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The industrial turbocharger market size is estimated to grow by USD 1.08 billion at a CAGR of 4.66% between 2022 and 2027. Stringent emission regulations are pushing industries towards more efficient and cleaner technologies, leading to an increased demand for industrial turbochargers that can improve engine performance while reducing emissions. The mechanization of agriculture, coupled with the growth in the agriculture machinery market, is driving the adoption of turbochargers in agricultural equipment to enhance productivity and efficiency. Additionally, the benefits of industrial turbochargers over aspirated engines, such as higher power output and improved fuel efficiency, are contributing to their increasing adoption in various industries.
Market Forecast 2023-2027
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This report extensively covers market segmentation by end-user (mining and construction equipment, agriculture equipment, oil and gas industry, power industry, and marine industry), distribution channel (OEM and aftermarket), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The mining and construction equipment segment will account for a major share of the market's growth during the forecast period.?It includes heavy-duty and powerful machines and equipment like excavators and cranes, backhoes, and heavy-duty demolition grapples that depend on industrial turbochargers to enhance engine power output ratio. This segment in the market is predicted to witness a positive year-over-year growth rate during the forecast period. Moreover, rising investments in the construction industry, increasing industrialization, and urbanization rates will also propel the demand for industrial turbochargers.
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The mining and construction equipment segment was valued at USD 1.41 billion in 2017.? Increasing energy security concerns will result in rising demand for coal as a fuel for power generation, and hence the demand from the coal mining industry will increase demand for industrial turbochargers. Moreover, the rising demand for metals and minerals from developing economies in Central and South America, Southeast Asia, and Africa, and increased mining activities for precious metals, such as gold, silver, and platinum will fuel market growth during the forecast period.
Based on the distribution channel, the market has been segmented into OEM and aftermarket. The OEM?segment will account for the largest share of this segment.? Original equipment manufacturers (OEM) are an essential part of modern industrial production as they offer numerous industrial equipment such as cranes, loaders, hydraulic presses, drills, etc. OEMs manufacture parts and components so as to align with industry requests and are customized for specific machinery. This ensures the performance and quality of the machinery, which makes end-users prefer them for supplying agricultural equipment, mining equipment, etc. Hence such factors will contribute to the growth of this segment during the forecast period.
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APAC is estimated to contribute 52% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In the APAC region, China and India are the largest turbocharger markets with Japan, Vietnam, and South Korea also being countries with immense growth potential due to the rapidly growing industrial sector in these countries. Industrial turbochargers are widely used in the mining and construction industry, agricultural equipment, and other end-users. Also, within the oil and gas industry, various ongoing offshore and onshore oil and gas activities will boost the regional market.
Moreover, because of the growth potential in various countries due to increasing industrialization and rising population, several industrial turbocharger manufacturers from the US and Europe are shifting their production facilities to APAC. India and Indonesia, for example, are greatly preferred due to the availability of cheap labor and the ability to expand into newer markets. The growing middle-class population with rising income levels is also expected to increase demand for affordable housing, which will also boost market growth during the forecast period.
The market is witnessing significant growth, driven by the need for enhanced engine performance and fuel efficiency. Engine downsizing, coupled with efforts to reduce vehicle weight, is pushing vehicle manufacturers to adopt turbochargers in both diesel and petrol engines. Variants like VGT/VNT and wastegate turbos are common and available as OEM or aftermarket-only products. Technologies like the Dorman OE FIX offer repair alternatives, while components like turbo air intercoolers and boost pressure relief valves enhance performance. This market extends beyond automotive, catering to the aerospace & defense, marine, and agriculture & construction industries, aligning with environmental emission regulations for fuel-efficient vehicles. Materials like cast iron and aluminum are used in turbocharger construction to meet industry demands. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Many cities worldwide are adhering to strict emissions regulations set by regulatory bodies to protect the environment and human health, and conserve resources. These regulations have implications for the automotive industry, leading to the development of fuel-efficient vehicles and the adoption of technologies to reduce emissions. Additionally, aftermarket players play a role in providing solutions to meet these regulations, such as retrofitting vehicles with emission control systems. These developments have positive implications for the market. Various emission acts, such as the European Union Regulation Number 443/2009, the China State Environmental Protection Administration, and the Japanese Air Pollution Control Act, highlight the importance of transitioning to energy-efficient technologies like industrial turbochargers to reduce emissions.
Additionally, industrial turbochargers help reduce emissions by redirecting toxic gases like sulfur dioxide, nitric oxide, and greenhouse gases such as carbon dioxide and carbon monoxide via exhaust gas for further combustion. This technology is used across various industries, including the aerospace & defense industry, marine industry, and agriculture & construction industry. Turbochargers come in different types, and they often incorporate features like boost pressure relief valves to optimize performance and emissions reduction. This improves energy efficiency and aids in emission reduction, helping end-users comply with stringent regulations and increasing the adoption of industrial turbochargers. These factors are expected to contribute to the market's growth during the forecast period.
Conventional manufacturing techniques, such as casting, are increasingly being replaced by additive manufacturing (AM) which can be used to create a 3D object from a digital file. The term additive indicates that the process involves the building up of thin layers of material, one by one. Moreover, this can be used to generate complex shapes, which conventional techniques like traditional casting and machining methods or subtractive techniques might not have been able to produce.
Moreover, a new technique called selective laser melting (SLM) is gaining momentum in the manufacturing of industrial turbochargers. It involves a powder bed AM technique that is used for the fabrication of net-shape or near-net-shape components. It eliminates the requirement for large inventory by offering production on demand, helping to reduce inventory management and other associated. Additionally, this technique enhances design freedom, flexible processing, and on-site manufacturing. Hence such factors will contribute to market growth during the forecast period.
Increasing demand for industrial turbochargers has resulted in the emergence of counterfeit industrial turbochargers, especially in developing and under-developed countries. Moreover, increased smartphone penetration and ease of access to the Internet are improving access to counterfeit products. They harm prominent vendors by loss of sales, damage to brand and reputation, diluting their trademark, and also forcing them to incur IP protection and enforcement rights.
Moreover, counterfeit industrial turbochargers are deliberately labeled and marketed under the names of established brands and sold at discounted prices. They can even result in the breakdown of machinery during industrial reports and can even lead to human casualties causing harm to both end users as well as vendors. Hence such factors will hinder market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers industrial turbochargers such as ABB Power2 800 M second generation two-stage turbocharging system.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
BMTS Technology GmbH and Co. KG, BorgWarner Inc., Cardone Industries Inc., Caterpillar Inc., Comp Turbo Technology Inc., Continental AG, Cummins Inc., Eaton Corp. Plc, Hitachi Ltd., Honeywell International Inc., Keyyang Precision Co. LTD., Komatsu Ltd., Kompressorenbau Bannewitz GmbH, MAHLE GmbH, Mitsubishi Heavy Industries Ltd., Niitsu Turbo Industries M Sdn. Bhd., Wabtec Corp., IHI Corp., and Toyota Industries Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is driven by the need for engine efficiency and compliance with stringent automotive emission norms. Original Equipment Manufacturers (OEMs) are increasingly incorporating turbocharger technology in their product lines, especially for light commercial vehicles and heavy commercial vehicles. Turbochargers, including twin-turbo technology and variable geometry technology (VGT), enhance engine performance and fuel economy. As the market evolves, electric turbochargers are emerging as a viable option for electric vehicles, reducing turbo lags and improving power and torque. Overall, the industry is moving towards sustainable energy solutions, with a focus on zero-emission vehicles and environmentally friendly technologies.
The market is pivotal in sectors like the automotive and aerospace industries, where engine performance and fuel efficiency are paramount. With increasing emphasis on carbon footprint reduction and compliance with government regulations, turbochargers play a crucial role in enhancing fuel economy and reducing emissions. Advanced technologies such as variable geometry turbochargers and wastegate turbochargers are key features in modern engines, ensuring optimal performance and lower emissions. As consumer demand shifts towards environmentally friendly and economical vehicles, the industrial turbocharger market continues to innovate, driving sustainable solutions for the future.
Industrial Turbocharger Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.66% |
Market growth 2023-2027 |
USD 1.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.11 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., BMTS Technology GmbH and Co. KG, BorgWarner Inc., Cardone Industries Inc., Caterpillar Inc., Comp Turbo Technology Inc., Continental AG, Cummins Inc., Eaton Corp. Plc, Hitachi Ltd., Honeywell International Inc., Keyyang Precision Co. LTD., Komatsu Ltd., Kompressorenbau Bannewitz GmbH, MAHLE GmbH, Mitsubishi Heavy Industries Ltd., Niitsu Turbo Industries M Sdn. Bhd., Wabtec Corp., IHI Corp., and Toyota Industries Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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