Automotive AC Compressor Market Size was valued at USD 8.5 Billion in 2023. The Global Automotive AC compressor market industry is projected to grow from USD 8.8 Billion in 2024 to USD 11.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2024 - 2032). With rising global temperatures, there's an increasing demand for efficient AC systems to maintain comfortable temperatures inside vehicles. These are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for the demand for green automobile AC structures is at an upward thrust as purchasers more and more prioritize consolation and convenience, even when riding. According to a record by means of Research Nester, the worldwide automobile HVAC (Heating, Ventilation, and Air Conditioning) gadget marketplace is anticipated to grow at a CAGR of 8.4% from 2018 to 2027, pushed by way of the growing demand for efficient AC systems to preserve comfortable temperatures inside automobiles. This demand is especially said in areas with hot climates, wherein a dependable AC gadget is vital for a snug driving experience. As a result, car producers are under stress to broaden and combine superior AC compressor technology that no longer offers effective cooling but also beautifies average strength performance and performance.
Moreover, technological advancements play a pivotal role in using innovation in the automobile AC compressor enterprise. In recent years, great strides have been made in the compressor era, leading to the improvement of greater efficient and compact gadgets. For instance, improvements in variable displacement and variable speed compressors permit for higher manipulation over cooling output, resulting in reduced power consumption and improved overall performance for the average gadget. Moreover, the mixing of smart technology along with sensors and virtual controls allows for more unique temperature laws, enhancing user comfort and enjoyment of riding. These technological improvements not simplest meet the increasing demand for efficient AC structures but also contribute to the differentiation of cars in a competitive market landscape.
Additionally, consumers' preferences for comfort and convenience serve as a significant driver for the adoption of efficient automotive AC systems. According to a survey by McKinsey & Company, 65% of car buyers consider air conditioning as a crucial factor influencing their purchase decision. Recognizing this trend, automotive manufacturers are increasingly focusing on enhancing the performance and features of AC systems to attract customers. Vehicles equipped with advanced AC compressors that offer quick cooling, quiet operation, and energy efficiency are perceived as more desirable and are likely to enjoy a competitive edge in the market. As consumer expectations continue to evolve, automakers will need to invest in research and development to stay ahead of the curve and meet the growing demand for sophisticated AC solutions. Thus, driving the automotive ac compressor market revenue.
The Automotive Ac Compressor Market segmentation, based on Compressor Type, includes Variable Displacement, Fixed Displacement, and Electric Compressor. In 2023, the Variable Displacement segment dominated the market. Technological improvements have substantially contributed to the dominance of the Variable Displacement phase. Variable displacement compressors offer the benefit of changing the potential of the compressor primarily based on the cooling necessities of the car, resulting in progressed energy performance and better overall performance.
The Automotive Ac Compressor Market segmentation, based on Vehicle Type, includes Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. In 2023, the Light Commercial Vehicles category generated the most income. LCVs category is the growing demand for these automobiles in diverse sectors, including e-trade, logistics, and remaining-mile shipping. The upward push of e-commerce systems and the need for green logistics solutions have caused a surge in demand for LCVs, which might be frequently used for transporting goods over short to medium distances. These motors generally perform in urban and suburban regions wherein the demand for air conditioning is high due to warmer climates and longer riding hours.
Figure 1: Automotive Ac Compressor Market, by Vehicle Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Automotive Ac Compressor Market segmentation, based on Drive Type, includes Electric and conventional. In 2023, the Electric generated the most income. With increasing concerns about weather exchange and the need to reduce greenhouse gasoline emissions, there has been a tremendous shift toward electric-powered mobility. Governments around the world are implementing stringent regulations and offering incentives to promote the adoption of electric motors, leading to a surge in demand. EVs are ready with sophisticated air conditioning systems to make certain passenger comfort, and super AC compressors are important additives for those structures.
The Automotive Ac Compressor Market segmentation, based on Sales Channel, includes OEM and aftermarket. In 2023, the OEM category generated the most income. OEMs are chargeable for production motors and integrating diverse components, including aircon structures, into their vehicles for the duration of the production manner. As customer options evolve and technological advancements enhance, OEMs continuously innovate their automobile designs to fulfill market needs for comfort, performance, and overall performance. Air conditioning structures are fundamental capabilities of cutting-edge motors, and remarkable AC compressors are essential additives for those structures. The OEMs' capacity to provide dependable and efficient AC solutions immediately contributes to earnings technology inside this class.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American automotive ac compressor market area will dominate this market. North America boasts a big car market with an excessive demand for cars ready with advanced air conditioning structures. The region has an enormous populace with a strong preference for personal automobiles, particularly in the United States and Canada, where automobiles are crucial for daily commuting and transportation.
As a result, there may be a constant demand for vehicles with efficient and reliable air conditioning systems, especially given the various weather conditions throughout the continent. This demand fuels the increase of the automobile AC compressor market in North America as OEMs and aftermarket suppliers strive to fulfill the desires of purchasers for snug driving stories. Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: Automotive Ac Compressor Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe automotive ac compressor market accounts for the second-largest market share. Europe is home to a robust automotive enterprise characterized by robust demand for motors equipped with awesome aircon structures. Consumers in European nations price consolation and comfort, especially considering the various weather conditions throughout the region. Further, the German automotive ac compressor market held the largest market share, and the UK automotive ac compressor market was the fastest growing market in the European region.
The Asia-Pacific automotive ac compressor Market is expected to grow at the fastest CAGR from 2024 to 2032. The Asia-Pacific area is domestic to a number of the world's biggest car markets, consisting of China, Japan, India, and South Korea. Rapid urbanization, growing disposable earnings, and developing populations in these nations are driving big demand for motors, including passenger vehicles and commercial automobiles. As extra customers within the Asia-Pacific area purchase cars for non-public and industrial use, there may be a corresponding upward thrust in demand for air-con systems to ensure passenger comfort and safety, thereby fueling the increase of the car AC compressor market. Moreover, China’s automotive ac compressor market held the largest market share, and the Indian automotive ac compressor market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive ac compressor market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the automotive ac compressor industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by companies in the global automotive ac compressor industry to benefit clients and increase the market sector. In recent years, the automotive ac compressor industry has offered some of the most significant advantages to the automobile industry. Major players in the automotive ac compressor market, including Subros, Hanon Systems, DENSO CORPORATION, BorgWarner Inc., Nissens, Sanden Corporation, VALEO, MAHLE GmbH, MITSUBISHI HEAVY INDUSTRIES THERMAL SYSTEMS, LTD., Toyota Industries Corporation, and others, are attempting to increase market demand by investing in research and development operations.
Subros Limited is a leading producer of automotive air con systems in India. Established in 1985, Subros has emerged as a key participant in the automobile factor industry, specializing in the design, improvement, and production of thermal control systems for vehicles. The business enterprise's product portfolio includes an extensive range of automobile AC compressors, condensers, warmth exchangers, and HVAC modules catering to passenger automobiles and commercial vehicles. With trendy production facilities prepared with superior technology, Subros guarantees tremendous merchandise that meets the stringent requirements of OEMs and customers. Additionally, Subros has mounted strategic partnerships with leading international automobile manufacturers, allowing it to expand its presence in domestic and global markets.
Hanon Systems is a worldwide leader in automotive thermal and strength control solutions, with a strong presence within the automotive enterprise internationally. Founded in 1986, the organization has a wealthy history of innovation and technological excellence, imparting a complete variety of services and products for car climate control, powertrain cooling, and battery thermal management. Hanon Systems' numerous product portfolio consists of car AC compressors, heating systems, fluid transport components, and thermal control solutions for traditional and electric vehicles.
April 2024: MAHLE is effectively advancing its acquisition strategy in the e-mobility sector by securing two significant orders for thermal management modules. A well-known, internationally recognized automaker is the source of one of the contracts. It is the largest single order in the technology group's corporate history. The second order comes from a cutting-edge, newly established Asian automaker. Between the two projects, there are slightly less than €1.5 billion in total orders.
The temperature of the battery, car cabin, powertrain, and power electronics are all controlled by thermal management modules that MAHLE is integrating parts that were previously installed separately. The modules can greatly increase an electric car's cruising range by up to 20 percent and its charging speed. They operate much more efficiently than their individual parts. MAHLE's modular design approach allows for smaller installation spaces and significantly lowers the cost of assembly. Thermal management modules contribute significantly to e-mobility by making cars more appealing and reasonably priced. The MAHLE Group has made thermal management a strategic business focus as a driver of electrification.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 8.5 Billion |
| Market Size 2024 | USD 8.8 Billion |
| Market Size 2032 | USD 11.8 Billion |
| Compound Annual Growth Rate (CAGR) | 4.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Compressor Type, Vehicle Type, Drive Type, Sales Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | Subros, Hanon Systems, DENSO CORPORATION, BorgWarner Inc., Nissens, Sanden Corporation, VALEO, MAHLE GmbH, MITSUBISHI HEAVY INDUSTRIES THERMAL SYSTEMS, LTD., Toyota Industries Corporation |
| Key Market Opportunities | The growing EV market requires specialized compressors that are compatible with electric propulsion systems. |
| Key Market Dynamics | Growing economies, particularly in developing nations, lead to increased vehicle ownership and a preference for comfort features like air conditioning. |
Frequently Asked Questions (FAQ) :
The Automotive Ac Compressor Market size was valued at USD 8.8 Billion in 2024.
The global market is projected to grow at a CAGR of 4.20% during the forecast period, 2024-2032.
North America had the largest share in the global market.
The key players in the market are Subros, Hanon Systems, DENSO CORPORATION, BorgWarner Inc., Nissens, Sanden Corporation, VALEO, MAHLE GmbH, MITSUBISHI HEAVY INDUSTRIES THERMAL SYSTEMS, LTD., Toyota Industries Corporation, and others.
The Variable Displacement category dominated the market in 2023.
The Light Commercial Vehicles had the largest share of the global market.
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