Automotive Turbocharger Sales to Surge by 1.25x through 2022, Says Fact.MR

Published: Wed Sep 19 2018

Turbochargers are steadily permeating the automotive sector, weighed by manufacturers as a tool to curtail environmental pollution by enhancing fuel efficiency. Emphasis on maintaining cleanliness of fossil fuel engines continues to influence the use of automotive turbocharger in vehicles. Fact.MR foresees that the demand for automotive turbocharger is projected to expand at a CAGR of 4.7% in terms of value during the period of forecast, 2017-2022. Sales of automotive turbocharger worldwide are likely to cross a valuation of US$19,000 Mn, says Fact.MR.

Increasing fuel prices have largely impacted sales of vehicles across the globe. This is likely to fuel the adoption of automotive turbocharger on the back of high fuel efficiency. Original equipment manufacturers have initiated fine tuning of automotive turbocharger in a bid to cater to the growing demand from customers. This has resulted in an upswing in automotive turbocharger sales, in turn pushing the growth of the automotive turbocharger market.

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Tug-of-war between diesel and gasoline engines with respect to adoption of automotive turbocharger prevails owing to government subsidies favoring market preferences or a particular fuel, says Fact.MR. However, demand for automotive turbocharger in gasoline engines is likely to be on an upswing with increasing inclination of people toward the fuel, particularly in the United States. Higher inclination toward gasoline engines can be attributed to additional cost required to make diesel vehicles compliant with emission regulations. Sales of automotive turbocharger in vehicles with gasoline engine are estimated to touch US$ 11,000 Mn by end of the year of assessment, says the report.

Aftermarket continues to remain a lucrative sales channel for automotive turbocharger on the back of increasing product popularity coupled with growing need for replacements in a bid to comply with strict engine emission norms. On the contrary, rising production of vehicles along with increasing demand for reduced vehicle weight is expected to steadily push sales of automotive turbocharger through OEM (original equipment manufacturers) channel during the period of forecast, 2017-2022. According to Fact.MR report, sales of automotive turbocharger through aftermarket channel are estimated to surpass US$ 12,000 Mn by end of the assessment period.

Sales of automotive turbocharger are expected to remain concentrated in the developed countries of North America, particularly the United States. Growth of the North America automotive turbocharger market is largely fuelled by increasing preference for gasoline. Moreover, strict government regulations against emissions coupled with significant increase in sales of commercial and passenger vehicles have further pushed the demand for automotive turbocharger in the region, making it an attractive market for automotive turbocharger manufacturers. Asia Pacific excluding Japan (APEJ) is also projected to showcase high lucrativeness on the back of rising vehicle production. Presence of vehicle manufacturers in APEJ have influenced the demand and sales of automotive turbocharger. Moreover, use of automotive turbocharger in petrol engines – an upcoming trend – has significantly enhanced fuel economy in emerging countries of China and India in the APEJ region. This factor is likely to spur the demand for automotive turbocharger in the coming years.

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With rising technological advancements in the automotive space, manufacturers of automotive turbocharger have initiated development of advanced products by carrying out innovations in designs. For instance, recent technological advancement includes use of variable nozzle technology in automotive turbocharger. In 2017, Honeywell International Inc., has introduced its advanced variable geometry automotive turbocharger using this technology. It also introduced two-stage diesel engine automotive turbocharger that features wastegate technology and variable geometry that significantly curbs emissions and enhances vehicle performance.

Sales of electric vehicles are likely to touch two million by end of 2018. Steadily increasing preference for electric vehicles coupled with government support for electric vehicle promotion is expected to have a negative impact on the sales of automotive turbocharger. Moreover, surplus consumption of oil during overheating of automotive turbocharger can significantly confine the growth of the automotive turbocharger market.

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