Automotive HVAC Market

Automotive HVAC Market Growth Analysis 2022-2032

The automotive HVAC market was valued at US$ 43.38 Billion in 2022, and it is expected to reach a value of US$ 68.2 Billion by 2032, registering a CAGR of 4.6% during the forecast period (2022-2032).

The automotive goods and supply chain market were drastically impacted by the pandemic. Travel restrictions and lockdowns resulted in a slowdown in the demand and sales of passenger vehicles, which directly affected the HVAC market.

However, post-pandemic; industry operations, and workforce for infotainment manufacturing companies have regained pace. Earlier, the use of automotive HVAC systems was considered a luxury and a special feature, and not all automobiles were fitted with HVAC. Now it is a prerequisite feature in every automobile owing to the basic automotive safety and comfort standards accepted globally.

Over the long term, a growing demand for thermal comfort and an increase in safety due to the increased adoption of HVAC systems are anticipated to boost the growth of the automotive HVAC market. Compact size and reduced weight of the system may support the growth of the market during the forecast period.

The incorporation of sensors, electronics, and automated climate control features at low cost is translating into greater adoption of HVAC units in passenger vehicles. Rising vehicle electrification is likely to increase an integration of advanced comfort and safety features in vehicle.

Report Attribute	Details
Market Size in 2022	US$ 43.38 Billion
Anticipated Forecast Value (2032)	US$ 68.2 Billion
Projected Growth Rate (2022-2032)	4.6% CAGR
Market Share of the U.S. Market (2021)	US$ 16.52 billion
Anticipated CAGR of China (2022-2032)	10.2%
Major Automotive HVAC Suppliers	Sensata Technologies The Keihin Corporation Calsonic Kansei Corporation Sanden Corporation Valeo Denso Corporation Hanon Systems MAHLE GmbH Johnson Electric Holdings Limited Japan Climate Systems Corporation

What are the Key Drivers of the Automotive HVAC Market?

A Flourishing Automotive Industry widening Growth Prospects for Automotive HVAC Systems

Growing concerns about global warming have significantly impacted the automotive HVAC market. Consequently, many nations worldwide have started taking measures to reduce their carbon emissions.

The increasing research and development activities in the automotive sector across the world are set to fortify the technological capabilities of the competitive players. These market players are introducing advanced technologies in automotive HVAC to develop new products that provide a competitive edge in the market.

The key players in the market are developing eco-friendly products to fall in line with the strict government regulations regarding emissions. Energy efficacy is the other growth driving factor in HVAC systems. Manufacturers are increasingly using green technologies to develop environment-friendly and energy-efficient automotive HVAC systems. For Instance,

In November 2021, Marelli Corporation developed an Indoor Air Quality (IAQ) Purification System, that kills bacteria and viruses in vehicles and indoor environments. The system utilizes UV-A and UV-C light combined with a titanium dioxide (TiO2) filter to terminate airborne bacteria and viruses, including COVID-19, with 99.9% effectiveness within 15 minutes. Market players are involved in mergers, acquisitions, and tie-ups to expand their market presence. Denso has collaborated with Toyota to invent Prius, a hybrid technology promoting safety, fuel efficiency, and green technology in vehicles.

Rise in Safety, Comfort and Leisure due to adoption of HVAC Systems

Increase in demand for safety, comfort and attractive features has led to various technological advancements in vehicles. These systems ensure comfortable ride for the driver as well as the passenger. In addition, the system contributes towards demisting windshields, defrosting windows, and dehumidifying air, which enhances the comfort of the passenger.

The safe and clean operation of the system eliminates risk factors in future. Therefore, increase in safety due to adoption of HVAC systems by providing safety and favorable conditions inside the vehicle cabin is expected to fuel the automotive HVAC market growth.

What are the Challenges Faced by the HVAC market?

High Maintenance Costs Might Limit uptake in Certain Automobiles

The automotive industry is a major contributor to rising levels of CO2 emissions. Growing consumer awareness regarding deteriorating environmental conditions has been encouraging consumers to shift towards environment-friendly solutions. Increasing government regulatory norms to develop energy-efficient and low emission solutions coupled with high maintenance costs are likely to hamper the growth of the market.

Comparative View of HVAC Markets

HVAC Market :

Attributes	HVAC Market
CAGR (2022-2032)	5.9%
Market Value (2032)	US$ 68.2 Billion
Growth Factor	Energy efficacy and manufacturing of eco-friendly products are driving the growth of HVAC market.
Opportunity	Innovations and technological advancements will present lucrative prospects for HVAC market.

Air Conditioning Market :

Attributes	Air Conditioning Market
CAGR (2022-2032)	6.5%
Market Value (2032)	US$ 21.1 Billion
Growth Factor	Increase in demand for vehicles from the developing countries is leading to expansion of this market.
Opportunity	Rising concern of air pollution owing to industrialization is creating the space for sales of air conditioners.

Thermal Systems Market :

Attributes	Thermal Systems Market
CAGR (2022-2032)	4.15%
Market Value (2032)	US$ 43.7 Billion
Growth Factor	The growing need for reducing carbon emissions produced by internal combustion engines (ICEs) in automobiles, and the stringent emission regulations imposed by governing agencies of several countries, represents one of the key factors impelling the market growth.
Opportunity	Increasing sales of hybrid electric vehicles will led to the expansion of this market.

Which region is anticipated to offer the biggest opportunity for automotive HVAC market?

The Asia-Pacific market is most likely to observe vast development attributable to the close proximity of key automotive makers, vast scale generation of vehicles, and surging vehicle requests in the manufacturing countries, like India, South Korea, and China.

Government efforts to restore the automotive business are required to drive the market during the forecast period. For example, the Government of India is encouraging foreign investments through programmed courses in the automotive area to bring new innovations to market.

China is one of the largest markets and contributes significantly to the demand for these automotive HVAC systems. The growing demand for passenger vehicles from China, India and their other counterparts in the Asia-Pacific region is a result of the growing interest of people for comfort and safety. Owing to these trends APEJ is the fastest growing automotive HVAC market.

Why does Asia-Pacific continue to dominate the Automotive HVAC market by 2032?

The increase in demand for passenger vehicles from India, China, and their other counterparts in the Asia-Pacific region is due to the growing preferences of people for comfort and safety. These factors are expected to contribute to the market growth in the region.

Country-wise Analysis

Demand for Passenger Vehicles is contributing to growth of Automotive HVAC market in India

The India automotive HVAC market size was valued at US$ 820.8 Million in 2021, and is projected to reach US$ 2 Billion by 2032, registering a CAGR of 9.3% from 2022 to 2032.

Being one of the fastest growing economies in the world, the HVAC market of India is growing at a fast pace. This is because of the need arising from the middle-class population. Owning a vehicle is becoming common and this projects impressive growth in the Automotive HVAC market.

Country-wise Forecast CAGRs for the Automotive HVAC Market

Country	CAGR
China	10.2%
India	9.3%
U.S.	9%
Japan	8.9%

Category-wise Insights

Manufacturing of HCVs are augmenting the sales of Automotive HVAC market-

Sales of HVAC system is highest in the passenger cars as they are more extensively used for the daily commute and long travels. Owing to this, the global heavy commercial vehicle HVAC market was valued at US$ 1.14 Billion in 2022, and is projected to reach US$ 2.55 Billion in 2032, registering a CAGR of 8.3%.

APEJ dominates the Automotive HVAC Market

Developing regions like China and India are the key market driving countries for the Automotive HVAC market, owing to growing urbanization, increasing disposable income and rise in standard of living.

Start-Ups for Automotive HVAC Market

The ‘ebm-papst group’, headquartered in Mulfingen, Germany founded ‘ebm-papst neo-GmbH & Co. ‘in April 2020, to develop digital solutions to improve the balance of energy and air quality in buildings. Over the past two years, neo has been developing an IoT enabled, high-performance building fan, capable of delivering filtered air in indoor areas.

Belimo, a start up in HVAC market, headquartered in Switzerland, manufactures field devices for controlling heating, ventilation, and air conditioning systems. Sensors, control valves and damper actuators build up the company’s core business. The public company reported sales of USD 11 million in 2019.

Market Competition

Vendors and contractors in the automotive HVAC market are concentrating on launching new products with advanced features to gain a competitive edge in the market, also the vendors are highly focused on strategies of mergers and collaborations.

• In 2015, Mahle Group acquired Delphi Automotive’s thermal business to expand its market penetration and product offering. Delphi Automotive was recognized as top five industry players and this acquisition has poised to give a competitive edge to Mahle Group over other competitors.

According to Fact.MR’s market research analysis, innovations as well as product development have been prominent developments related to HVAC in recent years.

Key Segments Profiled in the Report

• By Type :

  • Passenger Cars
  • Light Commercial Vehicle (LCV)
  • Heavy Commercial Vehicles (HCV)

• By Technology :

  • Manual
  • Automatic

• By Component :

  • Evaporator
  • Compressor
  • Condenser
  • Receiver/Drier
  • Expansion Device

• By Region :

  • North America
  • Latin America
  • Europe
  • Japan
  • Asia Pacific excluding Japan (APEJ)
  • Middle East & Africa (MEA)