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The automotive refurbished turbochargers market size is estimated to grow at a CAGR of 3.84% between 2022 and 2027. The market size is forecast to increase by USD 174.17 million. The growth of the market depends on several factors, including the affordability of refurbished turbochargers compared with new replacement turbochargers, the preference for engine downsizing by prominent automotive OEMs, and the stringent regulations to control emissions and improve fuel economy.
This automotive refurbished turbochargers market report extensively covers market segmentation by application (passenger cars, light commercial vehicles, and medium and heavy commercial vehicles), fuel type (gasoline, diesel, and alternate fuel/CNG), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The lower cost of refurbished turbochargers when compared to new replacement turbochargers is notably driving the market growth, although factors such as the increasing adoption of low-cost counterfeit turbochargers by end-users may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the main factors influencing the growth of the global automotive refurbished turbochargers market is the lower cost of refurbished turbochargers when compared to new replacement turbochargers. Automotive refurbished turbochargers offer environmental benefits, as refurbishing includes reusing parts of old or discarded turbochargers. This helps in energy savings and has a low impact on the environment. Prominent vendors are offering warranties on refurbished turbochargers. For instance, BorgWarner offers a one-year, 100,000-mile warranty on its automotive refurbished turbochargers. The appearance of refurbished turbochargers is similar to new replacement turbochargers, as refurbished turbochargers are usually stripped down and cleaned, and the faulty parts are replaced with newer ones.
Moreover, a few parts in turbochargers, such as the compressor housing, do not need any major replacement as they are not susceptible to ordinary wear and tear. As a result, refurbished turbochargers look similar to new replacement turbochargers. Thus, refurbished turbochargers are highly preferred over new replacement turbochargers by customers. Such developments are anticipated to drive the market during the forecast period.
The development of electric turbochargers will fuel the global automotive refurbished turbochargers market growth. An electric turbocharger combines an electric motor and a turbocharger into one unit. The electric motor allows the electric turbocharger to rapidly spin the turbo at low speeds, which addresses the turbo lag issue faced by conventional turbochargers. In addition, during deceleration, the electric motor in an electric turbocharger acts as a generator to charge the battery. In conjunction with the 48V electrical system, the electric turbocharger contributes to recuperating energy. This makes electric turbochargers ideal in hybrid vehicles, which are gaining popularity across the world.
In addition, electric turbochargers are less complex to pack when compared to conventional turbochargers. This helps automotive OEMs in designing modern vehicles. In addition, electric turbochargers have the potential to improve the fuel efficiency of vehicles by up to 10%. Hence, with the increasing regulatory pressure to deliver fuel-efficient vehicles, automotive OEMs prefer electric turbochargers. Thus, the development of electric turbochargers will drive the growth of the market in focus during the forecast period.
The adoption of low-cost counterfeit turbochargers is the major challenge impeding the global automotive refurbished turbochargers market growth. Most countries in Asia depend on China for the procurement of electronic products and components. Local players from China sell low-cost electronic equipment and components in regional markets, which has helped them expand their geographical presence and compete with automotive refurbished turbocharger suppliers. These players sell counterfeit turbochargers, which do not undergo manufacturing control and safety measures. Counterfeit turbochargers offered by Chinese players cost about one-tenth of those offered by refurbished turbocharger vendors. Hence, price-conscious customers across the world prefer counterfeit turbochargers. However, these products can harm the engine and other parts of vehicles.
Prominent vendors use advanced technologies and materials in refurbished turbochargers, which are similar in operation to new turbochargers. They need to create awareness among customers regarding the circulation of counterfeit turbochargers and the benefits of high-quality refurbished turbochargers. The above-mentioned factors are expected to be a challenge for the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Refurbished Turbochargers Market Customer Landscape
Vendors 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.
BBB Industries LLC: The company offers automotive refurbished turbochargers such as commercial vehicle turbochargers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger cars segment will be significant during the forecast period. The passenger cars segment dominates the global automotive refurbished turbochargers market owing to the high-volume production of passenger cars when compared with CVs. The rising demand for turbochargers in passenger cars to increase power, improve fuel economy, and reduce emissions is also an important factor in the growth of the segment.
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The passenger cars segment was valued at USD 452.94 million in 2017 and continued to grow until 2021. Passenger cars can be segmented into entry-level, mid-level, and premium or luxury-level cars. In terms of car body type, the global passenger vehicles market consists of hatchbacks, compact sedans, mid-size sedans, luxury sedans, sport utility vehicles (SUVs), crossover utility vehicles (CUVs), multi-purpose vehicles (MPVs), vans, estate cars, and pickup trucks for personal use. Out of these, compact cars, hatchbacks, compact SUVs, and entry-level sedans dominate the volume share globally.
Turbochargers are used in SUVs with petrol or diesel engines to increase power output with low engine capacity. Emerging economies such as India are leading the adoption of turbochargers in the SUVs segment. For instance, in March 2020, Mahindra and Mahindra Ltd. (Mahindra and Mahindra) announced its plan to launch Mahindra XUV500 with a turbocharged 2.0-liter petrol engine in 2021. Hence, the demand for automotive refurbished turbochargers in SUVs is expected to increase during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The automotive industry in APAC has evolved significantly in the last decade, with the introduction of stringent emission norms in key countries such as India, China, South Korea, and Japan. For instance, India adopted Bharat Stage VI norms (equivalent to Euro VI) in April 2020. Automotive OEMs rely significantly on turbocharged engines to comply with emissions norms and satisfy the demand for high performance. This acts as an enabler for the market in focus. Furthermore, the demand for CVs is increasing in APAC, especially in India and China. The high adoption of CVs in the region can be attributed to favorable conditions for small businesses, which have led to a boom in urban logistics transportation during the forecast period.
In 2020, the increase in the number of COVID-19 cases adversely impacted the growth of the automotive refurbished turbochargers market in APAC. However, the initiation of vaccination drives led to the lifting of lockdowns in 2021, and the resumption of auto manufacturing units resulted in the recovery of operations in the regional automotive industry. Thus, the growing operations in the automotive industry during the forecast period will drive the demand for automotive refurbished turbochargers, which, in turn, will boost the growth of the automotive refurbished turbochargers market in APAC during the forecast period.
The automotive refurbished turbochargers 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.
Technavio categorizes the global automotive refurbished turbochargers market as a part of the global automotive components and accessories market within the global auto components market. The global auto parts and equipment market covers companies engaged in the production of parts and accessories for automobiles such as passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Automotive Refurbished Turbochargers Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.84% |
Market growth 2023-2027 |
USD 174.17 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.0 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AET Engineering Ltd. , BBB Industries LLC, BorgWarner Inc., Cardone Industries Inc., Caterpillar Inc., Cummins Inc., Garrett Motion Inc., IHI Corp., Komatsu Ltd., MAHLE GmbH, MTA Turbochargers, Recoturbo Ltd., REMANTE GROUP s.r.o., Schouw and Co., Standard Motor Products Inc., Turbo Technics Ltd., Turboworks Ltd., Zex Toronto, ZF Friedrichshafen AG, and Mitsubishi Heavy Industries Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
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