Global Automotive Charge Air Cooler Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2024-2032)

Automotive Charge Air Cooler Market Overview

An automotive charge air cooler is a system used in vehicles for cooling the engine air before it enters the engine. It is installed in the intake tract between the engine’s inlet valet and the compressor. The supercharged and turbocharged heat exchange device improves the volumetric efficiency of the internal combustion engine by boosting the intake air charge density, fuelling the growth of the automotive charge air cooler market.

Various automakers are investing heavily in the research and development of high-performance vehicles, which is further expected to fuel the demand for efficient engines thereby helping in the automotive charge air cooler market growth. The rising purchase of passenger vehicles due to increasing disposable income, growing urbanisation, and changing lifestyle is boosting the demand for automotive charge air coolers as they ensure the efficient performance of vehicles.

Automotive Charge Air Cooler Market Trends

Favourable Government Initiatives

The governments of various countries are taking steps towards reducing fuel consumption and introducing stringent emission regulations, which are increasing the demand for components such as charge air coolers, as they can regulate the temperature of air entering the vehicle. For instance, The Euro 6 standard sets limits on nitrogen oxides (NOx), hydrocarbons (HC), and particulate matter (PM) emissions from diesel and gasoline vehicles.

To comply with these regulations, automakers increasingly rely on turbocharged engines to improve fuel efficiency and reduce emissions, which can boost the automotive charge air cooler market value. Charge air coolers (CACs) play a key role in cooling the compressed air from the turbocharger, increasing combustion efficiency and lowering exhaust emissions. Moreover, Euro 7, which is expected by 2025, will further tighten emissions limits, pushing the need for more advanced engine cooling systems, including charge air coolers.

Increasing Adoption of Turbocharged Engines

The adoption of turbocharged engines, both in passenger and commercial vehicles, is a significant trend. Turbocharging improves fuel efficiency and reduces emissions, making it a preferred choice for automakers looking to meet new fuel economy standards. This, in turn, increases the demand for charge air coolers, which help manage engine heat and maintain optimal performance.

As per the automotive charge air cooler market dynamics and trends, there is also a growing trend towards liquid-cooled charge air coolers and the use of lightweight materials to meet performance standards for turbocharged engines. This innovation is essential for improving fuel efficiency while ensuring compliance with global emission norms.

Industry News

August 2024

Nissan announced that it has been experimenting with an innovative automotive paint aimed at reducing the interior cabin temperature of vehicles in the summer, which in turn helps lower the energy usage of the air-conditioning system.

March 2024

RIVA announced the launch of the Racing 325 Intercooler Tubing Upgrade Kit, which includes a Tial 50mm Blow-off Valve, priced at USD 539.95. This upgrade significantly enhances the durability and dependability of a modified Sea-Doo.

Opportunities in Automotive Charge Air Cooler Market

Technological innovations in charge air coolers, including liquid-cooled systems and the use of lightweight materials, are becoming more common. These advancements help to improve vehicle efficiency and reduce overall vehicle weight, which is critical for meeting emission standards. Additionally, customised solutions for different vehicle types, such as commercial trucks and electric vehicles (EVs), are being developed to enhance cooling system performance, which can boost automotive charge air cooler market revenue.

For instance, advanced liquid-cooling systems, like those from AKG, use lightweight aluminium cores that provide higher heat transfer efficiency with reduced material weight. These systems are being integrated into the total engine cooling system, helping manage heat more effectively while keeping the engine’s size and weight in check. There is a growing shift towards lightweight, brazed aluminium designs, which offer better durability and improved thermal performance. For example, Conflux’s Water Charge Air Cooler reduces the core volume by 15% and the wet weight by 39% compared to traditional coolers, significantly improving efficiency and heat transfer.

Automotive Charge Air Cooler Market Restraints

One of the primary challenges for the automotive charge air cooler market is the high cost of advanced materials like aluminium alloys and other lightweight components. Although these materials are crucial for reducing vehicle weight and improving fuel efficiency, they add to the overall cost of production, making it challenging for manufacturers to maintain cost-effective production, which can impact the automotive charge air cooler demand forecast.

With the rise of electric and hybrid vehicle technologies, newer cooling solutions like battery thermal management systems and electric powertrain cooling systems are taking precedence. This shift reduces the reliance on charge air coolers, especially for fully electric vehicles, which may limit future growth. Many countries are setting aggressive targets for phasing out internal combustion engines. For instance, the European Union and California are aiming to ban the sale of new petrol and diesel cars by 2035, which could lead to a decline in the demand for ICE-related components like charge air coolers.

Market Dynamics

While the market for traditional ICE vehicles is robust, there is also a growing demand for hybrid and electric vehicles (EVs). Cooling solutions are essential for managing thermal loads in hybrid and EV powertrains, driving further innovation and demand for advanced charge air coolers.  As per the data from JATO Dynamics India, the sales of hybrid vehicles, both strong and plug-in variants, experienced a 27 percent rise from January to July 2024. This surge resulted in a total of 51,897 units sold, in contrast to 40,811 units in the same period in the previous year, which can boost the automotive charge air cooler demand growth.

Advanced cooling solutions, such as liquid-cooled charge air coolers and battery thermal management systems, ensure that components operate within safe temperature ranges. For instance, companies like Conflux Technology have developed liquid-cooled heat exchangers that reduce the core volume by 15% and significantly lower the weight of the cooling system while ensuring optimal thermal performance for EV powertrains.

Automotive Charge Air Cooler Industry Segmentation

Global Automotive Charge Air Cooler Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Air-cooled
• Liquid-cooled

Market Breakup by Position

• Fin and Tube
• Bar and Plate

Market Breakup by Fuel Type

• Gasoline
• Diesel

Market Breakup by Vehicle Type

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Others

Market Breakup by Sales Channel

• OEM
• Aftermarket
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Automotive Charge Air Cooler Market Share

By Product Type Insights

The air-cooled segment is expected to account for a significant automotive charge air cooler market share owing to the various advantages associated with the utilisation of the product including design simplicity, light weight nature, and low cost, among others. The adequate cooling offered by these air coolers is increasing its demand from the OEM’s as well. Moreover, the charge air thermal management offered by liquid-cooled air coolers by regulating coolant flow is expected to aid the segment growth.

By Position Insights

Fin and Tube is expected to grow at a CAGR of 7.3% in the forecast period. This design is especially preferred for high-performance diesel applications that require efficient cooling at high boost pressures. However, one of the drawbacks of this type is its lower cooling efficiency if not adequately engineered with enough tubes. The Bar and Plate design is also significant but tends to be used more for specific applications where higher structural durability and resistance to pressure are needed.

By Fuel Type Insights

The gasoline segment is expected to grow at a CAGR of 7.9% between 2024 and 2032 and contribute to automotive charge air cooler demand. Turbocharging helps improve engine efficiency, making charge air coolers necessary for these gasoline engines to lower intake air temperatures and enhance performance.

This segment is expected to grow as more manufacturers adopt turbocharged gasoline engines to meet stringent emissions standards and improve fuel efficiency in passenger cars. Additionally, integrated charge air coolers are becoming popular in turbocharged gasoline engines as they reduce the front-end package size, pressure drop, and overall cost.

By Vehicle Type Insights

The Passenger Vehicles segment accounts for a major market share. This dominance is due to the widespread use of turbocharged engines in passenger cars to enhance fuel efficiency and meet stricter emissions regulations. With the rise in demand for fuel-efficient, smaller engines, passenger vehicles require effective cooling systems, driving the need for charge air coolers.

By Sales Channel Insights

The OEM segment holds the highest share and boosts the demand of automotive charge air cooler market. This dominance is due to the direct supply of air charge coolers to automakers for use in new vehicles during the manufacturing process. As automakers increasingly incorporate turbocharged engines in new passenger and commercial vehicles, demand for air charge coolers from OEMs remains high. The Aftermarket segment is also significant but generally smaller compared to OEMs. It serves vehicles that need replacements or upgrades for their air charge coolers after the original parts wear out or fail. This segment is driven by maintenance and performance upgrades.

Automotive Charge Air Cooler Market Regional Analysis

Asia Pacific Automotive Charge Air Cooler Market Overview

The Asia Pacific is anticipated to account for a significant share of the market owing to the growing population and thriving automotive sector in countries such as India and China. China and Australia are expected to have a CAGR of 7.4% and 7.0% in the forecast period. The demand for passenger vehicles is rising due to the increasing disposable incomes of consumers, which is boosting the growth of the automotive charge air cooler industry.

Moreover, India’s BS VI standards, implemented in April 2020, significantly tightened emission norms for diesel and gasoline vehicles. To comply with BS VI, car manufacturers in India are increasingly adopting turbocharging technology, which requires charge air coolers to manage the heat generated by compressed air.

North America Automotive Charge Air Cooler Market Growth

Meanwhile, the market in North America is expected to grow rapidly over the forecast period owing to the rising research and development activities in the region’s automotive sector. Canada is expected to have a CAGR of 7.3% between 2024 and 2032.

As per the automotive charge air cooler industry analysis, the CAFE standards in the country mandate increasing fuel efficiency for cars and light trucks. For model years 2024-2026, the standards aim for an industry-wide average fuel economy of 49 miles per gallon (mpg) by 2026. This has led the automakers to focus on smaller, turbocharged engines to meet these fuel efficiency goals, and charge air coolers are essential for maintaining the efficiency of turbocharged engines. 

Europe Automotive Charge Air Cooler Market Drivers

UK is expected to have a CAGR of 6.8% in the forecast period and boost the market growth.  European automakers are leading the adoption of advanced cooling technologies. This includes liquid-cooled charge air coolers that offer better performance and efficiency in managing the thermal loads of turbocharged engines and hybrid vehicles and can increase the automotive charge air cooler market opportunities. For instance, companies like Dana Incorporated and Valeo are developing innovative, lightweight charge air cooling solutions that cater to both internal combustion and hybrid powertrains.

Latin America Automotive Charge Air Cooler Market Dynamics

The Latin American region is expected to exhibit a CAGR of 7.5% in the forecast period. Brazil and Mexico are expected to have a CAGR of 8.0% and 7.3% between 2024 and 2032. Brazil’s Proconve L7 (light-duty vehicle) standard, implemented in 2022, is based on Euro 6 standards and limits the emissions of NOx, carbon monoxide (CO), and hydrocarbons, which can offer opportunities for increasing automotive charge air cooler industry revenue. 

This has led to the adoption of turbocharged engines to meet Proconve standards that require charge air coolers to maintain engine efficiency and reduce harmful emissions.

Middle East and Africa Automotive Charge Air Cooler Market Trends

Commercial vehicles play a crucial role in the transportation and logistics sectors of the Middle East and Africa. Countries such as Saudi Arabia, UAE, and South Africa are seeing increased demand for commercial and light-duty vehicles, many of which are equipped with turbocharged engines that require charge air coolers. In response to global climate goals, many countries in the MEA region are implementing stricter emission standards which is a major trend of automotive charge air cooler market. For example, Saudi Arabia and the UAE are enforcing regulations similar to Euro 4 and Euro 5 standards, pushing automakers to adopt fuel-efficient technologies such as turbocharging, which in turn increases the demand for charge air coolers.

Innovative Automotive Charge Air Cooler Startups

Startups are developing advanced materials and designs that improve the thermal efficiency of charge air coolers. They aim to enhance the cooling performance while reducing weight and size, which can improve overall vehicle performance and fuel efficiency. As the automotive sector shifts toward electric and hybrid vehicles, startups are creating cooling systems specifically designed for these types of vehicles. Electric vehicles have different cooling needs compared to traditional internal combustion engines, so new air cooler designs are emerging to accommodate battery and power electronics cooling.

Conflux Technology

This startup specialises in additive manufacturing (3D printing) to create advanced heat transfer solutions. Conflux Technology has pioneered the use of 3D-printed charge air coolers, which are highly efficient and designed to optimise thermal management for automotive applications. In June 2022, they released a pre-designed, 3D-printed vehicle water charge air cooler, demonstrating their innovative approach to automotive cooling technology.

CTI Thermal Systems

A new player in automotive charge air cooler market focusing on advanced thermal management solutions, CTI Thermal uses cutting-edge designs and materials to improve the performance of charge air coolers. They leverage additive manufacturing for creating custom, highly efficient air coolers, targeting the high-performance automotive market.

Competitive Landscape

Companies innovating with lightweight, high-performance charge air coolers to meet the demand for these engines. Lightweight materials and compact designs help improve fuel efficiency and engine performance. Companies are also developing water-cooled charge air coolers (WCAC), which are more efficient in managing heat for electric and hybrid vehicle systems. This is critical in maintaining the performance and longevity of these advanced powertrains. Other market players are developing advanced coolers that help reduce emissions and improve engine performance by cooling the air entering the engine, which leads to more efficient combustion.

Key Industry Players

Mahle GmbH

This company was founded in 1920 and is headquartered in Stuttgart, Germany. The company is known for developing and supplying engine systems and components such as piston systems, and cylinder components.

Dana Incorporated

This company is an automotive equipment manufacturing company that was founded in 1904. The company is headquartered in Ohio, United States and is known for supplying axles, transmissions, electrodynamic, and driveshafts for hybrid and electric powered vehicles.

Modine Manufacturing Company

This company was established in 1916 and has its headquarters located in Wisconsin, United States. The company provides customised heating and cooling solutions to the automotive and construction sectors, among others.

Other automotive charge air cooler market key players include Valeo S.A., AKG Group, and Sterling Thermal Technology Limited, among others.

Recent Developments

September 2023

Modine, a global leader in innovative thermal management technology and solutions, announced the signing of a definitive agreement for the sale of its three businesses located in Germany to affiliates of Regent LP.

June 2022

Conflux Technology, a specialist in heat transfer, announced the launch of its pre-designed 3D printed product, the Water Charge Air Cooler. This development is a result of the company's extensive research and development efforts in heat exchanger technology.