Asia-Pacific Bus HVAC Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Vehicle Type, Sales Channel, Input : Regional Opportunity Analysis and Industry Forecast, 2022-2031

The Asia-Pacific bus HVAC market size was valued at $1,332.1 million in 2021, and is projected to reach $2,308.8 million by 2031, registering a CAGR of 5.7%.    

HVAC is the technology that is used for automotive cabin comfort for maintaining a pleasant temperature along with an ambient indoor condition in the vehicle. It is used to facilitate and manage the favorable and pleasant conditions inside the cabin by controlling the degree of the temperature. The basic operation of the HVAC system is convection and conduction. Heat is transferred from the region of low temperature to the region of high temperature in the vehicle due to pressure difference. Evaporator, condenser, compressor, and others are the major components of the HVAC system. 

Consumers are increasingly spending on comfort and luxury features in vehicles, propelling OEMs to integrate high-quality climate control systems. Manufacturers are investing in R&D to offer product differentiation in their products such as compact and lightweight HVAC systems. For instance, Denso developed a novel COA HVAC based on a new blower structure that offers a reduction in heat required by the system by 30%, reducing size and power consumption by 20%. This enables the company to offer HVAC systems to its clients, providing both environmental performance and energy efficiency. In addition, the rise in concerns in consumers regarding indoor air quality are further creating several growth prospects for the market.

The Asia-Pacific bus HVAC market is segmented into type, vehicle type, sales channel, input, and country. By type, it is bifurcated into automatic, and manual. In market the type segment is categorized into automatic and manual. By vehicle type, the market is classified into intercity buses, coach buses, school buses and transit buses. By sales channel, the market is categorized into original equipment manufacturers, and aftermarket. 

By input, it is divided into engine powered HVAC and electric powered HVAC. Country-wise, the market is analyzed across India, Japan, Singapore, Thailand, Australia, Philippines, Malaysia, South Korea, Indonesia, Hongkong, Taiwan and Rest of Asia Pacific.

  

The key players operating in the Asia-Pacific bus HVAC market report include Denso Corporation, Eberspacher Gruppe GmbH & Co. KG, Internacional Hispacold, S.A., Konvekta AG, MAHLE GmbH, Mobile Climate Control, Inc., Trane Technologies Plc, Valeo, Webasto Group and Zhengzhou Guchen Industry Co., Ltd.

Increase in demand for thermal system and automatic climate control features in buses

The fleet owners have increased their focus on installing HVAC systems to achieve thermal comfort in the cabin of buses. The HVAC system is installed to guarantee that the driver, as well as the passenger, have an ambient temperature environment. Not only does HVAC contribute to improved temperature conditions, but it also increases air conditioning efficiency, and decreases fuel usage. Efficient HVAC systems guarantee optimum temperature levels for vehicles, which can contribute to greater comfort for passengers, fuel efficiency, and others. Moreover, government initiatives toward electrification in public transport provide lucrative opportunities for the bus HVAC market in Asia-Pacific. For instance, in December 2022, the Karnataka State Road Transport Corporation (KSRTC) in India has decided to operate 50 AC inter-city electric buses on six routes across the state. The move comes after the Bangalore Metropolitan Transport Corporation (BMTC) decided to operate similar buses in the city. This is projected to enhance better innovations in the HVAC system.

In addition, the growth of the HVAC market is boosted by increase in development and adoption of automated air-conditioning units, which adjust cabin temperature automatically, independent of the outside/ambient air temperature and humidity. For instance, the city of Seoul has been introducing automated air conditioning units in its buses. These systems use sensors and GPS data to adjust the cooling according to the outside temperature and the location of the bus, helping to reduce energy consumption and improve passenger comfort. An increase in thermal comfort demand and rise in automated HVAC adoption are projected to drive the growth of the Asia-Pacific bus HVAC industry.

Development of intelligent systems in buses 

Intelligent Transportation Systems (ITS) were devised in response to the rise in the need for services related to various modes of transportation and traffic management. The ITS allows users to be better informed and to use the transportation network in a safer, more coordinated, and smarter manner. Also, it can also be used in bus air conditioning (AC) systems to improve their efficiency and reduce energy consumption. Intelligent climate control systems use sensors to monitor the temperature and humidity inside the bus and adjust the AC system accordingly. This helps to ensure that the bus is kept at a comfortable temperature for passengers, while also minimizing energy consumption. For instance, Valeo offers a control system for the HVAC system in LIN bus-based hatch control. The air conditioning systems are equipped with sensors and speed-controlled fans.

The technologies used in intelligent transportation systems range from basic management systems such as thermal management, vehicle navigation, traffic signal control systems, container management systems, variable message signs, automatic number plate recognition, or speed cameras, for automatic incident detection and vehicle state detection. The development of intelligent transport systems across the world boosts the growth of public transportation. The developments in the transportation industry further increases the sales of commercial vehicle such as buses in Asian countries. 

Moreover, adoption of sophisticated technologies encourages the integration of advanced automotive technology, such as automatic HVAC systems and climate control into buses, to support the infrastructure of intelligent transportation networks. The Asia-Pacific bus HVAC market is projected to experience growth during the forecast period due to advancement of intelligent transportation systems.

Environmental effects of refrigerants used in HVAC system

The refrigerant plays a crucial role in vehicle HVAC system. The bus HVAC system uses various coolants/refrigerants such as hydrofluorocarbon (HFC) refrigerant, chlorofluorocarbon (CFC) refrigerants, and hydrofluoro-olefins (HFO) refrigerants for enhanced cooling performance. However, these refrigerants are harmful to environmental sustainability, may lead to ozone depletion, and exhibit global warming potential (GWP). For instance, in March 2022, Indian government import policy of Hydrofluorocarbons (HFCs) has been revised from 'free' to 'restricted', subject to NoC (no objection certificate) from the Ministry of Environment, Forest and Climate Change," the directorate general of foreign trade (DGFT). 

Moreover, these refrigerants affect the air quality, ecosystem, and consumer health & safety. Thus, various government authorities are implementing stringent regulatory framework to minimize environmental pollution and global warming. For instance, in Australia, The Minimum Energy Performance Standards (MEPS) levels are mandatory requirements for certain products (including air conditioners, refrigerators & freezers) manufactured in, or imported into, Australia and are specified in the relevant Australian Standards. Thus, vehicle manufacturers need to redesign their HVAC systems with environment-friendly refrigerants, which is anticipated to affect the growth of the Asia-Pacific bus HVAC market.

Increase in demand for HVAC systems from developing nations

Commercial vehicles are extremely beneficial in aiding growing urbanization and industrialization, particularly in the developing countries. According to the Markline Co., China bus production units were 434,653 in 2020 and 491,771 in 2021, exhibiting growing demand for buses in the commercial vehicles segment throughout the Asia-Pacific. The surge in development and adoption of innovative transportation solutions by emerging countries such as China, India, and Japan, is responsible for the rise in demand for buses. 

For instance, Greater China is home to the world's biggest manufacturers of commercial vehicles including bus with an annual production of 6,037,514 commercial vehicles in 2020, an increase of 12.8% in 2019. Emerging players and market leaders operating in public transport industries across the developing countries, further drive the production of buses. In addition, increased production of buses considerably boosts the demand for HVAC solutions. 

Furthermore, Asia-Pacific potential commercial vehicle manufacturers such as BYD, and Eicher Motors operating in bus segment, which are focusing on presenting advance technology in bus HVAC system is expected to present a growth opportunity for the Asia-Pacific bus HVAC market. For instance, Daimler India Commercial Vehicle (DICV) introduced BSafe feature in BharatBenz public transport bus ranges in India. The bus is equipped with Air circulation kit and UV-filter. The UV lamp kills up to 99.6% of airborne viruses while the AC system circulates fresh air from outside.

COVID-19 Impact Analysis

The supply chain disruption caused by COVID-19 is projected to have an impact on the commercial vehicle industry's competitiveness, economic growth, and job losses. For instance, the COVID-19 virus can survive on surfaces for several days, adding to the challenges of sales and servicing of commercial vehicles like buses during the pandemic. The additional complication disrupted the maintenance and installation schedule of HVAC systems in the buses creating huge losses for the fleet owners. One of the worst-affected industries by the pandemic is the automotive industry. Import-export operations between countries have been temporarily barred due to a national emergency, resulting in a shortfall of supply, return, and replacement of vehicle components and finished products. Furthermore, the automotive HVAC industry in Asia-Pacific registered a decline in business, due to closure of national & international borders, which has halted the movement of components manufactured in other countries and transported to different manufacturer’s locations. This halted movement affected the component delivery process to such an extent that most of the bus HVAC manufacturers had to cut costs to incur the losses.

The bus HVAC consumers faced a cash crunch owing to decline in revenue as the number of bus passengers reduced drastically during the pandemic. The restrictions and lockdowns implemented by governments across the world due to the COVID-19 pandemic were a key restraining factor behind the slowdown in bus passenger traffic. In addition, the trade restrictions limited the supply of raw materials which created a huge gap between the supply and demand of the HVAC systems for the buses. The shortage of raw materials and labor has increased the cost of the HVAC raw materials and further created a challenge for HVAC manufacturers, which has resulted in production shutdown across various countries. Moreover, the production shutdown of HVAC system and component manufacturers has further increased the prices of raw materials and HVAC systems.

For instance, Trane Technologies' Residential HVAC & Supply division announced a price rise of up to 6% on certain HVAC equipment in July 2021. The increase in price is due to rise in raw material and component costs, which have increase by 30% to 50% since 2020, including stainless steel, galvanized steel, and copper. Moreover, with increasing threat of the new Omicron variant of COVID-19 virus, countries across the world are taking curative measures and imposing strict restrictions, which is affecting the Asia-Pacific bus HVAC market negatively. The pandemic has had a detrimental effect on the HVAC manufacturers owing to decrease in sales of HVAC systems for commercial vehicles.

KEY BENEFITS FOR STAKEHOLDERS

• This study presents the analytical depiction of the Asia-Pacific bus HVAC market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall Asia-Pacific bus HVAC market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the Asia-Pacific bus HVAC market with a detailed impact analysis.
• The current Asia-Pacific bus HVAC market is quantitatively analyzed from 2021 to 2031 to benchmark financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

  Asia-Pacific Bus HVAC Market Report Highlights