Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | 6.39 % |
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Market Overview
The automotive HVAC market was valued at USD 53.78 billion in 2021, and it is expected to reach a value of USD 77.95 billion by 2027, registering a CAGR of 6.39% during the forecast period (2022-2027).
The automotive goods and supply chain market were drastically impacted by COVID-19. Also, travel restrictions and lockdowns saw the demand sales passenger vehicle slow down, which directly affected the HVAC market. However, post lockdown, factory operations, and workforce for infotainment manufacturing companies have regained momentum. 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.
Over the long term, a rise in demand for thermal comfort and an increase in safety due to the adoption of HVAC systems are expected to boost the growth of the automotive HVAC market. A 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. Rising vehicle electrification is likely to increase an integration of advanced comfort and safety features in vehicle.
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. Major players are introducing advanced HVAC system in vehicle which help to fight against fine particulates in vehicle cabin. For instance,
- In August 2021, Valeo announced New Valeo heat pump that procures two-thirds of its energy demand from the ambient air, thereby limiting the need to draw energy from the onboard batteries, and uses a natural refrigerant. EVs equipped with the device can travel up to 30% further at -15°C than those fitted with more conventional heating systems.
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. The automotive HVAC market is segmented by technology type, vehicle type, and geography.
Based on the Technology Type, the market is segmented into Manual/Semi-Automatic and Automatic.
By Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles.
Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, South America and the Middle East, and Africa. The report covers the market size in value (USD Billion).
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| Manual/Semi-automatic HVAC | |
| Automatic HVAC |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
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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. For Instance,
- In November 2021, Marelli Corporation has developed an Indoor Air Quality (IAQ) Purification System, which kills bacteria and viruses in vehicles and indoor environments. The system utilizes UV-A and UV-C light combined with a titanium dioxide (TiO2) filter to destroy airborne bacteria and viruses, including COVID-19, with greater than 99% effectiveness within 15 minutes.
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.
According to the China Automobile Dealers Association (CADA), the luxury car dealers in the country sold 278,000 vehicles in August 2021, an 9.4% decrease year-on-year. The semiconductor chip shortage was the prime reason for this thump in sales which was continued over the October 2021 whereas, the companies have restructured their supply chain to overcome this issue in order to render the growing demand.
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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 November 2021, Hanon System inaugurated its two new establishments in Hungary – a new greenfield production facility in Pécs and a building expansion in Rétság. The facility provides 22,464 square meters of manufacturing space and accommodates equipment including forming, brazing, welding and bending, assembly lines and testing for automotive air conditioning (A/C) lines.
- In October 2020, Mahle has signed a purchase agreement with Japanese company Keihin Corporation to take over its air conditioning business in Japan, Thailand, and the USA. With this agreement, MAHLE strengthening its global footprint in air conditioning technology and improving its market access, particularly in Japan and Southeast Asia
- 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 January 2022, Infineon Technologies introduced a complete system solution for motor control MOTIX motor control kit. The pre-assembled kit provides everything needed to get the motor spinning in a matter of seconds, a market-proven chipset combined with pre-flashed sample software as well as a BLDC motor. Such kits have applications in auxiliary pumps, cooling fans, HVAC blowers, or any other application that uses 3-phase low voltage BLDC motors.
- In March 2022, Hanon Systems announced a plan to build a new plant in Hubei, China where the company will start producing HVAC modules and other products for electric vehicles (EV) in early 2023.
- In February 2021, Highly Marelli Holdings Co., Ltd., a previously announced joint venture between Highly International (Hong Kong) Limited and Marelli Corporation K.K., has been formed. Highly Marelli will concentrate on providing world-class solutions for clients and suppliers in the areas of compressor electrification, heat pump systems, heating, ventilation, and air conditioning ("HVAC") and electric driven compressor ("EDC") systems.
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
6.2.11 Hella GmbH & KGaA
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 - 2027.
What is the growth rate of Automotive HVAC Market?
The Automotive HVAC Market is growing at a CAGR of 6.39% over the next 5 years.
What is Automotive HVAC Market size in 2018?
The Automotive HVAC Market is valued at 53 Billion USD in 2018.
What is Automotive HVAC Market size in 2027?
The Automotive HVAC Market is valued at 77 Billion USD in 2027.
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 2021.
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.
