The leading players in the global automotive turbochargers market are BorgWarner Inc., Honeywell International Inc., Mitsubishi Heavy Industries Ltd., IHI Corporation, and Cummins, Inc., observes Transparency Market Research (TMR). This cream of the crop held a dominant share of 66% in the global market in 2015. Analysts predict that these companies are likely to face some tough challenges in the coming years as developed regions reach a point of maturation.
According to the research report, the global automotive turbochargers market is expected to be worth US$20.35 bn by the end of 2024 from US$8.56 bn in 2015. During the forecast period of 2016 and 2024, the global market is projected to surge at a CAGR Of 10.0%.
VGT Remains Preferred Type of Technology in Global Market
The technologies used for the production of automotive turbochargers are variable geometry turbo (VGT), wastegate technology, and twin turbo. Of these, the variable geometry turbo technology is anticipated to dominate the global market in the coming years as it is widely used in diesel vehicles due to the advantages it offers. Analysts state that the VGT technology segment is projected to rise at a CAGR of 9.4% between 2016 and 2024.
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Geographically, the global market will be dominated by Europe as the region has been extremely strict about emission norms. The intensifying efforts of the European Union to reduce emissions are expected to result in steady demand of automotive turbochargers in the region. As of 2015, the Europe automotive turbochargers market held a share of 38.2% in the overall market.
The evolution of the automotive industry has focused on designing and developing lighter vehicles for achieving fuel efficiency, improved speed, and lesser maintenance. Additionally, automobile manufacturers have also been adhering to emission norms specific to international standards. These trends has been instrumental in defining the success of the global automotive turbochargers market in recent years. The growing concerns about excessive fuel consumption has also encouraged automobile manufacturers to reduce the weight of the vehicles, thereby propelling the uptake of automotive turbochargers.
The increasing uptake of turbochargers in gasoline vehicles is also expected to boost demand in the near future. Manufacturers are already focusing on developing automotive turbochargers for petrol vehicles through these are predominantly used in diesel vehicles. This factor is expected to play an important role in defining the demand for automotive turbochargers in Asia Pacific as the region is known to have the highest consumption of gasoline vehicles.
Escalating Demand for Electric Vehicles to Hamper Market Growth
On the downside, the global market is likely to be hampered due to the escalating investments in research and development of electric vehicles. Vehicle powered by electricity are gaining traction as they do not contribute to fuel emission, have better speed, and higher utility. The growing demand for zero-emission vehicles is expected to restrain growth of the global automotive turbochargers market as these vehicles do not use turbochargers. The research report indicates that this factor will significantly hinder market growth as the cost of non-renewable energy is on the rise. Furthermore, the pressure of depleting fuel resources is also anticipated to tilt the preference of new-age car buyers towards electric vehicles.