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<strong>Global</strong> market review of<br />

automotive turbochargers<br />

and superchargers<br />

– forecasts to 2014<br />

2008 edition


Page i<br />

<strong>Global</strong> market review of automotive<br />

turbochargers and superchargers –<br />

forecasts to 2014<br />

2008 edition<br />

By William Kimberley<br />

May 2008<br />

Published by<br />

Aroq Limited<br />

Seneca House<br />

Buntsford Park Road<br />

Bromsgrove<br />

Worcestershire<br />

B60 3DX<br />

United Kingdom<br />

Tel: +44 (0)1527 573 600<br />

Fax: +44 (0)1527 577 423<br />

Web: www.just-auto.<strong>com</strong><br />

Registered in England no: 4307068<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page ii<br />

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Page iii<br />

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Page iv<br />

Contents<br />

Contents<br />

Single-user licence edition............................................................................................................. ii<br />

Copyright statement.................................................................................................................. ii<br />

Incredible ROI for your budget – single and multi-user licences............................................... ii<br />

just-auto.<strong>com</strong> membership........................................................................................................iii<br />

Contents.......................................................................................................................................... iv<br />

List of figures ................................................................................................................................. vi<br />

List of tables .................................................................................................................................. vii<br />

Chapter 1 Executive summary....................................................................................................... 1<br />

Chapter 2 Technical review............................................................................................................ 4<br />

What is the turbocharger?......................................................................................................... 5<br />

The exhaust gas turbocharger.......................................................................................... 5<br />

The mechanically-driven supercharger ............................................................................ 5<br />

The pressure wave supercharger..................................................................................... 6<br />

Turbocharger construction ........................................................................................................ 6<br />

Heat issues ...............................................................................................................................7<br />

Bearing and turbine design ....................................................................................................... 9<br />

Bearing housing design .................................................................................................... 9<br />

Turbine design.................................................................................................................. 9<br />

Multistage supercharging........................................................................................................ 10<br />

Dual-stage turbocharging ............................................................................................... 10<br />

Dual-stage diesel turbocharging .............................................................................. 10<br />

Dual-stage turbocharging and variable turbine geometry........................................ 11<br />

Electronics and control devices .............................................................................................. 12<br />

Micro turbos ............................................................................................................................ 13<br />

Twinchargers........................................................................................................................... 13<br />

Twin-scroll turbochargers........................................................................................................ 15<br />

Turbo speed sensors .............................................................................................................. 15<br />

VGT and VNT/VTG ................................................................................................................. 16<br />

Summary................................................................................................................................. 19<br />

Future developments .............................................................................................................. 19<br />

Chapter 3 Geographical market analysis by region .................................................................. 21<br />

North America ......................................................................................................................... 21<br />

Europe..................................................................................................................................... 30<br />

Japan ...................................................................................................................................... 33<br />

China....................................................................................................................................... 35<br />

India ........................................................................................................................................ 37<br />

The rest of the world ............................................................................................................... 39<br />

Summary................................................................................................................................. 40<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page v<br />

Contents<br />

Chapter 4 Principal suppliers ...................................................................................................... 44<br />

BorgWarner Turbo & Emissions Systems............................................................................... 44<br />

Cummins Turbo Technologies (formerly known as Holset) .................................................... 45<br />

Eaton Corporation................................................................................................................... 46<br />

Honeywell Turbo Technologies............................................................................................... 47<br />

IHI (Ishikawajima-Harima Heavy Industries, Ltd).................................................................... 48<br />

Mitsubishi Heavy Industries .................................................................................................... 49<br />

Chapter 5 Other suppliers ............................................................................................................ 50<br />

Bosch Mahle Turbo Systems .................................................................................................. 50<br />

Turbodyne Technologies ........................................................................................................ 50<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page vi<br />

List of figures<br />

List of figures<br />

Figure 1: World oil consumption, 2001-2009 (mb/d)......................................................................... 2<br />

Figure 2: The BorgWarner R2S turbocharger ................................................................................. 11<br />

Figure 3: The VW 1.4-litre TSI engine............................................................................................. 13<br />

Figure 4: BorgWarner VTG turbocharger for passenger cars ......................................................... 16<br />

Figure 5: BorgWarner VTG turbocharger for CVs........................................................................... 17<br />

Figure 6: Toyota Prius hybrid powertrain ........................................................................................ 22<br />

Figure 7: The Ecoboost................................................................................................................... 27<br />

Figure 8: The Ecoboost 2................................................................................................................ 27<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page vii<br />

List of tables<br />

List of tables<br />

Table 1: Comparison of VW Golf GT 2.0 FSI and 1.4 TSI .............................................................. 14<br />

Table 2: North America demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 29<br />

Table 3: European installation rates for turbochargers in gasoline engines for passenger vehicles,<br />

2008-2014................................................................................................................. 32<br />

Table 4: European demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 33<br />

Table 5: Japanese demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 35<br />

Table 6: Chinese demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 37<br />

Table 7: Indian demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 39<br />

Table 8: <strong>Global</strong> demand for turbochargers, passenger vehicles (diesel and gasoline) and<br />

<strong>com</strong>mercial vehicles, 2008-2014 (m units) ............................................................... 43<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page 1<br />

Chapter 1 Executive summary<br />

Chapter 1 Executive summary<br />

Background to the global automotive market<br />

Car manufacturers are under pressure as never before. On the one hand,<br />

demand for the car has never been higher with new markets opening up in<br />

China, South Asia, India, Latin America Russia and Eastern Europe offering<br />

untold opportunities but on the other, they are having to address the nearuniversal<br />

worries about climate change, emissions and the worldwide demand<br />

for fuel. While there is some debate about just how much the internal<br />

<strong>com</strong>bustion engine contributes to polluting the environment <strong>com</strong>pared to other<br />

man-made sources, the fact is that they are seen by many governments and<br />

legislative bodies around the world as one of the prime culprits.<br />

These are the short- and medium-term issues that the vehicle manufacturers<br />

are having to address, but there are also some very dark clouds looming on<br />

the horizon that many of the vehiclemakers are acknowledging, even if they<br />

are reluctant to talk about them publicly, and that is the threat of diminishing oil<br />

supply.<br />

OPEC (the Organization of Petroleum Exporting Countries) has forecast that<br />

world energy demand will grow an average xxx% per annum between 2005<br />

and 2030. It expects oil to remain the leading source of energy worldwide<br />

during this 25-year period, with oil’s share of total world energy demand<br />

declining slightly from a current xx% to xxxx%.<br />

Meanwhile, the International Energy Agency has forecast that oil demand will<br />

rise xxm barrels per day (mb/d) to xxxmb/d by 2030. The US government has<br />

put that figure at xxxmb/d by that time.<br />

Much of this demand is being driven by the increase in global vehicle<br />

production. Over the next quarter-century, it has been estimated that the<br />

emerging markets are going to drive up vehicle production far beyond anything<br />

seen to date. By 2030, total annual global production has been forecast to be<br />

around xxm units with China and India accounting for xxm units and xxm<br />

units respectively. The projected xxxmb/d or xxxmb/d will simply not meet this<br />

level of production. Some estimates have put this figure nearer to xxxmb/d as<br />

the realistic alternative.<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page 4<br />

Chapter 2 Technical review<br />

Chapter 2 Technical review<br />

As described in the Bosch <strong><strong>Auto</strong>motive</strong> Handbook, the turbocharger is a<br />

relatively easy and cheap way of optimising the fuel consumption of the<br />

internal <strong>com</strong>bustion engine. The principle behind it is relatively simple although<br />

the technology has be<strong>com</strong>e far more sophisticated and <strong>com</strong>plicated over the<br />

years.<br />

The principle behind the turbocharger is fairly straightforward. The exhaust<br />

gas, which is considered lost or wasted energy, is captured and pushed or<br />

‘blown’ back through the engine by the turbocharger. It therefore has to be<br />

located somewhere close to the cylinder head which brings with it packaging<br />

and heat problems. These disadvantages, together with the extra pipework<br />

required, are generally outweighed by the benefits the device brings.<br />

As a technology, it is not exactly new. A form of turbocharging – supercharging<br />

(the principle of which is fresh air being blown under pressure into the cylinder<br />

head) – has been seen on cars almost since the birth of the car. The most<br />

well-known of them is perhaps the so-called Blower Bentley that raced at Le<br />

Mans in the late 1920s. While not an official Bentley modification, the big,<br />

green racing machine with straps on the bonnet and a large device sticking out<br />

from underneath the radiator encapsulates for many the vintage Bentley.<br />

In the 1980s, the turbocharger was very much in fashion as it was the era of<br />

the turbocharged xxx-litre Formula 1 engines that were able to develop over<br />

xxxxxbhp at their peak. For manufacturers like Renault and BMW which were<br />

participating in Formula 1 at the time, it made marketing sense to have<br />

turbocharged models in their range even if they were not out-and-out<br />

<strong>com</strong>petition cars.<br />

Once the turbocharger was banned from Formula 1 in 1989, the technology fell<br />

from favour, virtually disappearing from the passenger car for a number of<br />

years, and only making a <strong>com</strong>eback on the direct-injection diesel engine.<br />

However, there is a fast-growing trend which is seeing them installed on directinjection<br />

gasoline engines as they offer xxxxx% improvement in fuel<br />

consumption figures and around xx% more torque.<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page 21<br />

Chapter 3 Geographical market analysis by region<br />

Chapter 3 Geographical market<br />

analysis by region<br />

North America<br />

The North American market is quite unlike that of anywhere else in the world –<br />

it is the only region where light trucks outsell passenger cars and the dieselpowered<br />

passenger car market is still extremely small despite the <strong>com</strong>bined<br />

marketing might and prestige of the German car manufacturers that have been<br />

pushing the technology.<br />

It is also a region that is in some difficulty. The economic downturn, the credit<br />

squeeze, the falling dollar and the high price of fuel by US consumers’<br />

standards have all had a major impact on every market, including cars and<br />

light trucks. The figure of xxxxxm light vehicles sold in 2007 was down xxx%<br />

from the xxxxxm of a year earlier, and the prospects of it climbing back up look<br />

remote in the near future.<br />

As is the norm in the US, light trucks make up a healthy part of the total sales<br />

mix, accounting for xx% in 2007. Where some other vehicles that <strong>com</strong>prise<br />

this sector, namely sport utility vehicles (SUVs), had already experienced a<br />

downturn, pick-up sales had remained strong but even they are now seeing a<br />

slowdown.<br />

Despite this downturn in light-truck sales, though, they are still expected to<br />

account for xx% of the total market in 2008 and 2009. However, a slightly<br />

smaller market share of a slightly smaller market could mean the loss of xm<br />

sales over this two-year period.<br />

The light-truck market, though, is quite a resilient one and any downturn is<br />

never expected to last too long as these are working vehicles as much as<br />

lifestyle ones and so need to be changed on a regular basis. High gasoline<br />

prices, though, are causing a great deal of pain and as oil is priced in dollars,<br />

and the dollar is falling against other currencies, the high price of a barrel of oil<br />

is unlikely to go down in the region.<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page 44<br />

Chapter 4 Principal suppliers<br />

Chapter 4 Principal suppliers<br />

BorgWarner Turbo & Emissions Systems<br />

Headquarters: xxxx Hamlin Road, Auburn Hills, MI 48326, US<br />

Employees: xxxxxx worldwide as of 2007<br />

Locations: xx facilities in xx countries as of 2007<br />

Activities: Headquartered at Auburn Hills, Michigan, US, BorgWarner Inc is<br />

one of the major manufacturers and suppliers of automotive <strong>com</strong>ponents. The<br />

<strong>com</strong>pany serves a majority of global original equipment manufacturers (OEMs)<br />

including GM, Ford, Daimler AG, Chrysler, Volkswagen, Renault, BMW and<br />

Fiat. The <strong>com</strong>pany operates through two reportable segments: Engine and<br />

Drivetrain. The Engine segment manufactures a range of <strong>com</strong>ponents<br />

including turbochargers, thermal and emissions systems, chains and timing<br />

systems. The Drivetrain segment manufactures transmission <strong>com</strong>ponents and<br />

torque management products.<br />

2007 sales (BorgWarner): US$xxxxxbn <strong>com</strong>bined worldwide<br />

2007 net earnings (Borg Warner): US$xxxm<br />

The worldwide market for turbochargers in 2007 was xxxxxxxxxx units of which<br />

BorgWarner accounts for xxxxxxxxx or xx% market share. It also has a xx%<br />

market share in the burgeoning gasoline turbocharger market.<br />

BorgWarner Turbo Systems’ turbocharger business accounts for much of the<br />

group’s growth over the past several years, particularly in the European<br />

market. However, there are strong indications that the markets for both turbodiesel<br />

and turbocharged gasoline technology will grow in the rest of the world,<br />

including the US, strongly contributing strongly to the group’s overall growth.<br />

While its variable turbine geometry (VTG) is creating a great deal of interest<br />

from its customers around the world, it is the Regulated 2-Stage (R2S)<br />

turbocharger technology and gasoline turbochargers that are the most<br />

important for the <strong>com</strong>pany.<br />

BorgWarner Turbo & Emissions group also has a facility in Chennai to serve<br />

the engineering, technology, and manufacturing needs of its Indian customers.<br />

SeohanWarner Turbo Systems, a BorgWarner joint venture, has also opened<br />

a production plant in Korea in 2008 which is scheduled to produce up to xm<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


Page 50<br />

Chapter 5 Other suppliers<br />

Chapter 5 Other suppliers<br />

Bosch Mahle Turbo Systems<br />

In April 2008, Bosch and Mahle established Bosch Mahle Turbo Systems, a<br />

50/50 joint venture headquartered in Stuttgart, Germany to manufacture and<br />

market exhaust gas turbochargers. The joint venture partners plan to work<br />

together to develop and manufacture turbochargers for gasoline and diesel<br />

engines, and to market them worldwide. Series production is planned to start<br />

in 2010.<br />

The JV will allow Bosch to offer its advanced injection technologies and Mahle<br />

its know-how on the development and manufacture of high temperatureresistant<br />

turbocharger <strong>com</strong>ponents. In addition, Mahle Powertrain specialises<br />

in the development, design, and application of turbocharged engines. Both<br />

partners in the new joint venture can therefore draw on extensive enginesystems<br />

experience as well as <strong>com</strong>petence in large-scale series production of<br />

ultra-precision <strong>com</strong>ponents in and around the engine.<br />

“This joint venture will now allow us to offer our customers from a single source<br />

a <strong>com</strong>plete product portfolio for reducing fuel consumption and emissions,”<br />

said Dr-Ing Bernd Bohr, chairman of the Bosch <strong><strong>Auto</strong>motive</strong> Group. Prof Dr<br />

Heinz Junker, chairman of the Management Board and CEO of the Mahle<br />

Group, added: “With their systems and <strong>com</strong>ponents know-how, Mahle and<br />

Bosch <strong>com</strong>plement each other ideally as partners for the development of new<br />

exhaust gas turbochargers. Moreover, the two <strong>com</strong>panies are names to be<br />

reckoned within the automotive powertrain field.”<br />

Turbodyne Technologies<br />

Turbodyne Technologies is a developer of patented electrically assisted aircharging<br />

technology that enhances the performance of internal <strong>com</strong>bustion<br />

engines. Its product, the TurboPac, is <strong>com</strong>monly referred to as an electric<br />

turbocharger or electric supercharger with applications for small-displacement<br />

gasoline engines, mid-size gasoline powered vehicles (over xxx litres) and<br />

large gasoline or diesel powered vehicles.<br />

© 2008 All content copyright Aroq Ltd. All rights reserved.


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