Turbocharger Market - Industry Overview
The global turbocharger market size is expected to reach $19 billion by 2022, registering a CAGR of 11.1% during the forecast period 2016‐2022. Turbocharger is a centrifugal blower that supplies high pressured air to enhance the internal combustion (IC) engines power. The turbine pushes the piston of the engine by high compressed air, which increases the torque and efficiency of the engine. The market is expected to exhibit a notable growth during the forecast period due to the several advantages offered by these devices such as high torque, less emission rate, and engine downsizing. The dynamic design of turbocharger works best on high-speed conditions without any external power source as it reutilizes the waste energy.
Exponential rise in demand of cost-effective and fuel-efficient engines has led to a higher adoption of turbocharger across industries such as automotive, marine, and aerospace & defence. Therefore, the global turbocharger market size is expected to grow in the years to come owing to the increase in demand for energy-proficient engine and optimized atmospheric pollution. However, turbochargers are expensive as compared to the traditional chargers and are prone to overheating, which are considered as the major restraints to the market growth. Irrespective of these challenges, huge demand for fuel efficient engines and technological advancements especially related to the turbocharger segment would provide huge impetus for the market growth.
The global turbocharger market share is segmented based on technology, fuel type, end-user, application, industry vertical, and geography with further bifurcations into their sub-segments.
GLOBAL TURBOCHARGER MARKET SEGMENTATION
The technology segment is dominated by the twin-turbo technology owing to its widespread usage in the automotive industry as this technology facilitates improved engine performance and fuel efficiency, primarily in light commercial vehicles. Based on fuel type, the market is segmented into diesel and gasoline. The segment of diesel fuel dominates as turbochargers are popularly installed in diesel engines. However, at present these are being installed in gasoline engines as well.
Among various application types, light commercial vehicle is the dominant segment in terms of revenue contribution in overall turbocharger market share. Furthermore, the market is analysed based on geographical regions, encompassing North America, Europe, Asia-Pacific, and LAMEA.
TOP FACTORS IMPACTING GLOBAL TURBOCHARGER MARKET
Improvement in Engine Performance and Increased Fuel Efficiency
At present, fuel efficiency is one of the most serious concerns among automotive industry consumers as fuel prices are increasing rapidly on a regular basis. Hence, automotive manufacturers are required to manufacture efficient engines that can increase the engine’s efficiency and improve the engine’s performance. This is the key factor that is creating huge demand for turbocharger installation in vehicle’s engine.
Increasing Demand for Fuel Efficient Engines and Gasoline Engines
The market has huge growth potential as the industry is full of opportunities due to increasing implementation turbochargers in gasoline engines and electric turbochargers. At present, almost all the diesel engine vehicles including ships, LCV, and HCV are equipped with turbocharger technology. However, turbochargers are now discovering increased applications in gasoline engines as well. This innovation has made gasoline engine dominated countries, such as China and the U.S., which are two of the fastest developing markets. Electric turbochargers are predicted to be the future of turbocharger technology due to their minimum contribution in environmental pollution. The demand and production of vehicles is projected to increase globally. This works as the major driving force for the turbocharger industry as well, with turbocharger being a crucial component.
China Expected to Be the Most Lucrative Market for Turbochargers in Asia-Pacific
China is the most lucrative market for turbochargers as it owns the world’s largest automotive industry and turbo charger are most popularly used in automobiles. Increased vehicle production and rising installation rate of turbochargers mainly drive China market. For instance, in 2013 china witnessed approximately 70% of turbocharger installation rate. In addition, the leading global turbochargers manufacturers such as Honeywell International, Inc., BorgWarner Inc., Cummins Inc., Mitsubishi Heavy Industries, Ltd., and IHI Corporation, are also expanding their presence in China turbocharger market by installing new manufacturing plants with enhanced production capacity.
CHINA TURBOCHARGER MARKET REVENUE, 2014‐2022 ($MILLION)
The report provides a comprehensive analysis of major market players, such as Honeywell International Inc., Bosch Mahle Turbo System GmbH & Co. KG, Mitsubishi Heavy Industries Ltd., IHI Corporation, BorgWarner Inc., Eaton Corporation PLC, Rotomaster International, Cummins Inc., Precision Turbo & Engine, and Continental AG are also provided in this report. Further, the prominent strategies adopted by the leading players have been analysed to highlight the top winning strategies.
Top Winning Strategies
At present, the growth strategies that largely drive market include product launch, acquisition, and partnership. Companies such as Continental AG and Cummins Inc., have launched new turbochargers to attract more number of customers and increase their profit share.
TOP WINNING STRATEGIES GLOBAL TURBOCHARGER MARKET
- The study provides an in-depth analysis of the global market to elucidate the prominent investment pockets in the market.
- Current and future trends are outlined to determine the overall attractiveness and to single out profitable trends to gain a stronger foothold in the market.
- The report provides information regarding key drivers, restraints, and opportunities with impact analysis.
- Based on geography, the market is analysed based on various regions such as North America, Europe, Asia-Pacific, and LAMEA.
- Analysis of value chain is conducted for better understanding of the role of intermediaries.
- SWOT analysis highlights the internal and external environment of the leading companies for current strategy formulation.
Turbocharger Market Key Segments
- Twinturbo technology
- Wastegate technology
- Variable geometry technology
By Fuel Type
By End User
- Light commercial vehicles
- Heavy commercial vehicles
- Ships & aircraft
- Heavy duty vehicles
By Industry Vertical
- Aerospace & defense
- Agriculture & construction
- North America
- Rest of the Europe
- Rest of Asia Pacific
- Latin America
- Middle East