Two-Stage Turbocharger Market Size, Share, Opportunities, And Trends By Material (Aluminum Alloy, Stainless Steel Alloy, Others), By Fuel Type (Diesel, Gasoline), By Vehicle Type (Passenger Vehicle, Commercial Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle), And By Geography - Forecasts From 2023 To 2028

The global two-stage turbocharger market is expected to grow at a CAGR of 3.72% during the forecast period.

A two-stage turbocharger is a form of forced induction device used in internal combustion engines to boost their power output. It is sometimes referred to as a twin-turbo or twin-scroll turbocharger. A two-stage turbocharger system has the advantage of offering a wider powerband than a single turbocharger. Turbo lag is decreased by the smaller first-stage turbocharger's quick response and boost output at low engine RPM. The larger second-stage turbocharger engages as the engine speed rises, giving higher boost pressures for increased power production at higher engine speeds. The growing automotive industry will increase the demand for two-stage turbochargers.

Market Drivers:

• Surging demand for high-performance sportscars

High-performance sports cars frequently employ two-stage turbochargers to maximize power output and improve throttle responsiveness. Acceleration and performance are improved by the two-stage setup's ability to give a consistent boost across the engine's RPM range. In recent years, there has been an increase in the demand for sports automobiles. Sports cars are more popular owing to marketing strategies and media exposure from commercials to movies to video games. Hence, increasing demand for sportscars is expected to propel the two-stage turbocharger market growth. Furthermore, technological developments not only promote driving safety but also performance. Two-stage turbochargers from BorgWarner are utilized in sports vehicles and performance aftermarket upgrades.

• Increasing demand by Original Equipment Manufacturers (OEMs)

To enhance the design, functionality, and dependability of two-stage turbocharger systems, automotive manufacturers and suppliers continually spend on research and development. Advancements in materials, manufacturing methods, control systems, and thermal management approaches will propel the adoption by OEMs. Two-stage turbochargers are being used more frequently by OEMs in their engine designs. The demand for increased performance and fuel efficiency is what is driving this acceptance. Furthermore, since prominent vendors offer two-stage turbocharger systems, OEMs are encouraged to employ two-stage turbocharger solutions.

Market players and Product Offerings

A few examples of key market players in the two-stage turbocharger market and their product offerings are as follows:

• ABB: ABB offers the most potent and small two-stage turbocharger for four-stroke engines called the ABB Power2 800-M.
• Garrett Advancing Motion: A renowned producer of turbochargers, Garrett Advancing Motion was once known as Honeywell Turbo Technologies. Within their GTX and G Series product categories, they provide two-stage turbochargers. For high-performance applications, these turbochargers are created to give improved power and performance.
• Cummins Turbo Technologies: A branch of Cummins Inc., Cummins Turbo Technologies specializes in the design and manufacture of turbochargers for a range of uses, including marine, industrial, and automotive. For diesel engines used in heavy-duty applications, such as trucks and construction machinery, they provide two-stage turbocharger options.

Market Restraints:

• High Cost and Price volatility for raw materials

Costlier and more sophisticated than single-stage turbocharger systems, two-stage turbocharger systems demand more parts and controls. The system becomes more complex as a result of the integration of several turbochargers, intercoolers, and related pipework, which raises manufacturing costs and raises the cost of the entire system. Further, steel alloys are frequently used to produce two-stage turbochargers. Two-stage turbocharger production costs might fluctuate depending on the price of raw materials, which could limit market growth.

• Packaging limitations

Compared to single-stage systems, two-stage turbocharger systems may be physically larger and take up more space. This may make it difficult to package and install the device inside the engine compartment. Hence, packaging limitations could hinder two-stage turbocharger market growth. It might be difficult to plan an ideal arrangement and guarantee adequate ventilation and cooling, especially in small or tightly packed engine bays.

Diesel engines require two-stage turbochargers.

By fuel type, the diesel segment is expected to acquire a sizeable share of the two-stage turbocharger market. Heavy-duty diesel engines used in trucks, buses, and industrial applications frequently use two-stage turbocharging. For instance, Cummins Turbo Technologies provides two-stage turbocharger solutions for diesel engines used in heavy-duty applications whereas IHI Corporation, a Japanese engineering company known for its expertise in turbocharger technology, offers two-stage turbochargers for diesel engines used in commercial vehicles. The two-stage arrangement offers superior low-end torque and increased fuel efficiency while assisting in overcoming the inherent turbo lag seen in large diesel engines.

Two-stage turbochargers for passenger cars

Two-stage turbochargers are frequently used in passenger cars, especially sporty and opulent models where performance is valued highly. In order to increase performance beyond the factory specs, consumers frequently choose two-stage turbocharger upgrades for passenger cars. These aftermarket upgrades offer a customizable and unique driving experience by considerably increasing power and torque. This is anticipated to fuel the segment's growth for passenger automobiles.

Commercial vehicles account for a sizeable market share.

Due to the widespread usage of two-stage turbochargers in commercial vehicles like trucks and buses to optimize power delivery and increase fuel efficiency, the commercial segment is anticipated to account for a sizeable portion of the market. They are especially useful in heavy-duty applications that call for tremendous torque and towing capability.

Regional Insights

The Asia-Pacific particularly countries like Japan, China, and Taiwan, have emerged as a major manufacturing hub for automotive components, including turbochargers. The Asia-Pacific two-stage turbocharger market is expected to grow significantly owing to the region's developing automotive industry owing to cheap labor and raw materials. Companies are making significant investments to set up production units in Asian countries owing to government initiatives like China's Industry 4.0 and “Make in India”. The production of two-stage turbochargers has increased dramatically along with the expansion of the automobile sector.

Moreover, North America is another prominent region for the two-stage turbocharger market owing to a mature automotive industry and higher disposable income in the United States and Canada.  Further, with several major manufacturers having their headquarters in nations like Germany, Sweden, and Italy, Europe has served as a crucial center for the production of turbochargers being early adopters of turbocharging technology.

Key Developments

• After a protracted and intensely competitive process, Garrett Motion Inc. declared in September 2021 that it had chosen an improved proposal from a group of stockholders led by Centerbridge Partners, L.P. and Oaktree Capital Management, L.P. as the best strategy to restructure the company.

Two-Stage Turbocharger Market Scope:

Segmentation:

• BY MATERIAL
  • Aluminum Alloy
  • Stainless Steel Alloy
  • Others
• BY FUEL TYPE
  • Diesel
  • Gasoline
• BY VEHICLE TYPE
  • Passenger Vehicle
  • Commercial Vehicle
  • Light Commercial Vehicle
  • Heavy Commercial Vehicle
• BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others