Market Size of Off-highway Vehicle HVAC Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.49 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Off-highway Vehicle HVAC Market Analysis
The off-highway vehicle HVAC market is valued at USD 938.78 million and is expected to reach USD 3,075.34 million, registering a combined CAGR of 6.49% during the forecast period.
Amid the COVID-19 pandemic, off-highway vehicle manufacturing activities were halted in the first half of the year 2020, primarily attributed to lockdown norms imposed by governing bodies across the world. This, in turn, hampered the demand for associated parts ad components, including the HVAC system. However, post the lockdown phase, the demand for off-highway vehicles witnessed significant growth, which in turn fueled the demand for the associated HVAC systems, and the growth is anticipated to continue during the forecast period.
Growing environmental challenges, increasing per capita income, harsh working environments in off-road vehicles, and a rise in automation in various industries, such as agriculture, construction, and mining, are expected to fuel the demand for off-highway vehicle HVACs during the forecast period. As the off-highway vehicle has to work in unpredictable working conditions, with large windows for the driver for better visibility, HVAC plays a crucial role in keeping the cabin cool/hot as the situation demands.
Technology in the off-highway vehicle is constantly improving to increase productivity and operator comfort. The incorporation of HVAC systems is continually increasing in these vehicles, as most new off-highway vehicles are integrated with factory-fitted air conditioning systems. Reduction in the overall system size and weight of the system and governments' stringent regulations to curb CO2 emissions are projected to drive the growth of the market studied over the forecast period.
Agricultural vehicles are subjected to environmental conditions that change according to the application, such as dusty conditions, harmful pesticides, and herbicide vapors. Owing to such extreme conditions, these vehicles demand refrigeration, heating, pressurization, and filtration. In the current scenario, agriculture is witnessing various technological advancements, such as the introduction of electrification, artificial intelligence, and autonomous vehicle. Such advancements are posing a huge growth opportunity in the agricultural HVAC market.
