The global Automotive HVAC market size was around USD 57.7 Billion in 2022 and is anticipated to reach USD 88.4 Billion by 2031, accelerating at a CAGR of 6.58% during the forecast period, 2023-2031. The market has experienced significant growth and is anticipated to grow due to the increasing automotive sector at a rapid pace across the globe.
HVAC is the heating, ventilation, and air conditioning system used to control the internal temperature in vehicles. Automotive HVAC systems consist of various components, which not only add or remove heat but also help to purify air circulate through the vehicles.
Automotive HVAC system automatically controls the temperature, inspects the moisture content, and eliminates humidity from the air circulating in the vehicle. It enhanced thermal comfort for drivers and passengers. It transferres the heat from low temperature to high temperature according to the pressure, this is known as refrigeration.
The HVAC system is controlled either automatically or manually/semi-automatically. Automatic HVAC systems consist of various sensors that automatically operate according to the atmosphere. Manual HVAC systems need to be operated as it includes blowers, through which the driver or passenger can set or change the temperature as per need.
The heating system helps to add or adjust the heat. The purpose of ventilation is to keep the air fresh inside the vehicles, prevent carbon monoxide from the exhaust, and create positive pressure. Whereas, air conditioning cooling controls the temperature and dehumidifies air.
COVID-19 Impact on Automotive HVAC Market
The market report finds that the COVID-19 pandemic affected the global automotive HVAC market. The COVID-19 pandemic slowed down the global market growth due to sudden disruption in the supply chain of the HVAC verticals.
Moreover, many industries that develop ducts and sealants were temporarily shut down due to preventive measures imposed by the government across the country. Few companies have already announced possible delays in the delivery of HVAC systems due to traveling restrictions across the globe, which hampered the overall revenue generation of the global market during the COVID-19 pandemic.
Automotive HVAC Market Dynamics
The global automotive HVAC market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive HVAC market report has up-to-date insights about market scenarios that can help in shaping the overall market performance and output of the market during the forecast period, 2023 to 2031.
Major Drivers
Growing automobile industries
Continuous expansion of automobile industries at a rapid pace across the globe is a major factor driving the growth of the global automotive HVAC market owing to urbanization. HVAC systems improve the efficiency of air conditioner that provides comfort to driver and passenger. Increasing automobile production and high demands for the production of automotive HVAC systems are attributed to driving the global market growth during the forecast period.
Increasing adoption of luxurious vehicles
Increasing adoption of luxurious vehicles is another major factor that drives global market growth. Many luxury vehicles are equipped with automatic HVAC systems such as power windows, power, and heated seats that leave a positive impact on the comfort system of the vehicle cabin.
High comfort systems encouraged consumers to adopt luxurious vehicles. Growing requirement for comfort leads to an increase in the sales of luxury vehicles, which is anticipated to fuel the growth of the global automotive HVAC market in the coming years.
Rising requirement for air conditioning system
HVAC systems enhanced the efficiency and performance of air. Rising requirement for air conditioning systems in vehicles due to rapidly growing global warming across the globe accelerates the growth of the global market during the forecast period.
Existing Restraints
High maintenance cost and low availability to low-income countries
The high maintenance cost of HVAC systems hampers the revenue growth of the global automotive HVAC market as it is quite expensive and is not easily available in low-income countries.
The HVAC system consists of a compressor, condenser, evaporator, and other components, which require regular maintenance to keep it in good working condition. Thus, the high cost of repairing those components in case of failure hinders the market growth at a certain limit during the projected period.
Lack of awareness regarding the benefits of HVAC systems
The lack of awareness regarding the proper use of HVAC systems and its benefits among the masses, especially in rural areas of developing regions is expected to hamper the overall revenue generation of the global automotive HVAC market during the assessment period.
Key Opportunities
Rising demand for eco-friendly refrigerants and production of cheaper HVAC systems
Rising demand for eco-friendly refrigerants and the production of cheaper HVAC systems creates lucrative growth opportunities for the market players. Eco-friendly refrigerants reduce pollution from vehicles and increase fuel efficiency.
The unaffordability of low-income people to buy vehicles equipped with HVAC systems demands cheap HVAC systems. Market players are focusing to use green technologies for developing energy-efficient systems to reduce maintenance costs is expected to create immense growth in the global market in the coming years.
Technological advancements in the production of automotive HVAC systems
Growing investment in research and technological development in the automobile market coupled with increasing demand for luxurious vehicles equipped with HVAC systems across the globe is a key factor that creates growth opportunities for market players. Rapid growth in the automotive sector highly demands automotive HVAC systems for comfort.
Market players are focusing on reducing costs for the production of automotive HVAC systems with new advanced technologies. Automotive industries are increasingly becoming technology-oriented with new innovations to produce refrigeration and air conditioning compressors, which fuels the growth of the global automotive HVAC market during the forecast period.
Scope of Automotive HVAC Market Report
The global automotive HVAC market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Automotive HVAC Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Technology (Automatic and Manual/Semi-automatic), Component (Evaporator, Condenser, Compressor, Expansion Device, Receiver-drier, Refrigerant, and Others), and Application (Passenger Cars and Commercial Vehicles [Light Commercial Vehicles and Heavy Commercial Vehicles])
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Air International Thermal Systems; Brose Fahrzeugteile SE & Co. KG; BorgWarner Inc.; DENSO; Ductmate Industries; Duro Dyne Corporation; EC21 Inc.; Elgen Manufacturing Company, Inc.; Engineered Plastic Components, Inc.; Hanon Systems; JAPAN CLIMATE SYSTEMS CORPORATION; Johnson Electric Holdings Limited; Keihin; MAHLE GmbH; Marelli Holdings Co., Ltd.; SANDEN CORPORATION; Trans/Air Manufacturing Corp; Valeo; and Visteon Corporation
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Automotive HVAC Market Segment Insights
Technology Segment Analysis
Based on technology, the global automotive HVAC market is bifurcated into automatic and manual/semi-automatic. The automatic segment held a key share of the market in 2021 and is anticipated to expand at a significant growth rate during the projected period owing to the ease of operation. Automatic HVAC systems include various sensors that control the humidity and temperature inside the vehicles. It offers comfort for drivers and passengers.
Rising production of luxury vehicles at a rapid pace across the globe demands fully automatic HVAC systems. The manual/semi-automatic segment is expected to hold a key share of the global market in the coming years. It consists of knobs that allow a passenger to control and set the airflow as per need.
Rising demand from low-specification budget vehicles for manual or semi-automatic technology of HVAC systems leads to accelerate the growth of the global market in the coming years.
Component Segment Analysis
On the basis of component, the global automotive HVAC market is fragmented into evaporator, condenser, compressor, expansion device, receiver-drier, refrigerant, and others. The compressor segment accounted for a large market share in 2021 and is projected to register a considerable CAGR during the forecast period as it is the primary component of the HVAC systems.
The compressor is a pump, which is driven by a belt that is attached to the engine. It compresses and transfers refrigerant gas into the system by increasing its pressure and temperature accordingly. It also helps to purify the air. Rising car production across the globe demands HVAC systems resulting in increasing demand for compressors.
The condenser segment is anticipated to account for a major market share of the global automotive HVAC market in the coming years as it controls the temperature to low or high inside the car. The condenser helps to cool the refrigerant gas.
It receives high-pressure gas transfer by the compressor and converts this gas into liquid form. The condenser transfers heat from the refrigerant to the cooler when warm outdoor air is blown through the condenser coil and the excess heat is rejected to the outdoor atmosphere.
Application Segment Analysis
Based on application, the global automotive HVAC market is segregated into passenger cars and commercial vehicles. The commercial vehicles segment is further categorized as light commercial vehicles and heavy commercial vehicles. The passenger cars segment held the largest revenue share in 2021 and is expected to grow at a rapid pace during the assessment period owing to the rising use of passenger cars in rural regions.
However, the availability of various financial schemes and increasing disposable income demand for passenger cars fuel the market growth. Commercial vehicles attributed to contribute to the segment growth in the coming years, due to the wide use of commercial vehicles for transportation. Growing urbanization at a rapid pace, results in increasing adoption of commercial vehicles.
Heavy commercial vehicles such as bus and truck demands for HVAC system as it enhanced the air quality and provides comfort for passengers. Furthermore, the rising production of electric vehicles across the globe and high demand for automatic HVAC systems attributed to generating the revenue share of the global market during the projected period.
Regional Analysis
In terms of regions, the global automotive HVAC market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific accounted for a large market share in 2021 and is expected to dominate the market during the projected period owing to the presence of luxurious cars and the growing automotive industry in the region.
Increasing urbanization and a vast population of the region highly demand for commercial vehicles equipped with HVAC systems for comfort. Moreover, the hot temperatures in the region encouraged consumers to adopt HVAC systems in cars, which leads to driving the regional growth of the global market.
North America is the second largest region of the global market, which held a key market share in 2021 and is expected to expand at a rapid pace in the coming years. The market growth in North America is attributed to the increasing research and development activities in the region. A rising budget in the production of premium vehicle demands for HVAC systems boosts the global automotive HVAC market growth.
Segments
The global automotive HVAC market has been segmented on the basis of
Technology
- Automatic
- Manual/Semi-automatic
Component
- Evaporator
- Condenser
- Compressor
- Expansion Device
- Receiver-drier
- Refrigerant
- Others
Application
- Passenger Cars
- Commercial Vehicles
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Air International Thermal Systems
- Brose Fahrzeugteile SE & Co. KG
- BorgWarner Inc.
- MAHLE GmbH
- DENSO
- Ductmate Industries
- Duro Dyne Corporation
- EC21 Inc.
- Elgen Manufacturing Company, Inc.
- Engineered Plastic Components, Inc.
- Hanon Systems
- JAPAN CLIMATE SYSTEMS CORPORATION
- Johnson Electric Holdings Limited
- Keihin
- Marelli Holdings Co., Ltd.
- SANDEN CORPORATION
- Trans/Air Manufacturing Corp
- Valeo
- Visteon Corporation
Competitive Landscape
Key players competing in the global automotive HVAC market include Air International Thermal Systems; Brose Fahrzeugteile SE & Co. KG; BorgWarner Inc.; DENSO; MAHLE GmbH; Ductmate Industries; Duro Dyne Corporation; EC21 Inc.; Elgen Manufacturing Company, Inc.; Engineered Plastic Components, Inc.; Hanon Systems; JAPAN CLIMATE SYSTEMS CORPORATION; Johnson Electric Holdings Limited; Keihin; Marelli Holdings Co., Ltd.; RCD Corporation; SANDEN CORPORATION; Trans/Air Manufacturing Corp; Valeo; and Visteon Corporation.
Some of these major companies adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,
- On March 16, 2022, Hanon Systems, a supplier of automotive thermal and energy management solutions announced the launching of a new plant in Hubei and China. The company will start manufacturing heating, ventilation, and air conditioning (HVAC) modules for electric vehicles that support automakers.
- In January 2022, Infineon Technologies introduced the MOTIX motor control kit. MOTIX is a complete system solution for motor control. It enables the evaluation of low-voltage motor control applications such as cooling fans, heating, ventilation, & air conditioning (HVAC) blowers, and auxiliary pumps.
- In August 2021, Delphi Technologies announced that it will expand its regional aftermarket distribution centers in Poland. The company manufactures parts for air conditioning, engine cooling, fuel systems, and batteries.
- On January 28, 2021, Highly Marelli Holdings Co., Ltd. Announced a joint venture between Highly International (Hong Kong) Limited and Marelli Corporation K.K. Highly Marelli focused on developing solutions for suppliers and customers in the areas of compressor, heating, ventilation, and air conditioning (HVAC) system.
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