Mergers, Government Incentives to Keep Manufacturing Plants Functional During COVID-19 Crisis
The automotive industry landscape is undergoing varied scenarios in different regions of the world due to the COVID-19 pandemic. Recently, Vauxhall – the U.K.-based manufacturer of cars and vans announced to temporarily pause its car production at its Ellesmere Port plant, since the coronavirus outbreak has caused a slump in the demand. This is anticipated to affect the business of companies in the compressor wheel market.
Mergers and acquisitions are growing amid the ongoing pandemic in the compressor wheel market. Companies are asking for government support to keep manufacturing plants running. In order to offset the losses made in 2020, companies are seeking incentives from governments to make fully electric cars in the upcoming years.
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Variations in Design Help Decrease Load on Compressor Wheels
The compressor wheel market is projected to clock a modest CAGR of ~4% during the assessment period, as traditional designs in compressor wheels are affected by increased speeds at which the turbocharger rotates. This increases the force on the compressor wheel significantly. Hence, companies are introducing design variations such as the superback, which prevents excessive wear and tear of the exducer diameter of the compressor wheel. Superback designs help add more material to the highest stressed wheel area to cope with higher loads.
Companies in the compressor wheel market are developing exaggerated designs such as deep superback–extended tip, which facilitates greater airflow whilst providing a faster boost response at low engine speeds.
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Electrification of Turbochargers with Electric Motors Improves Agility of Vehicles
The proliferation of electric turbochargers is expected to bring significant changes in the compressor wheel market. This explains why the market is projected to reach the revenue of US$ 27 Bn by the end of 2030. The future of Mercedes-AGM is turning electric with a key part of it, which focuses on the evolution of their new electric exhaust turbocharger. Such trends are translating into revenue opportunities for manufacturers in the compressor wheel market.
Exhaust gas turbochargers with integrated electric motors are predicted to improve the agility of automobiles. The electrification of the turbocharger significantly improves response from idle speed and the entire engine speed range. This is beneficial since delayed response of a conventional turbocharger is eliminated by the electric motor.
Titanium Impellers Meet Demanding Applications Compared to Aluminum Alloys
Companies in the compressor wheel market are participating in innovation challenges organized by government authorities to gain a competitive edge in the industry. They are focusing on innovations that include turbochargers, which help to increase the thermal efficiency and power density of engines. Lightweight turbocharger turbine wheels that meet or exceed the performance of automotive components have the ability of scale up in the market.
Modern commercial vehicle turbochargers are prone to very high loads of applications. Hence, companies in the compressor wheel market are increasing their production capabilities in titanium compressor impellers. Improvements in aluminum alloys are found to be insufficient as per today’s demanding applications.
Durable Impellers with Superior Heat Dissipation, Rotational Characteristics Being Preferred
Cast compressor wheels are being highly publicized for their lightweight attributes. Ross Casting & Innovation LLC is gaining recognition for its affordable and mechanically sound compressor wheels. Manufacturers are increasing their R&D muscle to develop durable impellers with superior heat dissipation and rotational characteristics.
Apart from diesel engines, manufacturers in the compressor wheel market are increasing their focus on aerospace, marine, and watercraft industries. They are expanding their product portfolio in flatback, deep back, and superback contours. On the other hand, high-end solutions for engines using aluminum consist of milled compressor wheels. The increasing number of engine applications with high cyclical loads is a key driver for the market.
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Compressor Wheel Market: Overview
- The global compressor wheel market is anticipated to expand at a CAGR of ~4% during the forecast period, owing to the increase in penetration of turbochargers in vehicles, which, in turn, is likely to fuel the demand for compressor wheels. Rise in demand for fuel-efficient vehicles across the globe is likely to drive the demand for turbocharger in vehicles, which, in turn, is projected to boost the compressor wheel market across the globe.
- Rise in demand for vehicles with higher power output coupled with stringent emission limits has prompted manufacturers to install automotive turbochargers in their vehicles, which is anticipated to significantly propel the compressor wheel market across the globe. Increase in sale of vehicles across the globe due to cut in tax rates on vehicles is also a key factor fueling the demand for turbocharger in vehicles.
Drivers of Compressor Wheel Market
- Enactment of stringent emission norms across the globe is prompting vehicle manufacturers to develop lightweight engines to increase the fuel efficiency of the vehicle. However, lower excise duty on smaller engines has compelled manufacturers to move toward engine downsizing, which can be achieved with the installation of turbochargers. On the other hand, compressor wheel in a turbocharger increases the pressure of air, which increases the combustion of fuel in an engine cylinder. Rise in adoption of turbocharger enables a smaller engine to deliver high power, along with lower emission and higher fuel-economy, which is anticipated to boost the compressor wheel market across the globe.
- Spread of the COVID-19 pandemic across the globe is prompting consumers to own vehicles, which is projected to drive the sale of vehicles and subsequently, boost the installation of turbocharger in vehicles in order to increase fuel-efficiency of the engine. This is likely to boost the compressor wheel market across the globe.
Challenges for Compressor Wheel Market
- The COVID-19 pandemic has caused a majority of businesses across the globe to crumble, owing to the forced shutdown of production and manufacturing activities. This has led the global economy to contract to its lowest growth rate. Majority of businesses in every industry are codependent, and part of major supply chain in the market. Disruptions in supply chain attributing to stoppage of transportation and shipping services and reduced demand for vehicles across the globe are likely to cause the global automotive industry to contract in Q1 and Q2 of 2020.
- Rise in demand for electric vehicles across the globe due to enactment of stringent emission norms across the globe is likely to hamper the compressor wheel market across the globe. Major vehicle manufacturers have shut down or announced closure of diesel engine production due to higher exhaust emissions from diesel engines. This is likely to reduce the demand for turbochargers, which, in turn, is projected to hamper the compressor wheel market across the globe.
Compressor Wheel Market Segmentation
- The global compressor wheel market has been segmented based on fuel type, diameter, vehicle, method of manufacturing, compressor wheel type, and region
- Based on fuel type, the gasoline segment dominated the global compressor wheel market. Consumer trend toward gasoline engines is increasing due to lower exhaust emission from gasoline engines, as compared to that from diesel engines. Rise in demand for fuel-efficient vehicles is likely to fuel the penetration of compressor wheels in turbochargers.
- Based on compressor wheel type, the aluminum compressor wheel is a prominent segment of the global compressor wheel market. Aluminum compressor wheels can withstand high load and sustain maximum rotations. This, in turn, is projected to boost the compressor wheel market across the globe.
Compressor Wheel Market: Regional Analysis
- Based on region, the global compressor wheel market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America and Asia Pacific are projected to be highly lucrative markets during the forecast period. Rapid expansion of manufacturing industries across Asia Pacific is anticipated to propel the compressor wheel market across the region. North America has major presence of well-established manufacturers and suppliers who have advanced research and development facilities regarding compressor wheel, which is anticipated to boost the compressor wheel market across North America.
Compressor Wheel Market: Competition Landscape
- Key players operating in the global compressor wheel market include
- ABI Showatech Private Ltd.
- BOOSTER Precision Components
- BorgWarner Inc.
- Changzhou E & E Turbo Power Co., Ltd.
- Doncasters Group Ltd
- E&E Turbo
- GARRETT MOTION INC.
- Jiangyin Uni-Pol Vacuum Casting India Pvt. Ltd.
- Melett North America Inc. (Melett Ltd.)
- Nelcon Motor Company
- Owen Developments
- Pacifica Power Sdn Bhd.
- PHESSIO TURBO
- TurboSystems
- Turbotech Precision Products Ltd
- UACJ Corporation
- UNI-POL CHINA
- Wabtec Corporation
- Key players operating at the global level are expanding their footprint by engaging in mergers and acquisitions with several players in the industry. On October 17, 2019, Garrett Motion Inc. announced the development of the world’s first E-Turbo for passenger vehicles, which is expected to launch in 2021. The new turbocharger is estimated to increase energy efficiency and comply with new regulatory emission targets, while still meeting consumer demands for better vehicle performance and affordability.
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