The Global Turbocharger Market Anticipated to Generate a Revenue of $15,284.7 Million, Growing at a CAGR of 6.8% from 2021 to 2028Download Sample Reports Overview
The global turbocharger market forecast to be valued at $15,284.7 million by 2028, surging from $9,153.8 million in 2020, at a noteworthy CAGR of 6.8%.
Analysis of Covid-19 Impact on Turbocharger Market
The Covid-19 impact on turbocharger market share has been negative. The imposed lockdown measures across the world affected the automobile industry for the sales of new vehicles, the production as well as transportation of raw materials such as steel that are required in manufacturing of automotive parts got delayed due to the COVID-19, negatively impacting the growth of the turbo charger market.
The coronavirus epidemic has enforced the companies in the turbocharger industry for the adoption of new technology during operation such as implementation of predictive analytics to forecast losses accurately and mitigate the impact of COVID-19 on the global turbocharger market.
Global Turbocharger Market Analysis
The application of the turbochargers in the vehicles has advantages such as turbo-boosted engines are compact in size and specifically designed to increase fuel efficiency in compliance with the corporate average fuel economy standards, which are applicable across the globe. In addition, these chargers offer several advantages, for instance, increased air intake in combustion chamber, high engine performance, and reuse of exhausted air.. The improved engine performance and fuel efficiency are the major drivers of growth for the global turbocharger market.
The arrival of organized players in the market in emerging nations is anticipated to aid the growth of turbocharger market in the forecast period. Original equipment manufacturers (OEM) offer customized propositions to customers in-turn for improving the efficiency of the vehicles. These factors are anticipated to aid the growth of turbocharger market in the forecast period
The unorganized market structure in developing countries have become a major obstacle to market growth. Independent and unorganized dealers sell automotive components without any warranty or product standardization. These factors can hamper the growth of the market.
The arrival of organized players in the market in emerging nations is anticipated to aid the growth of turbocharger market in the forecast period. The utilization of e-commerce channels for promotion and sales of turbocharger is expected to open new scope of opportunities for the turbocharger market. The original equipment manufacturer (OEM) companies such as Delphi Technologies, Continental AG, and ABB are expected to utilize e-commerce for lead generation and sales of their turbochargers. These new developments are anticipated to open new scope of opportunities for the global turbocharger market.
Global Turbocharger Market, Segmentation
The global turbocharger market is segmented based on vehicle type, fuel type, technology, distribution channel, and region.
The vehicle type segment is further classified into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Among these, the passenger vehicles sub-segment is anticipated to generate the maximum revenue and surpass $6,827.2 million by 2028, with an increase from $4,078.3 million in 2020.
The growing demand for the passenger vehicles in the emerging economies such as China and India due to rise in per capita income from economic development has aided the growth of the passenger vehicle sub-segment. In India, sales are currently growing due to increasing per capita income of the urban population. Similarly, in Africa, the rapid pace of urbanization and economic development means that the demand for premium and luxury vehicles is relatively strong. These factors are expected to aid the growth of this sub-segment.
The fuel type segment is further classified in to petrol, diesel, and others. Among these, petrol sub-segment is anticipated to have fastest growth in the forecast period and surpass $5,537.0 million by 2028, with an increase from $3,190.6 million in 2020.
Petrol cars are more affordable as compared to its counterparts that utilize diesel as fuel, that makes the petrol vehicles suitable for the price sensitive buyer, aiding the growth of petrol sub-segment. In addition to this, the increasing emphasis on improving the engine efficiency in petrol engines by utilizing turbochargers is expected to aid the growth of this sub-segment.
The technology segment is further classified in to twin-turbo technology, variable geometry technology, wastegate technology, and others. Among these, variable geometry technology sub-segment is anticipated to be most dominating as well have the fastest growth in the forecast period and surpass $5,527.9 million by 2028, with an increase from $3,164.1 million in 2020.
The increasing emphasis on innovation for new product development is expected to aid the growth of variable geometry technology sub-segment. The new developments, for instance, in September 2021, USA based firm, Cummins Inc., that designs, manufactures, and distributes engines, filtration, and power generation products, announced the launch of latest Series 300 Variable Geometry Turbocharger (VGT), that will deliver performance enhancements as well as significant efficiency.
The distribution channel segment is further divided into original equipment manufacturer and aftermarket. The original equipment manufacturer dealer sub-segment is projected to be most dominating in the global market in terms of distribution channel and register a revenue of $9,761.5 million during the forecast timeframe of 2021-2028.
The increasing penetration of turbochargers in the automobiles, in both the major categories of vehicles, the passenger and commercial vehicles, for improving the engine efficiency using turbochargers as well as reducing the size of the engine that generates high output with more compact size is expected to aid the growth of this sub-segment.
The turbocharger market forecast for the Asia-Pacific region generated a revenue of $3,642.3 million in 2020 and is further projected to reach up to $6,343.2 million by 2028. The Asia-Pacific region is expected to be the most dominating as well as lucrative region for the turbocharger market in the forecast period. The growing demand for mobility in the emerging markets, such as India and China due to increased urban population in cities along with the increasing per capita income of the population has increased the consumption of vehicles in the Asia-Pacific, that will supplement the use of turbo charging and aid the turbocharger market in the Asia-Pacific region.
Top 10 Major Key Players in the Global Turbocharger Market are -
- BorgWarner Inc.
- Delphi Technologies
- Honeywell International Inc.
- Continental AG
- IHI Corporation
- MITSUBISHI ELECTRIC CORPORATION
- Rotomaster International
- Precision Turbo & Engine INC.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Turbocharger Market:
- Bargaining Power of Suppliers: There are moderate number of suppliers in the turbocharger market. Across the world there are different organizations working in the field of turbocharger to get a competitive edge in the market.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: The buyers in market have high bargaining power, therefore the suppliers in the turbocharger market focus on providing superior quality services in a cost-effective manner.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: The companies entering in the turbocharger market emphasize on innovation for such as electric turbo, turbo diesel, electric turbocharger, and turbo supercharger. The capital requirement in turbocharger market is moderate.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: The turbochargers are essential products and currently there is no alternative of turbocharger measures.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: There is a highly competitive rivalry between companies in the turbocharger market including Eaton and Honeywell International Inc.
Therefore, competitive rivalry in the market is high.