Market Trends of Automotive Heat Exchanger Industry
Growing Demand for Electric Vehicles to Boost the Market Growth
- The sales and 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 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% zero-emission vehicles (ZEVs) in the country by 2030. With further incentives from authorities and the availability of better electric vehicles (increased range and decreased range anxiety), electric vehicle (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 electric vehicles.
- The Indian electric vehicle (EV) market is estimated to reach INR 50,000 crores (USD 7.09 billion) in India by 2025. A study by Council on Energy, Environment and Water (CEEW) Centre for Energy Finance (CEF) recognized a USD 206 billion opportunity for electric vehicles in India by 2030. This will necessitate a USD 180 billion investment in vehicle manufacturing and charging infrastructure.
- With further incentives from the regulating authorities and the availability of better electric vehicles, 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 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 light commercial vehicles (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.
- 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.
- 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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