Automotive Turbocharger Market Share Analysis, Demand, Trends, Growth, Value, Industry, Market Forecast (2024-2031)

Global Automotive Turbocharger Market is segmented By Turbo Charger (Exhaust gas turbocharger, Axial flow turbocharger, Radial flow turbocharger), By Technology Type(Variable geometry turbocharger, Waste gate, Twin turbocharger, Others), By Engine Type(Diesel engine, Gasoline engine), By Vehicle Type (Passenger car, Commercial vehicle, Heavy duty vehicle), By Sales Channel (OEM, Aftermarket), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Automotive Turbocharger Market Overview

Global automotive turbocharger market reached USD 13.5 billion in 2022 and is expected to reach USD 16.5 billion by 2030, growing with a CAGR of 10.3% during the forecast period 2023-2030. The global automotive industry is experiencing a significant shift towards more sustainable and efficient technologies.

Among the emerging trends, automotive turbochargers have garnered immense attention for their role in enhancing engine performance, reducing emissions, and improving fuel efficiency. As governments tighten regulations automakers are increasingly turning to turbocharging technology to meet these stringent standards.

The exhaust gas turbocharger leads the type segment, accounting for over half of the market share. Similarly, the Asia-Pacific dominates the automotive turbocharger market, capturing the largest market share of over 1/3rd. The region’s rising middle-class population and disposable income and technological advancements and research & development act as major driver for the aforementioned dominance.

Automotive Turbocharger Market Summary and Scope

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Automotive Turbocharger Market Dynamics and Trends

Performance Enhancement

Turbochargers are known for their ability to boost engine performance significantly. They offer improved power output, torque, and acceleration, making vehicles equipped with turbocharged engines more appealing to consumers. The respective performance enhancement has been a major driver for the adoption of turbochargers in both gasoline and diesel engines.

The Australian Government's Department of Infrastructure, Transport, Regional Development, and Communications notes that turbocharging technology has allowed automakers to downsize engines while maintaining or even improving power output. This downsizing trend, coupled with turbocharging, not only enhances performance but also contributes to better fuel efficiency and reduced emissions.

Growing Demand for Fuel Efficiency

With rising fuel prices and a growing awareness of the environmental impact of fossil fuels, consumers are increasingly seeking vehicles with better fuel efficiency. Turbocharged engines offer a significant improvement in fuel efficiency by maximizing the energy extracted from the combustion process. As a result, many automakers have turned to turbocharging technology to enhance the fuel efficiency of their vehicles.

According to the International Energy Agency (IEA), the demand for fuel-efficient vehicles has been steadily increasing globally, with many countries implementing policies to promote the adoption of fuel-efficient technologies. Turbocharged engines are seen as a crucial solution to address this growing demand for fuel-efficient vehicles, driving the automotive turbocharger market's growth.

Stringent Emission Standards and Regulations

One of the major restraints that affects the market is stringent emission standards and regulations. In an effort to curb greenhouse gas emissions and mitigate environmental impact, governments around the world have implemented stringent emission standards and regulations for the automotive industry.

Such regulations often require automakers to reduce CO2 emissions and improve fuel efficiency, which poses a challenge for automotive turbocharger manufacturers. For instance, the Euro 6 standard implemented in Europe mandates a significant reduction in NOx and particulate matter emissions, leading automakers to adopt more advanced emission control technologies, which may negatively impact the adoption of turbochargers.

Automotive Turbocharger Market Segmentation Analysis

The global automotive turbocharger market is segmented based on type, technology, engine, vehicle, distribution channel and region.

Increasing Demand for Fuel Efficiency and Emission Reduction and Compliance

With governments across the globe implementing stringent regulations on carbon emissions and fuel consumption, automakers are under increasing pressure to enhance the fuel efficiency of their vehicles. Exhaust gas turbochargers play a vital role in achieving this objective. By reusing exhaust gases to increase the air intake in the engine, turbochargers enable a more efficient fuel-air mixture, resulting in improved combustion and reduced fuel consumption.

Moroever, governments and regulatory bodies are focusing on curbing emissions to combat climate change and improve air quality. Turbochargers assist in reducing harmful emissions from vehicles by optimizing the combustion process. According to the U.S. Environmental Protection Agency (EPA), turbocharged engines can achieve a 20-40% reduction in CO2 emissions compared to naturally aspirated engines.

Automotive Turbocharger Market Major Key Players

Growing Preference for Downsized Engines and Increasing Adoption of Electric and Hybrid Vehicles

Automakers in the Asia-Pacific region are increasingly adopting downsized engines to improve fuel efficiency and reduce emissions. Turbochargers complement this trend by providing the required power and performance to smaller engines, allowing automakers to strike a balance between performance and fuel efficiency. As the trend toward downsized engines gains traction, the demand for turbochargers is expected to escalate.

Moreover, the rise of electric and hybrid vehicles (EVs and HEVs) in the Asia-Pacific region has led to a transformation in the automotive market. While these vehicles operate on electric power, many manufacturers are incorporating turbochargers in hybrid powertrains to enhance overall performance. As the electric and hybrid vehicle market grows, so will the demand for turbochargers in this segment.

Automotive Turbocharger Market Companies and Competitiors Landscape

The major global players in the market include BorgWarner Inc., Continental AG, Cummins Inc., Delphi Technologies PLC, Honeywell International Inc., Magnum Performance Turbos, Inc, Mitsubishi Heavy Industries, Ltd., Precision Turbo and Engine and IHI Turbo America.

COVID-19 Impact on Automotive Turbocharger Market

The outbreak of COVID-19 led to widespread disruptions in global supply chains, affecting various industries, including automotive manufacturing. Many turbocharger manufacturers faced challenges in obtaining raw materials and components, resulting in production delays and shortages. Governments imposed lockdowns and travel restrictions, hampering logistics and transportation, further exacerbating the supply chain disruptions.

Further, the pandemic-induced economic downturn resulted in reduced consumer spending and a decline in consumer confidence. This led to a drop in demand for automobiles, forcing automakers to cut down on production and, in some cases, halt manufacturing altogether. As a consequence, the demand for turbochargers witnessed a significant decrease, affecting the overall revenue of the global automotive turbocharger market.

By Type

• Exhaust gas turbocharger
• Axial flow turbocharger
• Radial flow turbocharger

By Technology

• Variable geometry turbocharger
• Waste gate
• Twin turbocharger
• Others

By Engine

• Diesel engine
• Gasoline engine

By Vehicle

• Passenger car
• Commercial vehicle
• Heavy duty vehicle

By Distribution Channel

• OEM
• Aftermarket

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2021, BorgWarner, a leading supplier of automotive turbocharger systems, launched its R2S Turbocharger in February 2021. The R2S is a twin-turbocharging system designed to enhance engine performance and fuel efficiency in passenger vehicles and light commercial vehicles. The innovative design of the R2S turbocharger aims to provide a seamless balance between power and emissions reduction.
• In May 2022, Honeywell Garrett, a renowned manufacturer of turbocharger systems, introduced its GTX Gen II Turbochargers. The Gen II series builds upon the success of its predecessor, offering significant improvements in aerodynamics and materials. Such advancements result in better spool times, increased power output, and improved overall efficiency.
• In October 2023, IHI Corporation, a prominent player in the turbocharger market, unveiled its latest Variable Geometry Turbochargers in October 2023. The new turbocharger series showcases advanced technology that optimizes airflow and pressure ratios according to engine load and speed.

Why Purchase the Report?

• To visualize the global automotive turbocharger market segmentation based on type, technology, engine, vehicle, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of automotive turbocharger market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global automotive turbocharger market report would provide approximately 74 tables, 75 figures and 197 Pages

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies