Decrease in NOx emission limits in upcoming emission norms, increasing demand for passenger cars with gasoline engines are expected to drive the automotive turbocharger market to reach $ 19.2 billion by 2026 from $ 11.8 billion in 2021.
According to the new research report by MarketsandMarkets - Automotive Turbocharger Market by technology, material, fuel, application, vehicle, aftermarket and region - Global Forecast to 2026, the automotive turbocharger market is estimated to grow at a CAGR of 10.2%.
According to the research company, the gasoline segment is expected to be the largest segment during the forecast period. The usage of turbochargers in gasoline engines is projected to increase at a high rate due to the decline in the price of turbocharged gasoline engine technology and new emission regulations. These factors will encourage OEMs to increase the usage of turbochargers in gasoline passenger cars.
Garrett Motion, Continental, BorgWarner, Mitsubishi Heavy Industries and IHI Corporation are the leading manufacturers of automotive turbochargers in the global market. These companies adopted new product development and expansion strategies to gain traction in the market.
The electric turbocharger segment by technology is expected to be the fastest-growing market, MarketsandMarkets said. The electric turbocharger has high potential and can be used in both light-duty and commercial vehicles that run on fuels such as gasoline, diesel, and CNG. As a result, the demand for electric turbochargers with 48V mild hybrid and full hybrid technology is expected to grow in the coming years.
The Asia Pacific will be the largest market, followed by Europe and North America. The 48V hybrid technology, which makes internal combustion engines significantly more efficient at relatively low costs, is a better option in terms of costs and emissions. These advantages would drive the demand for electric turbochargers.
The Asia Pacific region is estimated to be the dominant regional market since it is the largest producer of passenger cars globally due to the presence of leading automotive manufacturers. Major automobile-producing countries in the Asia Pacific are China, Japan, India, and South Korea. The Asia Pacific is also the largest market for automotive turbochargers due to this region's stringent emission norms. With its limits lower than Euro-6, China VI-a was implemented in 2019 for gas engines, and China VI-b is set to be implemented in 2021. India's BS-VI norms were implemented in 2020 (skipping BS-V norms), the research firm noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Garrett Motion.