Turbochargers Market Size, Share & Trends Analysis Report By Fuel Type (Diesel, Gasoline, Others), By Technology (Wastegate Technology, Variable Geometry Technology, Twin-turbo Technology, Others), By Sales Channel (Aftermarkets, Original Equipment Manufacturer (OEMs)), By Application (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Agriculture, Aircraft and Marine, Others), By Material (Cast Iron, Aluminum) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

In 2021, the global market size for turbochargers was valued at USD 27,350 million, and it is estimated to reach USD 50,365 million by 2030, with a CAGR of 7% during the forecast period (2022–2030).

The global turbochargers market is estimated to register robust growth during the forecast period of 2021 to 2030. A turbocharger is a turbine-driven forced induction device that increases an internal combustion engine's efficiency and power output by forcing extra air into the combustion chamber. This device primarily runs on fuels such as gasoline and diesel. At the same time, fuels such as electricity can also be used for operating these devices. Turbochargers have applications in automotive, agriculture, aircraft, and locomotive.

Turbochargers are considered a great solution as they transform the exhaust gas released from the consumed fuel energy into power. In the past few years, turbochargers have gained popularity among vehicle manufacturers. It allows them to reduce the combustion engine sizes, potentially cutting fuel consumption by more than 30%. Besides, the technology offers lesser CO2 emissions, improved fuel economy, and better engine performance than non-turbocharged engines.

Market Dynamics

Market Drivers

• Growing Demand for High Fuel Economy and Stringent Regulations about Vehicular Emissions

Today, there is a much greater emphasis on reducing CO2 emissions and improving the fuel consumption of vehicles globally. Turbochargers are considered a great solution as they transform the exhaust gas released from the consumed fuel energy into power. In the past few years, turbochargers have gained popularity among vehicle manufacturers. It allows them to reduce the combustion engine sizes, potentially cutting fuel consumption by more than 30%. Besides, the technology offers lesser CO2 emissions, improved fuel economy, and better engine performance than non-turbocharged engines.

The reduced carbon dioxide levels from the vehicles help the manufacturers comply with the increasingly stricter norms and regulations, thus boosting the product's demand. Nowadays, turbocharged engines attract many environment-friendly drivers backed by their performance benefits and high green credentials. With the added advantage of fuel economy, the technology improves fuel consumption up to 40% in diesel engines and up to 20% in gasoline engines, making it familiar in most lightweight passenger vehicles. The demand for turbochargers is projected to have an upward growth trajectory in the coming future, strongly supported by its proven capacity to reduce emissions and save energy. 

• Surging Demands for Passengers Cars in the Emerging Economies

Over the past few years, the automotive industry witnessed tremendous growth in emerging economies due to rapid development and increased region investments. The emerging economies, including Asia-Pacific, Latin America, and Southeast Asia, experienced a high influx of OEM investments to reduce production costs. The geographic diversification of the automakers has created a new manufacturing hub in the emerging markets. The rise in the urban population and increased consumer incomes are vital factors driving passenger vehicle demand. Additionally, the accessible credit facilities and the increased mobility needs have led to a rise in passenger vehicle sales in these emerging markets.

Around 25 million cars were sold in 2018 in India, and the number rose to 26.3 million K Units in 2019, as per the statistics published by the IBEF. The growing middle-class population and changing demographics of millennials are resulting in the strong growth of the passenger cars market, which is anticipated to fuel turbochargers' demand. The China Association of Automobile Manufacturers (CAAM) estimates a rise of 11.1% y-o-y growth in passenger cars' retail sales in 2021, with the sales volume reaching 2.14 million K Units. The rapid growth of the passenger vehicle segment and the shifting focus to electric vehicles is anticipated to create demand for turbochargers in the coming years.

Market Restraint

• High Cost Associated with the Maintenance of Turbochargers

Apart from the various advantages that the turbocharger offers, there are some limitations in using these technologies. And one such downside of the turbocharger is their significantly high maintenance cost as new replacement is expensive. Turbochargers become sluggish or seize in operation due to oil breakdown or degradation. The manufacturer's motor oil and service recommendations help prevent premature turbo failure. The turbo engines are tough on motor oil, so using high-quality motor oil for long-term turbocharger survival becomes necessary. High-quality motor oil means higher expenses on maintenance. However, the advances in motor oil and coolants have made turbochargers more eco-friendly. Still, the avoidance of oil changes could further add to the additional operating costs of the systems.

Market Opportunities

• Increasing Demand for Electric Vehicles and Electric Turbochargers

The automotive industry embraces the technology of electric and hybrid vehicles, and more new models are expected to reach the road in the upcoming years. Government regulations to protect the environment are a catalyst for transforming the automobile sector. Automakers are significantly investing in increasing the battery range while lowering the prices for hybrid vehicles. The auto manufacturers are searching for ways to include turbo technology in new vehicle types such as battery-operated vehicles, hybrid and electric. Turbochargers play a significant role in the automobile engine and are expected to hold importance in the engine mix in the future. Vehicle manufacturers apply turbo technology in hybrids, fuel, and battery-electric systems. The turbochargers and the related technologies are widely used to regenerate energy and provide EVs with a backup power source. The range anxiety among consumers and lack of infrastructure hinder the battery-operated vehicles market. However, the inclusion of a turbo range extender for backup situations is expected to alleviate the EV range anxiety and fuel the market growth.

Regional Analysis

The Global Turbochargers Market share has been studied across the major regions, North America, Asia-Pacific, Central, South America, and the Caribbean, and the Middle East and Africa.

Europe and Asia-Pacific to Witness Significant Growth

Europe holds the largest market share in the global turbochargers market. European countries such as Germany, France, Italy, and Spain have been home to the world's top automotive brands. Thus, the region dominates the overall market and is also expected to witness a high growth potential over the forecast period. The growth of the commercial vehicles in this region has boosted the demand for the turbochargers market. It is expected to reach USD 20,975 million at a CAGR of 6.4% by 2030.

According to the European Automobile Manufacturers Association, the commercial vehicle registrations across the European Union saw an increase of 5.7% in December 2019. In addition to this, the demand was primarily driven by the van segment, which accounted for over 86% of all CV registrations last month. As per the report, around 33 million vans were present, and 374,918 vans were exported, worth about USD 4.49 billion.

The new WLTP emissions test, which was introduced for vans in September 2019, has further boosted demand for Van in the last quarter of 2019. These vans are used for commercial activities, such as construction, postal and courier services, ambulance services, policing and rescue operations, mobile workshops, and passenger transportation. It is expected to observe a further rise in its demand in the coming years. In addition to this, the growing production of passenger cars and an increase in exports also augment the demand for turbochargers in this region.

The Asia-Pacific market for turbochargers is estimated to register the highest CAGR of around 9.8% to reach the value of USD 5,840 million by 2030. Due to robust industrialization and urbanization, various sectors are at a boom in this region. One of which is the automotive sector. The increasing demand for automobiles due to the growing population boosts the demand for turbochargers in this region. With a shift in the focus of manufacturers to manufacture in this region because of cheap labor and low cost, the region has a significant presence of leading automobile manufacturers, which has led to the large production, sales, and export of automobiles in this region and has accelerated the demand for turbochargers.

Segmental Analysis

The global turbocharger market share has been segmented by fuel type, technology, application, sales channel, and region.

Based on fuel type, the global turbochargers market was categorized into diesel, gasoline, and others. Diesel accounts for the largest share in the global turbocharger market. It is estimated to reach USD 26,920 million at a CAGR of 6.8% by 2030. Diesel is used in most freight and delivery trucks, trains, buses, boats, farms, construction, and military vehicles. Some small trucks and cars also have diesel engines. The growing demand for diesel fuel in these vehicles drives this segment's growth in the global turbocharger market.

Based on technology, the global market for turbochargers is segmented into wastegate technology, variable geometry technology, twin-turbo technology, and others. The wastegate technology held the largest market share of more than 38%. It is estimated to reach USD 18,255 million at a CAGR of 6.3% during the forecast period.

Based on the sales channel, the global turbochargers market has been categorized into aftermarket and OEM. The aftermarket segment accounted for the largest market share of more than 85% and is expected to reach a value of USD 6,895 million at a CAGR of 6.5% during the forecast period. The growing focus of manufacturers on enhancing their aftermarket share by offering long-term warranties and services to customers is also driving the growth of the aftermarket segment.

Based on application, the global market for turbochargers is categorized into passenger cars, light commercial vehicles, heavy commercial vehicles, agriculture, aircraft and marine, and others. The passenger car segment is witnessing the fastest growth during the forecast period. It is expected to reach USD 22,245 million at a CAGR of 7.5% by 2030. This is mainly attributed to robust growth in demand for passenger cars. In addition to this, an increase in the population's per capita income is also propelling the development of this segment.

Impact of covid-19

The outbreak of the COVID-19 pandemic has kept individuals quarantined in their homes worldwide for most of 2020. To stop the spread of the disease, governments have restricted movement and forbidden travel around the world. This has undoubtedly caused people to want to escape from isolation and to enjoy life as before. Governments also appear to lift travel bans and ease travel restrictions from 2021 due to the falling GDP and the disruption of big and small businesses. As individuals begin to travel again during this period, the tourism industry can expect to see a dramatic increase in bus ticketing, which was affected in terms of both income and employment rates earlier this year.

Recent Developments

• October 2020- Tanboress Technology Limited became the only company to develop Bi-Turbo. Tanboress Technology Limited is a professional manufacturer of turbochargers and turbo spare parts for automobiles and diesel trucks or equipment. It has its factory, which means that they have more testing equipment than other companies and ensure good quality products. Furthermore, the company offers a wide range of product portfolios, including turbochargers, turbocharger parts, electric actuators, and electric actuator parts.
• September 2020- ABB announced installing its state-of-the-art engine diagnostics software ABB Ability™ Tekomar XPERT on 12 bulk carriers operated by Shanghai Ming Wah Shipping Co (Shang Ming Wah).
• May 2019- Precision Turbo & Engine released their highly-anticipated Mirror Image GEN2 PT6266 & GEN2 PT6466 turbochargers featuring second-generation Competition Engineered Aerodynamics (CEA®) technology. 
• 2019- Refino Auto Power Co Ltd announced the completion of its research and development of a group of new products and released its new turbo and cartridges, which included HX55W turbo 4046127, with MFS compressor wheel, B2G cartridge 250-0841, with MFS compressor wheel, HX35W cartridge 3591244, for Cummins 6BTAA, and K03 cartridge 53039700088, for Mahindra pick up 2.6L.