Market Snapshot
| Study Period: | 2018 - 2026 |
| Base Year: | 2020 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | 6.36 % |
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Market Overview
The automotive HVAC market was valued at USD 50,56 billion in 2020, and it is expected to reach a value of USD 73.25 billion by 2026, registering a CAGR of 6.36% during the forecast period (2021-2026).
The recent COVID-19 pandemic hindered the growth of the automotive HVAC market, as sales of passenger vehicles reduced across various regions. Earlier, the use of automotive HVAC systems was considered a luxury, and not all automobiles were fitted with HVAC. However, it is now a prerequisite feature in every automobile due to the basic automotive safety and comfort standards accepted globally.
The rise in demand for thermal comfort and increase in safety due to the adoption of HVAC systems are expected to boost the growth of the Indian automotive HVAC market. Reduction in system size and weight of the system may support the growth of the market over the coming years. The integration of electronics, sensors, and automated climate control features at a lesser cost is translating into greater adoption of HVAC units in passenger vehicles. For instance:
- Private car rental players such as Uber, Ola, Lyft, and Sidecar made air conditioning their basic requirement to enhance customer value proposition, which is also anticipated to drive the global market.
Technological innovations and substantial investments in R&D initiatives are poised to enhance players' offerings and technological capabilities. Furthermore, the adoption of eco-friendly refrigerants and the production of cheaper HVAC systems provide lucrative growth opportunities for the players operating in the automotive HVAC market.
The Asia-Pacific region is expected to be the largest segment in the automotive HVAC market owing to the large vehicle production levels in countries such as China, India, and Japan. North America is forecasted to create new growth prospects for the manufacturers in the coming years. The European market is showing slow but steady growth and is expected to reach pre-meltdown levels over the period of the next five years.
Scope of the Report
Heating ventilation and air conditioning (HVAC) is the technology that is used to sustain the internal climate of a vehicle. It helps in maintaining temperature (hot/cold) for the interior atmosphere of a vehicle and thus helps to provide comfort for onboard passengers. The automotive HVAC market report covers the latest trends, COVID-19 impact, and technological developments in the market. TThe automotive HVAC market is segmented by technology type (manual/semi-automatic and automatic), vehicle type (passenger cars and commercial vehicles), and geography (North America, Europe, Asia- Pacific, South America, and Middle-East and Africa). For each segment, the market sizing and forecast have been done on the basis of value (USD billion).
| By Technology Type | |
| Manual/Semi-automatic HVAC | |
| Automatic HVAC |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Geography | |||||||
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Key Market Trends
Innovations to Provide New Opportunities
Growing concerns about global warming have slightly impacted the automotive HVAC market. Consequently, many nations worldwide have started taking measures to reduce their carbon footprints.
The augmenting research and developments in the automotive sector across the world are set to enhance the technological capabilities of the market players. These market players are introducing advanced technologies in automotive HVAC to develop new products that impart a competitive edge in the market. The competitors in the market are developing eco-friendly products to fall in line with the stringent government regulations regarding emissions. Energy efficacy is the other parameter driving growth in HVAC systems. Manufacturers are increasingly using green technologies to develop eco-friendly and energy-efficient automotive HVAC systems.
Market players are involved in mergers and acquisitions to expand their market presence. For instance, Denso collaborated with Toyota to develop Prius, a hybrid technology promoting safety, fuel efficiency, and green technology in vehicles.
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High Growth Anticipated in the Asia-Pacific Region
The Asia-Pacific market is probably going to observe huge development attributable to the nearness of key automotive makers, vast scale generation of vehicles, and spiraling vehicle requests in the manufacturing countries, like India, South Korea, and China. Government activities to restore the automotive business are required to drive the market during the forthcoming year. For example, the Government of India is encouraging foreign investments through programmed courses in the automotive area to bring new innovations to market.
China is one of the largest markets and contributes significantly to the demand for these automotive HVAC systems. The increasing demand for passenger vehicles from India, China, and their other counterparts in the Asia-Pacific region is a result of the growing preferences of people for comfort and safety. These factors are expected to contribute to the market growth in the region. Consumers are aligning toward high specification vehicles that offer par comfort features. In addition, there is an upsurge in vehicle production by foreign companies in countries, including Thailand and Malaysia.
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Competitive Landscape
The automotive HVAC market is consolidated, with the top global players accounting for most of the market share. The major companies in the air-conditioning market include MAHLE GmbH, DENSO Corporation, Mitsubishi Heavy Industries Ltd, and Hanon Systems. Mergers and acquisitions, partnerships with regional HVAC equipment manufacturers, and establishing and ensuring tie-ups with car manufacturers are some of the dynamics shaping the market's competitive landscape. For instance:
- In March 2020, Swegon, a UK-based HVAC manufacturer, acquired air terminal specialist Waterloo Air Products. The acquisition deal will give the company air terminal range and expertise in the custom-building segment.
- In March 2020, Gardner Denver completed the merger with Ingersoll Rand’s Industrial segment to significantly dominate the mission-critical flow control and industrial technologies market by developing an extended product portfolio.
Recent Developments
- 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 utilization and application of data.
- In October 2020, MAHLE signed a purchase agreement with Keihin Corporation to strengthen its global footprint in air conditioning technology. This agreement's focus is mainly to improve its market access, particularly in Japan and Southeast Asia.
Table of Contents
1. INTRODUCTION
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 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Technology Type
5.1.1 Manual/Semi-automatic HVAC
5.1.2 Automatic HVAC
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Saudi Arabia
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Valeo Group
6.2.2 Denso Corporation
6.2.3 Mahle GmbH
6.2.4 Marelli Corporation
6.2.5 Sanden Corporation
6.2.6 Keihin Corporation
6.2.7 Japan Climate Systems Corporation
6.2.8 Mitsubishi Heavy Industries Ltd
6.2.9 Hanon Systems Corp.
6.2.10 Samvardhana Motherson Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive HVAC Market market is studied from 2018 - 2026.
What is the growth rate of Automotive HVAC Market?
The Automotive HVAC Market is growing at a CAGR of 6.36% over the next 5 years.
What is Automotive HVAC Market size in 2018?
The Automotive HVAC Market is valued at 49 Billion USD in 2018.
What is Automotive HVAC Market size in 2026?
The Automotive HVAC Market is valued at 73 Billion USD in 2026.
Which region has highest growth rate in Automotive HVAC Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive HVAC Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive HVAC Market?
DENSO Corporation, MAHLE GmbH, Valeo Group, Hanon Systems Corp., Marelli Corporation are the major companies operating in Automotive HVAC Market.
