South America Automotive Turbocharger Market Outlook, 2027

South America region is expected to witness significant amount of market growth due to its low-cost advantages over other developing regions. Across the South America region, demands for commercial vehicle (trucks and buses) are growing which leads to higher adoption of turbochargers. The surging number of automotive vehicles across the diverse nations in this region is augmenting the demands for efficient automotive equipments. In addition to that, population of South America is more encouraged to adopt vehicles with less carbon emissions. This is expected to surge the regional growth in automotive turbocharger market. Honeywell Turbo Technologies, the leading global developer for automotive turbocharger predicted that from 2014-2024, turbocharger penetration in South America will reach to 17% from 7%. Also, annual sales for turbocharger market were calculated to be around 2 Million in 2019. Brazil is accounted to be the developed economy present in the region. In 2020 only, Brazil added more than two Million vehicle units to its production. In fact, Brazil ranked amongst the largest motor vehicle producers worldwide. Turbochargers offer a wide range of advantages over conventional engines such as reduced size and weight of the engine with enhanced performance. These characteristics are attracting manufactures to utilize turbochargers in the production of various vehicles.

According to the research report, "South America Automotive Turbocharger Market Outlook, 2027" published by Bonafide Research, the automotive turbocharger market is forecasted to have CAGR of 9.03%. Continued pressure to improve the driver experience and meet future requirements is projected to introduce positive and spurring trend with double-digit growth in South America market. From the research it has been estimated that South America will witness 7% of increase in turbocharging volume due to rising awareness about the environmental impact through conventional vehicle. South America automotive turbocharger market is segmented into Brazil and Argentina. Brazil is anticipated to lead the overall market by holding more than half of the market share during the forecast period. In October 2012, Brazil government approved ‘Inovar-Auto’ program to encourage vehicle technology innovation. This program provides incentives by increasing tax on light-duty vehicles and imposing requirements on automakers to quality for up to 30% discount. In addition to that, BorgWarner recently passed a major production milestone at it manufacturing facility in Itatiba, producing more than 5 Million turbochargers in Brazil. These turbochargers are engineered to help automakers meet fuel economy, performance as well as efficiency requirements. Also, the company is introducing its first compact turbocharger B01 for flex-fuel engines to meet the clean and energy-efficient turbocharger requirements.



According to the report, the South American automotive turbocharger market is segmented into three turbochargers based on technology. That includes a vertical geometry turbocharger, a wastegate turbocharger, and an electric turbocharger. Among these types, the vertical geometry turbocharger is projected to lead the South American market during the forecast period, holding more than 65% of the market share. VGT technology has been primarily developed for diesel engines owing to their higher capacity to vary the effective aspect ratio of the engine. Based on these characteristics, VGT technology is widely adopted across the South America region. Based on the fuel type, the South American automotive turbocharger market is segregated into diesel and gasoline types. Among these fuel types, diesel fuel turbochargers are anticipated to acquire a higher market share in terms of value during the forecast period. However, many automotive manufacturers in the region are adopting turbocharging technology for gasoline fuel engines in order to lower the environmental impacts. Due to these growing demands, the gasoline fuel turbocharger market is expected to rise at a higher CAGR by 2027.

Further, South America's automotive turbocharger market is categorised into two vehicle types, including passenger and commercial. Among these types, the passenger vehicle segment is projected to occupy a larger portion of the market share during the forecast period. From the research, it has been estimated that from 2021 to 2027, more than 180 million in value share for passenger vehicles will be added to the market. However, rising carbon emissions and strict government regulations across the region direct the market towards the commercial vehicle segment. Based on the distribution channel, the market is segmented into original equipment manufacturers (OEMs) and aftermarket. Among these types, the OEM segment is projected to acquire more than 93% of the market share during the forecast period due to the higher penetration of major market players into the automotive turbocharger industry.

Impact of COVID-19 on South America's automotive turbocharger market:
In South America, governments reacted swiftly and pre-emptively to protect the region and contain the spread of the COVID-19 impacts on the economy. But the region struggled to contain the levels of contamination in various countries and the limitations of health infrastructure and social protection systems. In the case of the automotive industry, many manufacturing plants remained shut due to lockdown situations. Also, the supply chain was disrupted across the region, which resulted in a change in consumer preference. However, by the end of 2020, developers initiated their production at a higher pace, which is projected to fuel the market's growth during the forecast period.

Major Companies present in the market:
Garrett Motion Inc., Cummins Inc., Borgwarner Inc., Continental AG, Ishikawajima-Harima Heavy Industries Co., Limited, Mitsubishi Heavy Industries Limited, Turbo Energy Private Limited, Hunan Tyen Machinery Co., Ltd., Rotomaster International, BMTS Technology GmbH & Co. KG, FengchengXindongli Turbocharger Co., Limited, Bullseye Power Turbo Chargers LLC., The Turbo Engineers Gmbh, KompressorenbauBannewitz GmbH, Magnum Performance Turbos, Inc., Precision Turbo & Engine Inc. , Turbonetics, Inc., Ningbo Motor Industrial Co., Ltd, Marelli Corporation and Banks Power

Considered in this report
• Geography: South America
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• South America Automotive Turbocharger market with its value and forecast along with its segments
• Country-wise automotive turbocharger market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina

Types of Technology in the report:
• Variable Geometry Turbocharger
• Wastegate Turbocharger
• Electric Turbocharger

By Vehicle Type in the report:
• Passenger Vehicle
• Commercial Vehicle

Type of Fuel in the report:
• Gasoline
• Diesel

Type of Sales Channel in the report:
• Original Equipment Manufacturer
• Aftermarket

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to automotive turbocharger industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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