The global automotive AC compressor market size is expected to reach US$ 32.52 Bn by 2027, expanding at a CAGR of more than 2.3% during the forecast period 2020 to 2027. The global automotive AC compressor market is likely to be influenced by a range of political, economic, social, technical, and industry-specific factors. Latin America is expected to witness rapid rise in demand for AC compressors, and the market in the region is anticipated to expand at a CAGR of nearly 3% during the forecast period.
The study has considered the base year as 2019, which estimates the market size of market and the forecast period is 2020 to 2027. The report analyzes and forecasts the market size, in terms of volume (thousand units) and value (USD million), for the market. The report provides a detailed analysis of various forces acting in the market (drivers, restraints, opportunities, and challenges). The report covers key players and comprehensively analyzes their market shares and core competencies. It also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product launches, expansions, and other activities carried out by key industry participants.
The automotive AC compressor is a key element of the HVAC system. HVAC systems are widely accepted among all class of vehicles and across all regions, irrespective of climatic conditions. The AC compressor compresses the refrigerant, primarily R134a, and sends it to the condenser. The AC compressor is used for pressurizing the AC unit and keeping R134a flowing so that it can work properly. The AC compressor works in a constant on-off cycle. The conventionally used AC compressor is driven by the engine via a V-belt and pulley. The AC compressor unit consists of compressor pistons, magnetic clutch, valves, connecting points for refrigerant points, housing, and plates. AC compressors are utilized for ventilation, air conditioning system, and heating of the vehicle. The robust operation of an AC compressor for both air conditioning and heating purpose has aided the product being independent across all climatic conditions.
Currently, global warming is a major issue that is affecting the lives of people. Temperature of the environment is increasing by one to two degrees every year. Transportation in such weather conditions is not easy. Vehicles are equipped with AC units in order to curtail these problems, which regulates the temperature of the vehicle interior. There are two broad segments of AC compressors: electrical and conventional. Convectional compressors directly run through the engine, via a belt, which exerts pressure on the engine, leading to increase in vehicle emission. Increase in vehicle emission leads to a rise in global warming, as vehicular emission has greenhouse gases such as CO2 and methane. Electric vehicles have been introduced in the market in order to deal with the issue of vehicle emission. For electric vehicles, an electrical AC compressor is used. An electrical AC compressor is also utilized in premium vehicles. Demand for premium vehicles has increased due to the increase in standard of living and purchasing power capacity. Furthermore, demand for zero emission vehicles is increasing in order to overcome the problem of deteriorating environmental conditions.
The automotive AC compressor market can be segmented based on design type, drive type, sales channel, vehicle type, and region. In terms of design type, the automotive AC compressor market can be divided into reciprocating and rotary. The reciprocating segment can be further sub-divided into swash type and wobble type. Reciprocating type was a leading segment of the AC compressor market in 2017 due to the higher usage and easily availability of wobble type of AC compressors in all types of vehicles including hatchbacks and heavy commercial vehicles. Their effectiveness to work in normal conditions and low prices of its components make wobble type compressors highly preferable in countries of Asia Pacific, such as India and Indonesia, where vehicle production is significantly high. The scroll sub-segment of the rotary segment witnessed expansion at a higher growth rate, as compared to the other segments of the market, in terms of design type. Increase in usage of premium vehicles with better performance is driving the scroll sub-segment of the market. However, it is employed in several vehicles, in spite of being expensive, owing to its compact in size and low noise generation. In terms of revenue, the scroll-rotary sub-segment is expected to reach US$ 8 Bn by the end of 2026, expanding at a CAGR of more than 3% during the forecast period.
In terms of drive type, the global AC compressor market can be bifurcated into electrical AC compressor and conventional AC compressor. The conventional AC compressor is directly driven by the vehicle engine through a pulley connected via the V-belt. These type of compressors exert considerable pressure on the engine, leading to higher fuel consumption. The conventional AC compressor segment held a prominent share of the market, and its share is likely to reach about 89% of the market by the end of 2026. The conventional segment dominated the market and is likely to hold a prominent share of the market by end of forecast period. Economy of sub-regions such as the Middle East and some parts of Asia Pacific strongly depend on fuels. Hence, in such sub-regions, the conventional IC engine is likely to be utilized in the near future. Therefore, the conventional segment of the market in Middle East & Africa is likely expand during the forecast period. Rising trend of electrification of vehicles is anticipated to drive the electric segment of the AC compressor market. Rising penetration of electric vehicles, due to offering of incentives, subsidies from governments in order to protect the environment, and developing infrastructure are anticipated to boost the electric AC compressor segment.
The passenger vehicles segment held 76% share of the global market in 2017. Usage of AC compressors is directly related to the production of vehicles incorporated with AC units. Most passenger vehicles are already equipped with an AC unit, as it provides a comfortable cozy atmosphere inside the vehicles. Consumers buying vehicles for personal use highly prefer an AC unit for their vehicles. Passenger vehicles account for a higher share of the total vehicles used for personal purposes. Hence, the passenger vehicle segment held a higher share of the AC compressor market in 2017. Rise in the number of first-time buyers has boosted the sales of small vehicles in the global market, which in turn is propelling the automotive AC compressor market. The AC unit is mandatory in all commercial vehicles owing to government regulation and demand for vehicle safety. Therefore, the commercial vehicle segment is expanding at a rapid pace.
The OEM segment led the market, and accounted for 76.27% share of the market, in terms of revenue, in 2017. The automotive AC compressor has a lifespan that is almost equal to that of the vehicle, i.e., 10 to 12 years. The AC compressor is replaced only when there is an issue in the AC unit, else it is likely to run for the entire life of the vehicle. Consequently, the replacement of an AC compressor is rare. Hence, the aftermarket segment holds a relatively minor share of the market.
In terms of geography, the global automotive AC compressor market can be segregated into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific held a major share of the global market in 2017. Increase in number of vehicle users due to huge population, increasing purchasing power, raising wages, and increased in standard of living are key factors that drive the market in Asia Pacific. Furthermore, prominent economies in Asia Pacific are demanding eco-friendly vehicles, and the rise in mass production methods such as assemble line production is likely to boost vehicle production in region. These are major factors driving the AC compressor market in Asia Pacific. Emergence of business affairs revised taxes during Brexit is expected to hamper sales and production of vehicles in Europe, which in turn is anticipated to hamper the AC compressor market.
Optimization in size, advancements in methods used to manufacture AC compressors, development in materials that are utilized to manufacture automotive AC compressors, and advancements in design of AC compressors are fueling the technological growth of the automotive AC compressor.
The global automotive AC compressor market is highly cohesive, as design and manufacturing of the automotive AC compressor requires considerably skilled workers, advanced technology, high precision, and high investment. Moreover, the market witnesses the presence of major manufacturers working in the industry for several years. Major share of the automotive AC compressor market is held by local manufacturers, as they are in large numbers. Major players operating in the global automotive AC compressor market include Behr Hella Service GmbH, Calsonic Kansei Corporation, Continental AG, Delphi Technologies, DENSO Corporation, Hanon Systems, Keihin Corporation, MAHLE GmbH, Michigan Automotive Compressor, Inc., Robert Bosch GmbH, SANDEN, Subros Limited, TD Automotive Compressor Georgia, Toyota Industries Corporation, and Valeo.
Automotive AC Compressor Market, by Design Type
Automotive AC Compressor Market, by Drive Type
Automotive AC Compressor Market, by Vehicle Type
Automotive AC Compressor Market, by Sales Channel
Automotive AC Compressor Market, by Geography: The market is broadly segmented on the basis of geography into:
The report provides the estimated market size of automotive AC compressor for 2017 and forecast for the next nine years. The global market size of automotive AC compressor has been provided in terms of revenue and volume. Market numbers have been estimated based on key design type, drive type, vehicle, sales channel, and regional segments of the automotive AC compressor market. Market size and forecast for each major type and vehicle have been provided in terms of global and regional/country markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, revenue share for particular business segment, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Organization International des Constructeurs d'Automobile (OICA), Factiva, etc.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
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