Automotive HVAC Market Trends

Automotive HVAC Market Overview

Automotive HVAC Market Size was valued at USD 48.7 billion in 2022. The Automotive HVAC market industry is projected to grow from USD 52.10 Billion in 2023 to USD 78.20 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.00% during the forecast period (2023 - 2030). Growing luxury car uptake, expanding auto industries, and increasing need for air conditioning systems are market drivers enhancing market growth.  Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive HVAC Market Trends

Long-Term Momentum Passenger Cars to propel market growth

Passenger car sales have significantly impacted all automobile models' HVAC markets. Around 66.7 million cars were sold worldwide in 2021 compared to 63.8 million in 2020. The worldwide epidemic influenced economic activity everywhere, including auto sales, and stringent lockdowns were implemented in numerous nations to stop the virus' spread. Due to this, the number of automobiles sold in 2020 was 14.8% less than in 2019. However, as things have begun to return to normal, more automobiles are being sold worldwide, which will support the automotive steering sensor market's growth in the upcoming years. Due to these vehicle sales, the OEM's current portfolio includes cutting-edge HVAC and temperature control systems. For instance, Polestar debuted its three electric SUV models on the world market in October 2022. The SUV has a cutting-edge climate control system to keep passengers comfortable on extended excursions. The  increase in automobile industry research and development is expected to boost the technological prowess of the Automotive HVAC market's competitors. To create new goods that provide them a competitive edge in the industry, these market players are implementing cutting-edge Technology in automotive HVAC. Thus, this factor is driving the market CAGR.

The market's rivals are creating eco-friendly items to comply with the strict government laws surrounding emissions. The other factor propelling expansion in Automotive HVAC market revenue is energy efficacy. Automotive HVAC systems are becoming more and more environmentally and economically friendly thanks to manufacturers' use of green Technology. For instance, the Marelli Corporation created an Indoor Air Quality (IAQ) Purification System in November 2021 that destroys germs and viruses in cars and other indoor settings. 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.

Automotive HVAC market participants use mergers and acquisitions to increase their market presence. For instance, Denso and Toyota worked together to build the Prius, a hybrid technology that encourages car safety, fuel efficiency, and green Technology. Additionally, the car HVAC industry has been marginally influenced by rising worries about  warming. As a result, several countries worldwide have begun to take action to lessen their carbon footprints, which may decrease the segment's demand for HVAC systems.

Automotive HVAC Market Segment Insights : 

Automotive HVAC Technology Insights

The Automotive HVAC market segmentation, based on Technology, includes Manual and Automatic. The automated segment will hold most of the share in the Automotive HVAC market growth during the anticipated time. The causes that may be ascribed to the rising demand for automated automobile HVAC systems include changing customer tastes and the rising popularity of premium vehicles.

Figure 2:  Automotive HVAC Market, by Technology, 2022 & 2030 (USD billion)

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

Automotive HVAC Component Insights

The Automotive HVAC market segmentation, based on Components, includes Evaporators, compressors, condensers, Receivers/Driers and Expansion Devices. The passenger vehicle type category, which currently has the biggest market share, is also anticipated to grow at the fastest rate over the next several years. The variables driving up demand for this category include rising disposable income and the availability of different financial options.

Automotive HVAC Vehicle Type Insights

The Automotive HVAC market segmentation, based on Vehicle type, includes Passenger Cars, LCVs, and HCV. As the main part of HVAC systems, the compressor sector held a sizable Automotive HVAC market share in 2022 and is anticipated to grow at a significant CAGR during the forecast period. The compressor is a pump that is powered by an engine-attached belt. Raising the pressure and temperature of the refrigerant gas in the system compresses and transfers it. It also aids in air purification. Compressor demand is rising due to rising automobile production worldwide and increased demand for HVAC systems.

Automotive HVAC Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific Automotive HVAC market accounted for USD 22.30 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The Automotive HVAC market has had good growth and beneficial effect from the Asia-Pacific region, which is the fastest-growing area internationally. Due to the proximity of major automakers, the large production of automobiles, and the skyrocketing demand for vehicles in the countries that produce them, such as China, South Korea, and India, the Asia-Pacific Automotive HVAC market is certain to experience significant growth. Government initiatives must propel the Automotive HVAC market in the upcoming year to revive the car industry. For instance, the Indian government promotes foreign investment by offering courses in the automobile industry to commercialize discoveries. Chinese passenger car manufacturing hit 996,000 units in April 2022, while sales were at 965,000 units. This explains a decline in output and sales of 41.9% and 43.4%, respectively, over the previous year. From January through April 2022, passenger automobile manufacturing fell by 2.6% year over year, totaling 6,494 million units.

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

Figure 3: Automotive HVAC Market Share By Region 2021 (%)

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

North America Automotive HVAC market accounts for the second-largest market share in 2022 and is anticipated to grow quickly in the years to come. The expansion of research and development operations in North America is blamed for the market expansion there. The need for HVAC systems in luxury vehicle manufacturing is increasing, which is boosting the growth of the worldwide automotive HVAC market. Moreover, US Automotive HVAC market held the largest market share, and the Canada Automotive HVAC market was the fastest growing market in the region.

Europe Automotive HVAC Market is expected to grow at the fastest CAGR from 2022 to 2030. This market has seen tremendous expansion and is expected to continue doing so. Additionally, the U.K. Automotive HVAC market grew the quickest in the European area, while the Automotive HVAC market in Germany had the biggest market share. Moreover, UK Automotive HVAC market held the largest market share, and the Germany Automotive HVAC market was the fastest growing market in the region.

Automotive HVAC Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Automotive HVAC industry. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming more and more competitive, Automotive HVAC industry competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics the Automotive HVAC industry uses to serve customers and increase the market sector. The Automotive HVAC industry has recently given medicine some of the most important advantages. The Automotive HVAC market major player such as Sensata Technologies (U.S.), The Keihin Corporation (Japan), Calsonic Kansei Corporation (Japan),  Sanen Corporation (Japan),   Valeo (France), Denso Corporation (Japan),  Hanon Systems (South Korea),   MAHLE GmbH (Germany),   Johnson Electric Holdings Limited (Hong Kong),  Japan Climate Systems Corporation (Japan), and others are working on expanding the Automotive HVAC market demand by investing in research and development activities.

A major provider of automotive systems, Highly Marelli combines Marelli's automotive innovation and knowledge of international markets with Highly's cutting-edge new energy vehicle compressor technology and robust business network. In particular, the firm develops electrification solutions for compressors, heat pumps, heating, ventilation, and air conditioning ("HVAC") systems for clients and suppliers, creating a world-class cabin comfort business. Highly International (Hong Kong) Limited and Marelli Corporation K.K. announced a joint venture on January 28, 2021, through Highly Marelli Holdings Co., Ltd. Marelli concentrated heavily on creating HVAC (heating, ventilation, and air conditioning) system solutions for vendors and clients.

When the semiconductor division of erstwhile parent firm Siemens AG was split off, the German semiconductor manufacturer Infineon Technologies AG was established. One of the top 10 semiconductor producers in the world, Infineon employs roughly 50,280 people. Infineon Technologies unveiled the MOTIX motor control kit in January 2022. A full system for motor control is MOTIX. It permits assessing low-voltage motor control systems used in HVAC (heating, ventilation, and air conditioning) blowers, auxiliary pumps, and cooling fans.

List of the Key Companies in the Automotive HVAC market include

• Sensata Technologies (U.S.)


• The Keihin Corporation (Japan)


• Calsonic Kansei Corporation (Japan)


• Sanden Corporation (Japan)


• Valeo (France)


• Denso Corporation (Japan)


• Hanon Systems (South Korea)


• MAHLE GmbH (Germany)


• Johnson Electric Holdings Limited (Hong Kong)


• Japan Climate Systems Corporation (Japan)

Automotive HVAC Industry Developments

• SWINDON, United Kingdom, January 5, 2023 –Sensata Technologies (NYSE: ST), announced the launch of its new Sensata INSIGHTS brand which is end-to-end IoT solutions for worksite and asset monitoring, supply chain and logistics, and telematics.


• 
  

  KARIYA, Japan (Mar. 9, 2023) – DENSO Corporation and DENSO Fukushima Corporation will start the demonstration project at DENSO Fukushima in March 2023 to produce and use green hydrogen at its plant in collaboration with Toyota Motor Corporation as part of the initiative to realize carbon-neutral manufacturing.

  
  


• In August 2021 - In Poland, Delphi Technologies said it will increase the size of its regional aftermarket distribution facilities. The business produces components for batteries, fuel systems, batteries, and engine cooling.


• In March 2022 -  According to Hanon Systems, a provider of automotive thermal and energy management systems, a new facility has officially begun operations in Hubei and China. The business will begin producing HVAC (heating, ventilation, and air conditioning) components for electric vehicles to assist manufacturers.

Automotive HVAC Market Segmentation

Automotive HVAC Technology Outlook

• Manual


• Automatic

Automotive HVAC Component Outlook

• Evaporator


• Compressor


• Condenser


• Receiver/Drier

Automotive HVAC Vehicle Type Outlook

• Passenger Car


• LCV


• HCV

Automotive HVAC Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

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


• 
  

  Asia-Pacific

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


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America