Automotive Charge Air Cooler (CAC) has been used on turbocharged and supercharged engines. They are designed to cool down the heated intake air that comes from the compressor or turbocharger. It is also used in various applications such as HVAC, automotive, and several other industrial cooling. The turbocharged engine in automotive produces hot air which on entry into combustor reduces engine efficiency. CAC is used before after the turbocharger to reduce the air inlet temperature thereby increasing air density and higher engine efficiency. CAC evolved as an integral part of any turbocharged automotive engine across cars, LCVs, and HCVs. The global automotive charge air cooler market valued USD XX million in 2021 and is estimated to reach USD XX million by 2028, growing at a CAGR of 8.7%
The rise in demand for fuel-efficient vehicles
The rise in demand for fuel-efficient vehicles coupled with an increase in emphasis on emission standards to minimize carbon emission is projected to boost the demand for automotive charge air coolers during the forecast period. At present, small and compact cars constitute over 61 per cent of the total monthly sales of passenger vehicles. It is expected that this could go up to 70 per cent over the next two years as fuel prices go up further. Moreover, the current growth trend of vehicles has been prominently influenced by the increasing air pollution due to fuel emissions across all the regions of the globe. Advancements in autonomous technology amalgamate innovations in the automotive charge air cooler, and NGVs (Natural Gas Vehicles) have become a tool for a consumer as well as a marketer to reduce and suppress fuel emission which is likely to boost the market growth. As crude prices tend to go upward in the long term, there will be greater movement of car buyers to more fuel-efficient cars. That was primarily on account of several new launches in the recent past.
Furthermore, an increase in production of passenger vehicles in developing countries, such as India and Brazil, owing to the enhanced spending power of consumers in these countries, along with better availability of car loans are anticipated to drive the automotive charge air cooler market during the forecast period.
However, the rising demand for Electric vehicles (EVs) at a fast pace reduces the dependence of consumers on gasoline/diesel-based automobiles resulting in low demand for automotive charge air coolers.
Air to Air CAC is dominating the market with compact design and economic operation
The global automotive charge air cooler market has been segmented by product type into air-to-air CAC and air-to-liquid CAC. Air to air type is leading in the global automotive industry owing to its simple design and engine installation over its counterpart. This system uses forced air to cool the hot turbocharged air before it enters the combustion chamber. It usually uses ambient air sucked through the front grill of the automotive and are designed to be front-mounted for this reason
The air-to-air charge air cooler market is estimated to grow at a CAGR of 8.55% during the forecast period (2020-2027) to reach a market value of USD XX million by 2027. Air to air charge air cooler segment is holding a share of over 70% in the global automotive charge air cooler market in 2019
Asia Pacific is all set to top the CAC market by 2023
By geography, Europe is dominating the global automotive CAC market, accounting for over 40% of the global sales revenue in 2019. Europe has been the production hub for premium cars with the likes of BMW, Mercedes-Benz, and several other automakers having major production activities in the region. Europe has been at the forefront of integrating the latest engine boosting technologies into some of the world's most advanced and fuel-efficient powertrains. In Europe, where more than 50 per cent of all new passenger cars already benefit from engine boosting, turbodiesels will remain the overriding powertrain of choice.
The Asia Pacific is estimated to witness the highest growth of 11% over the forecast period and evolve as the largest market for automotive CACs owing to increasing automotive production and growing penetration of turbo engine technology in light vehicles.
The global automotive charge air cooler market is highly fragmented with a large number of players operating in the production of CACs for automotive applications. The market competition is intense owing to high growth potential and technological advancements. The rising use of turbo engines and twin-turbo technology is likely to surge the need for CACs in automotives. The leading manufacturers of CACs are focusing on new product launched and product differentiation to gain a competitive edge in the market.
The major players operating in the industry are Bell Intercoolers, Forge Motorsport Inc., Garrett Motion Inc., Kale Oto Radyator, Mishimoto, Modine Manufacturing, MAHLE Gmbh, Valeo Group, and Marelli Holdings Co., Ltd among others. These companies are increasing research and development (R&D) projects to introduce innovative CAC technologies with improved functionality.
COVID-19 Impact: Halted automotive production and low aftermarket market led to a decline in the CAC market
The global automotive charge air cooler market has a hard hit from the spread of novel coronavirus in 2020. Lockdowns imposed in most of the major economies led to a decrease in sales of CACs significantly. Halt in automotive production, supply chain disruptions with freight challenges, and lowered demand from aftermarket services are all resulted in a decline in the market. Europe automotive CAC market is likely to decline by nearly 12% in terms of sales revenue. Leading German manufacturers shut down the majority of their products in Europe for at least two weeks with other OEMs closing for longer. Also, the closure of social activities led to reduced travelling, thereby declining aftermarket demand for CACs
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