In China, almost 2/3 of auto production was directly affected by the shutdown, with an enormous impact on their suppliers.  Hubei province accounts for 9% of Chinese auto production, disrupting supply chains until operations recover. With factories operating at a fraction of capacity and medium and heavy commercial vehicles not delivering, ocean carriers canceled many routes. Effects boosted by legal and trade restrictions such as closed borders.

Leading German manufacturers shut down most of their products in Europe for at least two weeks, with other OEMs closing for longer. Other multinational automakers shut down the majority of their plants through the end of March.

An American multinational automaker announced a temporary closure of all plants in continental Europe. The majority of OEMs announced short-time work, overtime reduction, etc., for the production department. In many European countries, dealers have already stopped vehicle sales. Service is still open but also facing declining demand.

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