The automotive turbocharger industry is experiencing significant growth, as indicated by a recent report from MarketsandMarkets™, which projects a surge from USD 15.2 billion in 2024 to USD 22.9 billion by 2030. This growth is driven by the rising need for fuel-efficient engines that do not compromise on performance, in adherence to stringent emission standards worldwide. The report emphasizes the significant role of E-turbochargers in reducing turbo lag and offering performance advantages, particularly in decreasing NOx emissions by up to 20% when applied to diesel engines. With the increase in emission limits, there is also expected to be a rise in demand for gasoline turbochargers in the upcoming years.
Additionally, VGT turbochargers are forecasted to be the largest segment during the projected period. These turbochargers bring about numerous advantages, including improved low-end torque, reduced turbo lag, and precise boost control for varying engine load and speed, making them widely adopted across different vehicle types, from passenger and commercial vehicles to heavy-duty trucks and buses. Major industry players, such as BorgWarner Inc., Garrett Motion Inc., and Cummins Turbo Technologies, are investing in enhancing VGT technology by integrating sophisticated electronic control units (ECUs) for improved performance, efficiency, and reliability.
The report indicates that the automotive turbocharger market is expected to be led by the passenger car segment, driven by the highest share of passenger cars globally and the notable increase in global car production. Significant growth in car production has been experienced in the EU, US, China, and Japan, with many original equipment manufacturers (OEMs) shifting from diesel to gasoline vehicles due to various factors, including stricter emissions regulations targeting diesel and the improved fuel efficiency and performance of gasoline vehicles. The growing adoption of Gasoline Direct Injection (GDI) systems in gasoline vehicles has also contributed to the increased usage of turbochargers, elevating the demand for gasoline engines.
Regarding region, the Asia Pacific is estimated to be the dominant region in the automotive turbocharger market, with China, Japan, and India contributing more than 85% of the overall vehicle production in the region. The expansion of the automotive turbocharger market in this region is primarily driven by the growing demand for gasoline engines incorporating turbocharged gasoline direct injection (TGDI) technology. The Governments of major countries in the region have mandated automakers to comply with stricter emission norms, further propelling the demand for GDI engines and turbochargers.
In conclusion, the automotive turbocharger market is poised for significant growth, with key players such as BorgWarner Inc., Garrett Motion Inc., Mitsubishi Heavy Industries Ltd., IHI Corporation, and Cummins Inc. expected to play a crucial role in shaping the future of this dynamic market. It is anticipated that the industry will continue to evolve to meet the demands for fuel efficiency, performance, and stringent emission standards.