Automotive Intercooler Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The Automotive Intercooler Market was valued at USD 16.29 billion in 2021, and it is expected to reach USD 22.05 billion by 2027, registering a CAGR of about 5% during the forecast period 2022 - 2027.
During the outbreak of the pandemic COVID-19, the market was hit adversely because of the disruptions caused in the supply chain as several major economies of the world were forced into lockdown, and economic activities were halted during this period. The demand for passenger vehicles also fell drastically during this period. Yet, with the gradual opening up of economies, the demand returned to the market, and markets like China and India witnessed huge demand for passenger cars as the consumer preference changed from public transport to personal vehicles.
Over the long term, The demand for EVs is growing fast across the world, and it is expected to pose a challenge to the growth of automotive intercoolers. Countries are striving to suffice the rising fuel demand by focusing on eco-friendly transportation. EVs reduce the dependence of consumers on gasoline/diesel-based automobiles, and thereby, the need for turbochargers/superchargers decreases. There, it affects the demand for intercoolers.
The growth of the market studied is directly impacted by the growth of the global automotive turbocharger market, as intercooler plays a vital role in cooling compressed air. Further, Increase in environmental concerns is fueling the demand for the thermoelectric generator in the vehicle, which is expected to help enhance engine efficiency. This, in turn, is projected to boost the automotive intercooler market across the globe. Various governments have enacted stringent regulations about vehicle emissions, which is likely to propel the automotive intercooler market across the globe.
Europe and Asia-Pacific are projected to hold a significant share of the global automotive intercooler market due to an increase in the sale of vehicles across the region. The presence of major automotive parts manufacturing industries across China, India, and Japan is anticipated to propel the automotive intercooler market across the Asia Pacific.
Automotive Intercooler Market TrendsIncreasing Adoption of Turbochargers is likely to Drive the Market GrowthThe growth of the intercooler market is directly related to the automotive turbocharger market. The introduction of new emission legislations in Europe (Euro6d), India (BS-VI), and China (China VIb) has increased pressure on the automotive industry to develop new and better exhaust gas after-treatment and combustion systems.
Moreover, E-Turbo can electrically recuperate spent or otherwise wasted exhaust energy by using a small motor to generate electricity and recharge the hybrid battery. According to the company, the first application of E-Turbo is likely to emerge in premium, high-performance vehicles from 2021 onward, and future applications may begin to appear in other segments leading up to 2025. This ability to be an onboard provider of electricity opens options for automakers in designing hybrid powertrains.
In the light of the improvement in the technology of turbochargers, the demand for turbocharged vehicles is expected to increase, which may lead to an increase in demand for intercoolers, during the forecast period.
Asia-Pacific Region Expected to Play Key Role in the MarketAsia-Pacific is likely to hold a significant share in the automotive intercooler in the wake of growing automotive sales in the region, coupled with technological advancements, such as two-stage supercharging, which compress air and transfer it back to the engine and enhance power in the vehicle. This is one of the factors increasing the demand for intercoolers in the market.
Further, an increase in the production of passenger cars and stringent government regulations for fuel economy standards is also surging the sales of intercoolers. The market is also supported by the growing presence of key automotive players and their active strategies, like launching new models and offering advanced solutions to their customers to maximize their market share in the region. Such developments are anticipated to encourage intercooler component manufacturers in the vehicles over the forecast period. For instance,
Many companies provide direct replacement of intercoolers and custom intercoolers for modern, classic, or racing cars as per the customer's requirement and offer a warranty for replacement parts. This factor is increasing the aftermarket as well for automotive intercoolers in many countries across the Asia-Pacific region.
Automotive Intercooler Market Competitive AnalysisThe automotive intercooler market is consolidated owing to the presence of key players occupying the majority share in the market. Some of the prominent players operating in the market are Bell Intercoolers, Mishimoto, BMR, Garrett Motion Inc., and Treadstone Performance Engineering Inc Etc. For instance,
Some of the major automotive OEMs are also launching new products in the market to gain a competitive edge over other players in the market.
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