High Voltage Electric Heater Market

High Voltage Electric Heater Market Outlook (2022-2032)

The global high voltage electric heater market will reach a valuation of US$ 1,545.2 million in 2022 and is expected to progress at a CAGR of 22.5% to reach US$ 11,745.4 million by the end of 2032.

Sales of high voltage electric heaters accounted for nearly 14% share of the global electric heater market at the end of 2021.

Report Attributes	Details
High Voltage Electric Heater Market Size (2021A)	US$ 1,244.9 Million
Estimated Market Value (2022E)	US$ 1,545.2 Million
Forecasted Market Value (2032F)	US$ 11,745.4 Million
Global Market Growth Rate (2022-2032)	22.5% CAGR
U.S. Market Share (2022)	~18.9%
U.S. Market Value (2022)	US$ 291.8 Million
Germany Market Share (2022)	~9.6%
Germany Market Value (2022)	US$ 148.0 Million
China Market Share (2022)	~45.2%
China Market Value (2022)	US$ 699.1 Million
Top 3 country Market Share	~75.0%
Key Companies Profiled	BorgWarner Inc Eberspächer Gruppe GmbH & Co. KG Webasto SE Mahle GmbH Woory Corporation DBK David + Baader GmbH Tutco Inc LG Electronics Inc. Mitsubishi Heavy Industries Ltd

Sales Analysis of High Voltage Electric Heater (2017-2021) Vs. Market Outlook (2022-2032)

High Voltage Electric Heater is an ideal heating system for electric vehicles and plug-in hybrids electric vehicles. It converts DC power into heat with practically negligible losses. The automotive industry explores a variety of powertrain technologies, hybrid electric vehicles (HEV), and electric vehicles (EV) which are becoming more popular than ever.

The major players in the high voltage electric heater market are manufacturing cost-effective products that add innovation to their existing offerings. Moreover, technological advancements in the electrical industry will enable numerous growth opportunities for high-voltage electric heaters during the forecast period.

High voltage electric heater has its applications majorly in vehicle technology such as BEV, PHEV, and HEV. Hence it is widely used in the passenger cars, LCV and HEVs. This will generate growth opportunities for existing as well as new manufactures in the market.

• Short Term (2022 Q2 to 2025): Growing demand for electric vehicle technologies like BEV, PHEV, and HEV will have a positive impact on high voltage electric heater market growth.
• Medium Term (2025-2028): U.S. and China are projected to witness comparatively high demand for high voltage electric heaters due to its increasing penetration in the automobile industry specially the electric vehicles.
• Long Term (2028-2032): Improvement in the product with the integration of advanced technologies such as modifies batteries, increased heat capacities, etc. may open new doors of opportunities for high voltage electric heater manufacturers.

From 2017 to 2021, the global market for high voltage electric heaters registered a CAGR of 21.2%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at a 22.5% CAGR between 2022 and 2032.

Market share analysis of high voltage electric heater based on vehicle technology and country is provided in the above image. Under the vehicle technology segment, the HEV sub-segment will dominate with a 62% market share in 2022.

What’s Driving High Demand for High Voltage Electric Heater across Regions?

“New manufacturing facilities to drive the market growth”

New high-voltage heater manufacturing facilities were opened by major manufacturers to meet the demand for hybrid and battery-electric vehicles and further capacity expansion is expected to increase the supply of high voltage electric heater.

In Tianjin, Eberspächer new production facility for electric car heaters is one of the prominent manufacturing facility. With this new plant, Eberspächer wants to strengthen its presence in the country, by expanding its production capacity and tapping into China's fast-growing passenger car industry, especially electric vehicles.

BorgWarner is increasing its investment in developing innovative solutions to meet the growing demand for devices in electric and hybrid vehicles. The factory mass-produces integral parts for electric heaters. New installations of such vehicle heaters will have a clear impact on the development and sales of high-voltage electric heaters in the coming years.

“Sales by OEM reboots the market leading to consistency in demand”

Automotive OEMs are investing in high potentials for electric vehicles. Though the size of the high potential EV markets is not yet large, OEMs are using dynamic conditions, which are mainly driven by the political agenda. Therefore, OEMs make use of the first-mover advantage to reach critical mass and market share in corresponding markets.

The sales of high voltage electric heater by OEMs are likely to have a constant boost, underpinned by vehicle proliferation. OEMs are tapering off their balance sheet based on the surplus capacity. These OEMs are expanding through inorganic growth in developing countries of Asia, to supports its expansion and allows diversification of their product & clientele portfolio.

High velocity is a key success factor for the significant growth of high voltage electric heaters, which leads to investment in sales staff training, charging infrastructure installation, and EV aftersales enablement, which leads to the demand for high voltage electric heaters.

What Do High Voltage Electric Heater Manufacturers Need to Watch Out For?

“Complexities during installation process to limit market growth”

In case of high temperatures, these devices can create very low humidity. The installation and maintenance of these devices is a complex task too. Also, proper ventilation has to be assured when installed in a car. There are also certain safety issues involved with these high-voltage electric heaters.

Such factors restrain car manufacturers from adopting such devices, thereby hampering the growth of the high voltage electric heater market. Methods for improving the heating efficiency and performance of these heaters are being explored, which include designing prototypes with common characteristics and building closed-loop systems.

Country-wise Insights

Will Increasing Electric Vehicles Drive High Voltage Electric Heater Demand in China?

China is considered to be the most lucrative country for high voltage electric heaters, fueled by the booming automotive industry and growing surge for electric vehicles in the region.

In 2021, around 2.92 million Electric car were sold in China, which accounted for 53% of the global market share. Government incentives and the commitment to achieve carbon neutrality objective by 2060 are important motivators for EV purchases.

With the Chinese government anticipating that the production of automobiles would reach 35 million units by 2025, China will continue to be the largest market for vehicles worldwide. Regional trends and regulatory guidelines play an important role in the development of the high voltage electric heater and automotive market.

All these factors will enable the growth of the high voltage electric heater market in the long run. China's high voltage electric heater market is expected to reach a valuation of US$ 2,210.5 Mn by 2028 end.

Why is the US High Voltage Electric Heater Market Expected to Be Highly Lucrative?

The US market for high voltage electric heaters is expected to continue its impressive growth as the demand for electric vehicles rises due to growing environmental concerns related to toxic gas emissions from vehicles.

With a sales volume of nearly 607,600 light electric vehicles in 2021, the electric vehicle (EV) market in the US is setting new milestones. This was almost 83 percent higher than in 2018, which saw the start of a significant increase in demand for Tesla's Model 3. The sedan is now one of the best-selling electric cars in the American market.

The US market is poised to expand at a CAGR of 22.9% during forecast period, and achieve a market share of 18.9% in 2022.

Category-wise Insights

Growth of HCVs to Increase High Voltage Electric Heater Sales?

Heavy Commercial vehicles (HCV) are heavy-duty vehicles that have a GVW (gross weight of a vehicle) above 6 tons. The vehicles that majorly fall under the category of HCV are mobile cranes, tractors, city transit buses, heavy cement mixers, and others.

Global commercial vehicle production in 2021 was around 23.2 million units, which indicates the recovery of the market as compared to 2020 where it had a decline of 3 million units. The heavy truck sales recorded 1.9 million units sales in 2021 globally.

The demand for all heavy vehicles is augmenting due to their up surging usage in various industries like construction, logistics, etc. Therefore, according to Fact.MR study, there will be high demand for HCV in the near future and which will promote HVEH market to reach nearly US$ 80 million in 2022 under HCV segment.

How the Shifting Trend Towards Electric Vehicles Will Lead the Sales of High Voltage Electric Heater Market?

The PHEV market is estimated to grow with a more than 32% CAGR and capture a market share of 14.5% in 2022. In 2020, Iceland, Norway, and Sweden are leaders in the Europe region in plug-in electric vehicles accounting for 45%, 74.8%, and 32.2% respectively.

China and U.S market for PHEV is also fueling up as it accounted for 7,861 and 2,349 sales of PHEV by the end of December 2021. Different types of electric vehicle technologies such as plug-in hybrid electric vehicles (PHEV), battery electric vehicles (BEV), and hybrid electric vehicles (HEV) are definitely in high demand.

Owing to the rising awareness regarding the environment most customers are now shifting their preference toward the EV. The utilization of high-voltage electric heaters in all these vehicles is also mandatory. Therefore, considering the tremendous opportunities high voltage electric heater market may rise in the long run.

Competitive Landscape

Prominent high voltage electric heater manufacturers are BorgWarner Inc, Eberspächer Gruppe GmbH & Co. KG, Webasto SE, Mahle GmbH, Woory Corporation, DBK David + Baader GmbH, Tutco Inc, LG Electronics Inc., Mitsubishi Heavy Industries Ltd

Leading market players are channelizing their resources in order to develop high voltage electric heaters with unique designs and have more efficiency. The improved battery systems along with the compact design can be an essential development in the electric heaters. This will pave a way for larger sales of the high voltage electric heaters in the end-use industries in coming time.

The most important factor in the success of electric vehicles is the ability to forge strong private-public partnerships. Government initiatives and subsidiaries for electric vehicles are enabling higher growth prospective for HVEH market.

• November 2021, BorgWarner, which is one of leading manufacturer of thermal technology, stated it would expand its operations in Cadillac, North Carolina. This investment will be the support of the Michigan Strategic Fund with an investment of US $11.2 million.
• DBK David + Baader GmbH manufacturers from Germany recently introduced one of the lightest and smallest high-voltage electric heaters in August 2022, which is a high-voltage fluid heater.

Fact.MR has provided detailed information about the price points of key manufacturers of high voltage electric heaters positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of High Voltage Electric Heater Industry Research

• By Product Type :

  • Air Heater
  • Coolant Heater
  • Battery Heater

• By Vehicle Technology :

  • BEV
  • PHEV
  • HEV

• By Vehicle Type :

  • Passenger Car
  • LCV
  • HCV

• By Maximum Heating Performance :

  • Up to 4 kW
  • 4-7 kW
  • Above 7 kW

• By Region :

  • China
  • France
  • Germany
  • Japan
  • South Korea
  • UK
  • U.S.
  • Rest of World