Automotive Hvac System Market

Automotive HVAC System Market Statistics – 2030

In 2019, the global automotive HVAC system market was valued at $43.37 billion and is projected to reach $68.18 billion by 2030, with a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. The automatic technology segment was the largest revenue contributor in 2019, with a value of $24.62 billion, and is estimated to reach $39.54 billion by 2030, growing at a CAGR of 6.1% during the forecast period. The Asia-Pacific region was expected to hold a significant market share in 2019.

The automotive HVAC system is responsible for controlling the internal temperature of a vehicle cabin. It consists of three subsystems: heating, cooling, and air conditioning, which work together to provide purified air and ensure thermal comfort for drivers and passengers. This system regulates air temperature, monitors moisture content, and removes excessive humidity from the circulating air. Prominent automobile companies like Audi, Mercedes, and BMW focus on developing customized and user-friendly HVAC systems. For example, the BMW 6 Series features automatic air conditioning with air distribution for both driver and passengers, a fogging sensor, and an automatic climate control system.

The primary components of an automotive HVAC system include the compressor, condenser, evaporator, pressure regulating devices, orifice tube, thermal expansion valve, receiver-drier, and accumulator. The compressor, considered the core component, is a belt-driven pump attached to the engine that compresses and transfers refrigerant gas. The condenser, located in front of the vehicle, helps dissipate heat by cooling the hot compressed gases, which then condense and exit as high-pressure fluid. The evaporator acts as a heat absorber, removing heat from the vehicle's interior and dehumidifying the environment. Pressure regulating devices control the evaporator temperature by regulating refrigerant pressure and flow.

The growth of the global automotive HVAC system market is driven by the increasing demand for thermal systems and automatic climate control features in vehicles, as well as the rise in vehicle sales worldwide. However, the high maintenance cost of HVAC systems poses a challenge to market growth. On the other hand, the adoption of eco-friendly refrigerants and the production of more affordable HVAC systems present lucrative opportunities for players in the automotive HVAC system market.

Automotive HVAC System Market

By Technology

Automatic by technology segment is projected as the most lucrative segments

The global automotive HVAC system market is categorized based on technology, vehicle type, component, and region. The technology segment includes automatic HVAC and manual HVAC. Vehicle types are classified as passenger cars, commercial vehicles, and electric vehicles.

Components studied are evaporator, compressor, condenser, receiver-drier, expansion valve, and others. The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions. The report also provides a comprehensive competitive analysis and profiles of major players in the automotive HVAC system market, 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.

By Vehicle Type

Electric Vehicle type segment is projected as the most lucrative segments

Increase in demand for thermal system and automatic climate control features in automobile

The desire for thermal comfort in vehicles is a significant factor influencing vehicle purchases. The installation of an HVAC system ensures a comfortable temperature environment for both drivers and passengers. HVAC systems not only contribute to a better thermal environment but also improve air conditioning efficiency, thereby reducing fuel consumption. Efficient HVAC systems maintain appropriate vehicle temperature levels, leading to enhanced passenger comfort, fuel economy, and more. The growing use of automatic air conditioning, which regulates cabin temperature regardless of external conditions, drives the growth of the automotive HVAC market. The rise in demand for thermal comfort and the increased penetration of automatic HVAC systems in automobiles are expected to propel the global automotive HVAC market.

Rise in safety and comfort due to adoption of HVAC systems

The demand for safety, comfort, and aesthetic features has led to technological advancements in vehicles. HVAC systems provide a comfortable ride for both drivers and passengers. Additionally, the system helps with defrosting windows, demisting windshields, and dehumidifying the air, thereby enhancing passenger comfort. The safe and clean operation of the system reduces future risks. The increased safety provided by HVAC systems, ensuring favorable conditions inside the vehicle cabin, is expected to drive the growth of the automotive HVAC market.

By Component

Compressor by component segment is projected as the most lucrative segments

Original equipment manufacturers in developing regions like China, India, and Japan are adapting to changing supply and demand patterns by adjusting their production and supply base footprints, supply chains, and product portfolios. Additionally, the rise in urbanization and population contributes to the growing demand for vehicles. For example, North America is home to major vehicle producers such as General Motors and Ford, accounting for 25% of global vehicle production. Furthermore, the presence of global automobile manufacturers like General Motors and Volkswagen AG establishing plants in China through joint ventures with local manufacturers is expected to drive the demand for HVAC systems and boost the growth of the global HVAC system market.

High maintenance cost

Integrating an HVAC system unit in a vehicle is costly, and repairs can be expensive in case of failure. The installation of an HVAC unit increases the overall cost of the automobile. HVAC units consist of components like compressors, condensers, evaporators, and others. Regular maintenance is required to keep these components in good working condition, which can be significantly expensive. Compressors, in particular, are costly and require proper refrigerant and lubrication levels to reduce the risk of premature failure. The high maintenance cost of HVAC system components is expected to hinder the growth of the global automotive HVAC market.

Automotive HVAC System Market

Adoption of eco-friendly refrigerants 

The adoption of environmentally friendly refrigerants, such as R744/CO2, in automobiles not only promotes the growth of the automotive HVAC system market but also contributes to environmental conservation. The use of substitute refrigerants like R744 and CO2 improves fuel efficiency and reduces vehicle emissions, which is beneficial for the environment. For example, Sanden Automotive Components Corporation completed the development and industrialization of compressors for car air conditioning systems using CO2 refrigerant in May 2017. Therefore, the adoption of eco-friendly refrigerants in automobiles presents significant growth opportunities for key players in the market.

Key Benefits for Stakeholders:

• This study provides an analytical overview of the automotive HVAC system market analysis, including current trends and future estimations, to identify potential investment opportunities.
• The report assesses the overall potential of the automotive HVAC system market to understand lucrative trends and gain a stronger market position.
• Information regarding key drivers, restraints, and opportunities in the market is presented, along with a detailed impact analysis.
• The current size of the automotive HVAC system market is analyzed quantitatively from 2019 to 2030 for financial benchmarking.
• Porter's five forces analysis illustrates the bargaining power of buyers and suppliers in the automotive HVAC system industry.

Automotive HVAC System Market Report Highlights

By TECHNOLOGY

• Automatic
• Manual

By VEHICLE TYPE

• Passenger Car
• Commercial Vehicle
• Electric Vehicle

By COMPONENT

• Evaporator
• Compressor
• Condenser
• Receiver-Drier
• Expansion Valve
• Others

By Region

• North America (Us, Canada, Mexico)
• Europe (Uk, Germany, France, Spain, Rest Of Europe)
• Asia-Pacific (China, Japan, India, Australia, Rest Of Asia-Pacific)
• Lamea (Latin America, Middle East, Africa)

Key Market Players

Keihin Corporation, Air International Thermal Systems, Mahle Gmbh, Hanon Systems, Sensata Technologies, Johnson Electric Holdings Limited, Calsonic Kansei Corporation, Sanden Holdings Corporation, Valeo Service, Denso Corporation