Automotive Heat Exchanger Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|CAGR:||> 6 %|
*Disclaimer: Major Players sorted in no particular order
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Automotive Heat Exchanger Market Analysis
The Automotive Heat Exchanger Market was valued at USD 22.26 billion in 2021 and is expected to reach USD 33.92 billion by 2027, registering a CAGR above 6% during the forecast period (2022-2027).
The COVID-19 pandemic severely impacted the automotive industry across the world for the year 2020. The disruptions in supply chain activities, the interruption in large-scale manufacturing, restrictions on travel, and the declining sales of light vehicles during 2020, hampered the market in focus for the year.
Over the medium term, increasing production of vehicles and rising demand for passenger vehicles are expected to drive the automotive heat exchanger market. In addition, the rising trend of engine downsizing coupled with advancements in lightweight automotive materials and rising application of heat exchangers in hybrid and electric vehicles boost demand in the market.
The rising adoption of electric vehicles has forced traditional heat exchanger systems manufacturers to produce an efficient battery thermal management system and increase their product portfolio. This factor is expected to generate new opportunities for the market during the forecast period. The two major inhibiting factors for the global automotive heat exchanger market are the volatility in the prices of raw materials and the complexity of designing advanced and lightweight heat exchangers.
The Asia-Pacific region is expected to hold the largest market share in revenue, followed by North America and Europe. Countries such as China and India have witnessed heavy demand and production for passenger vehicles in the Asia Pacific region. This, in turn, is increasing the application of automotive heat exchangers during the forecast period.
Automotive Heat Exchanger Industry Segments
Automotive heat exchange helps in allowing the transfer of heat from one medium to another at varying temperatures. The two mediums contain fluids that flow to each other but are separated by a metal having good heat transfer properties. The hot liquid transfers heat to the freezing liquid as they both pass through the heat exchanger, thus decreasing the hot liquid's high temperature and raising the cold liquid's warmth. The report's scope covers details about the latest trends, technologies, and developments in the market.
The Automotive Heat Exchanger Market is segmented based on application, design type, vehicle type, and geography. By application, the market is segmented by radiators, oil coolers, intercoolers, air conditioning, exhaust gas, and other applications, By design type, the market is segmented into tube-fin, plate-bar, and other design types.
By Vehicle type, the market is segmented into Passenger Cars and Commercial Vehicles, and By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. For each segment, market sizing and forecast have been done on basis of value (USD billion).
|Other design types|
|IC Engine Vehicles|
Automotive Heat Exchanger Market Trends
This section covers the major market trends shaping the Automotive Heat Exchanger Market according to our research experts:
Growing Demand for Electric Vehicles to Boost the Market Growth
The Sales and the Production of electric vehicles are expected to witness a phenomenal growth rate with all the countries trying to achieve zero-emission standards. Many major economies worldwide aim to eliminate the polluting emissions from vehicles by completely removing fossil fuel vehicles from the roads. For instance,
- The Norwegian Parliament has decided that all new cars sold by 2025 should have zero (electric or hydrogen) or low (plug-in hybrids) emissions.
- Even the Government of India announced that it plans to achieve 100% ZEVs in the country by 2030. With further incentives from authorities and the availability of better electric vehicles (increased range and decreased range anxiety), EV sales are further expected to rise globally.
- Governments worldwide have initiated various schemes that encourage a buyer to choose electric vehicles over conventional ones. California ZEV program, which aims at having 1.5 million electric vehicles on the road by 2025, is one initiative promoting the purchase of electric vehicles. Countries like India, China, the United Kingdom, South Korea, France, Germany, Norway, and the Netherlands, are other countries that have various incentives for people willing to buy an electric vehicles.
- In August 2020, China announced that authorities would exempt new vehicles from purchase tax till December 2022 to support the new energy vehicle (NEV) industry – electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles. The government is focusing on raising the requirements for car driving range and power efficiency to qualify for the subsidies.
With further incentives from the regulating authorities and the availability of better electric vehicles, the sales are further expected to grow in the country. Furthermore, rapidly developing economies, such as China and India, have also decided to fight environmental pollution by increasing the number of electric vehicles in the countries.
However, the rising demand for electric and hybrid vehicles will eliminate the need for conventional engine cooling components, rising complexity associated with designing advanced and lightweight heat exchangers as these various heat exchangers, such as liquid-cooled plate and plate-to-plate, are used in the electric vehicles for cooling and improving the battery life. The increasing number of electric vehicles will directly impact the automotive heat exchanger market.
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Asia-Pacific Region Anticipated to Lead the Market
The Asia-Pacific region is expected to witness growth due to an ever-increasing demand for heat exchangers because of their diverse applications. The demand for automotive heat exchangers in Asia-Pacific depends on several factors, such as the production and demand for automobiles and the number of vehicles on the road. In the emerging and developing countries of the region, the demand for automotive heat exchangers is driven by the production of new vehicles.
In addition, demand for Passenger cars and LCVs across the region is expected to grow during the forecast period, leading to high demand for automotive heat exchanger units in China. The country is home to more than 500 heat exchanger manufacturers, with a huge presence of regional players. Japan is one of the prominent markets in the automotive heat exchanger market in the region after China.
Further, the active presence of companies and their strategies to improve their presence in the market further enhance market demand. For instance, In August 2020, Keihin Corporation (Keihin) announced that it would transfer part of its air conditioning system business in Japan to its consolidated subsidiary, Keihin Thermal Technology Corporation (Keihin Thermal Technology). Keihin Thermal Technology conducts the manufacturing and production of heat exchanger products for automotive air conditioning systems and other products.
The increased adoption of hybrid and electric vehicles (which use a greater number of heat exchangers) across major regional countries is expected to help increase its market share of heat exchangers during the forecast period. For instance, In 2021, around 2.9 million battery electric vehicles will be sold in China, an increase of 162 percent compared to 2020. In the same year, about 603,000 plug-in hybrid cars were sold in China, an increase of 140 percent compared to the previous year.
Thus, owing to the above-mentioned trends and instances, the automotive heat exchanger market is expected to hold a significant market share during the forecast period.
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Automotive Heat Exchanger Market Competitor Analysis
The Automotive Heat Exchanger Market is moderately consolidated as it contains both major and small players. DENSO Corporation., MAHLE GmbH, Nippon Light Metal Co., Ltd., Valeo, Hanon Systems, and other major players covered in the automotive heat exchanger market. These companies are focusing on various growth strategies to strengthen their position in the market. For instance,
- In July 2020, DENSO Corporation announced that it resolved to merge its wholly-owned subsidiary DENSO IT Solutions Inc. through an absorption-type merger to promote the company-wide digitalization strategy and facilitate the utilization and application of data.
- In December 2020, Hanon Systems Corporation (Hanon Systems) announced that it would start supplying components for R744-refrigerant-based heat pump systems to the Volkswagen Group (VW). The company will supply electric compressors, refrigerant valves, heat exchangers, and accumulators for VW’s MEB electric vehicle (EV) platform. These components improve the energy consumption efficiency of vehicles when used for heating vehicle interiors in sub-zero environments.
- In November 2020, Dana Incorporated announced that it had signed a definitive agreement to purchase a portion of the thermal-management business of Modine Manufacturing Company’s automotive segment. The transaction further strengthens Dana’s Power Technologies business unit. The agreed purchase price is $1, assuming certain financial liabilities.
Automotive Heat Exchanger Market Top Players
Nippon Light Metal Holdings Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Automotive Heat Exchanger Market Recent Developments
- In May 2022, Conflux Technology and GKN Additive announced that they would cooperate in the development, design, and production of 3D printed heat exchanger solutions in Europe. 3D printed heat exchangers have been shown to improve the cooling of critical components in the electronics, automotive, aerospace industries, etc., by utilizing the design freedom made possible by 3D printing. Conflux brings expertise in designing and developing advanced thermal management solutions, and GKN Additive brings extensive experience in high-volume production and additive manufacturing in the automotive, aerospace, and industrial industries.
- In March 2022, Eberspaecher announced that it is presenting its broad portfolio of efficient and eco-friendly AC systems for buses and coaches at Expo Foro 2022 in Mexico. With the fifth generation of the AC353, thermal management expert Eberspaecher offers an all-purpose inline roof-mounted AC system to be used in any climate. The AC353-5 comes with an optimized condenser and improved heat exchanger design. That leads to a significant reduction in weight, refrigerant (up to 15 %), power, fuel consumption, and increased efficiency of the AC system.
- In March 2022, Sanden Corporation (Sanden), which handles automotive air-conditioning systems, will overhaul its production structure in response to the growing demand for electrified vehicles. The company will consolidate its four heat exchanger plants in Asia in the fiscal year 2022 (ending in March 2023). It will also consolidate its two plants, which produce exhaust pipes for air-conditioning, into one in FY 2022.
- In May 2021, Hanon Systems announced it had completed the acquisition of Keihin Corporation for certain operations in Europe and North America. This strategic acquisition expands our ability to supply automakers with thermal management systems and to further focus on diversifying the customer base of Hanon Systems.
Automotive Heat Exchanger Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD billion)
5.1.2 Oil Cooler
5.1.4 Air Conditioning
5.1.5 Exhaust Gas
5.1.6 Other Applications
5.2 Design Type
5.2.3 Other design types
5.3 Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4 Powertrain Type
5.4.1 IC Engine Vehicles
5.4.2 Electric Vehicles
5.4.3 Other Vehicles
5.5.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.5.4 Rest of the World
22.214.171.124 South America
126.96.36.199 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 AKG Thermal Systems Inc.
6.2.2 American Industrial Heat Transfer Inc.
6.2.3 Banco Products (India) Ltd
6.2.4 Climetal SL - Heat Exchanger
6.2.5 Constellium SE
6.2.6 DENSO Corporation
6.2.7 G&M Radiator Mfg Ltd
6.2.8 Hanon Systems
6.2.9 MAHLE GmbH
6.2.10 MODINE MANUFACTURING COMPANY
6.2.11 Nippon Light Metal Holdings Co. Ltd
6.2.12 Valeo SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS**
Automotive Heat Exchanger Market Research FAQs
What is the study period of this market?
The Automotive Heat Exchanger Market is studied from 2018 - 2028.
What is the growth rate of Automotive Heat Exchanger Market?
The Automotive Heat Exchanger Market is growing at a CAGR of >6% over the next 5 years.
What is Automotive Heat Exchanger Market size in 2018?
The Automotive Heat Exchanger Market is valued at 22 Billion USD in 2018.
What is Automotive Heat Exchanger Market size in 2028?
The Automotive Heat Exchanger Market is valued at 34 Billion USD in 2028.
Which region has highest growth rate in Automotive Heat Exchanger Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Automotive Heat Exchanger Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Automotive Heat Exchanger Market?
Hanon Systems, DENSO Corporation, Valeo SA, MAHLE GmbH, Nippon Light Metal Holdings Co. Ltd are the major companies operating in Automotive Heat Exchanger Market.
Automotive Heat Exchanger Industry Reports
In-depth industry statistics and market share insights of the Automotive Heat Exchanger sector for 2020, 2021, and 2022. The Automotive Heat Exchanger research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Automotive Heat Exchanger report PDF.