With automakers rapidly chasing fuel economy standards that are growing increasingly stringent by the day, the automotive turbocharger market is expected to gain commendable traction over 2017-2024. Given how effectively turbochargers enable automobile manufacturers to use smaller engines without compromising on the horsepower, major automakers are turning to produce more models with turbocharger engines, stimulating automotive turbocharger market share. Cadillac launching its twin-turbo V-8 engine in its CT6 V-Sport is a recent instance validating the aforesaid fact.
U.S. Automotive Turbocharger Market, By System, 2016 & 2024, (Thousand Units)
Speaking along similar lines, it is prudent to mention that automotive behemoth Porsche had also recently brought forth the Turbo version of the Panamera with 550 horsepower to automotive turbocharger market. It is thus rather evident that turbochargers would bring about a paradigm shift in engine technology used in the automotive industry. Hailed as a potential competitor to the electric vehicle sector, it would seem as if automotive turbocharger market is here to stay, especially considering its modest valuation of over USD 11 billion in 2016.
How environmental considerations & the advantages of turbochargers will benefit automotive turbocharger market outlook
Environmental concerns have led to automotive manufacturers striving to innovate novel methods of trying to bring down CO2 levels caused by automotive fumes. This has, on one hand, given rise to a completely new breed of automobiles – the acclaimed EVs. On the other hand, internal combustion engine vehicles have been increasingly modified to weigh less and be more fuel efficient. Turbochargers have indeed been a game changer in the automotive industry in this case, as far as mileage has been concerned. They have in fact proved themselves to be a green technology where wasted energy is harvested to enhance engine performance without any added pollution, stimulating automotive turbocharger market trends.
As per statistics, turbochargers can raise fuel efficiency by 45% - this alone has led to major European automobile owners opting for this component. A diesel engine fitted with a turbocharger can apparently go 40% further and a gasoline engine 20% further on a liter of fuel. Demonstrating an instance, Ford claimed that the turbocharged 2012 Ford Explorer gets about 23 miles per gallon compared to 20 miles per gallon for the naturally aspirated version. The increasing considerations related to fuel efficiency maintenance will thus increase the adoption of these products, augmenting the commercial graph of automotive turbocharger market.
A succinct gist of automotive turbocharger market in terms of the regional landscape
Regionally, it would be prudent to mention that emission laws have made a remarkable contribution to the growth of the automotive turbocharger market. Europe in particular, has evidenced a rise in the stringency of emission laws, on account of which Europe automotive turbocharger market is expected to hold a dominant position over 2017-2024.
Automotive turbocharger market has picked up commendable pace in APAC in the recent years. This growth can be attributed principally to the proliferating demand for automobiles in countries like China, India, Japan, and South Korea. Not to mention, the fuel efficiency this technology provides and the strict emission standards enforced on automakers are also contributing factors. For instance, the phase 4 passenger car fuel consumption standard passed in China mandates all passenger cars to increase fuel efficiency and aims at reducing oil consumption by 348 million barrels approximately. It also intends to reduce carbon dioxide emissions by about 149 million metric tons by 2030.
OEMs participating in the enhancement of automotive turbocharger market
OEMs are renowned to use turbochargers for creating some of the most fuel-efficient vehicles across major geographies. For instance, the turbocharger fitted 2011 Chevy Cruz of US delivers a 42 mpg on the highway – supposedly a leading rating by the EPA. In Europe, the turbocharged 2010 Volkswagen Polo held the position for the most fuel-efficient car in the world with world’s first turbo gasoline-electric hybrid BMW X6 ActiveHybrid. Thus, with OEMs upgrading their vehicles to not only meet regulatory standards but also to remain at par with their competitors, they are expected to emerge as a viable avenue for automotive turbocharger market. Indeed, OEMs are expected to account for a whopping 90% of the overall automotive turbocharger market share by 2024.
Competitive outlook of the automotive turbocharger market
It would be prudent to mention that the automotive turbocharger market has a highly competitive landscape with well renowned names such as Honeywell, Federal-Mogul, BorgWarner, Mitsubishi Heavy Industries, Cummins Turbo Technologies, Weifang Fuyuan, Montupet, and IHI Corporation. Quite expectedly, these giants are constantly vying with each other to achieve market prominence. The steep competition has prompted a rise in investments in research and development, bringing about advanced technological innovations that would stimulate automotive turbocharger market. Say for instance, it has been observed that the quality of construction materials has a huge impact on turbocharger efficiency. On these grounds, companies use super strong, light alloys made with a mixture of aluminum and titanium to create turbo components.
With the automotive industry growing at an unprecedented rate, transport has emerged as one of the chief contributors of the increasing levels of green house gases in the atmosphere. On these grounds, regulatory bodies responsible for the planet’s sustainable have been stringently tightening their norms that automotive manufacturers are mandated to adhere to. Held together with a legislative structure in place in addition to catering to a growing populace of environmentally conscious consumers, automotive turbocharger market size has been forecast to surpass USD 24 billion by 2024.