Automotive Turbocharger Market
Automotive Turbocharger Market
The market for Automotive Turbocharger was estimated at $16.20 billion in 2024; it is anticipated to increase to $26.0 billion by 2030, with projections indicating growth to around $38.5 billion by 2035.
Report Summary
Table of Contents
Methodology
Market Data
Global Automotive Turbocharger Market Outlook
Revenue, 2024 (US$B)
$16.2B
Forecast, 2034 (US$B)
$35.6B
CAGR, 2024 - 2034
8.2%
The Automotive Turbocharger industry revenue is expected to be around $17.5 billion in 2025 and expected to showcase growth with 8.2% CAGR between 2025 and 2034. </p><p>The automotive turbocharger functions, as a forced induction system that enhances an engines efficiency and power by introducing compressed air into the combustion chamber. The main benefits include boosting engine horsepower without adding excessive weight and ultimately enhancing the overall performance of the vehicle.</p>
Market Key Insights
- The Automotive Turbocharger market is projected to grow from $16.2 billion in 2024 to $35.6 billion in 2034. This represents a CAGR of 8.2%, reflecting rising demand across Fuel Efficiency Enhancement, Emission Reduction and Power Output Boosting.
- The market leaders include Honeywell International Inc and BorgWarner Inc and IHI Corporation which determine the competitive dynamics of this sector.
- U.S. and Germany are the top markets within the Automotive Turbocharger market and are expected to observe the growth CAGR of 6.0% to 8.6% between 2024 and 2030.
- Emerging markets including Mexico, Thailand and Brazil are expected to observe highest growth with CAGR ranging between 7.9% to 10.3%.
- The Automotive Turbocharger market will receive a $2.8 billion boost from the Electrification Wave transition until 2030.
- The Automotive Turbocharger market is set to add $19.4 billion between 2024 and 2034, with manufacturer targeting Wastegate & Twin Turbo Type projected to gain a larger market share.
- With Rising demand for fuel-efficient vehicles, and Stringent emission norms, Automotive Turbocharger market to expand 120% between 2024 and 2034.
Opportunities in the Automotive Turbocharger
Turbos are commonly found in tinted cars; there is a potential for expansion, in the aftermarket industry.
Growth Opportunities in North America and Europe
North America Outlook
<p>In the automotive turbocharger industry leadership scenario of North America reigns with rivalry between major players like Honeywell and BorgWarner who are focused on bringing fresh ideas to the table. The demand is fuelled by factors such as emission regulations a rise in SUVs and high performance cars. Moreover potential for growth can be seen in the field of progress, within turbocharging systems.</p>
Europe Outlook
<p>Europe is a competitive market with a significant presence of cutting edge automotive manufacturing operations in place by major players like IHI Corporation and Mitsubishi Heavy Industries influencing the market trends in the region positively. The European market shows an inclination towards using automotive turbochargers due to strict environmental regulations and an increasing emphasis on enhancing fuel efficiency. There is growth potential given the rising interest in electric vehicles that is driving the demand, for hybrid turbochargers as well.</p>
Market Dynamics and Supply Chain
01
Driver: Rising Demand for Fuel-Efficient Vehicles, and Technological Advancements and Innovations
The growing demand for cars that save fuel has also become a factor in the car turbochargerindustry'sgrowth momentum. Peoples concerns about rising fuel costs and their growing awareness of issues are also pushing them towards more economical vehicles and driving the popularity of turbochargers. Turbochargers have also a role, in improving fuel efficiency by using exhaust gases effectively to power an engine and boost performance and efficiency. The ongoing progress and improvements in the development and operation of turbochargers play a role, in driving the automotive turbocharger market forward.<br>Governments, around the globe are also implementing emission regulations to address the growing problem of environmental pollution—a trend that is also fueling the growth of the turbocharger market. The automotive industry is also turning to turbochargers to comply with these rules because they help decrease CO₂ emissions by enhancing engine performance.
02
Restraint: High Manufacturing and Installation Costs
The production and fitting of turbochargers, for cars can be quite costly because of the technology and top quality materials involved in the process This typically leads to higher vehicle prices which may deter budget conscious buyers and could slow down market expansion.
03
Opportunity: Electric Turbocharging Growth and VGTs in Commercial Vehicles
Electric turbocharging holds importance in the hybrid and electric vehicle industry as it represents a promising yet underexplored market opportunity. With governments advocating for more stringent emission regulations the call for cleaner and more fuel efficient vehicles continues to rise. The utilization of turbochargers presents a clear benefit in improving fuel efficiency and decreasing CO2 emissions making them a valuable asset in the pursuit of environmentally friendly transportation solutions. Given the trend towards increased production of hybrid and electric vehicles the prospects, for the expansion of electric turbocharging technology appear promising.<br>Variable Geometry Turbochargers commonly used in cars are now being adopted in the commercial vehicle sector well due to their ability to improve fuel efficiency and enhance engine performance. Qualities highly valued in heavy duty vehicles. The increasing need for fuel efficient commercial vehicles may lead to a surge in the use of VGTs, within the commercial vehicle industry.
04
Challenge: Stringent Emission Norms
Another significant hurdle for the automotive turbocharger market arises from the emission standards enforced worldwide. It demands investments, in research and development to comply with these regulations; ultimately leading to increased production expenses. If these extra costs are transferred to consumers it might discourage them from buying vehicles equipped with turbochargers.
Supply Chain Landscape
1
Raw Material Providers
BASF
ArcelorMittal
2
Component Manufacturers
BorgWarner
IHI Corporation
3
Turbocharger Producers
Honeywell International
Mitsubishi Heavy Industries
4
Automotive Manufacturers
Ford
General Motors
1
Raw Material Providers
BASF
ArcelorMittal
2
Component Manufacturers
BorgWarner
IHI Corporation
3
Turbocharger Producers
Honeywell International
Mitsubishi Heavy Industries
4
Automotive Manufacturers
Ford
General Motors
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Automotive Turbocharger in Fuel Efficiency Enhancement, Emission Reduction & Power Output Boosting
Fuel Efficiency Enhancement
<p>Automotive turbochargers play a role in improving fuel efficiency by boosting the engines power output without requiring an increase in size or fuel consumption levels to achieve optimal performance in vehicles manufactured by leading companies such, as Honeywell and Mitsubishi Heavy Industries.</p>
Power Output Boosting
<p>Turbochargers increase power by squeezing the air that goes into the engine so it can burn fuel each time around. This helps boost the horsepower of the vehicle without requiring an engine. Notably BorgWarner and IHI Corporation are leading in this field.</p>
Emission Reduction
<p>Turbochargers play a role in decreasing CO₂ emissions by improving the combustion efficiency of engines which makes them appealing in a market focused on concerns. The notable players, in this industry are Garrett Advancing Motion and Continental AG.</p>
Recent Developments
December 2024
<p>A new manufacturing facility in North America was established by BorgWarner with a focus, on producing advanced automotive turbochargers.</p>
October 2024
<p>Honeywell has launched a range of environmentally friendly turbochargers with the goal of enhancing fuel efficiency and cutting down emissions, in traditional combustion vehicles.</p>
July 2024
<p>Mitsubishi Heavy Industries created a turbocharger with adjustable geometry to enhance engine efficiency and reduce carbon emissions.</p>
In years the Automotive Turbocharger market has undergone rapid changes driven by technological progress and shifting consumer tastes. One significant advancement is the growing popularity of turbochargers. These turbochargers, called e turbos for short harness the power of a motor to provide instant boost for improved performance resulting in seamless acceleration with no lag time.
Impact of Industry Transitions on the Automotive Turbocharger Market
As a core segment of the Automotive & Mobility industry,
the Automotive Turbocharger market develops in line with broader industry shifts.
Over recent years, transitions such as Electrification Wave and Adoption of Variable Geometry Turbochargers have redefined priorities
across the Automotive & Mobility sector,
influencing how the Automotive Turbocharger market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Electrification Wave
With the rise in interest for friendly power sources car manufacturers are moving towards electrifying turbochargers. Electric turbochargers have the ability to spin up quicker than exhaust driven models leading to better efficiency and lower emissions. This move towards electrification is changing the landscape of the turbocharger industry signaling a transition, from conventional turbochargers to newer and more creative options.
02
Adoption of Variable Geometry Turbochargers
Variable Geometry Turbochargers offer advantages compared to fixed geometry turbochargers. These benefits include enhanced throttle response. Decreased turbo lag which ultimately optimize the engines performance.