Automotive HVAC Global Market Report 2024

Automotive HVAC, short for heating, ventilation, and air conditioning, encompasses the technology designed to provide indoor and ambient comfort in vehicles. This system integrates three subsystems - heating, cooling, and air conditioning - to deliver clean air through ventilation, regulate air temperature, monitor moisture content, and eliminate excess humidity from circulating air. Its primary purpose is to control the overall temperature and climate within the vehicle.

The main components of automotive HVAC include the evaporator, compressor, condenser, receiver or drier, and expansion device. The evaporator facilitates the evaporation of refrigerant, transforming it from a liquid to a gaseous state. The technologies employed in automotive HVAC systems include both manual and automatic modes. Various types of vehicles benefit from automotive HVAC, including passenger cars, commercial vehicles, light commercial vehicles, and heavy commercial vehicles.

The automotive HVAC market research report is one of a series of new reports that provides automotive HVAC market statistics, including automotive HVAC industry global market size, regional shares, competitors with an automotive HVAC market share, detailed automotive HVAC market segments, market trends and opportunities, and any further data you may need to thrive in the automotive HVAC industry. This automotive HVAC market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive hvac market size has grown strongly in recent years. It will grow from $51.88 billion in 2023 to $56.29 billion in 2024 at a compound annual growth rate (CAGR) of 8.5%. The growth observed during the historic period can be attributed to several factors, including the global increase in automotive production, heightened concerns about global warming, a rise in demand for energy efficiency, and an increased demand for commercial vehicles.

The automotive hvac market size is expected to see strong growth in the next few years. It will grow to $77.05 billion in 2028 at a compound annual growth rate (CAGR) of 8.2%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing prevalence of electric and hybrid vehicles, the proliferation of autonomous vehicles, growth in emerging markets, a rise in research and development activities, and an increase in disposable income. Major trends expected during this period encompass the integration of smart and connected HVAC systems, advancements in thermal comfort solutions, the implementation of cabin sensing and artificial intelligence (AI), the adoption of multi-zone HVAC setups, and a focus on green and eco-friendly HVAC technologies.

The increasing demand for luxury vehicles is expected to propel the growth of the automotive HVAC market going forward. A luxury vehicle is defined as a vehicle equipped with better performance capabilities, lavish interiors, and all the latest safety and technology features. In high-end luxury vehicles, the automotive HVAC system is essential to deliver a thermally comfortable environment for every passenger as per their requirements. For instance, in April 2022, according to the Deccan Herald, an Indian English-language daily newspaper, Lamborghini, an Italy-based manufacturer of luxury sports cars and SUVs, saw a 142% increase in sales from the previous year. As opposed to 26 in 2020–21, the company delivered 63 luxury and sport utility vehicles (SUVs) on Indian roads. Therefore, the increasing demand for luxury vehicles is driving the growth of the automotive HVAC market.

The growing demand for electric vehicles is expected to propel the growth of the automotive HVAC market going forward. Electric vehicles (EVs) refer to vehicles powered by electricity stored in rechargeable batteries that replace or supplement traditional internal combustion engines. Automotive HVAC systems in electric vehicles are used to provide comfort and climate control for occupants while maintaining the optimal operating temperature. For instance, in June 2022, according to the International Council on Clean Transportation, a US-based nonprofit organization, electric vehicle sales reached a record high of 6.9 million in 2021, a 107% increase from 2020. Of the vehicles sold, 98% were light-duty vehicles (LDVs), and 2% were heavy-duty vehicles (HDVs). Therefore, the rapidly growing demand for electric vehicles is supporting the growth of the automotive HVAC market.

Product innovations are a key trend gaining popularity in the automotive HVAC market. Major market players are concentrating their efforts on creating innovative products with advanced technologies such as the introduction of automatic climate control that controls the temperature of the car, using green technologies to develop eco-friendly and energy-efficient automotive HVAC systems, and the adoption of eco-friendly refrigerants, among others. For instance, in October 2021, Honda Motor Company Ltd., a Japan-based automotive manufacturing company, introduced an innovative anti-virus cabin air filter that is highly effective in capturing a wide range of harmful germs, allergens, and even viruses that cause significant health problems. This revolutionary cabin air filter offers active protection by considerably lowering virus aerosol concentrations. A unique multi-layer architecture successfully filters gathers, and suppresses harmful ambient gasses, as well as inorganic and biological particles and aerosols. The Honda antivirus cabin air filter is one of the most effective protections available for reducing hazards while driving.

The automotive Heating, Ventilation, and Air Conditioning (HVAC) market is anticipated to experience substantial growth, driven by the increasing demand for luxury vehicles. Luxury vehicles, characterized by superior performance, lavish interiors, and the latest safety and technology features, rely on advanced automotive HVAC systems to provide a thermally comfortable environment tailored to each passenger's preferences. In April 2022, Lamborghini, an Italy-based luxury sports car and SUV manufacturer, reported a remarkable 142% increase in sales compared to the previous year. Delivering 63 luxury and sport utility vehicles (SUVs) on Indian roads, as opposed to 26 in 2020–21, reflects the growing demand for luxury vehicles and, consequently, the expansion of the automotive HVAC market.

The surge in demand for electric vehicles is also expected to drive the growth of the automotive HVAC market. Electric vehicles (EVs), powered by rechargeable batteries, utilize automotive HVAC systems to provide occupants with comfort and climate control while maintaining optimal operating temperatures. According to the International Council on Clean Transportation, electric vehicle sales reached a record high of 6.9 million in 2021, marking a 107% increase from 2020. Of these vehicles, 98% were light-duty vehicles (LDVs), and 2% were heavy-duty vehicles (HDVs). This significant growth in electric vehicle demand contributes to the overall expansion of the automotive HVAC market.

Innovations in product offerings emerge as a prominent trend in the automotive HVAC market. Major industry players are actively focusing on creating innovative products incorporating advanced technologies. Examples include the introduction of automatic climate control systems for precise temperature regulation, the use of green technologies to develop eco-friendly and energy-efficient HVAC systems, and the adoption of environmentally friendly refrigerants. In October 2021, Honda Motor Company Ltd., a Japan-based automotive manufacturing company, introduced an innovative anti-virus cabin air filter with high effectiveness in capturing harmful germs, allergens, and viruses. This advanced cabin air filter actively reduces virus aerosol concentrations, offering significant protection to passengers. The Honda antivirus cabin air filter exemplifies a cutting-edge product designed to enhance safety and well-being while driving.

Major players in the automotive Heating, Ventilation, and Air Conditioning (HVAC) market are strategically focusing on product innovation to maintain their positions in the industry. One notable example is the Valeo heat pump, introduced by Valeo, a prominent US-based technology company. This energy-efficient automotive system utilizes outside air to heat or cool the cabin, effectively reducing the load on the vehicle's battery and extending the range of electric vehicles. Launched in April 2021, the Valeo heat pump obtains two-thirds of its energy needs from ambient air, minimizing the reliance on onboard batteries and utilizing a natural refrigerant. Vehicles equipped with this technology can travel up to 30% further at -15°C compared to those with more traditional heating systems. Notably, a European manufacturer became the world's first to incorporate Valeo's heat pump and natural refrigerant technology into its new electric vehicle platform.

In February 2021, MAHLE Group, a Germany-based automotive parts manufacturer, executed the acquisition of the air conditioning business of Keihin Corporation for an undisclosed amount. This strategic move integrated four production sites and one development center into the MAHLE Group, enhancing their presence in Asia and North America. Keihin Corporation, a Japan-based manufacturer of automotive systems, played a significant role in the automotive HVAC market. This acquisition by MAHLE Group underscores the industry's commitment to strengthening global capabilities and expanding market reach through strategic acquisitions.

Major companies operating in the automotive hvac market include Denso Manufacturing Tennessee Inc., Air International Thermal Systems, Valeo Thermal Systems, Hanon Climate Control Corp., Calsonic Kansei North America Inc., Johnson Electric Holdings Ltd., Sanden Holdings Corporation, Sensata Technologies Inc., Marelli Corporation, OMEGA Environmental Technologies, Delphi Automotive LLP., Visteon Corp., Trans/Air Manufacturing Corp., Toyota Industries Corporation, Xiezhong International Holdings Limited., Mitsubishi Heavy Industries Ltd, Behr GmbH & Co. KG, Subros Limited, Webasto SE, Red Dot Corporation, Eberspaecher Climate Control Systems GmbH & Co. KG, DelStar Technologies Inc., Nippon Seiki Co. Ltd., Keihin North America Inc., Modine Manufacturing Company, Zhejiang Yinlun Machinery Co. Ltd., Bergstrom Inc., MAHLE Behr GmbH & Co. KG, The Keihin Corporation, Eberspächer Group, Gentherm

Asia-Pacific was the largest region in the automotive HVAC market in 2023. The regions covered in the automotive HVAC market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the automotive HVAC market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The automotive HVAC market consists of revenues earned by entities by providing automotive HVAC services such as displaying system repair and service, brake service, engine light diagnostics, cooling system service, fluid maintenance, and fluid injection services. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive HVAC market also includes sales of automotive HVAC components such as A/C compressors, condensers, radiator fans, accumulators, blower fans, evaporators, and refrigerators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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