Heavy Commercial Vehicle HVAC Market Statistics 2027 -
The global heavy commercial vehicle HVAC market was valued at $1.15 billion in 2010 and is projected to reach $2.56 billion in 2027, registering a CAGR of 7.04% during forecast period 2021-2027.
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 to 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.
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 overall automobile HVAC system. It is a belt driven pump, which is attached to the engine. The compressor helps in compressing and transferring 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 global heavy commercial vehicle HVAC market is segmented into type, vehicle type, sales channel, input, and vehicle type by propulsion. By type, it is further divided into automatic, and manual. By vehicle type, the heavy commercial vehicle HVAC market is segmented into intercity buses which is subdivided into 9m, 10m, and 12m, coach buses which is further segmented into 9m, 10m, and 12m, school buses which is further segmented into 9m, 10m, and 12m, transit buses which is further segmented into 9m, 10m, and 12m, and trucks. By sales channel, the market is segmented into original equipment manufacturers, and aftermarket. By input, heavy commercial vehicle HVAC market is segmented into engine powered HVAC and electric powered HVAC. By vehicle type by propulsion, the heavy commercial vehicle HVAC market is segmented into intercity buses which is further divided into IC engine, hybrid/electric, and fuel cell, coach buses which is further segmented into IC engine, hybrid/electric, and fuel cell, school buses which is further divided into IC engine, hybrid/electric, and fuel cell, transit buses which is further segmented into IC engine, hybrid/electric, and fuel cell, and trucks which is further divided into IC engine, hybrid/electric, and fuel cell. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Vehicle Type
9 m Intercity Buses is projected as the most lucrative segments
Key players operating in the global heavy commercial vehicle HVAC market include Coachair Pty Ltd., Denso Corporation, Eberspächer Gruppe GmbH & Co. KG, Grayson Thermal Systems, Zhengzhou Guchen Industry Co., Ltd., Internacional Hispacold Sa, Japan Climate Systems Corporation, Konvekta AG, MAHLE GmbH, Mobile Climate Control, Inc., ProAir LLC, Sanden Holdings Corporation, Sidwal Refrigeration Industries Pvt. Ltd., Subros Limited, SUTRAK Corporation, Trane Technologies PLC, TransACNR, Valeo, and Webasto Group.
Automatic is projected as the most lucrative segments
Increase in demand for thermal system and automatic climate control features in heavy vehicles
The fleet owners have increased their focus on installing HVAC systems to achieve thermal comfort in the cabin of heavy commercial vehicles. The HVAC system is installed to guarantee that the driver, as well as the passenger and cargo, 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 so on. The logistics industry has increased the use of effective HVAC systems in commercial heavy vehicles to boost vehicle efficiency and minimize operating costs. For instance, the partnership of XL Fleet Corp. and eNow Inc. for electrifying cooled trailers was announced in July 2021. Under the partnership, solar-based solutions will be provided to help fleets save expenses and operate auxiliary batteries for the HVAC, liftgates, and other car systems operations. In addition, the growth of the vehicle HVAC market is boosted by the increase in the development and adoption of automated air-conditioning units which adjust cabin temperature automatically independent of the outside air temperature and humidity. An increase in thermal comfort demand and rise in automated HVAC adoption are projected to drive the growth of the automotive HVAC market.
By Sales Channel
Original Equipment Manufacturers is projected as the most lucrative segments
Augmented safety & comfort through the adoption of HVAC systems
The increase in demand for safety, comfort, and aesthetic aspects led to numerous advances in technology in commercial vehicles. HVAC systems provide both drivers and passengers with a comfortable trip. In addition, the technology helps to defrost windows, demist windshields and dehumidify the air, which enhances driver visibility and passengers' comfort, further enhancing vehicle safety. The HVAC system's secure and smooth operation removes future danger issues. Furthermore, technical advancement has resulted in the development of sophisticated HVAC technologies that reduce the adverse impact of an HVAC system on the performance of the vehicle. For instance, Pacific Northwest National Laboratory (PNNL) developed a novel technology in June 2021 that is designed to produce drier air through a dehumidifier system using ten to thirty times less energy than conventional dehumidifiers. The integration of these dehumidifiers in electric bus air conditioning systems can expand their ranges by up to 75%. The introduction of HVAC systems in heavy commercial vehicles to enhance convenience and protection by guaranteeing a safe and favorable environment within the cabin will promote market development.
Electric Powered HVAC is projected as the most lucrative segments
High installation and maintenance cost
The HVAC system unit is both expensive to install and repair in the event of a breakdown. The installation of an HVAC unit in a vehicle raises the overall cost of the heavy commercial vehicle. Compressors, condensers, evaporators, and other components make up an automobile HVAC system. Regular maintenance is necessary to keep these components in excellent working condition, which is rather costly. The compressor is the most expensive component in the system, and it requires adequate refrigerant and maintenance to avoid early compression failure. In addition, due to high profitability, automobile manufacturers are concentrating on the production of passenger vehicles, resulting in a supply shortage for heavy vehicle components and spare parts. The combination of a scarcity of supply and strong demand drives up the cost of HVAC equipment for heavy vehicles. For instance, Ford Motor Company stalled Transit van production at its Missouri factory during the week of March 22 to free up resources for manufacturing other vehicles. The global heavy commercial vehicle HVAC market is expected to be hampered by the high maintenance costs of the overall components of HVAC systems.
Development of eco-friendly refrigerants
Installing environment-friendly refrigerants like R-1234yf and R744/CO2 in vehicles boosts the growth of the automotive HVAC system industry. R744 and CO2 as substitute refrigerants would improve fuel efficiency and minimize car emissions, both of which would be good for the environment. Global warming and catastrophic climate change have prompted numerous industries around the world to adopt sustainable alternatives. Refrigerant manufacturers are investing extensively in the research and development of sustainable refrigerants for heavy vehicles due to the rise in worldwide awareness about climate change. For instance, Honeywell announced in June 2018 that it was developing Solstice N41 (provisional R-466A), a non-flammable refrigerant with low-global-warming-potential (GWP) for use in air conditioning systems. When compared to its alternatives, it is cost-effective, energy-efficient, and environment-friendly, boosting its adoption across a variety of industries. The increase in the adoption of environment-friendly refrigerants in heavy vehicles represents a significant growth opportunity for the market's major competitors.
Asia-Pacific would exhibit the highest CAGR of 7.8% during 2021-2027.
COVID-19 Impact Analysis
- The COVID-19 outbreak forced governments across the globe to implemented stringent lockdown and ban import–export of essential raw materials items for most of 2020 & few months in 2021. This led to sudden fall in the availability of important raw materials for vehicle and component manufacturing.
- The COVID-19 outbreak forced governments across the globe to implement strict lockdowns and made social distancing mandatory to contain the spread of the virus. Consequently, several organizations started work from home programs as safety measures. This led to sudden fall in demand for automobiles across the world.
- Moreover, nationwide lockdowns disrupted the supply-chain as several manufacturing facilities across the globe had to partially or fully shut down their operations.
- The adverse impacts of the COVID-19 pandemic resulted in huge supply-demand issues globally.
- However, increasing focus of various governments across the globe toward vaccination is creating a positive market scenario for the heavy commercial vehicles market. According to the WHO, as of April 3, 2022, total 11,183,087,530 vaccine doses have been administered across the globe.
- Factors such as a rise in worldwide vaccination campaigns and development of innovative HVAC technologies are likely to aid the HCV HVAC market's resurgence in the near future.
Key Benefits For Stakeholders
- This study presents the analytical depiction of the heavy commercial vehicle HVAC market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall heavy commercial vehicle 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 global heavy commercial vehicle HVAC market with detailed impact analysis.
- The current heavy commercial vehicle HVAC industry is quantitatively analyzed from 2021 to 2027 to benchmark financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the heavy commercial vehicle HVAC industry.
Heavy Commercial Vehicle HVAC Market Report Highlights
By Vehicle Type
By Sales Channel
By Vehicle Type Propulsion
By KEY PLAYERS
The global heavy commercial vehicle HVAC market is expected to witness significant growth due to the rise in deployment of electric commercial vehicles around the world.
HVAC manufacturers are concentrating on developing fuel-efficient HVAC systems for commercial vehicles. The automotive HVAC system market is projected to witness considerable growth, especially in the Asia-Pacific region, owing to growth in population along with the increase in globalization and rise in purchasing power & vehicle production over the globe. Companies in the HVAC industry are adopting various innovative techniques to provide customers with advanced and innovative feature offerings. For instance, in March 2021, Lumax Industries announced plans to localize the Heating, Ventilation & Air-Conditioning panel (HVAC) product line in India for OEMs.
Factors such as increase in demand for thermal system and automatic climate control features in heavy vehicles, development of Intelligent Transport System and increase in demand for electric buses accelerate the growth of the global heavy commercial vehicle HVAC market. However, high installation and maintenance cost and environmental effects of refrigerants used in HVAC system hamper the growth of the heavy commercial vehicle HVAC market. Conversely, development of eco-friendly refrigerants, increase in demand for HVAC systems from developing nations, and augmented safety & comfort through the adoption of HVAC systems are expected to provide lucrative opportunities for the expansion of the growth of the global heavy commercial vehicle HVAC market. Moreover, the fluctuating price of raw materials used in making automotive HVAC systems and adverse effect of HVAC systems on a range of the automobile are the challenging factors for the growth of the global heavy commercial vehicle HVAC market.
HVAC systems offer increased comfort and safety for the passengers and drivers which further increases the adoption of HVAC solutions by commercial vehicle manufacturers. Experts also predict that the electric commercial vehicles are considered as the future of electric mobility owing to their advantages over traditional ICE buses such as better acceleration, zero-emission, and noise-free operations. In addition, the market is expected to experience growth due to electrification of commercial vehicles by the fleet owners along with proactive government initiatives.
Among the analyzed regions, Asia Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. By forecast analysis, Asia-Pacific is expected to maintain its lead during the forecast period, owing to the boom of e-commerce, the expansion of the logistics industry, and strict government regulations for ensuring safe transportation in the region.