The global Automotive Intercooler market generated USD 16.71 Billion revenue in 2023 and is projected to grow at a CAGR of 5.24% from 2024 to 2033. The market is expected to reach USD 27.85 Billion by 2033. Over the past few years, the global automotive industry has continued to expand at a decent rate due to increasing disposable income in the consumer's hands and the constant advancement of urbanization. It has given a significant boost to the production of vehicles and laid the ground for continued market expansion. Furthermore, governments in various countries' proprietary concerns on vehicle emissions scale up the use of automotive intercoolers for the projected forecast years.

Market Introduction:

An automotive intercooler is a mechanism used in vehicles that employ turbochargers and superchargers to enhance the engine's performance by cooling compressed hot air to be passed into the cylinder chamber. During the compression cycle, air pressure rises and shrinks due to an air compressor's increased temperature. This aspect results in lesser combustion and, consequently, limitation in power production in the engine. An intake intercooler does this and densifies the air prepared for combustion. The intercooler may be mounted on the intake manifold after the turbocharger or on the intake manifold, separate from the automobile's engine, functioning as a heat exchange. The hot compressed air in the station is cooled by either air or liquid coolants circulated within the intercooler to a station. It then flows through the intake manifold and the engine as cooled air is required. There are many applications of intercoolers in automobiles, while these are confined to various sizes and shapes. The simplest one is the air-intercooler air cooler, which passes the hot compressed air through the intercooler to be cooled by air from the environment. There are different types, such as air-to-air intercoolers, in which hot compressed air passes through cooling tanks to vaporize, and air-to-water intercoolers, in which circulating coolant is used to eliminate heat from the compressed air. Available for purchase today, they exist in common contemporary passenger cars, sports cars, muscle cars, and commercial trucks, and many manufacturers provide intercooler upgrades to the stock intercoolers or entire intercooler systems. Automotive intercoolers also aid in minimizing emissions by making certain that ideal proportions of air and fuel arrive in the cylinder chamber to release protective propellants. The automotive intercooler has become obligatory and indispensable in cars with forced induction systems. It gives the engine enhanced performance, lower fuel consumption, and optimized emission.

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Recent Development

• In October 2022: Specifically, the PT Toyota-Astra Motor (TAM) released a new model of a car line-up, the All-new Land Cruiser SUV and the renewed Fortuner, reflecting the company’s striving for constant development. The new Fortuner, thus, received a major boost with changes made to embrace the 1GD-FTV diesel engine class. This powertrain comes with a displacement of 2,755 cubic centimetres, and the type of powertrain is an In-Line 4-cylinder powertrain featuring four valves and the DOHC technology. The upgraded VNT Intercooler engine provides 203 horsepower, which is the maximum power production of the car. 9 At the operational range of 3,000-4,000 RPM, 90 PS while producing a considerable 50 Nm torque. It has been varying between 1,600 and 2,800 RPM, with power output ranging between 9 kgm. These improvements show Toyota’s commitment to providing model vehicles that challenge the limits in performance and reliability.
• In August 2022: The current iteration of the MG Extender was first unveiled at the Gaikindo Indonesia International Auto Show 2022, or simply GIIAS 2022, and appears to be just around the corner to go on sale locally. The intended pickup truck possesses a powerful diesel engine with a cylinder capacity of 2,000 cubic centimetres, a Turbo Intercooler 16-valve engine, and integrated a smooth 6-speed automatic transmission. Surprisingly, the MG Extender also performs on four great-looking alloy wheels with 255/60 R18 dimensions to complement its enhancements.

Market Dynamics:

Drivers

Turbocharged Engine's Ever-increasing Requirement - Recently, there has been a rising evolution towards more fuel-efficient and high-performing automobiles, which has escalated the use of turbocharged engines. Intercoolers are used with turbocharged vehicles to cool the air compressing while still in the compressor sector to increase density and improve the engine power output.

Strict Emission Guidelines - Governments of different countries have formed a set of emission norms to minimize pollution and Greenhouse emissions worldwide. However, engineers can improve fuel combustion and emissions using intercoolers, which helps automakers meet these regulations.

Uprising Order for High-Performance Vehicles - The growing desire for owners of sports cars and other exciting vehicles to increase global sales drives the demand for high-performance cars. Automotive intercoolers are required for these vehicles to get the most out of them and guarantee reliability in high-stress conditions, which is key to the demand for intercoolers.

Restraints:

The High Price of Progressed Intercooler Technologies - Introducing new intercooler technology leads to better performance and efficiency, but all that comes with a cost. This factor is particularly problematic for sensitive pricing consumers and companies operating in emerging markets.

Complex Installation Process - Using newer models of intercoolers in newly manufactured vehicles means tweaking the car's assembly or adding more fittings in the engine compartment and the cooling system in the modification line. Some of these details may deter some consumers from seeking aftermarket intercooler products, especially if the part requires some understanding or even some authorized mechanic to fit it.

Opportunities:

Enlargement of Electric Vehicle Market - Whereas intercoolers are a feature of internal combustion engines needed for air cooling, EVs rely on intercoolers for battery cooling and other electrified components. As the present and future market of EVs grows rapidly, intercooler makers can gear up their services and offer suitable cooling systems specifically for EVs.

Improvement of Featherweight and Efficient Intercoolers - Automobile manufacturers have shifted more attention to lighter weight and better car packaging to improve performance and comply with market and regulatory forces. Intercooler makers have the potential to produce miniature and smaller intercoolers with modern materials and designs that comply with car manufacturers' growing demands.

Challenges:

Congruity Concerns - It also interrelates well with other components and subsystems in the motor vehicle, like the turbochargers, intercooler system, cooling system, and engine layout. Maintaining both functionality and compatibility in terms of performance with vehicle configurations may be difficult, particularly in the aftermarket, where intercooler enhancements are to be integrated into existing vehicles and may request configuration changes.

Durability and Reliability Concerns - Intercooler systems must also integrate with various vehicle components and equipment, including turbocharger devices, cooling systems, and engine types. Intercooler upgrades must be fitted on the original vehicles and are normally sold in the aftermarket; therefore, an intercooler upgrade may require tuning for the different makes of the vehicle into which it is installed.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most prominent global Automotive Intercooler market, with a 42.51% market revenue share in 2023.

Asia Pacific is among the most important automotive regions globally, with some of the biggest markets, such as China, Japan, India, and South Korea. The key growth drivers that continue to spur growth in the region include growth in disposable income per capita, increase in car usage in urban areas due to improved infrastructure and increased government support for the local automotive industry. With ever-increasing production capacities, this geographical location consumes or contributes to more than half of intercoolers being used worldwide. Additionally, higher sales have been reported in the Asia Pacific region because turbocharged engines offer better performance and fuel efficiency. Increased demand for performance and fuel efficiency among consumers in the region requires vehicle manufacturers to include turbocharged engines in their product portfolio across vehicle segments. In light of the increased demand for vehicles equipped with intercoolers in their turbocharged systems, the Asia Pacific intercooler market will experience a boost. Notably, the Asia Pacific region has increased its product emissions limit, citing many countries' environmental issues and poor air quality. Intercoolers help maximize the combustion process, enhancing efficiency in engines that have turbochargers and decreasing emissions. Due to the growing awareness of saving the environment/climate, governments in the Asia Pacific region are tightening the emission norms, which has urged automotive manufacturers to use intercoolers to meet the desired norms, thus augmenting the market for intercoolers.

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Type Segment Analysis

The type segment is divided into air to air intercoolers and water to air intercoolers. The air to air intercoolers segment dominated the market with a share of around 62.25% in 2023. Intercoolers can be mounted either air to air, where the pressure loss of the cooler is lower, and they are typically top-notch in cooling the compressed intake air before it enters the engine's intake. They cool the compressed air through the intercooler core with air drawn forcibly from the surroundings; this cools the charge, making it denser, thereby improving the engine performance. This aspect makes air-to-air intercoolers the best option for many automobile activities. Furthermore, air-to-air intercoolers are more affordable, efficient and long-lasting than air-to-water intercoolers as they have a comparatively simple and less complex design and are usually placed on the car's frontal grids or bumper position. Due to their roles of cooling air directly between intercooler stages, air-to-air intercoolers are easy to install, maintain and integrate with other vehicle cooling systems. These characteristics have made them popular, especially in the automobile sector, because they are reliable and require much maintenance. In addition, air-to-air intercoolers are easier to manufacture than water-to-air, charged air coolers. Because of their relative designs and lower cost of production, they are perceived as a handsome and effective solution for automakers or aftermarket vendors. Because of this, they influence their dominance in automotive intercoolers.

Engine Type Segment Analysis

The engine type segment is classified into supercharged engines and turbocharged engines. The turbocharged engines segment dominated the market with a share of around 61.38% in 2023. In turbocharged engines, the engine uses a device known as a turbocharger, which compresses the incoming air, thus enabling it to allow more fuel inside than it could inject by itself, giving higher power outputs. Intercoolers are important accessories for any turbocharged system as they cool the charged air before arriving at the engine, thus packing the air, making it dense and increasing efficiency and power. Thus, the progress of turbocharged engines increases the requirement for intercoolers and contributes to the regional and global automotive industry. In addition, turbocharged engines have been associated with top-notch fuel efficiency, attributed to their ability to produce more power from a small cylinder block. Intercoolers contribute mostly to fuel efficiency because the engine’s air-fuel mixture density is increased, and hence, the combustion is complete, resulting in less fuel consumption. Turbocharging, or using a turbocharger to compress the air used in the engine to improve its ability to combust available fuel and thereby increase its efficiency, is also highly popular and closely tied to using intercoolers. In addition, despite efforts by automakers to scale down engine sizes, they can still reap enhanced power through turbocharging. Intercooling allows smaller engines to produce the power density usually associated with larger NA engines; it is therefore considered a critical link in the evolution of engine designs. The downsizing tendency in the automotive industry is becoming a leading factor in deciding the powerful impact of turbocharged engines and intercoolers.

Vehicle Type Segment Analysis

The vehicle type segment includes passenger cars and commercial vehicles. The passenger cars segment dominated the market with a share of around 67.18% in 2023. Automobiles, particularly passenger cars, account for a large percentage of the car industry and have manufacturing capabilities, producing millions of units annually. Therefore, the steady growth in the production of passenger cars requires more intercoolers and critical features in turbocharged engines, a feature now common in most modern passenger cars. However, engines using turbocharger systems are now typically found in passenger cars because of the improved efficiency that comes with turbochargers in enhancing engine powers with minimal effect on fuel consumption. Intercoolers always perform an essential function in turbocharged systems, where it is of utmost importance to cool the compressed air before its introduction into the engine, as this will positively damage the engine's power and efficiency. Customers prefer flexible engines in passenger cars, so intercoolers are also preferred to meet the increasing demand. Furthermore, governments worldwide have integrated strict emissions policies to downsize greenhouse gases and global warming and minimize air pollution. Intercoolers are used in turbocharged engines to heat the air drawn into the engine to reduce unwanted emissions and increase efficiency. While automakers look for ways to address these new regulations, the intercooler is necessary for passenger cars to conform to emission regulations.

Some of the Key Market Players:

• Bell Intercoolers
• Ford
• Forge Motorsport
• Garrett Motion Inc.
• JC Performance Parts
• Kale Oto Radyator
• KVR International
• Modine Manufacturing
• Mishimoto
• MAHLE GmbH
• Nismo Motorsports International
• Nissens Automotive A/S
• NRF Global
• PT Toyota-Astra Motor (TAM)
• PWR Holdings Ltd.
• Toyota
• Treadstone Performance Engineer
• Valeo

Report Description: