Automotive Turbocharger Market

Increased Adoption of Petrol Engines is driving the market growth

Diesel engines have emerged as the dominant fuel type for car companies, as diesel engine emits low CO2 and offers great performance. However, on the other hand, the diesel proportion of new registrations has been falling gradually for some time, as modern petrol-powered cars are popular and have become better at delivering similar benefits. This trend is expected the growth Market CAGR during the forecast period.

A few more reasons propelled the market for gasoline-type engines, for instance, the Volkswagen diesel emissions scandal in 2015, when Volkswagen supplied around 11 million defective diesel engine cars globally, including eight million in Europe. Diesel car sales are witnessing a declining trend in the Region. The Volkswagen emission scandal resulting in a callback of all faulty vehicles, has further resulted in declining sales of the company's vehicles. The revelations resulted in a sharp fall in demand for diesel-engine cars, which aided in the rise in the demand for gasoline-engine cars.

Petrol-powered engines are moving from naturally aspirated engines to turbocharged engines faster. It has been estimated that over the forecast period, 50% of the cars sold may have turbochargers, and similar growth is expected to continue.

The tendency to use turbochargers for diesel engines for improved fuel efficiency and engine performance is slowly changing. The automotive turbocharger market revenue from diesel turbochargers is slowly shifting toward petrol superchargers, and this shift has benefited the market, considering the emission norms.

 Additionally, it supports increasing the power output by recovering thermal energy discharges from the engine. The use of turbos in the automotive engine facilitates acceleration by light pedal action and allows driving with modest engine loads. It acts as one of the major components in reducing particulate matter emission, thereby leading to a cleaner exhaust.

The Global Automotive Turbocharger Market Industry is poised for substantial growth, with projections indicating a market value of 6.66 USD Billion in 2024 and an anticipated increase to 17.4 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.15% from 2025 to 2035, reflecting the increasing adoption of turbocharging technology across various vehicle segments. The market dynamics are influenced by factors such as rising fuel efficiency demands, technological advancements, and regulatory pressures, all contributing to a robust outlook for the industry.

The Global Automotive Turbocharger Market Industry is being propelled by stringent emission regulations imposed by governments worldwide. These regulations aim to reduce greenhouse gas emissions and promote cleaner technologies in the automotive sector. Turbochargers are integral to meeting these standards, as they enable manufacturers to produce engines that comply with emissions limits while maintaining performance. As a result, the demand for turbocharged engines is likely to increase, driving market growth. The anticipated compound annual growth rate of 9.15% from 2025 to 2035 underscores the importance of turbochargers in achieving regulatory compliance and sustainability goals.

The Global Automotive Turbocharger Market Industry is experiencing a surge in demand for fuel-efficient vehicles. As consumers become more environmentally conscious, automakers are compelled to enhance fuel economy without compromising performance. Turbochargers play a pivotal role in achieving this balance, allowing smaller engines to produce more power while consuming less fuel. In 2024, the market is projected to reach 6.66 USD Billion, reflecting a growing trend towards sustainable automotive solutions. This shift is likely to continue, as regulations around emissions tighten globally, further driving the adoption of turbocharged engines.

The rise of electric and hybrid vehicles is reshaping the Global Automotive Turbocharger Market Industry. While these vehicles primarily rely on electric power, many hybrid models incorporate turbocharged internal combustion engines to enhance performance and efficiency. This trend indicates a shift towards integrating traditional and modern technologies, allowing manufacturers to offer versatile vehicle options. As the market for hybrid vehicles expands, the demand for turbochargers is expected to follow suit, contributing to the overall growth of the industry. The increasing consumer preference for hybrid solutions suggests a promising future for turbocharger applications.

Innovations in turbocharger technology are significantly influencing the Global Automotive Turbocharger Market Industry. Manufacturers are focusing on developing advanced materials and designs that enhance performance and durability. For instance, the introduction of variable geometry turbochargers allows for better control of boost pressure, improving engine responsiveness. These advancements not only optimize fuel efficiency but also reduce turbo lag, thereby enhancing the overall driving experience. As the industry moves towards more sophisticated turbocharging solutions, the market is expected to grow, with projections indicating a rise to 17.4 USD Billion by 2035.

The Global Automotive Turbocharger Market Industry is benefiting from the expansion of automotive production in emerging markets. Countries such as India and Brazil are witnessing a surge in vehicle manufacturing, driven by rising disposable incomes and urbanization. This growth is leading to an increased demand for turbocharged engines, as manufacturers seek to enhance vehicle performance while adhering to fuel efficiency standards. As these markets develop, the adoption of turbocharging technology is likely to accelerate, further propelling the market forward. The combination of economic growth and automotive innovation presents a favorable landscape for turbocharger manufacturers.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North automotive turbocharger market area will dominate this market. The emerging trend of light-weighting engines in commercial vehicles is leading the shift toward natural gasoline. The rising imposition of stringent automotive emission norms will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Automotive Turbocharger Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's automotive turbocharger market accounts for the second-largest market share because the modern car industry is governed by fuel economy and efficiency, which, in turn, is driven by the EU legislation on fuel economy and emissions targets. Further, the German automotive turbocharger market held the largest market share, and the UK automotive turbocharger market was the fastest-growing market in the European Region.

The Asia-Pacific automotive turbocharger market is expected to grow at the fastest CAGR from 2024 to 2030. Rising automotive production levels in Asian economies supplement this. Moreover, China’s automotive turbocharger market held the largest market share, and the Indian automotive turbocharger market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive Turbocharger market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive turbocharger industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive turbocharger industry to benefit clients and increase the market sector. The automotive turbocharger industry has offered some of the most significant advantages in recent years. Major players in the automotive turbocharger market, including Cummins, Inc.( U.S.), BorgWarner Inc. (U.S), Mitsubishi Heavy Industries Ltd (Japan), Fengcheng Xindongli Turbocharger Co.

Ltd.( China), Honeywell International Inc. (U.S.), IHI Corporation (Japan), Bullseye Power LLC (U.S.), Precision Turbo and Engine (U.S.), Continental AG (Germany), Bosch Mahle (Germany)and others, are attempting to increase market demand by investing in research and development operations.

Mercedes-Benz, commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG is headquartered in Stuttgart, Baden-Württemberg, Germany. Mercedes-Benz announced the launch of sales of its new Mercedes-AMG C 43 4MATIC with a price starting at EUR 71,460 for the Saloon and EUR 73,245 for the Estate. In this completely redeveloped model performance of the agile, 300 kW (408 hp) AMG engine is enhanced by an electric exhaust gas turbocharger.

The belt-driven starter generator (RSG) offers an additional short-term boost of 10 kW (14 hp) in certain driving situations.

Daimler Truck AG is one of the world's largest commercial vehicle manufacturers, with over 35 locations worldwide and approximately 100,000 employees. Daimler Truck AG is headquartered in Leinfelden-Echterdingen, Germany. It was part of Daimler AG from November 2019 to December 2021. Daimler Trucks announced that the third generation of its OM 471 heavy-duty engine is now available to order and available from October 2022. With the third generation of the OM 471, Mercedes-Benz Trucks is introducing two new turbochargers developed and manufactured in-house. The second turbocharger variant has an engine rating of up to 390 kW (530 hp).