A turbocharger is a type of forced induction system used to increase the power and efficiency of an internal combustion engine. It uses exhaust gases from the engine to spin a turbine, which then compresses the air entering the engine, increasing its power and efficiency. Major components of a turbocharger include a turbine wheel, compressor wheel, and shaft to connect the turbine and compressor.
The growth of the global commercial vehicle turbochargers market is mainly attributed to the growing demand for commercial vehicles, increasing vehicle production, and stringent emission norms. The increasing demand for commercial vehicles is mainly due to the ever-increasing demand for goods and other transportation-related services.
Moreover, the increasing demand for fuel-efficient and low-emission vehicles is a major factor driving the growth of the market. Governments globally are increasingly implementing stringent emission norms to reduce the emission of carbon dioxide (CO2) and other harmful pollutants. This has led to the increased adoption of turbochargers in commercial vehicles to meet the emission norms. Global CO2 emissions are predicted to grow on average by 1.5%, annually, from 2020-2025. Emissions from Asian countries could increase by 2.3% over this period. Also, carbon emissions are returning to the 2019 level, after dropping by 5-6% during the pandemic, due to reduced industrial and transportation activities, across the globe.
Hence, the increased focus towards environmental sustainability is expected to drive the demand for commercial vehicle turbochargers market during the forecast period.
However, the factors such as increasing demand for electric vehicles, volatile raw material prices, and high cost of turbochargers are expected to hinder the market growth during the forecast period.
Some of the major trends in the global commercial vehicle turbochargers market includes adoption of turbocharged gasoline direct injection engines, and increasing use of variable geometry turbochargers (VGTs).
Increasing Use of Variable Geometry Turbochargers
There are mainly two turbochargers namely fixed geometry turbocharger (FGT) and VGT. A FGT is an automotive turbocharger design that uses a fixed compressor and turbine wheel geometry. Whereas VGT, also known as variable-nozzle turbines, is a system for internal combustion engines designed to allow the effective aspect ratio of the turbo to be changed as conditions change, allowing for better control of the trade-off between response time and maximum power output. It is used on many modern diesel engines, such as those in large light-duty, medium-duty, and heavy-duty trucks, as well as modern passenger cars. By changing the aspect ratio of the turbocharger at different engine speeds, VGT provides improved engine response and performance, as well as better fuel economy and lower emissions.
Segment OverviewBy technology: The commercial vehicle turbochargers market is categorized by technology: twin-turbo technology, wastegate technology, and variable geometry technology.
By material: The commercial vehicle turbochargers market is segmented by material namely, cast iron, aluminum, and others.
By fuel type: The commercial vehicle turbochargers market is divided by fuel type: diesel and gasoline.
By vehicle type: The commercial vehicle turbochargers market is divided by vehicle type: light commercial vehicles, and heavy commercial vehicles.
Regional OverviewAsia-Pacific has a considerable market share in commercial vehicle turbochargers market, due to extensive demand of automobiles and the presence of emerging economies. According to The International Organization of Motor Vehicle Manufacturers, the region accounted for around 30% share in total commercial vehicle sales in the year 2021. Hence it is the most opportunistic region for stakeholders to enhance their product portfolio and geographical presence. For instance, in December 2022, Turbo Tec Remanufacturing established its first joint venture factory Turbo Auto Parts Remanufacturing (Hebei) Co. Ltd. in China, to meet the demand for regenerated turbochargers in China.
Competitive AnalysisCompetitive analysis and profiles of the major players in commercial vehicle turbochargers market, such as BorgWarner Inc., Bosch Mahle Turbo Systems, Continental AG, Cummins Inc., Gale Banks Engineering, Garrett Motion Inc., IHI Corporation, Mitsubishi Heavy Industries, Ltd., Precision Turbo and Engine, and Turbo Dynamics Ltd. are included in the report. This section includes the key financial metrics, operating segmentation, business description, geographical coverage, and recent developments by the company in the area of commercial vehicle turbochargers market. There are some other important players in the market such as ABB Inc., Eaton Corporation plc, Magnum Performance Turbos, Wabtec Corporation, and others.
With the increased focus on safety, the market is becoming increasingly competitive. Companies are vying for market share, creating a highly competitive landscape. This has led to competitive prices, as well as an increase in the number of features and services being offered. The companies are competing on various grounds like price, geographical presence, automation, innovation, and others and implementing different strategies like acquisition, new product development to expand their businesses. For instance, in October 2021, Garrett Motion Inc., a Switzerland-based turbocharger manufacturing company bagged a 2021 Automotive News PACE Award for its Electric Turbo (E-Turbo) technology. Its innovative e-turbo technology is suitable for both light and heavy commercial vehicles with all fuel types such as diesel, gasoline, and compressed natural gas.
Key Market Segments
- By Technology
- Twin-turbo technology
- Wastegate technology
- Variable geometry technology
- By Material
- Cast iron
- Aluminum
- Others
- By Fuel type
- By Vehicle Type
- Light commercial vehicles
- Heavy commercial vehicles
- By Region
- North America
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Thailand
- Malaysia
- Indonesia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Argentina
- Rest of LAMEA
Key Market Players
- Turbo Dynamics Ltd
- Precision Turbo and Engine
- Gale Banks Engineering
- Honeywell International Inc
- Cummins Inc.
- Mitsubishi Heavy Industries, Ltd.
- IHI Corporation
- Bosch Mahle Turbo Systems
- BorgWarner Inc.
- Heavy commercial vehicles