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2020

Automotive HVAC System Market

Automotive HVAC System Market Size, Share, Competitive Landscape and Trend Analysis Report by Technology, Vehicle Type and Component : Global Opportunity Analysis and Industry Forecast, 2020-2027

AT : Automotive systems and accessories

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Author's: Pranav Padalkar | Lalit Janardhan Katare
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The global automotive HVAC system market size was valued at $43.37 billion in 2019, and is projected to reach $68.18 billion by 2027, registering a CAGR of 5.8% from 2020 to 2027.

Automotive HVAC system industry by technology, the automatic technology segment was the highest revenue contributor in 2019, accounting for $24.62 billion, and is estimated to reach $39.54 billion by 2027, registering a CAGR of 6.1% during the forecast period. In 2019, Asia-Pacific was anticipated to account for major market share. 

A heating, ventilation, and air conditioning (HVAC) system in a vehicle is used to control the internal temperature of the vehicle cabin. It includes three subsystems, namely, heating, cooling, and air conditioning, that work together to provide purified air to the vehicle cabin, ensuring thermal comfort for drivers and passengers. It controls the air temperature, inspects the moisture content in the air, and eliminates excessive humidity from the circulating air. Well-established companies, such as Audi, Mercedes, and BMW, focus on customized and consumer-friendly HVAC systems. For instance, the BMW 6 Series supports automatic air conditioning, including air distribution for driver and passengers, fogging sensor, and automatic climate control system. 

Automotive HVAC System Market

The automotive HVAC consist of the primary component unit that includes compressor, condenser, evaporator, pressure regulating devices, orifice tube, thermal expansion valve, receiver-drier, and accumulator. The compressor is considered the core component of the overall automobile HVAC system. It is a belt driven pump, which is attached to the engine. The compressor helps in compressing and transferring of refrigerant gas. A condenser is used to help radiate heat and is normally located in front of the vehicle. When the hot compressed gases are introduced on the top of a condenser, they are cooled instantly and after the cooling is complete, they condense and exit from the bottom of the condenser as a high pressure fluid. An evaporator is a heat absorber component of the HVAC system.

The main purpose of an evaporator is to remove the heat from inside the vehicle and dehumidify the environment within it. Pressure regulating devices are meant for controlling the evaporator temperature by regulating the refrigerant pressure and flow into the evaporator. The automotive HVAC system market trends are decided on the basis of forecast from 2020 to 2027.

The global automotive HVAC system industry is driven by increase in demand for thermal system and automatic climate control features in automobile and rise in sale of vehicles across the globe. However, high maintenance cost of HVAC system restrains the growth of the market. Furthermore, adoption of eco-friendly refrigerants and production of cheaper HVAC systems provide lucrative growth opportunity for the players operating in the automotive HVAC system market.

Automotive HVAC System Market
By Technology
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Automatic by technology segment is projected as the most lucrative segments

The global automotive HVAC system market is segmented on the basis of technology, vehicle type, component, and region. Automatic HVAC and manual HVAC are studied under the technology segment. Passenger cars, commercial vehicles, and electric vehicles are categorized under vehicle type. And evaporator, compressor, condenser, receiver-drier, expansion valve, and others are studied under the component type segment. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Comprehensive competitive analysis and profiles of major automotive HVAC system market companies such as Denso Corporation, Valeo services, Hanon Systems (HVCC), Calsonic Kansei Corporation, Sanden Holdings Corporation, Mahle GmbH, Johnson Electric, Sensata Technologies, Inc., Keihin Corporation, and Air International Thermal Systems are also provided in this report.

Automotive HVAC System Market
By Vehicle Type
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Electric Vehicle type segment is projected as the most lucrative segments

Increase in Demand for Thermal System and Automatic Climate Control Features in Automobile

Thermal comfort in vehicles is considered as one of the most important factors while purchasing a vehicle. The installation of HVAC system ensures an ambient thermal environment for the driver as well as the passenger. HVAC system not only contributes to a better thermal environment but also improves the efficiency of air conditioning; thereby, reducing fuel consumption. Efficient HVAC systems ensure appropriate vehicular temperature levels, which can lead to enhance vehicle passenger comfort, fuel economy, and others. Also, the rise in use of automatic A/C which automatically controls cabin temperature regardless of the outside air temperature and humidity boost the growth of the automotive HVAC market. Thus, rise in demand for thermal comfort coupled with increase in penetration of automatic HVAC system in automobiles are anticipated to propel the growth of the automotive HVAC market globally.

Rise in Safety and Comfort Due to Adoption of HVAC Systems

Growth in demand for safety, comfort, and aesthetic features has led to several technological advancements in vehicles. HVAC systems ensure comfortable ride for the driver as well as the passenger. In addition, the system contributes toward defrosting windows, demisting windshields, and dehumidifying air, which improve the comfort of the passengers. The safe and clean running of the system eliminates risk factors in future. Thus, increase in safety due to adoption of HVAC systems by providing safe and favorable conditions inside the vehicle cabin is anticipated to propel the automotive HVAC market growth.

Automotive HVAC System Market
By Component
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Compressor by component segment is projected as the most lucrative segments

Increase in Vehicle Production

Original equipment manufacturers in the developing regions such as China, India, and Japan, are adapting to the changing regional and segment patterns of supply and demand with respect to their production & supply base footprints, supply chains, and product portfolio. In addition, rise in urbanization along with increase in population boost the demand for vehicles among consumers. For instance, North America is the home for largest vehicle producers in the world, including General Motors and Ford, which account for 25% of the global vehicle production. Moreover, emergence of global potential automobile manufacturers including General Motors and Volkswagen AG concentrating their plants in China through joint ventures with local manufacturers is expected to enhance the HVAC demand and drive the growth of the HVAC system market globally.

High Maintenance Cost

HVAC system unit is highly costly to integrate and expensive to repair in case of a failure. Installation of HVAC unit in a vehicle results in increase in the overall cost of the automobile. An automobile HVAC unit consists of compressor, condensers, evaporators, and other components. To keep these components in good working condition, regular maintenance is required, which is significantly expensive. Compressor is the costliest component in the systems and requires proper refrigerant and lubrication levels to reduce the risk of premature compression failure. Thus, high maintenance cost of the overall components of HVAC system is anticipated to hinder the growth of the global automotive HVAC market.

Automotive HVAC System Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific by region segment is projected as the most lucrative segments

Adoption of Eco-Friendly Refrigerants

The installation of eco-friendly refrigerants such as R744/CO2 in automobiles would not only foster the growth of the automotive HVAC system market but also help in saving the environment. Substitute refrigerants such as R744 and CO2 would increase fuel efficiency and reduce pollution from vehicles, which would benefit the environment. For instance, on May 2017, Sanden Automotive Components Corporation has completed industrializations and development of compressors for air conditioning systems in cars using CO2 refrigerant. Thus, adoption of eco-friendly refrigerants in automobiles holds a remarkable growth opportunity for the key players operating in the market.

Key Benefits for Stakeholders:

  • This study presents analytical depiction of the automotive HVAC system market analysis along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  • The current market size is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the automotive HVAC system industry.

Automotive HVAC System Market Report Highlights

Aspects Details
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By TECHNOLOGY
  • AUTOMATIC
  • MANUAL
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By VEHICLE TYPE
  • PASSENGER CAR
  • COMMERCIAL VEHICLE
  • ELECTRIC VEHICLE
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By COMPONENT
  • EVAPORATOR
  • COMPRESSOR
  • CONDENSER
  • RECEIVER-DRIER
  • EXPANSION VALVE
  • OTHERS
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By Region
  • NORTH AMERICA  (US, CANADA, MEXICO)
  • EUROPE  (UK, GERMANY, FRANCE, SPAIN, REST OF EUROPE)
  • ASIA-PACIFIC  (CHINA, JAPAN, INDIA, AUSTRALIA, REST OF ASIA-PACIFIC)
  • LAMEA  (LATIN AMERICA, MIDDLE EAST, AFRICA)
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Key Market Players

HANON SYSTEMS, DENSO CORPORATION, MAHLE GmbH, CALSONIC KANSEI CORPORATION, Air International Thermal Systems, VALEO SERVICE, KEIHIN CORPORATION, SANDEN HOLDINGS CORPORATION, SENSATA TECHNOLOGIES, JOHNSON ELECTRIC HOLDINGS LIMITED

Analyst Review

Heating, ventilation, and air conditioning (HVAC) system is installed in vehicles to maintain the internal climate of the vehicle cabin. The HVAC systems can be operated manually or automatically thereby allowing individuals to retain optimum temperature inside the vehicle cabin. In addition, the system helps in defrosting and demisting the windows, even at low temperature, assuring thermal comfort to all the commuters. Asia-Pacific has shown a prominent growth in the automotive HVAC market owing to increased automobile manufacturing in the region. The increasing per capita income and growing preferences of customers towards automatic HVAC system would boost the market growth globally.

The global automotive HVAC system market is analyzed based on its prospect and future growth rate. The report highlights numerous factors that influence the growth of the global automotive HVAC system market, which include market forecast, drivers, restraints, opportunities, and role of different key players operating in the market.

The global automotive HVAC system market is driven by increasing demand for thermal system and automatic climate control features in automobile, rising sale of vehicles across the globe. However, high maintenance cost of HVAC system restrains the growth of the market. Furthermore, adoption of eco-friendly refrigerants and production of cheaper HVAC systems provides lucrative growth opportunity for the player operating in the automotive HVAC system market.

Among the analyzed geographical regions, Asia-Pacific is the highest revenue contributor, and the Asia-Pacific region is anticipated to create dominance during the forecast period, followed by Europe, North America and LAMEA. This growth is attributed to proactive development, rise in disposable income and increase in automotive sales.

 

Author Name(s) : Pranav Padalkar | Lalit Janardhan Katare
Frequently Asked Questions?

on may 2019,Hanon Systems incorporated a new Chongqing Site in China. This incorporation is a result of joint venture between Chongqing Jianshe Motorcycle Co. Ltd. and Chongqing Jianshe Mechanical & Electrical Equipment Co., which are two subsidiaries of China South Industries Group Corporation (CSGC). The operations at this site includes manufacturing of powertrain cooling components and HVAC modules.

The global automotive HVAC system market was valued at $43.370 billion in 2019, and is projected to reach $68.188 billion by 2027, registering a CAGR of 5.8% from 2020 to 2027

The report sample/ company profile section for global automotive HVAC system market report can be obtained on demand from the website.

The companies which are operatng in the value chain of this HVAC buisness are the potential customers. TheOEM, tier 1, tier 2 suppliers and aftermarket service providers also the potential customer.

Comprehensive competitive analysis and profiles of major market players such as Denso Corporation, Valeo services, Hanon Systems (HVCC), Calsonic Kansei Corporation, Sanden Holdings Corporation, Mahle GmbH, Johnson Electric, Sensata Technologies, Inc., Keihin Corporation, and Air International Thermal Systems are also provided in this report.

The company profile section for automotive HVAC system market report can be obtained on demand from the website.

Among the analyzed geographical regions, currently ASia Pacific region is dominating the market with the highest revenue in the global market. However, the same and Erope is expected to grow at a higher rate during the forcast period, predicting lucrative opportunities .

The aftermarket component service providers, and onshelf companies aftermarket as a service can be considered as service providers of HVAC sysetm market.

The key growth strategies adopted by the automotive HVAC players includes innovations, merger and business developments with the increased RnD expenditure which have a wider application in automoitve HVAC buinsess.

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Automotive HVAC System Market

Global Opportunity Analysis and Industry Forecast, 2020-2027