Automotive Electric HVAC Compressor Market Size, Share | 2031

Report Description

Automotive Electric HVAC Compressor Market Outlook 2031

The global automotive electric HVAC compressor market size was valued at USD 13.59 Billion in 2022 and is likely to reach USD 72.80 Billion by 2031, expanding at a CAGR of 20.5% during 2023 – 2031. Growth of the market is attributed to the increasing demand for automatic climate control in automobiles and rising stringent emission norms.

Rising stringent emission norms is expected to boost the demand for electric HVAC compressors. HVAC compressors use energy-efficient technologies such as high-efficiency motors and advanced controls that help to optimize the performance of the HVAC system in vehicles, thereby reducing emissions. Therefore, increasing stringent emission norms is propelling the market.

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Electric HVAC compressor is a major component in vehicles that controls the cooling, heating, ventilation, and air conditioning systems. An HVAC compressor is necessary for the air-conditioning system to provide peak performance. An electric HVAC compressor is used in electric vehicles to push the refrigerant through the cooling unit and chill the air before it reaches the vent.

Increasing demand for automatic climate control in vehicles is projected to drive the market. An electric HVAC compressor is a vital element of an automatic climate control system, as it is responsible for compressing refrigerant vapor in vehicles and regulating indoor temperature and humidity. Thus, the rising adoption of automatic climate control in vehicles is estimated to boost the market.

The COVID-19 pandemic hampered the demand for the automotive electric HVAC compressor. The production of motor vehicles fell by 16% in 2022, due to a shortage of manpower & raw materials, and the closure of international borders, which impeded the demand for electric HVAC compressor, as it is utilized in motor vehicles to control the cooling, heating, ventilation, and air conditioning systems. Moreover, the sales of new vehicles dropped drastically in 2020 around the world, which hindered the market. For instance,

• According to a report published by the National Institute of Health on February 11, 2021, sales of vehicles in China fell by 92% in February 2020 while total vehicle sales in Europe dropped by 7.4% during the pandemic.

Impact of Artificial Intelligence (AI) on Automotive Electric HVAC Compressor

Technical advancements in automotives and the integration of artificial intelligence in electronic systems are creating several opportunities in the market. AI-enabled HVAC compressor analyzes data from several sensors to identify optimal settings for cooling and heating.

AI in automotive electric HVAC compressors determines patterns and detects potential HVAC system failures before they occur. AI-driven HVAC compressors enhance vehicle air quality by constantly analyzing temperature, humidity, and air pollutants. AI-powered HVAC compressor uses occupancy sensors to identify and adjust heating or cooling levels in specific areas based on occupancy patterns.

Automotive Electric HVAC Compressor Market Dynamics

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Major Drivers

Increasing demand for electric vehicles is expected to boost the demand for automotive electric HVAC compressors. Electric HVAC compressors are especially used in electric vehicles to draw power from vehicle energy storage systems to push the refrigerant through the cooling unit and chill the air before it reaches the vent. Therefore, the rising adoption of electric vehicles is estimated to boost the market. For instance,

• According to the International Energy Agency, 26 million electric cars were present on the road in 2022, 60% up from 2021.

Existing Restraints

High maintenance costs associated with automotive electric HVAC compressors are projected to restrict the market. Electric HVAC compressors require additional heavy-duty electrical wiring that increases the complexity of repair and maintenance, making the maintenance cost expensive, which encourages consumers to reduce their demand.  Moreover, the voltage imbalance and phase loss issue attached to electric HVAC compressors is expected to hamper the market.

Emerging Opportunities

Growing automobile industry is expected to generate several opportunities in the market. Electric HVAC compressors are deployed in vehicles to maintain cabin temperatures by harnessing the battery's energy. Moreover, increasing investment in R&D activities by key players in the market to develop and introduce electric compressors for commercial vehicles is expected to create opportunities in the market. For instance,

• On September 12, 2022, TCCI Manufacturing, a world leader in compressor technology for commercial vehicles, announced the launch of a electrical HVAC 850V compressor for commercial vehicles. The 850V compressor is available in 34cc/46cc/60cc/120cc and provides optimal cabin and battery cooling for commercial battery electric vehicles (BEV).

Scope of the Automotive Electric HVAC Compressor Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Electric HVAC Compressor Market Segment Insights

Cooling Capacity Segment Analysis

Based on cooling capacity, the automotive electric HVAC compressor market is categorized into less than 20 cc, 20-40 cc, 40-60 cc, and more than 60 cc. The 20-40 cc segment held a large share of the market in 2022, due to the wide adoption of electric compressors in light commercial vehicles and passenger vehicles.

The 20-40 cc electric compressors are capable of sustaining the heat load of medium vehicles and small vehicles to an extent, which ensures optimum performance for passenger cars and light commercial vehicles.

The less than 20 cc segment is anticipated to grow at a quick pace during the projection period, owing to the rising adoption of small vehicles. The less than 20 cc cooling capacitors have low heat-absorbing capacity, which makes them ideal for small vehicles. Moreover, 20 cc capacitors are cost-effective and have few maintenance costs, which enhances their demand.

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Vehicle Type Segment Analysis

In terms of vehicle type, the global market is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicles segment dominated the market in 2022 and is expected to continue its dominance throughout the projection period, owing to its ability to provide high security and improved features.

An electric HVAC compressor is widely used in passenger vehicles to control the cabin temperature efficiently. Moreover, several organizations and individuals prefer using electric passenger cars for commutation within the city limits, which enhances the demand for electric HVAC compressors in passenger vehicles.

Drivetrain Outlook

Based on drivetrain, the automotive electric HVAC compressor market is segregated into PHEV, BEV, and HEV. The BEV segment accounted for a major share of the market in 2022, due to rising government incentives and the implementation of stringent emission standards. These vehicles do not require fluids such as engine oil or oil changes, and have few moving parts that require little maintenance, which increases their demand.

The PHEV segment is anticipated to grow at a quick pace during the projection period, owing to the rising awareness regarding CO2 emissions and environmental pollution. Charging times of these vehicles are comparatively lower than BEV vehicles, as they use Level 2 and Level 1 chargers. It has a big battery that covers several miles, which encourages consumers to adopt PHEV vehicles.

Regional Outlook

In terms of region, the automotive electric HVAC compressor market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a large share of the market in 2022, due to rising stringent emission norms, increasing disposable income, and a surge in fuel prices.

These factors are encouraging consumers to adopt PHEV and BEV vehicles, which increases the demand for automotive electric HVAC compressor, as it is majorly used in BEV and PHEV vehicles to cool down the cabin during summer and heat the passenger compartment in winter. For instance,

• As per the report published by the China Association of Automobile Manufacturers, China sold 6.9 million electric cars in 2022, an increase of 93.4% as compared to the prior year.

The market in North America is projected to expand at a high CAGR during the assessment period, owing to technological advancements in the automotive industry and the presence of established market players such as PHINIA Inc. and BorgWarner Inc. Moreover, the growing adoption of electric vehicles in the region is propelling the demand for electric HVAC compressor, as it is widely used in electric vehicles to maintain cabin temperature. For instance,

• As per the report published by the International Energy Agency, 1 million electric vehicles were sold in the US in 2022 and is expected to reach 2.46 million in 2028.

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