Automotive HVAC Market by Technology (Automatic and Manual/Semi-automatic), Component (Evaporator, Condenser, Compressor, Expansion Device, Receiver-drier, Refrigerant, and Others), Application (Passenger Cars and Commercial Vehicles [Light Commercial Vehicles and Heavy Commercial Vehicles]), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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.
Attributes |
Details |
Report Title |
Automotive HVAC Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
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]) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
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 |
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.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Automotive HVAC Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Automotive HVAC Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Automotive HVAC Market - Supply Chain
4.5. Global Automotive HVAC Market Forecast
4.5.1. Automotive HVAC Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Automotive HVAC Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Automotive HVAC Market Absolute $ Opportunity
5. Global Automotive HVAC Market Analysis and Forecast by Applications
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Applications
5.2.2. Y-o-Y Growth Projections by Applications
5.3. Automotive HVAC Market Size and Volume Forecast by Applications
5.3.1. Passenger Cars
5.3.2. Commercial Vehicles
5.4. Absolute $ Opportunity Assessment by Applications
5.5. Market Attractiveness/Growth Potential Analysis by Applications
6. Global Automotive HVAC Market Analysis and Forecast by Region
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Region
6.2.2. Y-o-Y Growth Projections by Region
6.3. Automotive HVAC Market Size and Volume Forecast by Region
6.3.1. North America
6.3.2. Latin America
6.3.3. Europe
6.3.4. Asia Pacific
6.3.5. Middle East and Africa (MEA)
6.4. Absolute $ Opportunity Assessment by Region
6.5. Market Attractiveness/Growth Potential Analysis by Region
6.6. Global Automotive HVAC Demand Share Forecast, 2019-2026
7. North America Automotive HVAC Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.2. North America Automotive HVAC Market Size and Volume Forecast by Country
7.2.1. U.S.
7.2.2. Canada
7.3. Absolute $ Opportunity Assessment by Country
7.4. North America Automotive HVAC Market Size and Volume Forecast by Applications
7.4.1. Passenger Cars
7.4.2. Commercial Vehicles
7.5. Basis Point Share (BPS) Analysis by Applications
7.6. Y-o-Y Growth Projections by Applications
7.7. Market Attractiveness/Growth Potential Analysis
7.7.1. By Country
7.7.2. By Product Type
7.7.3. By Application
7.8. North America Automotive HVAC Demand Share Forecast, 2019-2026
8. Latin America Automotive HVAC Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Latin America Average Pricing Analysis
8.2. Latin America Automotive HVAC Market Size and Volume Forecast by Country
8.2.1. Brazil
8.2.2. Mexico
8.2.3. Rest of Latin America
8.3. Absolute $ Opportunity Assessment by Country
8.4. Latin America Automotive HVAC Market Size and Volume Forecast by Applications
8.4.1. Passenger Cars
8.4.2. Commercial Vehicles
8.5. Basis Point Share (BPS) Analysis by Applications
8.6. Y-o-Y Growth Projections by Applications
8.7. Market Attractiveness/Growth Potential Analysis
8.7.1. By Country
8.7.2. By Product Type
8.7.3. By Application
8.8. Latin America Automotive HVAC Demand Share Forecast, 2019-2026
9. Europe Automotive HVAC Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Europe Average Pricing Analysis
9.2. Europe Automotive HVAC Market Size and Volume Forecast by Country
9.2.1. Germany
9.2.2. France
9.2.3. Italy
9.2.4. U.K.
9.2.5. Spain
9.2.6. Russia
9.2.7. Rest of Europe
9.3. Absolute $ Opportunity Assessment by Country
9.4. Europe Automotive HVAC Market Size and Volume Forecast by Applications
9.4.1. Passenger Cars
9.4.2. Commercial Vehicles
9.5. Basis Point Share (BPS) Analysis by Applications
9.6. Y-o-Y Growth Projections by Applications
9.7. Market Attractiveness/Growth Potential Analysis
9.7.1. By Country
9.7.2. By Product Type
9.7.3. By Application
9.8. Europe Automotive HVAC Demand Share Forecast, 2019-2026
10. Asia Pacific Automotive HVAC Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Asia Pacific Average Pricing Analysis
10.2. Asia Pacific Automotive HVAC Market Size and Volume Forecast by Country
10.2.1. China
10.2.2. Japan
10.2.3. South Korea
10.2.4. India
10.2.5. Australia
10.2.6. Rest of Asia Pacific (APAC)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Asia Pacific Automotive HVAC Market Size and Volume Forecast by Applications
10.4.1. Passenger Cars
10.4.2. Commercial Vehicles
10.5. Basis Point Share (BPS) Analysis by Applications
10.6. Y-o-Y Growth Projections by Applications
10.7. Market Attractiveness/Growth Potential Analysis
10.7.1. By Country
10.7.2. By Product Type
10.7.3. By Application
10.8. Asia Pacific Automotive HVAC Demand Share Forecast, 2019-2026
11. Middle East & Africa Automotive HVAC Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Middle East & Africa Average Pricing Analysis
11.2. Middle East & Africa Automotive HVAC Market Size and Volume Forecast by Country
11.2.1. Saudi Arabia
11.2.2. South Africa
11.2.3. UAE
11.2.4. Rest of Middle East & Africa (MEA)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Middle East & Africa Automotive HVAC Market Size and Volume Forecast by Applications
11.4.1. Passenger Cars
11.4.2. Commercial Vehicles
11.5. Basis Point Share (BPS) Analysis by Applications
11.6. Y-o-Y Growth Projections by Applications
11.7. Market Attractiveness/Growth Potential Analysis
11.7.1. By Country
11.7.2. By Product Type
11.7.3. By Application
11.8. Middle East & Africa Automotive HVAC Demand Share Forecast, 2019-2026
12. Competition Landscape
12.1. Global Automotive HVAC Market: Market Share Analysis
12.2. Automotive HVAC Distributors and Customers
12.3. Automotive HVAC Market: Competitive Dashboard
12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
12.4.1. Air International Thermal Systems
12.4.2. Brose Fahrzeugteile SE & Co. KG
12.4.3. BorgWarner Inc.
12.4.4. MAHLE GmbH
12.4.5. DENSO
12.4.6. Ductmate Industries
12.4.7. Duro Dyne Corporation
12.4.8. EC21 Inc.
12.4.9. Elgen Manufacturing Company, Inc.
12.4.10. Engineered Plastic Components, Inc.
12.4.11. Hanon Systems
12.4.12. JAPAN CLIMATE SYSTEMS CORPORATION
12.4.13. Johnson Electric Holdings Limited
12.4.14. Keihin
12.4.15. Marelli Holdings Co., Ltd.
12.4.16. SANDEN CORPORATION
12.4.17. Trans/Air Manufacturing Corp
12.4.18. Valeo
12.4.19. Visteon Corporation