Analysis by Type (Air to Air, and Air to Water); by Engine Type (Supercharged Gasoline, Turbocharge Diesel, and Conventional Diesel); and by Application (Passenger Vehicle, and Commercial Vehicle) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive intercooler market is estimated to garner a revenue of USD 27 Billion by the end of 2033 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 17 Billion in the year 2022. The growth of the market can be attributed to the growing R&D spending in the automobile sector worldwide. For instance, it was observed that in the year 2020, global R&D spending was more than USD 135 billion in the automotive sector. Research and development in any sector are a continuous process to improve the products. Moreover, the increasing research in the automobile industry is attributed to the high fuel prices, rising air pollution, and global warming effects it causes. The growing demand for electric vehicles or lightweight vehicles is also estimated to boost the global automotive intercooler market in the coming years.
An automotive intercooler is used to reduce the temperature of the hot air compressed by the turbocharger before the hot air reaches the engine's combustion chamber. Their installation in vehicles enhances the volumetric efficiency by increasing the air intake density through cooling at constant pressure. The automotive intercooler also improves the efficiency of the induction system by cooling the heat created by the turbocharger or supercharger. The demand for automobile intercoolers is on the rise amongst gasoline automobile users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive intercooler market during the forecast period. It was found that approximately 58% of total transportation in the United States used finished motor gasoline in 2021.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 17 Billion |
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Forecast Year Market Size (2033) |
~ USD 27 Billion |
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Regional Scope |
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Growth Drivers
Emerging Regulations for Reducing Nitrous Oxide (NOx) Emissions - The exhaust gas recirculation cooler (EGR-C) is a critical component in diesel and gasoline engine systems to reduce NOx emissions. The global automotive intercooler market is expected to flourish in the forecasted period as it curbs NOx. The intercoolers decrease NOx emissions by releasing the combustible gas into the engine. It is estimated that over 2 million tons of NOx emissions are released into the environment from road vehicles around the world in 2021.
·Upsurge in the Demand for Sports Cars & Golf Cart with Increasing Disposable Income – There has been growing popularity among people in relation to sports cars and golf cart, that is further predicted to drive the growth of the global automotive intercooler market. It is estimated that the unit sales of sports cars around the world are projected to reach around 919,000 vehicles in 2026.
High Prevalence of Distillate Fuels in Transportations Across the World – For instance, distillate fuels, primarily diesel, accounted for 24% of total US transportation energy use in 2021.
Dominance of Traditional Fossil-Fuel Cars Owing to Increasing Adoption – In the first quarter of 2022, traditional fossil-fuel cars in the European Union accounted for ~52% with the market share of petrol cars being around 36%.
Challenges
The global automotive intercooler market is segmented and analyzed for demand and supply by type segment into air to air, and air to water. Amongst these segments, the air-to-air segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing number of cars as well as rising sales of cars worldwide. For instance, globally, car sales reached around 66 million automobiles in 2021. There is a high availability of air-to-air intercoolers across the world, as it is the most common type used by the automobile industries. Also, it doesn’t require any coolant except water, which is easily available anywhere and is expected to drive the market’s growth as per the market analysis. The rising sales of passenger cars, as they provide comfort and convenience and come in pocket-friendly budget is anticipated to surge the segment’s growth in the market.
The global automotive intercooler market is also segmented and analyzed for demand and supply by engine type into supercharged gasoline, turbocharge diesel, and conventional diesel. Amongst these three segments, the turbocharge diesel segment is expected to garner a significant share. The rising use of automotive turbochargers increases the need for intercoolers in vehicles. Moreover, the increasing purchases of vehicles across the globe, coupled with rising spending capacity of people, and growing disposable income, are further expected to rise the growth of the turbocharge diesel segment in the market. Additionally, the growing economic standards of people with government support and urbanization are expected to boost the growth of the market segment. The ability of turbo engines to improve the efficiency of electric vehicles and reduce the electric charge is also impacting the global market growth. Moreover, an increased adoption of diesel vehicles among people will rise the demand for turbo engines in the coming years, which in turn is predicted to increase the segment’s growth in the market. In the year 2022, light vehicle sales in the U.S. increased by over 5.5% from the year 2021, as per the estimated reports.
Our in-depth analysis of the global automotive intercooler market includes the following segments:
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By Type |
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By Engine Type |
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By Application |
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The Asia Pacific automotive intercooler market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of a strong automobile manufacturing network in the region as well as increasing sales of vehicles. For instance, it was estimated that the total number of vehicles sold by China in 2020 was more than 25 million units. Furthermore, there has been a rising number of automobile manufacturing industries with rising demand across the region. In addition, the increasing preference of people to own a vehicle owing to an increase in disposable income is estimated to have positive market growth in the region. The increasing automobile industry increases the automotive intercooler demand in the region. The growing population in the region with incoming migrants, and business entrepreneurs is further expected to increase the growth of the global automotive intercooler market in the region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing demand for automobiles, as well as rising vehicle sales along with a surge in the R&D spending in the automobile sector, are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2033.
Ans: Stringent emission standards to regulate concentrations of exhaust emissions are estimated to be the growth-hindering factors for market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Mishimoto Automotive, Treadstone Performance Engineering Inc., Honeywell International Inc., Mahle GmbH, PWR Holdings Limited (PWR), and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, engine type, application, and by region.
Ans: The air-to-air segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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