Automotive Electronics for HVAC Systems Market Analysis

Automotive Electronics for HVAC Systems Market Overview

Automotive Electronics for HVAC Systems Market Size was valued at USD 33.52 Billion in 2022. The Automotive Electronics for HVAC Systems market industry is projected to grow from USD 35.22 Billion in 2023 to USD 58.12 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.7% during the forecast period (2023 - 2032). The global automotive electronics for HVAC system is consistently growing due to the increased aftermarket and OEM demand across the continents and technological advancement in climate control module within the global automotive industry. Furthermore, growing research & development abilities among key players in the market is likely to drive the global market throughout the forecast year.

Figure1: Automotive Electronics for HVAC Systems Market, 2018 - 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Automotive Electronics for HVAC Systems Market Opportunity

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  Promising growth potential of 'electric powered’ and smart vehicles industry

  
  

With increased environmental and sustainability concerns, governments worldwide have established and implemented laws to incentivize and promote the use of electric vehicles. Because of government incentives and marketing, there has been a huge growth in the prospective purchase of electric vehicles in various locations. Despite the economic downturn, the increase in electric car registrations in Europe may be attributable to two governmental actions. To begin with, the European Union's CO2 emissions standards limit the average carbon dioxide (CO2) emissions per kilometer driven by new cars. Second, various European governments have increased subsidy schemes for electric vehicles as part of a market stimulus to counteract the effects of the pandemic on market growth. In India, the central and state governments have offered incentives to make electric vehicles more affordable. With the government pushing e-mobility to cut crude oil imports and vehicular pollution, big e-commerce businesses have begun to consider electrifying their delivery fleets and ordering new items.

According to the latest edition of the annual Global Electric Vehicle Outlook, global sales of electric cars (including fully electric and plug-in hybrids) were more than 6.6 million in 2021, setting a new high. Despite constraints in global supply networks, sales continued to rise quickly into 2022, with 2 million electric vehicles sold globally in the first quarter, up three-quarters from the previous year's period. By the end of 2021, there will be around 16.5 million electric automobiles on the world's roads, more than tripling the number in 2018. Electric cars, including hybrids, now account for around 1% of the European automobile parc. Still, this figure is likely to climb due to environmental regulations and the proliferation of new products from manufacturers. Electric car sales in China are expected to nearly treble to approximately 3.3 million by 2021, accounting for over half of the worldwide total. Sales increased significantly in Europe and the US as well. Chinese electric vehicles are often smaller than those seen in other markets. Along with cheaper production costs, this has considerably reduced the price gap with traditional automobiles. The presence of prominent electric vehicle manufacturers such as Tesla (US), BYD Co. Ltd. (Shenzhen), KIA Corporation (South Kore), Volkswagen (Germany), Daimler AG (Germany), and BMW (Germany) boosts the market growth, increasing demand for global automotive electronics for HVAC system for manufacturing vehicles.

Automotive Electronics for HVAC Systems Market Component Segment Insights

Automotive Electronics for HVAC Systems Component Insights

Based on component, the Automotive Electronics for HVAC Systems Market segmentation includes Electronic Control Unit, Sensor, and Others. The sensor segment held the majority share in 2022, contributing around ~52.5% to the market revenue. HVAC sensors can be used for a number of operations in order to improve system performance. An automotive HVAC system can be found with air conditioner sensors, furnace sensors, and several temperature sensors, ultimately ensuring health and safety. The HVAC industry is advancing sensor technology in several critical areas, such as increased durability to withstand challenging HVAC environments, digital communication capabilities, the capacity to monitor multiple physical parameters with a single sensor, lower power sensors, wireless capabilities with a variety of communication protocol options, and smaller sensors to save space. To fulfill these industry standards, TE Connectivity manufactures a wide variety of durable and trustworthy sensors that monitor pressure, temperature, humidity, vibration, position, force, speed, and more for HVAC applications. These sensors are essential for enhancing the effectiveness, efficiency, and dependability of HVAC systems.

A tiny gadget in a car's body, known as an electronic control unit (ECU), is in charge of managing a particular operation. The number of electronic control units (ECUs) in modern automobiles may reach 100 or more, from basic operations like the engine and power steering to more luxuriant ones like power windows, seats, and HVAC. ECUs are also responsible for basic active safety measures like automated emergency braking and passive safety features like airbags. The dedicated chip found in each ECU runs typically its own software or firmware and needs connections to power and data to function.

Figure2: Automotive Electronics for HVAC Systems Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Automotive Electronics for HVAC Systems Market Vehicle Type Segment Insights:

Automotive Electronics for HVAC Systems Vehicle Type Insights

Based on Vehicle Type, the Automotive Electronics for HVAC Systems Market segmentation includes Passenger Cars, Light Commercial Vehicle, and Heavy Commercial Vehicle. The Passenger Cars segment held the majority share in 2022 contributing around ~69.0% to the market revenue. Passenger cars are motor vehicles with at least four wheels, used to transport passengers, with no more than eight seats, including the driver's seat. The continuous increase in demand for passenger vehicles has led international automobile manufacturers to increase their production capacities, per the International Organization of Motor Vehicle Manufacturers (OICA). The Automotive Electronics for HVAC system Market is especially seen in the premium and luxury categories. Automotive Electronics for the HVAC system Market was initially installed in high-end cars.

The primary factor driving the heavy commercial vehicle segment in the Global Automotive Electronics for HVAC system Market is the increasing demand for pickup trucks and buses for commercial applications. Retailers and transporters mainly use heavy commercial trucks for transporting heavy goods. Moreover, global automotive parts suppliers are rapidly expanding their product lines for heavy commercial vehicles, owing to the ever-increasing use of such vehicles for transporting heavy goods. The growing road freight transportation across the globe is expected to increase the production of commercial vehicles. Such factors are expected to increase the demand for Automotive Electronics for the HVAC system Market in the commercial vehicle segment during the forecast period.

Automotive Electronics for HVAC Systems Market Sales Channel Segment Insights:

Automotive Electronics for HVAC Systems Sales Channel Insights

Based on the Sales Channel, the Automotive Electronics for HVAC Systems Market segmentation includes OEM and Aftermarket. By Sales Channel, OEM segment hold the majority market share in 2022 contributing 77.4% of the market share. OEMs procure and install automotive parts and components while assembling the automobile. Major automotive component manufacturers invest in R&D to offer advanced components and modules and upgrade existing technologies for the market. The Automotive Electronics for HVAC system Market adopted by OEMs usually provides comfort to the customers. Such factors are anticipated to drive the growth of the OEM segment in the global automotive electronics for HVAC system market during the forecast period.

The aftermarket is associated with manufacturing, remanufacturing, and installing automotive parts, components, and modules after the OEMs have retailed the vehicle. Most customers prefer cost-effective and efficient parts to replace damaged parts and lubricants. Moreover, increasing vehicle production, the growing demand for premium vehicles, and the rising demand for light and heavy commercial vehicles for industrial applications are expected to drive the aftermarket segment. Additionally, the presence of distributors, retailers, and online channel partners worldwide is expected to increase the scope for Automotive Electronics for HVAC system Market sales. These factors help aftermarket players to cater to the growing needs of the global automotive industry.

Automotive Electronics for HVAC Systems Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Rest of the World. In terms of revenue, Asia-Pacific held the largest share of 52.3% in the Automotive Electronics for HVAC Systems market in 2022 and is expected to maintain its dominance during the forecast period. The continuous demand for HVAC systems and increasing affordable vehicle production drive the automotive electronics for HVAC systems market in Asia-Pacific. Asia-Pacific is expected to witness the highest growth because the manufacturers in this region offer high-cost reductions, owing to the availability of low-cost labor and raw materials. Furthermore, the region comprises countries such as India, Japan, China, and others. India and China are the largest emerging economies accounting for a decent part of the total vehicle production globally. The presence of a large electric and smart vehicle market in China makes it a lucrative market for automotive electronics for HVAC systems. In India, the government has undertaken various initiatives to promote the adoption of electric vehicles. The continuous and advanced innovation by leading players such as Asti Corporation, Sensata Technologies, and Mitsubishi is expected to drive the growth of Asia-Pacific automotive electronics for HVAC systems market. The Asia-Pacific region is potentially the largest automotive aftermarket for HVAC systems, as a large proportion of the vehicle fleets in this region have the system installed. In Japan, most standard cards are fitted with a dual or tri-zonal climate control system. Hence, the Asia-Pacific region is expected to dominate the Automotive Electronics for HVAC Systems Market.

Figure3: Automotive Electronics For Hvac Systems Market Size By Region 2022&2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The increasing adoption of Electric vehicles across Europe, along with the extreme climate conditions in this region, promotes the automotive electronics for HVAC system market. The region is expected to have significant growth in the automotive aftermarket due to the increasing aging passenger vehicles and the presence of leading manufacturers such as Mahle Group, Denso Corporation, Valeo Group, and Behr-Hella Thermocontrol GmbH. The market is expected to boom exponentially. Legislative reforms and policies to promote the adoption of electric vehicles in Europe contribute significantly to the market growth of automotive electronics for HVAC systems. Due to their drastically varied climate conditions, the increasing need for thermal systems and climate control features in vehicle fleets in Europe created a conducive market for the growth of the market in this region.

North America remains a long-term growth market for the automotive electronics for HVAC systems market, particularly in the US, due to its expected volume of automotive production, an increasingly growing market of electric vehicles, and the increasing adoption of vehicle safety and efficiency technologies. The North American automotive electronics for HVAC systems market has increased because of several factors, such as its significant OEM and aftermarket, aging light vehicle park, and the higher average of long-distance travel in vehicles. Extreme weather conditions, either summer or winter, have been a major factor in the increased HVAC market in passenger cars. Most top-selling passenger cars and electric vehicles are fitted with automatic HVAC control systems, increasing demand for automotive electronics in the HVAC systems market.

The Rest of the World’s automotive electronics for HVAC systems market is driven by the increasing adoption of thermal and climate control features for luxury and comfort and the availability of compact and efficient HVAC systems in all economic vehicle fleets. The Rest of the World consists of the Middle East, Africa, and South America. In the Middle East, highly extreme climatic conditions create a necessity for HVAC systems in automotive in this region. The increased disposable income and changing lifestyle in the Middle East promote customization and the drive for luxury features in automotive vehicles, especially passenger cars and high-end cars, thereby driving the automotive electronics for HVAC systems market.

Automotive Electronics for HVAC Systems Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Automotive Electronics for HVAC Systems market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Automotive Electronics for HVAC Systems market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Mahle GMBH, Denso Corporation, Valeo Group, Continental AG, Sensata Technologies Management Co., Ltd., STMicroelectronics, Infineon Technologies AG, Hanon Systems, Texas Instruments Incorporated., Keihin Corporation, Sanden Holdings Corporation, Johnson Electric Holdings Limited, and Calsonic Kansei Corporation. Denso Corporation is focused on the technological development and innovation of automotive systems. In 2010, DENSO acquired full ownership of an Italian aftermarket sales company. The company is involved in improving the supply chain, quality, delivery, and performance management processes. It enhances its production efficiency and improves its product portfolio by bringing innovation to its products and technology. Denso focuses on addressing customers' needs in the UK and becoming a highly trusted brand. The company also focuses on developing products in the fields of advanced driver assistance systems, hybrid and electric vehicles, automated driving, and connected cars. It has been increasing investments in fuel efficiency, reducing emissions, and increasing the capacity of its catalysts to be used in various applications.

The Automotive Electronics for HVAC Systems Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Automotive Electronics for HVAC Systems market include

• Mahle GMBH


• Denso Corporation


• Valeo Group


• Continental AG


• Sensata Technologies Management Co., Ltd.


• STMicroelectronics


• Infineon Technologies AG


• Hanon Systems


• Texas Instruments Incorporated.


• Keihin Corporation


• Sanden Holdings Corporation


• Johnson Electric Holdings Limited


• Calsonic Kansei Corporation

Automotive Electronics for HVAC Systems Industry Developments

• In July 2022, Mahle developed the most durable electric motor available. The traction motor, unique on the market, can run indefinitely with high performance. This durable electric motor is suitable for passenger cars, commercial vehicles, construction machines, and tractors.


• In May 2022, Denso Corporation and Honeywell developed an electric motor (e-motor) for the Lilium Jet. This is the first product developed by Honeywell and DENSO since their formal partnership, and it marks DENSO's entry into the aerospace market. The two companies will collaborate with Lilium, the creator of the world's first all-electric vertical take-off and landing ("eVTOL") jet, to incorporate the e-motor into Lilium's aircraft engines.

Automotive Electronics for HVAC Systems Market Segmentation

Automotive Electronics for HVAC Systems Component Outlook

• Electronic Control Unit


• Sensor


• Others 

Automotive Electronics for HVAC Systems Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicle


• Heavy Commercial Vehicle 

Automotive Electronics for HVAC Systems Sales Channel Outlook

• OEM


• Aftermarket

Automotive Electronics for HVAC Systems Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America