Automotive Intercooler Market Outlook:
Automotive Intercooler Market size was over USD 16.18 Billion in 2025 and is anticipated to cross USD 27.64 Billion by 2035, growing at more than 5.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of automotive intercooler is assessed at USD 16.98 Billion.
The reason behind the growth is impelled by growing R&D spending in the automotive sector worldwide. Research and development in any sector are a continuous process to improve the products. Moreover, the increasing research in the automobile industry is attributed to the high fuel prices, rising air pollution, and the global warming effects it causes. For instance, it was observed that in the year 2020, global R&D spending was more than USD 135 billion in the automotive sector.
The high prevalence of distillate fuels in transportation across the world are believed to fuel the automotive intercooler market growth. Distillate fuel is of higher quality and are commonly used in aviation industry, which require intercoolers to improve the power output and to optimize engine performance.
For instance, distillate fuels, primarily diesel accounted for 24% of total US transportation energy use in 2021.