Report: Automotive Turbocharger Sales to Surge Through 2022
Turbochargers are steadily permeating the automotive sector, weighed by manufacturers as a tool to curtail environmental pollution by enhancing fuel efficiency. Emphasis on maintaining cleanliness of fossil fuel engines continues to influence the use of automotive turbochargers in vehicles.
Analysts at Fact.MR foresee demand for automotive turbochargers to expand at a compound annual growth rate of 4.7 percent from 2017 through 2022. Sales of automotive turbochargers worldwide are likely to cross a valuation of $19 billion, according to Fact.MR.
Increasing fuel prices have largely impacted sales of vehicles across the globe. This is likely to fuel the adoption of automotive turbochargers on the back of high fuel efficiency, according to Fact.MR.
Original equipment manufacturers have initiated fine tuning of automotive turbochargers in a bid to cater to the growing demand from customers. This has resulted in an upswing in automotive turbocharger sales, in turn pushing the growth of the automotive turbocharger market.
Tug-of-war between diesel and gasoline engines with respect to adoption of automotive turbochargers prevails owing to government subsidies favoring market preferences or a particular fuel, according to Fact.MR. However, demand for automotive turbochargers in gasoline engines is likely to be on an upswing with increasing inclination of people toward the fuel, particularly in the U.S.
Higher inclination toward gasoline engines can be attributed to additional cost required to make diesel vehicles compliant with emission regulations. Sales of automotive turbochargers in vehicles with gasoline engine are estimated to touch $11 billion by 2022, according to Fact.MR.
The aftermarket continues to remain a lucrative sales channel for automotive turbochargers on the back of increasing product popularity, coupled with growing need for replacements in a bid to comply with strict engine emission norms, according to Fact.MR. On the contrary, rising production of vehicles along with increasing demand for reduced vehicle weight is expected to steadily push sales of automotive turbochargers through the OEM channel through 2022.
According to the Fact.MR report, sales of automotive turbochargers through the aftermarket channel are estimated to surpass $12 billion by 2022.
Sales of automotive turbochargers are expected to remain concentrated in the developed countries of North America, particularly the U.S. Growth of the North American automotive turbocharger market is largely fueled by increasing preference for gasoline, according to Fact.MR. Moreover, strict government regulations against emissions coupled with a significant increase in sales of commercial and passenger vehicles have further pushed the demand for automotive turbochargers in the region, making it an attractive market for automotive turbocharger manufacturers.
The Asia Pacific, excluding Japan (APEJ), is also projected to showcase high lucrativeness on the back of rising vehicle production, according to Fact.MR. The presence of vehicle manufacturers in APEJ has influenced the demand and sales of automotive turbochargers. Moreover, use of automotive turbochargers in petrol engines-an upcoming trend-has significantly enhanced fuel economy in the emerging countries of China and India in the APEJ region, according to Fact.MR. This factor is likely to spur the demand for automotive turbochargers in the coming years.
Trends & Future
With rising technological advancements in the automotive space, manufacturers of automotive turbochargers have initiated development of advanced products by carrying out innovations in designs. For instance, recent technological advancement includes the use of variable nozzle technology in automotive turbochargers.
In 2017, Honeywell International Inc., introduced its advanced variable geometry automotive turbocharger using this technology. It also introduced two-stage diesel engine automotive turbochargers that feature wastegate technology and variable geometry that significantly curbs emissions and enhances vehicle performance, according to Fact.MR.
Sales of electric vehicles are likely to touch 2 million orders by the end of this year. Steadily increasing preference for electric vehicles coupled with government support for electric vehicle promotion is expected to have a negative impact on the sales of automotive turbochargers, according to Fact.MR. The surplus consumption of oil during overheating of automotive turbochargers could significantly confine the growth of the automotive turbocharger market.