Automotive Turbocharger Market Trends and Global Production Volumes

Automotive Turbocharger Market Size, Trends and Forecast Insights

The global automotive turbocharger market is forecasted to expand from USD 16.79 billion in 2025 to USD 34.87 billion by 2034, growing at a CAGR of 8.46% from 2025 to 2034.

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Market Overview

The automotive turbocharger market is experiencing steady growth driven by the increasing demand for enhanced engine performance, fuel efficiency, and stringent emission regulations. A turbocharger forces more air into the engine’s combustion chamber that enables smaller engines to produce more power along with improving fuel efficiency. As automakers strive to meet global environmental standards and consumer preferences for fuel-efficient vehicles, turbochargers are becoming an integral part of automotive design.

The market for automotive turbochargers is being further fueled by advancements in technology, such as variable geometry turbochargers (VGT) and twin-turbocharging systems, which offer improved performance and responsiveness. The shift towards smaller, more efficient engines in modern vehicles also drives the demand for turbocharging solutions. Additionally, the growing popularity of performance-oriented cars and the need to reduce the carbon footprint are significant factors influencing market growth. As consumers and manufacturers alike continue to prioritize sustainability and efficiency, the automotive turbocharger market is poised for continued expansion.

Emerging markets, especially in Asia-Pacific, are contributing to this growth, where rising disposable incomes and automotive production are creating new opportunities for turbocharger adoption. With the rising focus of automotive industry on developing eco-friendly transportation solutions, turbochargers are expected to play a crucial role in shaping the future of vehicle powertrains, contributing to the development of high-performance and fuel-efficient vehicles worldwide.

Industry Highlights

• Asia Pacific holds the largest share of the automotive turbocharger market.
• North America is expected to rise with a significant CAGR during the forecast period.
• By technology type, the wastegate turbocharger segment led the market.
• By fuel type, the diesel segment held the largest share of the market.
• By vehicle type, the passenger cars segment led the industry.

Key Metrics and Overview

What are the Trends of Automotive Turbocharger Market in 2025?

Key trends of this market include the downsizing of engines for better fuel efficiency, adoption of hybrid vehicles, and technological advancements.

Engine Downsizing

Engine downsizing includes the reduction of engine size, typically by reducing volume of each cylinder or decreasing number of cylinders. They reduce throttle loss and engine friction, resulting in better fuel economy and reduced emissions.  Numerous passenger car manufacturers such as Tata Motors, Maruti Suzuki, Toyota and some others have started downsizing their engines.

Rise of Hybrid Vehicles

Turbochargers are increasingly being used in hybrid vehicles to enhance efficiency and performance. E-turbocharger combines traditional turbocharger with an electric motor to improve fuel-efficiency and performance in vehicles. For instance, in May 2024, Porche launched 2025 Porsche 911 GTS hybrid in India. It incorporates a single E-turbocharger along with a powerful electric motor that delivers superior torque and high driving range. (Source: evoindia)

Integration of Advanced Technology in Turbochargers

The increasing emphasis of automotive companies to improve engine performance, efficiency, and reliability has increased the demand for turbochargers. The integration of advanced technologies such as AI and IoT in various types of turbochargers including electrically-assisted turbochargers, Variable Geometry Turbochargers (VGT), and Twin-scroll turbochargers helps in enhancing the capabilities of vehicles.  Also, the integration of advanced materials and smart sensors in turbochargers for enhancing durability and performance of turbochargers is an ongoing trend in the industry.

Technology Type Insights

The wastegate segment dominate the market. The growing demand for wastegate turbochargers due to their cost-effectiveness and ability to generate maximum torque and power has boosted the market growth. These types of turbochargers are mostly used in affordable cars to lower maintenance cost and reduce complexity. Automakers can improve low-end engine response and vehicle acceleration by using a smaller turbine housing with a wastegate. Wastegate turbochargers are ideal for engines that operate under a wide range of conditions and loads. It has an ability to adjust pressure based on engine speed and load, resulting in optimal performance across different driving scenarios.

• In May 2025, Tata unveiled the all-new Tata Altroz in India. This car is equipped with a wastegate turbocharged engine that helps in enhancing low-end performance. (Source: CarDekho)

Fuel Type Insights

The diesel segment held the largest share of the market. The diesel segment plays a significant role in driving the growth of the automotive turbocharger market, primarily due to the growing demand for diesel-powered vehicles and numerous benefits of turbocharging in diesel engines. Numerous commercial vehicle companies are partnering with turbocharger manufacturers to integrate superior-quality turbochargers to improve the performance of vehicles. Additionally, rapid investment by market players for developing advanced turbocharger to cater the needs of the diesel vehicles is driving the growth of the automotive turbocharger market.  

Vehicle Type Insights

The passenger cars segment led the industry. The passenger car segment plays a crucial role in driving the growth of the automotive turbocharger market, primarily due to the increasing consumer demand for high-performance cars and fuel-efficient vehicles. Turbocharging technology is increasingly integrated into passenger cars as automakers seek to enhance engine efficiency and reduce emissions while improving power output. As consumers become more conscious about environment and fuel prices, the demand for single turbochargers is increasing rapidly in recent times. Additionally, the growing sales of mild-hybrid cars in several countries such as India, Thailand, Vietnam and some others has increased the demand for electric turbochargers, thereby driving the growth of the automotive turbocharger market.

Regional Insights

Asia Pacific held the largest share of the market. Growing vehicle production and sales, numerous environmental regulations, and the increasing adoption of hybrid vehicles are key drivers of the automotive turbocharger market in the Asia-Pacific (APAC) region.

The growing sales and production of automotive in several countries such as China, India, Japan, South Korea and some others has increased the demand for different types of turbochargers, thereby fostering the market expansion. According to the OICA, around 8234681 vehicles were manufactured in Japan during 2024. (Source: OICA)

The demand for hybrid vehicles has increased rapidly due to the rising emphasis on reducing emission along with increased prices of gasoline in APAC region. With the growing sales of hybrid cars, the demand for electric turbochargers is likely to increase in this region, thereby driving the growth of the automotive turbocharger market.

Rising environmental regulations across China and India, are further propelling the adoption of turbochargers. Countries in the region are implementing stricter emissions standards, such as China VI and Bharat Stage VI (BS-VI), which require manufacturers to adopt technologies such as turbocharging to reduce CO2 emissions and improve fuel efficiency. Turbochargers are essential in helping automakers meet these regulatory requirements by optimizing engine output while minimizing fuel consumption and emissions.

• According to the Volza, the top two turbocharger exporters in 2024 were China, India, and United States. China led the world in turbocharger exports with 115,715 shipments, followed by India with 87,207 shipments. (Source: Volza)

North America is anticipated to rise with a significant CAGR during the forecast period. The rising adoption of gasoline-powered vehicles in North America is driving the market growth. Also, the growing sales of FCEVs along with technological advancements in automotive sector further adds to the industrial expansion. Moreover, the presence of several automotive companies such as Ford, General Motors, Stellantis and some others is expected to drive the growth of the automotive turbocharger market in this region.

U.S. is leading the automotive turbocharger market in North America due to the increased demand for fuel-efficient vehicles, stricter emission regulations, and advancements in electric turbocharger technology. The presence of major players such as BorgWarner, Cummins, Honeywell International, and Precision Turbo & Engine drives the automotive turbocharger market in the U.S.

• In March 2024, Cummins launched HE400VGT turbocharger. This turbocharger is designed for 10- to 15-liter heavy-duty truck engines to deliver superior performance. (Source: Cummins)

Competitive Landscape

The automotive turbo market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Continental GT, Garrett Motion, Rotomaster International, Mitsubishi Heavy Industries. Ltd, Kompressorenbau Bannewitz GmbH, Fuyuan Turbocharger Co, Ltd, IHI Corporation, American Traffic Solutions (Verra Mobility), Mahle, Turbonetics, Marelli Corporation, Ningbo Motor Industrial Co. Ltd., Precision Turbo and Engine Inc., Aptiv PLC, Robert Bosch GmbH, Cummins Inc., and ABB. These companies adopt numerous strategies such as product launches, partnerships, business expansion, acquisition, and some others to maintain their dominant position in this industry.

• In April 2023, Garrett launched a new range of turbochargers. This new range consist of  variable nozzle turbines (VNT), double-axle VNTs (DAVNT), wastegate turbo, and E-turbos. (Source: Garrett Motion Inc.)

Recent Developments

• In April 2025, Cummins launched a new range of hydrogen internal combustion engine turbochargers. These turbochargers are designed for heavy-duty commercial trucks of Europe. (Source: Cummins Inc.)

• In September 2024, BorgWarner launched a twin turbocharger. This turbocharger is designed for General Motors Corvette ZR1 sports car. (Source: Yahoo Finance)

• In April 2023, Garrett Motion launched an advanced turbocharger. This turbocharger is designed for hybrid vehicles to provide superior performance and enhanced mileage. (Source: Business Wire )

Automotive Turbocharger Market Segments

By Technology Type

• Variable Geometry Turbocharger/ Variable Nozzle Turbine
• Wastegate Turbocharger
• Electric Turbocharger

By Fuel Type

• Gasoline
• Diesel

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa