Global sale of automotive turbochargers is estimated to be worth USD 18,217.7 million in 2024 and further projected to reach a value of USD 45,561.7 million by 2034, reflecting a value CAGR of 9.6% over the forecast period between 2024 and 2034. The revenue generated by automotive turbochargers in 2023 was reported at USD 16,622.0 million and it is anticipated to exhibit a Y-o-Y growth of 9.4% in 2024.
This projected growth indicates a value growth of nearly 2.7X from the current value over the study period. Rising fuel efficiency standards and the push for reduced emissions are driving significant advancements in automotive turbocharging. With automakers increasingly turning to turbochargers to boost engine performance while cutting emissions, innovative solutions like electric turbochargers are gaining traction.
A notable example is Garrett Motion's introduction of a next-generation e-turbo system tailored for hybrid vehicles, reflecting the shift towards more sustainable technologies.
Collaborative efforts, such as BorgWarner’s work with Ford on EcoBoost engines, demonstrate how turbocharger manufacturers are playing a key role in modernizing engine design. As the industry evolves, turbochargers continue to be an essential element in achieving the balance between performance and environmental responsibility.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2024) | USD 18,217.7 million |
| Projected Size (2034) | USD 45,561.7 million |
| Value-based CAGR (2024 to 2034) | 9.6% |
The automotive turbocharger landscape is shifting notably across its segments. Variable Geometry Turbochargers (VGT) are leading due to their adjustable turbine blade angles, which enhance efficiency and performance.
For example, BMW's new M series incorporates VGTs to improve both engine responsiveness and fuel economy. Twin-turbo systems, such as those in the latest Porsche Panamera, are gaining traction for their ability to deliver exceptional power and acceleration.
Passenger cars represent the largest segment, driven by a need for fuel-efficient and high-performance engines. Toyota's hybrid models, which use advanced turbocharger technologies, highlight this trend.
Light and Heavy Commercial Vehicles (LCVs and HCVs) are also prominent, with innovations like the Volvo FH truck's robust turbochargers designed for heavy-duty applications. Agricultural and construction machinery, such as John Deere's 8R tractor, benefit from turbocharger advancements that boost engine power and efficiency.
Gasoline engines are prevalent, with turbochargers improving efficiency in popular models like the Ford Mustang. Diesel engines are crucial for high-torque applications, exemplified by Cummins diesel engines used in heavy-duty trucks.
OEMs dominate sales channels, while the aftermarket segment is expanding with products like BorgWarner’s turbochargers enhancing performance. Pneumatic actuators lead due to their reliability, though hydraulic and electric actuators are making strides with their advanced features.
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The annual growth rates of the automotive turbocharger market from 2024 to 2034 are illustrated below in the table. Starting with the base year 2023 and going up to the present year 2024, the report examined how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2). This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The table provided shows the growth of the sector for each half-year between 2023 and 2024. The market was projected to grow at a CAGR of 9.3% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 9.3% (2023 to 2033) |
| H2 2023 | 9.7% (2023 to 2033) |
| H1 2024 | 9.4% (2024 to 2034) |
| H2 2024 | 9.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected as 9.4% in the first half and grow to 9.8% in the second half. In the first half (H1) and second half (H2), the market witnessed an increase of 10 BPS each.
Rising installation of turbochargers in gasoline engines to enhance fuel efficiency.
The increasing installation of turbochargers in gasoline engines is significantly driven by the need for improved fuel efficiency. Turbochargers allow smaller engines to produce greater power outputs, resulting in enhanced fuel economy. A recent example is Hyundai’s deployment of a 1.6-liter turbocharged engine in the Kona N, which effectively combines high performance with reduced fuel consumption.
This shift illustrates the automotive industry's focus on integrating turbocharging technology to meet stringent fuel efficiency standards while maintaining engine performance. As regulations tighten and consumer demand for both power and efficiency rises, the adoption of turbochargers in gasoline engines is accelerating, reflecting a broader trend toward optimizing engine efficiency without sacrificing performance.
Growing demand for engine downsizing for optimum vehicle performance.
The trend toward engine downsizing is significantly boosting the adoption of turbochargers, as manufacturers aim to enhance vehicle performance while meeting stringent emissions regulations. For example, Volkswagen's 1.5-liter TSI engine, used in models like the Golf and Tiguan, effectively balances reduced engine size with improved power output and fuel efficiency.
Similarly, BMW's 2.0-liter turbocharged inline-four engine in the 320i demonstrates how smaller engines can deliver performance comparable to larger ones while achieving better fuel economy.
These advancements underscore the importance of turbochargers in modern engine design, as they enable manufacturers to produce more compact yet powerful engines. This shift towards downsizing is driving demand for turbochargers, highlighting their role in achieving optimal performance and efficiency in contemporary vehicles.
Growing environmental concerns and stringent emission regulations to drive turbocharger sales.
Growing environmental concerns and stringent emission regulations are accelerating the adoption of turbochargers, as they help manufacturers meet tougher standards while improving engine efficiency.
For instance, Volvo's implementation of turbochargers in their new lineup, including the XC60, allows for reduced engine displacement while maintaining high performance, aligning with the European Union's stringent CO2 emission targets. This integration not only supports compliance with regulations but also enhances fuel efficiency, addressing both environmental and consumer demands.
As regulations become increasingly strict and environmental awareness rises, turbochargers are becoming crucial in engine design, driving their increased adoption and influencing automotive innovation. This trend underscores the role of turbochargers in achieving regulatory compliance and advancing eco-friendly technologies in the automotive sector.
Introduction of cost-effective electric boosting system creating opportunities for technology applications.
The advent of cost-effective electric boosting systems is transforming technology applications in automotive turbocharging. For instance, the partnership between BorgWarner and Hyundai has led to the development of a cutting-edge electric turbocharger for Hyundai's Ioniq 6, an electric vehicle. This technology provides an immediate boost and enhances engine efficiency, addressing the delay issues common with traditional turbochargers.
As these systems become more affordable, they promise significant performance improvements and cost benefits. This trend creates substantial growth potential by encouraging the adoption of advanced turbocharging solutions, driving innovation, and expanding the scope of turbocharger technology in the automotive sector.
Challenges with low-end torque and transient performance impacting turbocharger adoption.
Issues with low-end torque due to problematic transient behavior are challenging the adoption of turbocharging technology. For instance, the transition from low to high power in some turbocharged engines can result in a noticeable lag, impacting vehicle responsiveness and driving comfort. The Ford Mustang's latest turbocharged variant, despite its performance benefits, has faced criticism for this issue, affecting consumer satisfaction.
Such drawbacks can undermine the advantages of turbocharging, deterring potential buyers and slowing technology uptake. As engineers work to resolve these challenges, the current limitations on low-end torque and transient performance continue to constrain growth and innovation in turbocharging solutions.
Principal Consultant
The automotive turbochargers recorded a CAGR of 8.2% during the historical period between 2019 and 2023. The growth of automotive turbochargers was positive as it reached a value of USD 16,622.0 million in 2023 from USD 13,488.5 million in 2019.
Between 2019 and 2023, the global automotive turbocharger industry faced significant challenges, largely due to the COVID-19 pandemic and its impact on the automotive sector. The pandemic disrupted supply chains and led to a sharp decline in vehicle production and sales, with global automotive sales dropping from 90.3 million units in 2019 to 77.8 million units in 2020.
This downturn directly affected the demand for turbochargers, which are essential for enhancing engine efficiency and performance. Recovery began in 2021 as vehicle production gradually resumed in key regions like the USA, China, and Europe, where a renewed focus on fuel efficiency supported growth.
From 2024 to 2034, the demand for automotive turbochargers is expected to grow steadily, driven by stricter emission regulations and the trend toward engine downsizing. Turbochargers are increasingly used to boost the performance of smaller engines while maintaining lower emissions. The rise of hybrid vehicles, which often rely on turbocharged engines, is also expected to drive demand.
Technological advancements in turbocharger design, such as electric and variable geometry turbochargers, will play a crucial role in meeting modern engine requirements. Manufacturers are likely to focus on innovation to support the evolving needs of both hybrid and performance-oriented vehicles, contributing to growth over the forecast period.
Tier 1 companies comprise players with a revenue of above USD 100 million capturing a significant share of 45-50% in the global market. These players are characterized by high production capacity and a wide product portfolio.
These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. Prominent companies within Tier 1 include Garrett Motion Inc., BorgWarner Inc., IHI Corporation, Continental AG, Mitsubishi Heavy Industries Ltd, and other players.
Tier 2 companies include mid-size players with revenue of below USD 100 million having a presence in specific regions and highly influencing the local industry. These are characterized by a strong presence overseas and strong industry knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Toyota Industries Corporation, Eaton Corporation Plc, BMTS Technology GmbH & Co. KG, and other player.
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The section below covers the industry analysis for automotive turbocharger sales in different countries. The demand analysis on key countries in several regions of the globe, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa is provided.
China is projected to capture 67.1% of the East Asia region, driven by its dominant role in automotive production and high output rates. The USA will hold a 64.5% share in North America, thanks to its advanced automotive infrastructure and strong vehicle demand.
Germany will lead Western Europe with a 22.0% share, supported by its influential automotive sector and technological expertise. These leading positions reflect their substantial impact on global automotive production and innovation.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| India | 10.5% |
| South Korea | 10.1% |
| Germany | 9.7% |
| The USA | 9.4% |
| China | 9.1% |
The sale of automotive turbochargers in China is projected to reach USD 8,092.1 million and is estimated to grow at a 9.1% CAGR by 2034. China's automotive industry is playing a crucial role in driving growth in the automotive turbocharger sector. In 2023, the country's vehicle production and sales figures remained strong, with over 30 million passenger cars produced, reflecting a significant demand for advanced engine technologies.
According to the China Association of Automobile Manufacturers (CAAM), turbocharger adoption is increasingly prevalent as automakers seek to enhance fuel efficiency and meet stringent emission standards. Notably, China exported 4.41 million vehicles in the first 11 months of 2023, marking a 58% year-on-year increase and solidifying its position as the world's top car exporter.
The integration of turbochargers in these vehicles is becoming a standard, driven by the need for performance optimization and emission control. As China's automotive sector continues to advance, the demand for turbochargers is expected to rise, fueling technological innovation and expanding the global market presence.
The sales in the USA are projected to reach USD 5,069.7 million by 2034. Over the forecast period, demand for automotive turbochargers in the automotive industry within the USA is predicted to grow at a 9.4% CAGR.
Increasing consumer demand for fuel-efficient and high-performance vehicles is driving the widespread adoption of turbochargers in the USA automotive industry. The USA, a significant force in global automotive production, is actively integrating advanced turbocharging technologies to enhance vehicle performance while addressing environmental concerns.
Recently, General Motors introduced its latest 2.7L Turbo High-Output engine in the 2024 Chevrolet Colorado, featuring a refined turbocharger design that delivers improved torque and fuel economy. This aligns with consumer preferences for vehicles that offer both power and efficiency.
As automakers continue to innovate and respond to these demands, the USA is playing a critical role in shaping the growth and evolution of the turbocharger industry, driving forward technological advancements, and setting new standards in automotive performance.
The sale of automotive turbochargers in Germany is projected to reach USD 4,067.5 million and grow at a CAGR of 9.7% by 2034. Germany’s stringent emission regulations are intensifying the need for advanced turbochargers. Automakers are prioritizing technologies that enhance engine efficiency and reduce emissions to meet Euro 6 standards.
Recent developments by major players like Audi and Volkswagen have led to the adoption of sophisticated turbocharging systems designed to optimize combustion and fuel economy while adhering to regulatory requirements.
This shift is accelerating the integration of advanced turbochargers in vehicle production across the country, reinforcing Germany's leadership in automotive innovation and driving growth in the industry as manufacturers strive to meet increasingly demanding environmental standards.
The section explains the growth trajectories of the leading segments in the industry. In terms of product type, the VGT type will likely dominate and generate a share of around 67.4% in 2024.
Based on the vehicle type, the passenger cars segment is projected to hold a major share of 50.5% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | VGT (Product Type) |
|---|---|
| Value Share (2024) | 67.4% |
The Variable Geometry Turbocharger (VGT) segment stands out due to its superior adaptability and efficiency. VGTs are designed with adjustable vanes that dynamically alter the turbocharger’s performance, optimizing engine output and fuel efficiency across varying speeds. This technology addresses the growing demand for engines that balance performance with environmental considerations.
A recent example is the use of VGTs in the new Mercedes-Benz EQB, which incorporates these turbochargers to enhance the vehicle's performance while maintaining energy efficiency. This integration highlights how VGT technology is driving advancements in both performance and emissions control, reinforcing its leading position in the turbocharger sector.
| Segment | Passenger Car (Vehicle Type) |
|---|---|
| Value Share (2024) | 50.5% |
The prominence of passenger cars in the vehicle type segment stems from their adoption of advanced turbocharging technologies that enhance both performance and efficiency. Innovations such as variable geometry turbochargers (VGTs) are increasingly integrated into passenger vehicles to optimize power delivery and fuel consumption. A notable example is the 2024 Mazda3, which employs a VGT system to adjust turbocharger geometry for improved acceleration and fuel efficiency.
This technology not only meets consumer expectations for superior driving dynamics but also adheres to stringent emissions regulations. The enhanced performance and efficiency offered by these technologies drive increased demand for turbochargers in passenger vehicles, reinforcing the segment's leadership and contributing to overall growth.
Key companies manufacturing automotive turbochargers moderately consolidate the market with about 45-50% share that are prioritizing technological advancements, integrating sustainable practices, and expanding their footprints in the region.
Customer satisfaction remains paramount, with a keen focus on tailoring machines to meet diverse automotive industry needs. These industry leaders actively foster collaborations to stay at the forefront of innovation, ensuring their automotive turbochargers align with the evolving demands and maintain the highest standards of quality and adaptability.
Recent Industry Developments
The vehicle Type segment is further categorized into Passenger Cars, LCVs, HCVs, Agriculture Machinery, and Construction Machinery.
The Product Type segment is classified into Waste Gate, VGT, and Twin Turbo.
The Fuel Type segment is categorized into Gasoline and Diesel.
The application segment is categorized into OEM and Aftermarket.
The Actuator segment is categorized into Hydraulic, Pneumatic, and Electric.
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East and Africa.
The automotive turbochargers used in automobiles were valued at USD 16,622.0 million in 2023.
The demand for automotive turbochargers is set to reach USD 18,271.7 million in 2024.
Stringent Emission Regulations, Increased Adoption of Downsized Engines, and Rising Automotive Production to drive the demand for automotive turbochargers during the forecast period.
The automotive turbocharger demand is projected to reach USD 45,561.7 million by 2034.
VGT turbochargers are expected to lead during the forecast period.
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Automotive Turbocharger Market
