LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global automotive variable geometry turbocharger (VGT) market to grow at a CAGR of more than 21% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global automotive (VGT) market for 2017-2021. The market is segmented by vehicle type (passenger vehicles and commercial vehicles) and by geography (APAC, EMEA, and the Americas).
The global automotive VGT market is expected to reach 92.55 million units by 2021. Benefits like improved engine efficiency and engine downsizing accredited the growth of the global automotive VGT market. The increasing emission regulations for automobiles worldwide is also one of the factors for improved sales in the automotive VGT market. Turbocharger manufacturers are focussing on developing technologies that ensure 35%-40% reduction in fuel consumption with improved engine performance.
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Technavio automotive research analysts highlight the following three factors that are contributing to the growth of the global automotive VGT market:
- Fuel economy benefits and increased environmental awareness to drive VGT market
- Increase in engine downsizing initiatives by OEMs
- Increased global automobile sales
Fuel economy benefits and increased environmental awareness to drive VGT market
Increasing fuel prices has boosted the demand and sale for fuel-efficient vehicles. The increased adoption of innovative technologies such as gasoline direct injection engines and turbochargers helps in enhancing the fuel efficiency of vehicles. OEMs are also opting for fine tuning turbochargers to meet consumers' demands.
Siddharth Jaiswal, a lead automotive components research analyst at Technavio, says, “The stringent emission norms to control and reduce carbon emissions set by the governments of different countries worldwide will fuel the demand for turbochargers in the coming years. According to Honeywell International, the demand for turbocharged cars is expected to increase from around 38 million in 2016 to 52 million by 2021, which equates to a 35% increase.”
Increase in engine downsizing initiatives by OEMs
Car manufacturers are shifting their production from the conventional four-cylinder combustion engines to three-cylinder combustion engines in passenger cars to make it environmentally friendly with less carbon emissions, which has resulted in the downsizing of engines. The static and dynamic downsizing has been defined as a contemporary trend in the development of combustion engines to reduce fuel consumption by OEMs.
“Downsizing increases the performance of engine without providing any additional burden to the engine, which will drive the need for VGTs. The US EPA expects almost 90% of the passenger vehicles sold are to be equipped with turbochargers in the coming years,” adds Siddharth.
Increased global automobile sales
Increasing purchasing power of consumers and significant economic growth in emerging economies like Brazil, Russia, India, and China (BRIC) is rising the demand for passenger cars. Massive fiscal stimulus packages in China made it the leader in the emerging markets. China has also been the world's largest automotive market over the past few years.
The global vehicle manufacturers shifted their focus toward BRIC nations due to intense vendor competition and saturated markets. To gain access to these emerging nations, many global auto manufacturers have partnered with automakers. For instance, Ford Motor has partnered with Changan Automobiles, and BMW sells its cars in China through the Brilliance Auto Group.
Top vendors:
- BorgWarner
- Cummins
- Honeywell International
- IHI
- MHI
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