The global automotive HVAC system market size was valued at US$ 43.27 billion in 2019, and is projected to reach US$ 68.08 billion by 2027, registering a CAGR of 5.7% from 2020 to 2027.
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.
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 market 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.
Comprehensive competitive analysis and profiles of major automotive HVAC system 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.
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 & 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.
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.
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 Market Segments:
By Vehicle Type
The Automotive HVAC System market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Automotive HVAC System market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Automotive HVAC System market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Automotive HVAC System market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Automotive HVAC System market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Automotive HVAC System capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Automotive HVAC System by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Automotive HVAC System market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Automotive HVAC System market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Automotive HVAC System market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Automotive HVAC System industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Automotive HVAC System market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Automotive HVAC System market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Automotive HVAC System market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Automotive HVAC System market. These factors have benefited the growth of the global market for Automotive HVAC System. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Automotive HVAC System. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Automotive HVAC System are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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