The report "Turbocharger Market by Vehicle Type (On-Highway [Passenger Car, LCV & HCV], Off-Highway [Agricultural Tractors & Construction Equipment]), Technology (VGT/VNT & Wastegate), Fuel Type (Gasoline & Diesel), & Aftermarket by Region- Forecast to 2021," published by MarketsandMarkets, The market for the automotive industry is projected to grow at a CAGR of 7.63%, to reach a market size of USD 18.49 Billion by 2021.
The market is driven by factors such as increasing stringency in emission and fuel efficiency regulations, engine downsizing and increasing vehicle production.
"Agricultural tractors to be the largest application in off-highway turbochargers"
Agricultural tractors are expected to dominate the off-highway Turbocharger Market for the automotive industry. Turbochargers in agricultural tractors allow machinery manufacturers to accommodate greater power without increasing the size of the engine as the bigger the engine, the more will be the amount of emission involved. Also, with a constant rise in consumption, agricultural production has also been increasing, prompting a growth in use of agricultural tractors. Many automotive turbocharger manufacturers, such as Honeywell International Inc. (U.S.) and Borg Warner Inc. (U.S.) cater to the off-highway turbocharger industry.
"Passenger car to be the fastest growing segment in the turbocharger aftermarket for automotive industry"
The passenger car segment is projected to grow at the highest CAGR during the forecast period. The growth of the automotive turbocharger aftermarket is influenced by factors such as the increasing average life of vehicles, changing consumer preferences for greater power generating automobiles, and stringent emission regulations in regions such as Europe and North America.
"Asia-Oceania to be the largest market for turbocharger in automotive industry"
Asia-Oceania is estimated to dominate the Turbocharger Market for the automotive industry, and is projected to grow at the highest CAGR during the forecast period. Asia-Oceania have created promising opportunities for automobile manufacturers and automotive product suppliers. OEMs in this region are not only catering to local demands, but are serving developed markets as well through exports. Also the rising pollution levels in this region has prompted the governments to encourage vehicles with lower emissions and higher fuel efficiency, stimulating the growth of the turbocharger industry in this region. For instance, Indian emission norms such as Bharat 4 are based on European emission standards that limit CO emissions to 0.50 g/km (which was 0.64 g/km in EURO 3) and NOx to 0.25 g/km (which was 0.50 g/km) for passenger cars.
The Turbocharger Market for the automotive industry is dominated by a few global players, and comprises several regional players. Some of the key manufacturers operating in the market are Honeywell International Inc. (U.S.), Borg Warner Inc. (U.S.), IHI Corporation (Japan), Mitsubishi Heavy Industries (Japan), and Cummins Inc. (U.S.).