Global Automotive HVAC Market Analysis and Global Forecast 2023-2033

Global Automotive HVAC Market Overview

The Global Automotive HVAC Market Size is expected to reach USD 94.77 Billion by 2033. The Global Automotive HVAC Market industry size accounted for USD 64.54 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 6.46% from 2023 to 2033. The Global Automotive HVAC (Heating, Ventilation, and Air Conditioning) Market refers to the worldwide industry involved in the design, manufacturing, and distribution of systems that control the interior climate of vehicles. These systems are integral components of modern automobiles, providing comfort and safety to passengers by regulating temperature, humidity, and air quality within the vehicle cabin. The market encompasses various components such as compressors, evaporators, condensers, and HVAC control units, along with the associated technologies and services. It serves both the original equipment manufacturer (OEM) and aftermarket segments, catering to passenger cars, commercial vehicles, and other types of automobiles. Factors influencing the growth of this market include technological advancements, increasing vehicle production, consumer demand for enhanced comfort features, and regulatory requirements pertaining to vehicle emissions and energy efficiency.

Global Automotive HVAC Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has significantly impacted the Global Automotive HVAC Market. The pandemic disrupted global supply chains, causing delays and shortages in the availability of automotive HVAC components and raw materials. Factory closures, transportation restrictions, and lockdown measures hindered the production and distribution of HVAC systems, leading to supply chain bottlenecks. Automakers temporarily halted or scaled back production in response to reduced consumer demand, workforce shortages, and government-mandated shutdowns. The decline in vehicle production directly affected the demand for automotive HVAC systems, as these systems are typically installed in newly manufactured vehicles. The economic uncertainty caused by the pandemic influenced consumer behavior, leading to changes in vehicle purchasing patterns. Many consumers delayed or postponed buying new vehicles, opting to repair or maintain their existing vehicles instead. This shift in consumer preferences negatively impacted the demand for new automotive HVAC systems. The pandemic prompted a heightened focus on health and safety measures within vehicles. Automakers and HVAC system suppliers responded by developing and implementing technologies to improve cabin air quality, such as advanced filtration systems and air purification solutions. While this could drive future demand for upgraded HVAC systems, the immediate impact on sales may have been limited due to reduced vehicle sales.

Global Automotive HVAC Market Dynamics

The major factors that have impacted the growth of Global Automotive HVAC Market are as follows:

Drivers:

Ø  Technological Advancements

The continuous growth in global vehicle production, driven by rising consumer demand, urbanization, and economic development in emerging markets, contributes to the expansion of the automotive HVAC market. As more vehicles are manufactured, there is a corresponding demand for HVAC systems to provide comfort and climate control to passengers. Ongoing advancements in HVAC technology drive market growth by improving system efficiency, performance, and functionality. Innovations such as dual-zone climate control, smart temperature sensors, and advanced air filtration systems enhance the capabilities of automotive HVAC systems, making them more appealing to consumers. The increasing adoption of electric vehicles presents opportunities for the automotive HVAC market. EVs require efficient HVAC systems to provide heating, cooling, and climate control while optimizing energy consumption to extend vehicle range. As the EV market continues to grow, demand for specialized HVAC solutions tailored to electric vehicles is expected to increase.

Restraint:

• Perception of High Development and Manufacturing Costs

Developing and manufacturing automotive HVAC systems involves significant research and development (R&D) expenses, as well as investment in specialized manufacturing facilities and equipment. The complexity of HVAC technology, regulatory compliance requirements, and the need for continuous innovation contribute to high development and manufacturing costs. Automakers and suppliers must carefully manage these costs to maintain competitiveness in the market, which can pose a restraint, particularly for smaller companies or those with limited financial resources.

Opportunity:

⮚      Rising Demand for Electric Vehicles

The increasing adoption of electric vehicles presents a significant opportunity for the automotive HVAC market. EVs require efficient HVAC systems that can optimize energy usage to extend vehicle range while providing effective heating, cooling, and climate control for passengers. HVAC system suppliers can capitalize on this trend by developing specialized solutions tailored to the unique requirements of electric vehicles, such as energy-efficient heat pumps and cabin preconditioning systems. Growing awareness of indoor air quality and health concerns has led to increased demand for HVAC systems that can improve cabin air quality and provide a healthier environment for passengers. HVAC suppliers can capitalize on this opportunity by developing advanced filtration systems, air purification technologies, and cabin air quality sensors that can detect and mitigate pollutants, allergens, and airborne pathogens. Solutions that address health and wellness trends can become a competitive advantage for automakers and HVAC suppliers.

Global Automotive HVAC Market Segment Overview

By Technology

Based on Technology, the market is segmented based on Manual System and Automatic System. The automated segment will hold most of the share in the Automotive HVAC market growth. The causes that may be ascribed to the rising demand for automated automobile HVAC systems include changing customer tastes and the rising popularity of premium vehicles.

By Component

Based on Component, the market segment has been divided into Compressor, Condenser, Evaporator and Others. The compressor segment is dominant the market. The compressor is a pump that is powered by an engine-attached belt. Raising the pressure and temperature of the refrigerant gas in the system compresses and transfers it. It also aids in air purification. Compressor demand is rising due to rising automobile production worldwide and increased demand for HVAC systems.

By Vehicle Type

Based on Vehicle Type, the market segment has been divided into Passenger Cars and Commercial Vehicle. The passenger vehicle segment is anticipated the market. The variables driving up demand for this category include rising disposable income and the availability of different financial options.

Global Automotive HVAC Market Regional Analysis

Based on region, the global Automotive HVAC Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Global Automotive HVAC Market followed by the Asia-Pacific and Europe regions.

Global Automotive HVAC North America Market

North America holds a dominant position in the Global Automotive HVAC Market. North America is a significant market for automotive HVAC systems, driven by a large automotive manufacturing base, high vehicle ownership rates, and consumer demand for comfort and convenience features. The region’s harsh winters and hot summers necessitate robust HVAC systems in vehicles. Key players in the automotive HVAC market in North America include the United States, Canada, and Mexico. Technological advancements, such as the integration of smart HVAC systems and air quality sensors, are driving market growth in the region.

Global Automotive HVAC Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Global Automotive HVAC Market industry. Asia Pacific is the largest and fastest-growing region in the global automotive HVAC market, fueled by robust automotive production, rapid urbanization, and rising disposable incomes in countries such as China, Japan, India, and South Korea. The region’s diverse climate conditions, ranging from tropical to temperate, drive demand for HVAC systems tailored to specific environmental requirements. Increasing consumer demand for comfort features, along with regulatory mandates for vehicle safety and emissions, is spurring market growth in Asia Pacific.

Competitive Landscape

The global Automotive HVAC Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Hanon Systems
• Keihin Corporation
• Air International Thermal Systems
• Valeo SA
• Visteon Corporation
• Denso Corporation
• Sanden Corporation
• Sensata Technologies Inc.
• MAHLE GmbH
• Johnson Electric Holdings Ltd

 Key Development

In March 2023, In August 2021 – In Poland, Delphi Technologies said it will increase the size of its regional aftermarket distribution facilities. The business produces components for batteries, fuel systems, batteries, and engine cooling.

In March 2022, According to Hanon Systems, a provider of automotive thermal and energy management systems, a new facility has officially begun operations in Hubei and China. The business will begin producing HVAC (heating, ventilation, and air conditioning) components for electric vehicles to assist manufacturers.

Scope of the Report

Global Automotive HVAC Market, by Technology

• Manual System
• Automatic System

Global Automotive HVAC Market, by Component

• Compressor
• Condenser
• Evaporator
• Others

Global Automotive HVAC Market, by Vehicle Type

• Passenger Cars
• Commercial Vehicle

Global Automotive HVAC Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of SouthAmerica
• Middle East &Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • SouthAfrica
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $94.77 Billion
CAGR	6.46% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Technology, Component, Vehicle Type
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Hanon Systems, Keihin Corporation, Air International Thermal Systems, Valeo SA, Visteon Corporation, Denso Corporation, Sanden Corporation, Sensata Technologies Inc., MAHLE GmbH and Johnson Electric Holdings Ltd.
Key Market Opportunities	• Rising Demand for Electric Vehicles • Focus on Cabin Air Quality and Health
Key Market Drivers	• Technological Advancements • Increasing Vehicle Production

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Global Automotive HVAC Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Global Automotive HVAC Market historical market size for the year 2021, and forecast from 2023 to 2033
• Global Automotive HVAC Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Automotive HVAC Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.