global market review of automotive turbochargers and ...€¦ · automotive turbochargers and...

Global market review of automotive turbochargersand superchargers– forecasts to 2014

2008 edition

Page i

Global market review of automotive turbochargers and superchargers – forecasts to 2014 2008 edition

By William Kimberley

May 2008

Published by

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Page iv Contents

Contents

Single-user licence edition............................................................................................................. ii Copyright statement .................................................................................................................. ii Incredible ROI for your budget – single and multi-user licences............................................... ii just-auto.com membership........................................................................................................iii

Contents.......................................................................................................................................... iv

List of figures ................................................................................................................................. vi

List of tables .................................................................................................................................. vii

Chapter 1 Executive summary....................................................................................................... 1

Chapter 2 Technical review............................................................................................................ 4 What is the turbocharger?......................................................................................................... 5

The exhaust gas turbocharger.......................................................................................... 5 The mechanically-driven supercharger ............................................................................ 5 The pressure wave supercharger..................................................................................... 6

Turbocharger construction ........................................................................................................ 6 Heat issues ...............................................................................................................................7 Bearing and turbine design ....................................................................................................... 9

Bearing housing design .................................................................................................... 9 Turbine design.................................................................................................................. 9

Multistage supercharging........................................................................................................ 10 Dual-stage turbocharging ............................................................................................... 10

Dual-stage diesel turbocharging .............................................................................. 10 Dual-stage turbocharging and variable turbine geometry........................................ 11

Electronics and control devices .............................................................................................. 12 Micro turbos ............................................................................................................................ 13 Twinchargers........................................................................................................................... 13 Twin-scroll turbochargers........................................................................................................ 15 Turbo speed sensors .............................................................................................................. 15 VGT and VNT/VTG ................................................................................................................. 16 Summary................................................................................................................................. 19 Future developments .............................................................................................................. 19

Chapter 3 Geographical market analysis by region .................................................................. 21 North America ......................................................................................................................... 21 Europe..................................................................................................................................... 30 Japan ...................................................................................................................................... 33 China....................................................................................................................................... 35 India ........................................................................................................................................ 37 The rest of the world ............................................................................................................... 39 Summary................................................................................................................................. 40


Page v Contents

Chapter 4 Principal suppliers ...................................................................................................... 44 BorgWarner Turbo & Emissions Systems............................................................................... 44 Cummins Turbo Technologies (formerly known as Holset) .................................................... 45 Eaton Corporation ................................................................................................................... 46 Honeywell Turbo Technologies............................................................................................... 47 IHI (Ishikawajima-Harima Heavy Industries, Ltd) .................................................................... 48 Mitsubishi Heavy Industries .................................................................................................... 49

Chapter 5 Other suppliers ............................................................................................................ 50 Bosch Mahle Turbo Systems .................................................................................................. 50 Turbodyne Technologies ........................................................................................................ 50


Page vi List of figures

List of figures

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

Figure 2: The BorgWarner R2S turbocharger ................................................................................. 11

Figure 3: The VW 1.4-litre TSI engine............................................................................................. 13

Figure 4: BorgWarner VTG turbocharger for passenger cars ......................................................... 16

Figure 5: BorgWarner VTG turbocharger for CVs........................................................................... 17

Figure 6: Toyota Prius hybrid powertrain ........................................................................................ 22

Figure 7: The Ecoboost................................................................................................................... 27

Figure 8: The Ecoboost 2................................................................................................................ 27


Page vii List of tables

List of tables

Table 1: Comparison of VW Golf GT 2.0 FSI and 1.4 TSI .............................................................. 14

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

commercial vehicles, 2008-2014 (m units) ............................................................... 29

Table 3: European installation rates for turbochargers in gasoline engines for passenger vehicles,

2008-2014................................................................................................................. 32

Table 4: European demand for turbochargers, passenger vehicles (diesel and gasoline) and


Table 5: Japanese demand for turbochargers, passenger vehicles (diesel and gasoline) and


Table 6: Chinese demand for turbochargers, passenger vehicles (diesel and gasoline) and


Table 7: Indian demand for turbochargers, passenger vehicles (diesel and gasoline) and


Table 8: Global demand for turbochargers, passenger vehicles (diesel and gasoline) and



Chapter 1 Executive summary

Chapter 1 Executive summary

Background to the global automotive market

Car manufacturers are under pressure as never before. On the one hand,

demand for the car has never been higher with new markets opening up in

China, South Asia, India, Latin America Russia and Eastern Europe offering

untold opportunities but on the other, they are having to address the near-

universal worries about climate change, emissions and the worldwide demand

for fuel. While there is some debate about just how much the internal

combustion engine contributes to polluting the environment compared to other

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

legislative bodies around the world as one of the prime culprits.

These are the short- and medium-term issues that the vehicle manufacturers

are having to address, but there are also some very dark clouds looming on

the horizon that many of the vehiclemakers are acknowledging, even if they

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

supply.

OPEC (the Organization of Petroleum Exporting Countries) has forecast that

world energy demand will grow an average xxx% per annum between 2005

and 2030. It expects oil to remain the leading source of energy worldwide

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

declining slightly from a current xx% to xxxx%.

Meanwhile, the International Energy Agency has forecast that oil demand will

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

put that figure at xxxmb/d by that time.

Much of this demand is being driven by the increase in global vehicle

production. Over the next quarter-century, it has been estimated that the

emerging markets are going to drive up vehicle production far beyond anything

seen to date. By 2030, total annual global production has been forecast to be

around xxm units with China and India accounting for xxm units and xxm

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

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

the realistic alternative.


Chapter 2 Technical review

Chapter 2 Technical review

As described in the Bosch Automotive Handbook, the turbocharger is a

relatively easy and cheap way of optimising the fuel consumption of the

internal combustion engine. The principle behind it is relatively simple although

the technology has become far more sophisticated and complicated over the

years.

The principle behind the turbocharger is fairly straightforward. The exhaust

gas, which is considered lost or wasted energy, is captured and pushed or

‘blown’ back through the engine by the turbocharger. It therefore has to be

located somewhere close to the cylinder head which brings with it packaging

and heat problems. These disadvantages, together with the extra pipework

required, are generally outweighed by the benefits the device brings.

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

(the principle of which is fresh air being blown under pressure into the cylinder

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

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

Mans in the late 1920s. While not an official Bentley modification, the big,

green racing machine with straps on the bonnet and a large device sticking out

from underneath the radiator encapsulates for many the vintage Bentley.

In the 1980s, the turbocharger was very much in fashion as it was the era of

the turbocharged xxx-litre Formula 1 engines that were able to develop over

xxxxxbhp at their peak. For manufacturers like Renault and BMW which were

participating in Formula 1 at the time, it made marketing sense to have

turbocharged models in their range even if they were not out-and-out

competition cars.

Once the turbocharger was banned from Formula 1 in 1989, the technology fell

from favour, virtually disappearing from the passenger car for a number of

years, and only making a comeback on the direct-injection diesel engine.

However, there is a fast-growing trend which is seeing them installed on direct-

injection gasoline engines as they offer xxxxx% improvement in fuel

consumption figures and around xx% more torque.


Chapter 3 Geographical market analysis by region

Chapter 3 Geographical market analysis by region

North America

The North American market is quite unlike that of anywhere else in the world –

it is the only region where light trucks outsell passenger cars and the diesel-

powered passenger car market is still extremely small despite the combined

marketing might and prestige of the German car manufacturers that have been

pushing the technology.

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

squeeze, the falling dollar and the high price of fuel by US consumers’

standards have all had a major impact on every market, including cars and

light trucks. The figure of xxxxxm light vehicles sold in 2007 was down xxx%

from the xxxxxm of a year earlier, and the prospects of it climbing back up look

remote in the near future.

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

mix, accounting for xx% in 2007. Where some other vehicles that comprise

this sector, namely sport utility vehicles (SUVs), had already experienced a

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

slowdown.

Despite this downturn in light-truck sales, though, they are still expected to

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

smaller market share of a slightly smaller market could mean the loss of xm

sales over this two-year period.

The light-truck market, though, is quite a resilient one and any downturn is

never expected to last too long as these are working vehicles as much as

lifestyle ones and so need to be changed on a regular basis. High gasoline

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

and the dollar is falling against other currencies, the high price of a barrel of oil

is unlikely to go down in the region.


Chapter 4 Principal suppliers

Chapter 4 Principal suppliers

BorgWarner Turbo & Emissions Systems

Headquarters: xxxx Hamlin Road, Auburn Hills, MI 48326, US

Employees: xxxxxx worldwide as of 2007

Locations: xx facilities in xx countries as of 2007

Activities: Headquartered at Auburn Hills, Michigan, US, BorgWarner Inc is

one of the major manufacturers and suppliers of automotive components. The

company serves a majority of global original equipment manufacturers (OEMs)

including GM, Ford, Daimler AG, Chrysler, Volkswagen, Renault, BMW and

Fiat. The company operates through two reportable segments: Engine and

Drivetrain. The Engine segment manufactures a range of components

including turbochargers, thermal and emissions systems, chains and timing

systems. The Drivetrain segment manufactures transmission components and

torque management products.

2007 sales (BorgWarner): US$xxxxxbn combined worldwide

2007 net earnings (Borg Warner): US$xxxm

The worldwide market for turbochargers in 2007 was xxxxxxxxxx units of which

BorgWarner accounts for xxxxxxxxx or xx% market share. It also has a xx%

market share in the burgeoning gasoline turbocharger market.

BorgWarner Turbo Systems’ turbocharger business accounts for much of the

group’s growth over the past several years, particularly in the European

market. However, there are strong indications that the markets for both turbo-

diesel and turbocharged gasoline technology will grow in the rest of the world,

including the US, strongly contributing strongly to the group’s overall growth.

While its variable turbine geometry (VTG) is creating a great deal of interest

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

turbocharger technology and gasoline turbochargers that are the most

important for the company.

BorgWarner Turbo & Emissions group also has a facility in Chennai to serve

the engineering, technology, and manufacturing needs of its Indian customers.

SeohanWarner Turbo Systems, a BorgWarner joint venture, has also opened

a production plant in Korea in 2008 which is scheduled to produce up to xm


Chapter 5 Other suppliers

Chapter 5 Other suppliers

Bosch Mahle Turbo Systems

In April 2008, Bosch and Mahle established Bosch Mahle Turbo Systems, a

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

market exhaust gas turbochargers. The joint venture partners plan to work

together to develop and manufacture turbochargers for gasoline and diesel

engines, and to market them worldwide. Series production is planned to start

in 2010.

The JV will allow Bosch to offer its advanced injection technologies and Mahle

its know-how on the development and manufacture of high temperature-

resistant turbocharger components. In addition, Mahle Powertrain specialises

in the development, design, and application of turbocharged engines. Both

partners in the new joint venture can therefore draw on extensive engine-

systems experience as well as competence in large-scale series production of

ultra-precision components in and around the engine.

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

a complete product portfolio for reducing fuel consumption and emissions,”

said Dr-Ing Bernd Bohr, chairman of the Bosch Automotive Group. Prof Dr

Heinz Junker, chairman of the Management Board and CEO of the Mahle

Group, added: “With their systems and components know-how, Mahle and

Bosch complement each other ideally as partners for the development of new

exhaust gas turbochargers. Moreover, the two companies are names to be

reckoned within the automotive powertrain field.”

Turbodyne Technologies

Turbodyne Technologies is a developer of patented electrically assisted air-

charging technology that enhances the performance of internal combustion

engines. Its product, the TurboPac, is commonly referred to as an electric

turbocharger or electric supercharger with applications for small-displacement

gasoline engines, mid-size gasoline powered vehicles (over xxx litres) and

large gasoline or diesel powered vehicles.


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