First, the automotive market is the main downstream market of turbocharger.
The market size of turbochargers directly depends on the output of internal combustion engines and the allocation rate of turbochargers in internal combustion engines. According to the different application fields of internal combustion engines, the downstream market of internal combustion engines can be divided into automobiles, construction machinery, agricultural machinery, ships, generators and so on. At present, the automobile market is the main application market of internal combustion engine and the main downstream market of turbocharger because of its largest production and marketing scale. Taking the Chinese market as an example, in 2017, China’s automotive internal combustion engine accounted for 81.56% of the total internal combustion engine market. The market size of turbochargers directly depends on the output of internal combustion engines and the allocation rate of turbochargers in internal combustion engines. According to the different application fields of internal combustion engines, the downstream market of internal combustion engines can be divided into automobiles, construction machinery, agricultural machinery, ships, generators and so on. At present, the automobile market is the main application market of internal combustion engine and the main downstream market of turbocharger because of its largest production and marketing scale. Taking the Chinese market as an example, in 2017, China’s automotive internal combustion engine accounted for 81.56% of the total internal combustion engine market.
Two. The configuration rate of vehicle turbocharger is increasing year by year.
Globally, although automotive internal combustion engines are the main application fields of turbochargers, the allocation rate is still low. With the rapid development of the automobile industry, the increase of petrochemical energy consumption and the decrease of air quality and greenhouse effect caused by automobile exhaust emissions caused by the continued increase of global automobile ownership have attracted worldwide attention. Due to the advantages of high fuel efficiency and low emission, turbochargers are increasingly being used in mature automotive markets such as the United States and regions with fast growth in automotive sales such as China and India. With the arrival of the time point for governments to assess the energy-saving and emission reduction of automobiles, there is more room for the growth of turbochargers for automobiles. According to Honeywell’s “Global Turbocharger Market Forecast” report, by 2021, 48% of new vehicles sold worldwide will adopt turbocharging technology, an increase of 9 percentage points over 2016. In the future, the automobile market will still be the main downstream market of turbocharger.
From the domestic point of view, in recent years, the national industrial policy for the automobile industry has always been around the “energy-saving emission reduction” launched. In June 2012, the State Council promulgated the Development Plan for Energy-Saving and New Energy Vehicle Industry (2012-2020). By 2020, the average fuel consumption of passenger vehicles produced in that year will be reduced to 5.0 litres/100 kilometers, and the fuel consumption of energy-saving passenger vehicles will be reduced to less than 4.5 litres/100 kilometers. The fuel consumption of new commercial vehicles will be close to the international advanced level.
At present, the technology of “energy saving and emission reduction” adopted by automobile enterprises mainly includes vehicle lightweight, high efficiency internal combustion engine, turbocharging technology and automatic transmission, hybrid power, electronic control technology, among which turbocharging technology is generally considered to be more economical and effective “energy saving and emission reduction” technology. According to Geithner’s statistics, turbocharging is mainly used to increase engine intake, thereby increasing engine power and torque. Turbocharging technology can improve nearly 20% fuel efficiency of gasoline engine and 40% fuel efficiency of diesel engine. Promoted by the state’s “energy saving and emission reduction” policy, the allocation rate of turbochargers in new sales vehicles in China will continue to increase in the future, thus promoting the further development of the domestic turbocharger market. Honeywell predicts that in 2021, China’s vehicle turbocharger configuration rate will reach 47%.
In addition, in the past few years, driven by the rapid development of the domestic automobile market, China has become the world’s fastest growing market for turbocharger sales. From 2009 to 2016, the sales volume of automotive turbochargers in China increased from 1.7 million to 7.5 million units, with an annual compound growth rate of 23.62%, significantly exceeding the global average compound growth rate of 12.18% in the same period. With the increase of the proportion of new vehicles and the steady growth of automotive production and sales, the annual sales volume of automotive turbochargers in China will increase steadily in the future. Sales will increase from 7.5 million in 2016 to 13.5 million in 2021, with a compound annual growth rate of about 12.47%, exceeding the 6.47% growth rate in the same period around the world. In the next five years, China will continue to be the fastest growing region of the global turbocharger.
Three, oligopoly market structure has been formed.
1, global competition pattern
At present, the global turbocharger market has formed an oligopoly competition market pattern. Honeywell, Bogwarner, Mitsubishi Heavy Industries, Ishikawa Sowing Mill and Bosch Mahler, the top five turbocharger manufacturers with annual output, occupy more than 90% of the global market share and have obvious competitive advantages. Honeywell turbocharger shipments account for about 28% of the global market share, the world’s largest turbocharger manufacturer. The international turbocharger manufacturers represented by the five giants generally adopt the “global purchasing” strategy to reduce the purchasing cost, and the purchasing orders are mainly for qualified suppliers who have passed their certification. Therefore, the large-scale development of downstream turbocharger manufacturers will strongly promote the upstream turbocharger components. The scale development of enterprises.
2. Domestic competition pattern
From the domestic point of view, in the context of global economic integration, in order to reduce production costs, the international turbocharger manufacturers adopt the global production strategy, and set up production bases in Europe, Asia-Pacific, North America and other regions. At present, Honeywell, Bogwana, Mitsubishi Heavy Industries, Ishikawa Sowing Mill and other manufacturers have established a sole proprietorship or joint venture in China, such as: Honeyway.