Global Automotive HVAC Market Size & Share, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive HVAC Market


The global Automotive HVAC market size is projected to reach US$ 32.11 billion by 2026, from US$ 19.57 billion in 2020, at a CAGR of 8.6% during 2021-2026. Surging demand for passenger vehicles and soaring need for more luxurious and comfort travel options have been propelling the market. Changing environmental conditions, increasing income levels, and growing middle class population are estimated to boost the growth of the market over the forecast period.
An automotive HVAC unit has become an integral part of passenger vehicles offering various comfort features to consumers, thereby influencing their buying preferences. It helps maintain internal temperature of vehicle cabin as well as offer a variety of thermal control features such as fogging sensors, automatic temperature control and fan speed, among others.

Integration of electronics, sensors, and automated climate control features at a lesser cost is translating into a greater adoption of HVAC units in passenger vehicles. Private car rental players such as Uber, Ola, Lyft, and Sidecar have made air conditioning as their basic requirement to enhance customer value proposition, which is also anticipated to drive the global market.

Technological innovations and substantial investments in R&D initiatives are poised to enhance offering and technological capabilities of players. They are leading to innovation of energy efficient systems and eco-friendly HVAC units coupled with innovative designs to lower weight and size of systems for better adaptability and improved vehicle performance. Operation of these HVAC systems requires considerable power and has a negative effect on fuel economy.

Reduction in system size and weight of the system will support the growth of the market over the coming years. Government initiatives to curb global warming are projected to lead to introduction of energy efficient and green technology solutions.

However, the automotive industry has been a major contributor towards rising levels of CO2 emissions. Besides this, growing consumer awareness regarding deteriorating environmental conditions has been encouraging consumers to shift towards eco-friendly solutions. Increasing government regulations to develop energy efficient and low emission solutions coupled with high maintenance costs are likely to adversely affect the growth of the market.

Market Segmentation, Outlook & Viewpoint: Global Automotive HVAC Market

Technology Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Automatic
  
Manual

Vehicle Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

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

Key Players, Recent Developments & Regional Insights: Global Automotive HVAC Market

On the basis of vehicle type, the market has been classified into heavy commercial vehicles (HCV), light commercial vehicles (LCV), and passenger vehicles. Rising disposable income and availability of various finance schemes are anticipated to spur the growth of the market over the forecast period. Passenger car HVAC accounted for approximately three quarters of the overall revenue in 2017. It is projected to exhibit the highest CAGR during the forecast period.

Demand for automotive HVAC systems in LCVs is also poised to rise at a healthy pace due to better financial schemes and rural demand. Booming e-commerce and logistics sectors and soaring need for fleets to support last mile connectivity are likely to foster the growth of the segment over the forecast period.

Insights

Based on technology, the market has been segmented into automatic and manual systems. The size of the manual systems segment, where users must select temperature and blower setting, is poised to decline over the years owing to low efficiency and complexity. The technology is likely to represent approximately 35.0% of the overall revenue of the automotive HVAC market by 2025.

Automatic system is a major technology segment and is expected to dominate the market through 2025. The segment accounted for just over 60% of the overall market revenue in 2017. It is estimated to register a higher CAGR of over 9.7% during the forecast period. Burgeoning demand for automatic automotive HVAC systems can be attributed to evolving consumer preferences and increasing demand for luxury vehicles. Furthermore, technological advancements in HVAC technologies such as automatic air recirculation, automatic temperature controls, and fogging sensors can help enhance vehicle performance and reduce overall fuel consumption.

Regional Insights

The Asia Pacific market is likely to witness significant growth owing to presence of key automobile manufacturers, large scale production of vehicles, and spiraling vehicle demand in developing nation such as India, South Korea, and China. Government initiatives to revive the automotive industry are expected to drive the market during the forecast period. For instance, the Government of India allowed 100.0% Foreign Direct Investment (FDI) through automatic route in the automobile sector. The region accounted for over 47.0% of the overall revenue in 2017.

North America is estimated to experience healthy growth during the forecast period due to improving macroeconomic conditions and increasing vehicle production in the region. The region is anticipated to rise at a CAGR of over 8.0% during the forecast period. Additionally, rising disposable income in the U.S. and surging demand for luxury vehicles are projected to stimulate the growth of the regional market over the same period.

Automotive HVAC Market Share Insights

Key industry players include Brose Fahrzeugteile GmbH & Co. Kg, Air International Thermal Systems, Hanon Systems, Calsonic Kansei, Engineered Plastic Components, Denso Corporation, and DelStar Technologies. Other prominent vendors include Johnson Electric, Mahle Behr GmbH, Japan Climate Systems Corporation, Sensata Technologies, Sanden Holdings Corporation, and Valeo Group.

Key market players are focused on investing in R&D initiatives to develop innovative technologies and HVAC solutions that are cost and fuel efficient. Market players are also interested in partnerships and M&A activities to enhance their product portfolios as well as acquire a larger market share.

For instance, In October 2015, Denso announced to help Toyota develop Prius, which improves thermal, sensing and hybrid technologies for a safer, fuel efficient, and greener environment. In July 2015, Mahle Group acquired Delphi Automotives thermal business to enhance its market penetration and product offering. Delphi Automotive was among the top five industry players and this acquisition is poised to give significant competitive edge to Mahle Group over other competitors.

Key Insights Covered: Global Automotive HVAC Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive HVAC industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Automotive HVAC industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive HVAC industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive HVAC industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive HVAC industry.

Research Methodology: Global Automotive HVAC Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other