South Korea Automotive Turbocharger Market Overview, 2027

South Korea Automotive Turbocharger Market Overview, 2027

Actual Market Research 01-06-2022 49 Pages Figures : 10 Tables : 17 Region : Asia-Pacific Country : Korea South Category : Automotive & Transport Automotive Parts

South Korea's automobile industry is the fifth largest producer of passenger cars in the world. With an increase in the demand for diesel and gasoline engine cars, the emission level of carbon content also increases into the environment. Factors such as improved engine performance and fuel efficiency, government rules and regulations, and engine downsizing to reduce vehicle weight all contributed to the growth of the automotive turbocharger market in South Korea. Turbocharger is the small turbine that is located between the engine and the exhaust. A turbo forces more air into the engine’s cylinder which add with the fuel and causes a big bang in the cylinder and big bang means a high power is created. It also regulates the fuel consumption ratio. In South Korea the market of turbocharger due to increase in the demand of gasoline engine automobile market. Various segments of turbocharger are present in South Korea.

According to the report title “South Korea Automotive Turbocharger Market Overview, 2027” published by Actual Market Research (ActualMR), the automotive turbocharger market of the country South Korea is expected to grow at a CAGR of around 9.3% in value market size by the end of the forecast period. In South Korea, the automotive turbocharger is increasing because of the installation of the turbocharger by the automobile company. Many firms in South Korea are manufacturing the turbocharger and supplying it to people through dealerships or online markets. According to the report, the different segments of the turbocharger are present in South Korea and people select the turbocharger that supports the vehicle's engine and also on the basis of vehicle's capacity. The automobile companies make an order for the different types of turbochargers according to demand from the customer and also on the basis of the type of car they manufacture. Technology plays an important role in any industry, especially in automobiles, because people demand something new from the market and they are more attracted towards things that are different from the existing ones because everyone wants change in their product. On the basis of technology type, there are three types of turbochargers that are present in South Korea; these are Variable Geometry turbocharger (VGT), Wastegate turbocharger, and Electric Turbocharger. Out of these three, the market share of the VGT is much higher than the other two. The main reason behind this is that the VGT provides the better air-fuel ratio and during acceleration, the turbocharger provides high torque to the engine. It works according to the condition of the engine and improves its efficiency to the maximum level. The market share of VGT is forecasted to be over 70% by 2027.

On the basis of vehicle type, there are two types of turbochargers available: passenger vehicle turbocharger and commercial vehicle turbocharger. In the South Korean market, passenger vehicles are in demand due to the turbochargers installed in them, which are also in high demand by automobile companies. The market share of the passenger vehicle turbocharger is higher than the commercial vehicle turbocharger due to its availability and because it provides more efficient power to the engine of light-weight vehicles like cars and small vans. It is expected that the passenger vehicle turbocharger market attractiveness will be higher during the forecasted period.

On the basis of fuel type, there are two types of turbochargers that are present: the diesel fuel turbocharger and the gasoline fuel turbocharger. Among the two, the market share of the diesel fuel turbocharger is higher. The diesel fuel turbocharger is mostly used in commercial vehicles, and it is in high demand also. The main reason for its popularity among people is its 33% to 35% better fuel efficiency than the gasoline fuel turbocharger. Heavy duty diesel fuel turbochargers have the capacity to provide high torque to the engines of heavy trucks and buses to maintain their engine efficiency on the road. The CAGR of diesel fuel turbochargers during the forecasted period is expected to be much higher than in the past.

On the basis of the sales channel, there are two types of turbochargers in South Korea. One is an Original Equipment Manufacturer (OEM) turbocharger and the other one is an Aftermarket turbocharger. The market share of the OEM is much higher than the aftermarket turbocharger because of the superior quality of the turbocharger provided by the OEM to the automaker and also to the dealer. The material used by the OEM turbocharger for the manufacturing of the turbocharger is of the highest quality, and different alloy materials are also used. The OEM turbocharger life cycle is longer and available at authorised dealerships only. The popularity of aftermarket turbochargers is due to their inferior quality. It does not provide a warranty for the turbocharger, and the materials used in its production are extremely cheap and of poor quality. By 2027, the growth of OEM turbochargers will be more pronounced.

In South Korea, the growth of the automotive turbocharger is affected by many factors. One is the government and people's focus on the protection of the environment. Another is the high demand for the automobile, advanced technology, and easy availability of funding for new entrant firms. The growing market of EVs and the drawbacks of turbochargers like turbo lag, the heating problem and government norms for the use of gasoline and diesel engine vehicles are the big challenges for the growth of the automotive turbocharger market.

STX Metal is a core company of Korea's STX Group, one of that country's leading business conglomerates. It supplies turbochargers and engine parts to STX Engine Co., Ltd. and STX Heavy Industries Co., Ltd. IHI Corporation jointly produces vehicle engine turbochargers with an affiliate of the Hyundai Automotive Group. The joint venture will start production in the first half of 2015 in response to increasing global demand. IHI will hold 49% and Hyundai 51%, and they will operate a new plant in Seosan, in western South Korea, to make turbochargers for Hyundai and Kia models.

COVID-19 affected the South Korean automobile market very adversely. Due to the lockdown among the various regions, there was a lack of raw materials for the assembly part of the vehicle. The automotive turbocharger market is also affected due to the lack of a proper supply chain system within the automobile company. A shortage of labour and other professional workers also takes place during lock down.

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

Aspects covered in this report
• South Korea automotive turbocharger market and its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Five force models
• Top profiled companies
• Strategic recommendation

Turbocharger by technology type
• Variable Geometry Turbocharger (VGT)
• Wastegate Turbocharger
• Electric Turbocharger

Turbocharger by vehicle type
• Passenger Vehicle
• Commercial vehicle

Turbocharger by fuel type
• Diesel
• Gasoline

Turbocharger by sales channel
• Original Equipment Manufacturer (OEM)
• 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, analysing 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 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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