E-compressor Market - Forecasts from 2023 to 2028

The global e-compressor market is estimated to grow at a CAGR of 18.53% to reach US$7.366 billion by 2028 from US$2.241 billion in 2021.

The global e-compressor industry is anticipated to grow at a significant pace in the forecasted period owing to the increased use of e-compressors in built-in motors. The built-in motors are the ones that still operate when the vehicles are stopped, helping with fuel efficiency. Additionally, the consistent growth of electric vehicles (EVs) is anticipated to push the global e-compressor market in an upward direction. For instance, according to the Ministry of Heavy Industries, in July 2022, India had a total of 13,34,385 electric vehicles in use. The increasing use of EVs is anticipated to increase in the projected period providing an opportunity for market growth.

Increasing demand for electric vehicles

The e-compressors are used in electric vehicles and there is a growing trend towards electric vehicles and increasing demand for electrically driven air-conditioner systems. The increasing use of smaller and more lightweight e-compressors is anticipated to increase in the market. A significant trend in the global e-compressor industry for the advancement of intelligent e-compressors that can be managed with the help of smartphones and various electronic devices. The increasing trend for electric cars can also be one of the reasons for global e-compressor market growth in the coming years. For instance, according to the International Energy Agency (IEA), electric car sales are anticipated to reach 9,00,000 in India, in 2023 which is 50% higher than in 2022. Additionally, the electric car sales in India in the first quarter of 2023 have already doubled compared to the same period in 2022.

Growth in government initiatives

various governments are providing subsidies for the purchase of electric vehicles. For instance, the FAME program offers price reductions on passenger cars, with varying subsidies depending on the type of vehicle. Light hybrids receive subsidies ranging from INR 11,000 to INR 24,000, strong hybrids get subsidies between INR 59,000 to INR 71,000, and electric vehicles can receive subsidies from INR 60,000 to INR 1,34,000. Additionally, subsidies are available for two-wheelers, three-wheelers, buses, light commercial vehicles, and retrofit kits. Hence, the presence of subsidies is also anticipated to increase the market for electric vehicles in the projected period, which in turn is expected to increase the market demand for e-compressors.

The United States is anticipated to be the fastest-growing country in the North American region

The widespread use of electric and hybrid cars, strict pollution laws, and the emphasis on energy-efficient solutions are the main drivers propelling the growth of the automotive e-compressor market in the United States. Another factor driving demand for effective air conditioning systems with e-compressors is the increased focus on sustainability and the energy economy in the car industry. As per the data published by the US Department of Energy, there has been a significant adoption of electricity as fuel in 2022. The term electricity refers to both PHEVs and all-electric cars, but not to neighborhood electric cars, low-speed electric cars, or two-wheeled electric cars. Additionally, there were 149 hybrid electric offered in 2022. Additionally, according to the US Department of Transportation, electric cars (EVs) have rapidly overtaken hybrid electric vehicles (HEVs), which were the first on the market. The sales of HEVs, EVs, and PHEVs almost double in 2021 fueling the demand for e-compressors in the market.

Market Key Developments

• In June 2023,Garrett Motion Inc., a prominent technology innovator in the automotive sector, is assisting the BMW Group in their dedication to the creation of hydrogen fuel cell vehicles that produce zero emissions. This support comes in the form of an innovative electric fuel cell compressor (FCC) designed and developed by Garrett's skilled research and development team.
• In March 2023,the new GP35FP portable compressor was unveiled by ELGi North America (ELGi) during the much-awaited CONEXPO-CON/AGG 2023, which took place at the Las Vegas Convention Centre. ELGi currently has nine models in its array of portable air compressors, with capacities ranging from 35 CFM to 900 CFM.
• In September 2022,the first 850V electric compressor for the commercial vehicle and transport sector was displayed at IAA 2022 in Hanover, Germany.

Segmentation:

By Type

• Low Voltage
• High Voltage

By Application

• Battery Cooling
• Air Conditioning System

By Vehicle Type

• Motor Vehicle
• Electric Vehicle
• Battery Electric Vehicles
• Hybrid Electric Vehicles
• Plug-in Hybrid Electric Vehicles

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others