Automotive Intercooler Market Size, Share, Trends, Growth 2032

Automotive Intercooler Industry Prospective:

The global automotive intercooler market size was worth around USD 13.9 billion in 2023 and is predicted to grow to around USD 23.1 billion by 2032, with a compound annual growth rate (CAGR) of roughly 5.8% between 2024 and 2032. 

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Automotive Intercooler Market: Overview

An intercooler is a heat exchanger used to cool a gas following compression. Apart from refrigerators, air conditioners, air compressors, and gas turbines, turbocharged engines also often use intercoolers. With turbocharged engines, an intercooler is most often utilized to balance the heat of compression with heat soak in the compressed intake air.

By denser intake air created by lower temperature, pre-ignition or knocking is less likely and more fuel may be injected, so generating more power. To further lower the intake charge temperature by evaporative cooling, a fine mist can be sprayed either externally over the intercooler surface or even straight into the intake air.

Key Insights

• As per the analysis shared by our research analyst, the global automotive intercooler market is estimated to grow annually at a CAGR of around 5.8% over the forecast period (2024-2032).
• In terms of revenue, the global automotive intercooler market size was valued at around USD 13.9 billion in 2023 and is projected to reach USD 23.1 billion by 2032.
• The increasing automotive sector is expected to drive the automotive intercooler market over the forecast period.
• Based on the product, the air-to-air segment is expected to hold the largest market share over the forecast period.
• Based on the vehicle type, the passenger car segment is expected to dominate the market expansion over the projected period.
• Based on the engine, the supercharged gasoline segment is expected to capture the largest market share over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Automotive Intercooler Market: Growth Drivers

Rising demand in the automotive sector drives market growth

The global automotive sector's development is driving the automotive intercoolers market forward. Technological advancements in turbocharged engines and increasing manufacturing of passenger and commercial vehicles are driving the demand for intercoolers.

Particularly in underdeveloped countries like Brazil, China, and India, the manufacturing of cars is growing globally. Because manufacturers are stressing fuel-efficient, high-performance cars, intercooler use is rising. In heavy-duty vehicles and buses, intercoolers are crucial for improving engine cooling and efficiency.

Manufacturers are also turning toward smaller, turbocharged engines to meet emissions and fuel economy rules. Turbochargers need intercoolers if one wants to increase engine efficiency by chilling compressed air before combustion. As turbocharged engines of gasoline-powered vehicles proliferate in passenger cars, the market demand is rising.

Automotive Intercooler Market: Restraints

The rising adoption of EVs hinders market growth

Since EVs don't need intercoolers like internal combustion engine (ICE) vehicles do, the growing popularity of EVs presents a serious challenge to the automotive intercooler business. Long-term market growth is anticipated to be impacted by this change.

The International Energy Agency reports that 95% of the nearly 14 million electric cars sold in 2023 were in China, Europe, and the US. Similar to the sales projection from the 2023 edition of the Global EV Outlook (GEVO-2023), over 14 million new electric vehicles were registered worldwide in 2023, increasing the total number of electric vehicles on the road to 40 million. Thus, the adoption of EVs hamper the automotive intercooler industry expansion.

Automotive Intercooler Market: Opportunities

Advancement in technology offers a lucrative opportunity for market growth

Automotive intercoolers also increase engine durability by providing a more consistent intake air temperature, which allows the engine's air-fuel ratio to stay at a safe level. Recent advancements by manufacturers have led to a sharp rise in the demand for efficient turbocharged engines and improved engine efficiency. Intercooler developments are therefore anticipated to propel the automotive intercooler market expansion throughout the forecast period.

Automotive Intercooler Market: Challenges

Complexity and maintenance issue poses a major challenge to market expansion

The intricacy of intercooler systems and their maintenance requirements provide difficulties for the automotive intercooler market. Intercooler efficiency and performance are crucial as cars become more sophisticated, but some restrictions prevent their widespread use.

For efficient cooling, intercoolers need to maintain the ideal air pressure. However, pressure dips brought on by leaks in the core, clamps, or hoses can lower engine efficiency. In cars with turbochargers, boost leaks result in poor acceleration, power loss, and higher fuel consumption.

Additionally, the short engine compartment space makes it difficult to install large intercoolers in small passenger cars. Automakers face difficult engineering hurdles as they attempt to balance efficiency, weight, and size.

Automotive Intercooler Market: Report Scope

Automotive Intercooler Market: Segmentation

The global automotive intercooler industry is segmented based on product, vehicle type, engine, and region.

Based on the product, the global automotive intercooler market is bifurcated into air-to-air and air-to-water. The air-to-air segment is expected to hold the largest market share over the forecast period. Without the need for extra parts like water pumps or coolant, which are necessary for air-to-water systems, air-to-air intercoolers use ambient air to lower the temperature of compressed air from the turbocharger, improving engine performance and economy.

Based on the vehicle type, the global automotive intercooler industry is bifurcated into passenger cars, commercial vehicles, and racing vehicles. The passenger car segment is expected to dominate the market expansion over the projected period. The growing sales of passenger cars across the globe are expected to flourish the segment expansion. Furthermore, the growing advancements in intercooler technology drive the market growth.

Based on the engine, the global automotive intercooler market is bifurcated into supercharged gasoline, conventional diesel, and turbocharged diesel. The supercharged gasoline segment is expected to capture the largest market share over the projected period. The automotive intercoolers are expanding significantly due to the growing popularity of supercharged gasoline engines. Heat produced by superchargers, which increase engine performance by compressing the air intake, can lower engine efficiency. By cooling the compressed air before it enters the engine, intercoolers help to reduce this problem and improve longevity and performance.

Automotive Intercooler Market: Regional Analysis

Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the global automotive intercooler market. The region's market expansion is attributed to the growing vehicle sales across the region and growing technological advancements. Intercooler sales are also rising as a result of stricter government restrictions on fuel economy standards and a rise in the manufacturing of passenger cars.

The market is further bolstered by the increasing presence of major automakers and their aggressive tactics, such as introducing new models and providing cutting-edge solutions to clients to increase their market dominance in the area. Over the projection period, such advancements are expected to motivate manufacturers of intercooler components for automobiles.

For instance, PT Toyota-Astra Motor (TAM) unveiled the new Fortuner in October 2022 as an ever-better vehicle that now comes with a new diesel engine designated 1GD-FTV, in addition to the introduction of the brand-new Land Cruiser SUV. It has four cylinders, four valves, a DOHC, and a 2,755-cc 1GD FTV. The highest power output of the VNT Intercooler engine is 203.9 PS at 3,000–4,000 RPM and 50.9 kg of torque at 1,600–2,800 RPM.

Automotive Intercooler Market: Competitive Analysis

The global automotive intercooler market is dominated by players like:

• Bell Intercoolers.
• Treadstone Performance Engineering.
• GARRETT MOTION INC
• FORGE MOTORSPORT
• Kale Oto Radyatör
• Mishimoto Automotive
• REX Heat Exchanger
• Honeywell International Inc.
• Speedgoat GmbH
• VRIPL Industries Pvt Ltd
• JC's Race parts
• MODINE MANUFACTURING COMPANY
• Kale Oto Radyatör
• Continental AG
• Robert Bosch GmbH

The global automotive intercooler market is segmented as follows:

By Product

• Air-to-Air
• Air-to-Water

By Vehicle Type

• Passenger Car
• Commercial Vehicle
• Racing Vehicle

By Engine

• Supercharged Gasoline
• Conventional Diesel
• Turbocharged Diesel

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa