Report: The Automotive Turbocharger Market Will Exceed $24 Billion By 2024

A new report from Global Market Insights, Inc. is estimating that the automotive turbocharger market will grow at a 9 percent rate over the next eight years. That growth would give the industry over $24 billion in revenue.

The growth will be driven by a “rising demand for turbocharging technologies from the OEMs [original equipment manufacturers] to deliver enhanced and fuel-efficient vehicles,” the report said. A strict regulatory landscape regarding carbon emission control will also contribute toward the expansion of the business.

Several of the largest automakers have made clear their plans to increase electric and self-driving vehicle output over the next decade to compete with Tesla Motors Inc TSLA. General Motors GM also just received a $2.25 billion investment in its AV/EV unit from Japanese firm SoftBank.

The industry’s major players include Cummins Inc. CMI, Honeywell International Inc. HON, BorgWarner Inc. BWA, Linamar, Federal-Mogul, and Mitsubishi.

Here are four major trends the report highlighted:

• OEMs are anticipated to account for close to 90 percent of the overall automotive turbocharger market share by 2024. The growth will be driven by the expansive vehicle production across the globe that will upswing the demand for turbochargers for enhancing performance, reducing vehicle weight, and maintaining fuel economy.
• Powered by the automotive industry expansion across South Korea, Japan, China, and India, APAC automotive turbocharger market share will register a compounded annual growth rate (CAGR) greater than 8 percent from 2017-2024. The rising enforcement of regulations regarding fuel-efficient automobiles on the road will also augment the regional growth.
• Industry experts speculate that diesel will emerge as the main fuel in the industry, as diesel-powered vehicles demand high-grade turbocharging technologies due to low efficiency. Diesel will have at most a 60 percent market share in the industry by 2024.
• VGT turbochargers will have a growth rate of 8 percent over 2017-2024, driven by the extensive requirement to control NOx and particulate emissions.