Automotive HVAC Market - Growth, Trends, and Forecast (2020 - 2025)

The Automotive HVAC Market is Segmented by Technology Type (Manual/Semi-Automatic, Automatic), Vehicle Type (Passenger Vehicles, Commercial Vehicles), and Geography.

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific


6.46 %

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Market Overview

The automotive HVAC market is expected to register a CAGR of over 6.46%, during the forecast period, 2020 - 2025.

Some of the major factors driving the growth of the market are higher adoption rate of automatic climate control feature, an increase in the demand for thermal systems, and usage of more eco-friendly refrigerants are driving the market’s growth.

Asia-Pacific region dominated the automotive HVAC market, followed by North America and Europe, and is expected to witness fast growth rate during the forecast period.

The future of HVAC is expected to witness significant developments, which include electronics and compressor designs. DuPont has developed a new technology in HVAC, which helps in eliminating the temperature-related problems in vehicles. The concern over refrigerant leakage into the atmosphere, which causes hazardous environmental effects, has laid roots for innovations to counter leakages.

Established players mainly dominate the automotive HVAC market. Some of the major companies operating in the automotive HVAC market are Delphi Automotive, Denso Corporation, Mitsubishi, and Hanon Systems.

Scope of the Report

The automotive HVAC market has been segmented by technology type, vehicle type, and geography.

Technology Type
Vehicle Type
Passenger Vehicles
Commercial Vehicles
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Saudi Arabia
Rest of Middle-East and Africa

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Key Market Trends

Increasing Use of Eco -friendly Refrigerants

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.

According to guidelines imposed by the European Union in 2013, vehicle refrigerants with a global warming potential greater than 150 in new passenger and commercial vehicles are banned beginning January 1, 2017. Hence, the European automobile manufacturers were legally required to use an eco-friendly refrigerant in HVAC systems installed in the cars.

Not only Europe but also countries such as Japan, China, and India, have supply agreements with manufacturers producing green refrigerants. Nations, like South Korea and Turkey, may witness a rapid increase in the application of eco-friendly refrigerants, owing to their inclination toward the average fuel economy standards of the EU.

Improving road infrastructure and rising disposable income of the middle-class group are driving the automotive market in some developing countries.

The governments across the world are taking initiatives to boost the passenger car sales by revising the tax rates, managing the inventory, etc., which will further contribute toward the growth of the HVAC market over the forecast period.

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High Growth Anticipated in the Asia-Pacific Region

Owing to considerable growth in population, as well as economic development in countries like China, India, Japan, and ASEAN countries, the automotive industry in Asia-Pacific is projected to record growth at a faster pace.

According to a recent study by the International Energy Agency (IEA), passenger car ownership in India is expected to grow by 775% from 2016 to 2040. The Indian government aims to make automobile manufacturing the main driver of ‘Make in India’ initiative, as it expects the passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-2026. Thus, the growing demand for cars, as well as a conducive environment for the automobile industry, is expected to boost the ancillary industries, which include HVAC systems.

Also, owing to the increasing luxury car market share, foreign luxury carmakers, such as Volkswagen, Volvo, and Audi, are planning new investments in different Asia-Pacific countries, thereby driving the advanced HVAC systems required for high-end cars. A surge in demand is expected for refrigerated vans, as cold supply chain management is also likely to witness a boost in demand.

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Competitive Landscape

The automotive HVAC market is consolidated, with the top global players account 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, partnership with regional HVAC equipment manufacturers, as well as establishing and ensuring tie-ups with car manufacturers are some of the dynamics shaping the competitive landscape of this market.

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Table Of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Technology Type

      1. 5.1.1 Manual/Semi-automatic

      2. 5.1.2 Automatic

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Vehicles

      2. 5.2.2 Commercial Vehicles

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. United Arab Emirates

        2. South Africa

        3. Saudi Arabia

        4. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Valeo Group

      2. 6.2.2 Denso Corporation

      3. 6.2.3 MAHLE GmbH

      4. 6.2.4 Marelli Corporation

      5. 6.2.5 Sanden Corporation

      6. 6.2.6 Keihin Corporation

      7. 6.2.7 Japan Climate Systems Corporation

      8. 6.2.8 Mitsubishi Heavy Industries Ltd.

      9. 6.2.9 Hanon Systems Corp.

      10. 6.2.10 Samvardhana Motherson Group


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