North America Automotive Intercooler Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
North America automotive intercooler market is valued at USD 2.0 Billion in 2021 and is projected to grow at USD 3.35 Billion by 2027, registering a CAGR of 9% in terms of revenue during the forecast period.
The COVID-19 pandemic had a significant effect on the automotive intercooler market directly in the short term as the production and sales of new vehicles witnessed a decline in 2020. In North America the 2020 production of 15,7 million units represented a 20% share of the global production. The NAFTA region saw a decline in production by more than 20%, with United State manufacturing declining by 19%. However, in 2021, the production of vehicles increased considerably and is expected to continue during the forecast period. This is likely to drive the market during the forecast period.
Stringency in fuel economy standards, such as enactment of the CAFÉ standard to reach the fuel economy target of 35.5 mpg by 2016, has been one of the major drivers of intercoolers in the region. Growing demand for high-performance turbochargers which is primarily being used in racing cars, which in turn is expected to drive the demand for intercoolers.
Many racing events are organized in North America and has major presence of racing team, who are involved in making customized systems to be integrated in the vehicle. These systems comprehensively involve the usage of a turbocharging and supercharging system and have intercoolers tailored to meet the needs suited.
Rising environmental concerns is fueling the demand for thermoelectric generator in the vehicle, which helps to enhance engine efficiency. This, in turn, is projected to boost the automotive intercooler market across the region.
Key Market TrendsRise in adoption of turbochargerEnactment of stringent emission norms across the region is prompting vehicle manufacturers to develop advanced exhaust systems in vehicles which is likely to increase the adoption of advanced turbochargers. For instance,
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.
Major vehicle manufacturers are introducing turbocharged engines in their vehicles to enhance vehicle engine fuel efficiency. For instance,
United States has major presence of vehicle manufacturer which is likely to witness major growth for automotive intercooler market. After declining 27.9% in 2020, US car sales are expected to grow only 7.5% in 2021, as supply issues resit robust demand. Low production growth in 2021 is mainly due to semiconductor shortage, and the impact of Hurricane Ida on petrochemical companies has caused supply constraints of plastics. While semiconductor shortage is expected to last into 2022, output of vehicles is forecast to grow 12% during the forecast period. The automotive industry is also at the forefront of innovation. New R&D initiatives are transforming the industry to better respond to the opportunities of the 21st century. According to Auto Alliance, of the USD 105 billion spent on R&D globally, almost a fifth (USD 18 billion) is spent in the United States, which is likely to witness major growth for the market.
The electric vehicle demand creates newer opportunities for OEMs, aftermarket parts and component manufacturers, tire manufacturers, and players across the industry supply chain. As a result, IC engine vehicle parts and components services centers expand into electric vehicles as electric vehicles become more accessible.
North America automotive intercooler market is dominating by major players such as Bell Intercoolers, Mishimoto, BMR, Garrett Motion Inc., Valeo Service SAS and Treadstone Performance Engineering Inc., among others.Major key players are investing on the research and development of advanced exhasut system which in turn witnessing major growth for the market.
Additional Benefits:Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook