The automotive air conditioning market is seeing a few important patterns that are reshaping the business scene. The increasing incorporation of environmentally friendly technologies and refrigerants is one notable trend. With a developing accentuation on natural maintainability, car producers are effectively taking on and creating cooling frameworks that utilization harmless to the ecosystem refrigerants. This shift is driven by the need to follow rigid natural guidelines and decrease the carbon impression of vehicles. As a result, the market is moving toward air conditioning solutions that are better for the environment and last longer.
One more critical pattern in the market is the ascent of smart and connected highlights. Current shoppers progressively look for a more refined and helpful driving experience, prompting the fuse of trend setting innovations in cooling frameworks. Programmed environment control, air quality checking, and availability with cell phones are becoming normal elements. These developments improve client solace as well as line up with the more extensive pattern of brilliant and associated vehicles. The joining of these highlights is supposed to go on as shopper assumptions for a consistent and educated driving experience develop.
The jolt of vehicles, especially the rising reception of electric & hybrid vehicles is impacting the auto cooling market. Air conditioning systems for electric vehicles face unique challenges because they must provide effective cooling without compromising the vehicle's overall energy efficiency. Producers are effectively creating cooling arrangements custom-made to the particular necessities of electric & hybrid vehicles. This pattern is probably going to pick up speed with the proceeded with development of the electric vehicle market.
Practical and energy-effective arrangements are becoming key central focuses in the automotive air conditioning market. As customers and producers, the same look for ways of diminishing working expenses and work on by and large productivity, there is a developing interest for cooling frameworks that find some kind of harmony among execution and energy preservation. Progressions in blower innovation, heat exchangers, and generally framework configuration add to the advancement of more energy-effective cooling arrangements. This pattern isn't just determined by buyer interest but on the other hand is impacted by the worldwide push towards maintainable and energy-cognizant practices.
The market is likewise seeing a shift towards particular and minimized cooling units. With the rising intricacy of vehicle plans and the need to enhance space and weight, makers are growing smaller and secluded cooling frameworks. These frameworks are intended to be adaptable and versatile, considering simpler combination into different vehicle models. The move towards secluded arrangements smoothed out the assembling system as well as gives automakers more prominent adaptability in planning and altering cooling frameworks for various vehicles.
Besides, the secondary selling section of the automotive air conditioning market is encountering outstanding patterns. As vehicles age and the interest in substitution and overhaul parts expands, the secondary selling for cooling parts is developing. Buyers are searching for savvy answers to improve or supplant their current cooling frameworks, adding to the post-retail's extension. The desire to improve vehicle performance without requiring a complete system replacement is the driving force behind this trend.
Significant trends are taking place in the automotive air conditioning market that demonstrate the industry's dedication to environmental sustainability, technological innovation, energy efficiency, and adaptability to shifting consumer preferences. As the car scene keeps on developing, these patterns are probably going to shape the eventual fate of cooling frameworks, guaranteeing that they stay essential parts of vehicles while fulfilling the needs of a dynamic and developing business sector.
Automotive Air Conditioning Market Size was valued at USD 34.2 Billion in 2023. The Automotive Air Conditioning market industry is projected to grow from USD 36.29 Billion in 2024 to USD 55.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.35% during the forecast period (2024 - 2032). Increased demand for a higher cabin experience, rising consumer income levels, an escalating middle-class population, and rapidly changing lifestyles are all contributing factors, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Long-term growth of the automotive HVAC market is anticipated to be aided by an increase in demand for thermal comfort and an improvement in safety brought on by the use of HVAC systems. In the upcoming years, market growth may be supported by a reduction in system size and weight. The usage of HVAC systems in passenger vehicles is increasing as a result of the integration of electronics, sensors, and automated climate control features at a lower cost. Increased vehicle electrification will probably lead to a greater integration of cutting-edge comfort and safety features. Players' offers and technological capabilities are expected to improve as a result of technology advancements and significant investments in R&D projects. In addition, the development of less expensive HVAC systems and the use of eco-friendly refrigerants offer participants in the automotive HVAC market excellent growth prospects. Major manufacturers are putting cutting-edge HVAC systems in cars to combat tiny particles in the cabin.
The requirement for the product to improve the customer experience is anticipated to increase with the rising demand for private automobile rental services like Ola, Uber, and Lyft. Additionally, it is anticipated that increased competition among taxi services will make it easier to use the emerging service distinction, boosting client loyalty.
Over the course of the forecast period, rise in the middle class, rising consumer income levels, and shifting lifestyles are anticipated to drive the market for vehicle air conditioning systems. Growth is projected to be aided by the rising global demand for automobiles and the increased efforts being made by manufacturers to increase interior comfort. Rapid industrialization has increased air pollution levels across a number of economies. For instance, the economy's increased need for air conditioning systems is a result of Beijing's very hazardous air. The air inside the vehicles is filtered by cutting-edge cooling systems, reducing the risk of airborne infections. Over the next seven years, usage of the product in cars is anticipated to increase due to high commuting populations in various economies and growing travel distances.
Auto windows that are closed reduce wind resistance, which enhances vehicle efficiency. Additionally, it enhances its acceleration and pick-up, which increases demand. Technologies that demand less fuel to operate the air conditioning systems have been made possible by growing knowledge of energy efficiency. In order to lower vehicle operating costs and improve sustainability, the manufacturers have been creating eco-friendly and effective technology. Thus, driving the Automotive Air Conditioning market revenue.
The Automotive Air Conditioning market segmentation, based on Technology, includes manual and automatic. Due to the rising demand for comfort and safety in the automobile sector worldwide, the automatic category led the global market in 2022 and is predicted to continue doing so over the forecast period. The use of physiologically controlled air conditioning, where the ideal temperature is obtained by several sets of sensors that monitor the cabin's thermal state, is anticipated to be made easier by technological improvements.
The Automotive Air Conditioning market segmentation, based on Component, includes compressor, evaporator, receiver, and condenser. In 2022, the worldwide automotive air conditioning market was dominated by the compressor segment. This can be due to technological developments and sophisticated features made possible by compressors.
The Automotive Air Conditioning market segmentation, based on Vehicle Type, includes passenger car and commercial vehicle. In 2022, the passenger car category was the largest in the world's automotive air conditioning market. All automobile models' HVAC markets have been significantly impacted by passenger car sales. Around 66.7 million cars were sold worldwide in 2021 compared to 63.8 million in 2020. The global epidemic had an influence on economic activities everywhere, including auto sales, and stringent lockdowns were implemented in numerous nations to stop the virus' spread. Due to this, the quantity of cars sold in 2020 was 14.8% less than in 2019.
Figure 1: Automotive Air Conditioning Market, by Vehicle Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Automotive Air Conditioning market, dominated this market in 2022 (45.80%), due to the increased manufacturing and consumption of vehicles, as well as the presence of important enterprises in the area. The extensive road network in nations like India, China, and Japan has raised demand for automobiles. Moreover, China’s Automotive Air Conditioning market held the largest market share, and the Indian Automotive Air Conditioning market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automotive Air Conditioning Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Automotive Air Conditioning Market is expected to register significant growth from 2023 to 2032. Customers must upgrade automotive thermal system components frequently due to stringent local environmental rules and government standards, which is also anticipated to boost the market. Further, the U.S. Automotive Air Conditioning market held the largest market share, and the Canada Automotive Air Conditioning market was the fastest growing market in the North America region.
Europe Automotive Air Conditioning market accounted for the healthy market share in 2022. Growth is anticipated to be aided by a shift in consumer preferences toward environmental management and a rise in the need for efficient and portable HVAC systems in the area. Further, the German Automotive Air Conditioning market held the largest market share, and the U.K Automotive Air Conditioning market was the fastest growing market in the European region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Air Conditioning 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, Automotive Air Conditioning industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Automotive Air Conditioning industry to benefit clients and increase the market sector. In recent years, the Automotive Air Conditioning industry has offered some of the most significant advantages to medicine. Major players in the Automotive Air Conditioning market, including Denso Corporation, Hanon Systems, Mitsubishi Heavy Industries Ltd., MAHLE GmbH, Valeo SA, Keihin Corporation, Calsonic Kansei Corporation, Samvardhana Motherson Group, Subros Limited, and SMAC Auto Air, are attempting to increase market demand by investing in research and development operations.
Automotive thermal management systems are produced by Hanon Systems (Hanon), a division of Hahn & Co Auto Holdings Co Ltd. It creates, produces, and sells products for controlling the climate in automobiles. It Compressors, powertrain cooling modules, thermal and energy management products, emission products, and heating, ventilation, and air conditioning (HVAC) modules and systems are among the company's goods. Refrigerant lines, metal seal fittings, accumulators, water-cooled transmission oil coolers, air charge air coolers, fragrance systems, and versatile HVAC are all among the company's goods. Additionally, it provides UV (ultraviolet) LED photocatalyst, traditional blade fans and motor assemblies, variable displacements, better drainage, and coated evaporator core goods. Hanon manufactures items specifically for the automotive industry. The business has operations in the Americas, Europe, South Asia, and Asia. The headquarters of Hanon are in Daejeon, South Korea. Hanon System opened two new facilities in Hungary in November 2021: a building expansion in Rétság and a brand-new greenfield industrial plant in Pécs. The facility has 22,464 square meters of production area and has room for assembly lines, testing for automobile air conditioning (A/C) lines, and equipment for forming, brazing, welding, and bending.
Automotive supplier and partner Valeo SA (Valeo) works with automakers. It creates, manufactures, and sells CO2 emission-reducing parts, integrated systems, and modules as well as provides and distributes replacement parts to automakers and independent aftermarket operators. In addition to powertrain solutions, systems, modules, and components to regulate the thermal energy of the powertrain, the company also develops and manufactures interface systems between the driver, the vehicle, and the environment, visibility systems, and powertrain solutions. Worldwide, Valeo provides services to original equipment manufacturers and automakers. Asia, Africa, South America, the Middle East, North America, and Europe are all commercial hubs for the corporation. The headquarters of Valeo are in Paris, France. In August 2021, Valeo unveiled the New Valeo heat pump, which uses a natural refrigerant and gets two-thirds of its energy from outside air to reduce the need for onboard batteries. At -15°C, the device allows EVs to go up to 30% further than those outfitted with more traditional heating systems.
Hyundai Motor Company and Kia Corporation have today announced the signing of a Car-to-Home and Home-to-Car service partnership agreement with Samsung Electronics, effective January 2024. The objective of this collaboration is to improve the connectivity between residential and mobility domains. Hyundai and Kia customers will have the capability to remotely operate digital appliances via voice and touch commands via the in-car infotainment systems of their vehicles, per the terms of this agreement. In contrast, they will have the ability to remotely control a variety of vehicle functions via AI-enabled televisions, speakers, and smartphone applications. This achievement is facilitated by the seamless integration of the connected vehicle services offered by Hyundai and Kia with Samsung's 'SmartThings' Internet of Things (IoT) platform.Mahindra & Mahindra Ltd. (M&M), the market leader for Small Commercial Vehicles (SCVs) in India, declares with great pride the introduction of new Bolero MaXX Pik-Up models in February 2024. With the installation of fourteen new features on the iMaxx app and the incorporation of air conditioning, this most recent addition intends to provide customers with greater comfort. The Bolero MaXX Pik-Up lineup, distinguished by its compact and adaptable design, establishes unparalleled benchmarks in terms of safety, fuel economy, payload capability, and overall driving satisfaction. The incorporation of integrated air conditioning, which includes a radiator and dehumidifier, serves to augment the driving encounter by ensuring maximum comfort throughout all journeys. When equipped with air conditioning, traversing urban traffic or driving on highways becomes an effortless task, rendering the Bolero MaXX Pik-Up lineup the optimal selection for clientele in search of enhanced comfort.
October 2022: In the international market, Polestar unveiled its three electric SUV models. The SUV has a cutting-edge climate control system to keep passengers comfortable on extended excursions.
November 2021: The Indoor Air Quality (IAQ) Purification System, created by Marelli Corporation, eliminates bacteria and viruses in enclosed spaces such as cars. Within 15 minutes, the device effectively eliminates airborne bacteria and viruses, including COVID-19, using UV-A and UV-C radiation and a titanium dioxide (TiO2) filter.
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