Automotive Turbocharger Market To Generate $26.2 Billion Revenue by 2030

The global automotive turbocharger market revenue is expected to reach USD 26.2 billion by 2030, exhibiting a CAGR of 8.2% during 2024–2030.

This growth is due to the stringent emission norms implemented by governments globally. The downsizing of engines is also an important factor boosting the turbocharger market advance, as is the demand for increased fuel efficiency and passenger cars in emerging economies. Further, with technological advancements, there has been a significant increase in the production of fuel-efficient and high-performance automobiles in recent years.

A turbocharger is a piece of equipment used in engines to enhance efficiency and power output. It enables engine downsizing and vehicle weight and engine displacement reduction without sacrificing power. This helps in generating lower emissions and lets automakers meet strict government regulations.

The demand for passenger and commercial vehicles is surging in the Asia-Pacific region as a result of the increasing population and disposable incomes. This has led to a massive demand for wastegate turbochargers as they are versatile in application and economically viable.

LCV Category Witnessing Fastest Growth

The LCV category is set to experience the highest CAGR, of 8.5%, due to the increasing demand for LCVs with the significant growth in e-commerce across the world. This creates a high demand for more-efficient transportation solutions in urban areas. Small and medium enterprises also use LCVs, to bring raw materials and supply their product in the market. With the rapid urbanization in emerging economies, people have become strongly dependent on home delivery services. Online delivery platforms and retailers need LCVs to supply goods to customers as city areas are often congested and it is difficult for large trucks to maneuver.

Moreover, the passenger cars category accounts for largest revenue share as the strict emission norms are making it necessary for automakers in integrate turbochargers in cars. The increasing disposable income is responsible for people across the globe demanding high-performance and fuel-efficient cars. Hence, renowned cars manufacturers are investing huge amounts to develop engines with exceptional performance and reduced emissions. This is leading to innovations in turbochargers, which have made them more efficient and reliable, which is fueling their integration into passenger cars.

Europe Is a Significant-Growing Region in Market

Europe is set to witness a significant CAGR in the forecast period, due to the presence of many of the world’s leading automotive manufacturers, such as Volkswagen, BMW, and Mercedes-Benz. Volkswagen has 12 assembly plants in Germany, including the Wolfsburg plant, which is the largest car factory in the world. Further, BMW has its headquarters in Munich. All these automakers are investing heavily in developing turbocharger technologies.

Additionally, this region is a leader in the adoption of fuel-efficient vehicles because of the expensive fuel, strict emission regulations, and surging awareness of environmental issues among consumers. Moreover, SUVs and sports cars are becoming increasingly popular in Europe. These vehicles typically need turbochargers in order to achieve their desired performance levels and driving experience. There have also been significant technological advancements in turbochargers, which have made them more efficient, affordable, and reliable.

The top companies manufacturing automotive turbochargers are BorgWarner Inc., Continental AG, Mitsubishi Heavy Industries Ltd., IHI Corporation, Garrett Motion Inc., Robert Bosch GmbH, and Cummins Inc.