GLOBAL AUTOMOTIVE TURBOCHARGER MARKET
As automobile buyer continue to seek better performance, efficiency and productivity, automakers are constantly working to offer high performing vehicles. A turbocharger plays crucial role in enhancing the overall performance of the vehicle, hence there is a need for continuous improvement of turbocharger. Automotive turbocharger market players are focussed on increasing the capabilities of next-gen turbochargers.
- Asia (Ex China & India)
- Garret Advancing Motion
US TURBOCHARGER MARKET
The continued growth of turbocharging technologies will be driven by requirements for manufacturers to meet global environment regulations. The downsizing of engines in the industry is followed. This results in shift from large naturally aspirated engines to smaller turbocharged ones. Ford with 56% turbo penetration leads the market in US. GM has about 40% penetration. FCA (Fiat Chrysler Automobiles) with 10% penetration is the least among the leading OEMs in the American market.
EUROPE TURBOCHARGER MARKET
Europe still remains the global leaders in the turbo market. Turbo penetration of Europe is close to 75%. Major European OEMs like BMW, Mercedes and Volkswagen use turbocharged engines in more than 85% of their vehicles. Since a typical engine in Europe boast of 1.2-1.5L engine, the customers feel the urge to improve the performance of the vehicle and this boosts the turbo sales in the European market.
CHINA TURBOCHARGER MARKET
Emission regulations in China are getting stringent and the need for the turbo charged engines to tackle this situation has become significant. Due to smaller engines usually around 1.6L capacity turbo penetration in China is above 40% significant increase when compared to last few years. China is termed as fastest growing turbo market globally. Honeywell Turbo Technologies has been supplying turbochargers to leading manufacturers such as Yuchai, NAVECO and Jiangling Motor.
INDIA TURBOCHARGER MARKET
Due to low excise duty on small cars with engine <1.2 petrol and <1.5L diesel is also pushing the turbo penetration, as OEMs can deliver higher power with the smaller engine.
Turbochargers in petrol vehicles is gaining prominence thanks to enabling improved fuel efficiency and reduced emissions.
MARKET BY TYPE OF TURBOCHARGER USED
The most commonly used turbochargers are Single, Twin, VGT (Variable Geometry Turbocharger) and E-VGT (Electric VGT). Usually lesser powered engines such as 1.0L engine are fitted with Single Turbo. The VGT charged engine gives performance at lower engine rpm, unlike single and twin turbochargers. VGT is limited to passenger vehicles and light duty vehicles. Nowadays almost every vehicle released is attached with E-VGT. E-VGT helps to eliminate the turbo lag and offers a smooth power delivery.
There are various Tier-1 manufacturers who supply turbochargers to the OEMs. The market is dominated by US manufacturers.
Garret Advancing Motion formerly known as Honeywell Turbo Technologies is the leading the turbo market. Closely competing is the BorgWarner from US. These 2 manufacturers hold about 65% market share globally. IHI Corporation formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd from Japan is another turbocharger manufacturer completing the top 3. Mitsubishi Heavy Industries and Cummins Turbo Technologies are also other major suppliers in this industry.
RECENT PARTNERSHIPS IN TURBOCHARGER MARKET
- BorgWarner has secured contract with a major European OEM to supply its high performing eTurbo for the passenger vehicle. This paved way to company’s first serial production of eTurbo slated to begin in 2022.
- Continental German automotive manufacturing company expands turbocharger manufacturing to China. Continental’s RAAX turbo charger to be built in Shanghai.
- BorgWarner has recently opened turbocharger production plant in Thailand.
- BorgWarner has launched world’s first regulated 2 stage (R2S) turbocharging system with 4 turbo chargers. It has been incorporated with BMW’s new 3.0L diesel engine.
- BorgWarner delivers its twin scroll turbochargers to BMW group for its 3.0L inline 6 cylinder petrol engine.
MARKET SIZE AND FORECAST
In US market, Turbocharged diesel engines will continue to be in demand on light duty trucks. By the ongoing trend further downsizing of the engines can be expected.
Due to strict emission norms and gradual increase in turbo powered petrol engines, higher turbo penetration in Indian market can be expected.