In an era where sustainability trends are paramount, the world has witnessed an extraordinary transit in global automotive turbochargers market since the last few years. Turbochargers have in fact brought significant transformation in automobiles by downsizing engines to improve fuel efficiency by as much as 20% to 40% in gas and diesel vehicles respectively. Given the high environmental aspects associated with the automotive industry, turbochargers have gained considerable traction as an essential auto part. The component moreover, has proven its worth in addressing the stringent regulatory norms over curbing CO2 emissions as well as the demand for fuel-efficient vehicles for consumers – a factor further complementing turbocharging to be known as a green technology.
With an appreciable number of auto manufactures contributing their bit toward rising environmental concerns, it is no more a presumption that automotive turbochargers market has indeed emerged as one of the most productive business class of the overall automotive & transportation industry. Statistics validating the authenticity of the aforementioned statement is of a reliable report that claims more that 50% of the vehicles to be turbocharged and estimates the number to be close to two-third by 2025. Another Global Turbo Forecast report released by the leading automotive turbochargers industry player Honeywell Turbo Technologies estimates more than 49 million turbocharged vehicles to be sold annually by 2019, in turn generating around USD 12 billion in revenue. The data clearly affirms that automakers will continue to embrace turbochargers to improve engine performance, while meeting global environmental emissions regulations.
It is rather overt that environmental sustainability trends have become imperative for the growth of the automotive industry. Thus, with increasing pressure from the regulatory bodies, the advent of electric vehicles (EV) alone seems to warrant a speedy transition owing to climate change concerns. The interest in electric vehicles grew sharply as governments around the world enforced more sustainable use of energy and are in process to impose a ban on fossil fuel based vehicles. Amidst this scenario, it becomes rather prudent to analyze the impact of EVs on automotive turbochargers market trends.
How is automotive turbochargers market gearing up for the shift from fuel-powered vehicles to battery-driven cars?
The last decade has been an exciting period for the automotive industry as increasing number of carmakers intended to hop on the electric vehicles bandwagon. Automobile manufacturers in this regard are seen embracing EV models and making significant investments to capitalize on the expanding electric vehicles market share. In fact, reliable reports claim that the global electric vehicle industry share was pegged at 1.2 million in 2015 and is expected to grow to approximately over 25 million by 2025. Analysts further claim that the adoption of EVs has been on an all-high of late, driven largely by rising demand for zero-emission vehicles and the presence of stringent government regulations mandating emission control standards. In fact, it wouldn’t be wrong to say that, riding on the back of claims that they are safer and more sustainable, battery-powered vehicles have emerged as potential game-changers for future automotive trends. In the backdrop of this scenario, it is rather overt that the battery range vehicle segments with integrated supercharges and e-compressors are thriving ferociously, subsequently casting doubt on the expansion of automotive turbochargers industry in the ensuing years.
On the contrast, if expert opinions are to be believed, the impact of electrification on the automotive turbocharger market is poised to be an enabler driving further technological advancements in the automotive turbochargers industry. Analysts in fact expect this trend to only continue further where more hybrid engines will also become turbocharged. By bringing electrification into the turbos to interact with the vehicle electrical network, analysts deem that automotive turbocharger market players will stand a greater chance in improving the overall performance of hybrid vehicles and EVs. In fact, several companies are already seen developing electric engine boosting solutions including e-turbos, some of which has been on display in Formula One.
Industry experts presume that turbochargers will still play an important role in the engine mix in the many years to come. The industry will continue on the path of progress as it is anticipated that the EV market still needs to overcome the major challenges pertaining to charging infrastructure and lithium-battery technology – apparently both of which have failed to match the steadfast pace set by EVs. A report by Ricardo Consultancy which claims that cars with internal combustion engines (ICE) will still constitute of 70% of automotive industry share by 2030, further throws light on the fact that the automotive turbocharger industry is here to stay.
Electric Turbochargers are the future, says Honeywell
It is rather overt by now that electrification has already hit the ground running in the automotive turbochargers industry. In fact, it has been reported that the many advantages of the electric turbochargers will pave their way in the mass market as soon as the coming four years. The electric turbochargers no longer rely on exhaust gases to start spinning and are not only designed to boost engine performance but to also generate power to ease the load on the alternator and help improve fuel economy. Automotive industry giants are widely adopting e-turbos for their high-end & premium range cars to deliver improved performance and mileage.
One classic example is of the upcoming G80-generation BMW M3, that has created all the buzz ever since it has hit the headlines for getting a 48-volt electrical system, (a twin-turbo I6 with an electric turbocharger), which will apparently be the first for the BMW. If rumors are to be believed, the next M3 would also use a twin-turbocharged I6 with water-injection, similar to that of BMW M4 GTS. Analysts deem, with an electric turbocharger that will reduce the turbo lag, the new M3 will remain competitive in the high-end cars segment.
Mercedes-Benz and its performance division, AMG, has also publicly acknowledged that electric turbochargers are the next big thing in the automotive turbochargers industry outlook. The company claims that electric turbos are designed to keep costs down while adding performance, when compared to full electric drivetrains. The company lately is working its way down from AMG’s Project One hypercar which boasts a Formula One derived electric turbo V6 engine making more than 1000 horsepower and a hybrid drivetrain.
Armed with sustainability as their weapon, e-turbos are poised to make their way to the mass market. Moreover, as regulations pertaining to emissions & fuel economy are becoming more stringent, it is quite obvious that alternative energy sources will be an area where auto manufactures will continue to toss their research dollars. Until the time fuel cells, electric vehicles, and hydrogen cars do not become a norm, automakers will continue looking to improve current technologies to provide more power in increasingly thrifty ways. One of these technologies is clearly turbocharging, powered by which automotive turbochargers industry is envisaged to hit a global valuation surpassing USD 24 billion by 2024.
Global Market Insights, Inc. has a report titled “Automotive Turbochargers Market Size By Vehicle (PCV, LCV, HCV), By Technology (VGT/VNT, Wastegate, Twin Turbo), By Fuel (Gasoline, Diesel), By Distribution Channel (OEM, Aftermarket) Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Poland, Netherlands, China, Japan, India, South Korea, Australia, Thailand, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024” available at