Automotive HVAC System Market

Automotive HVAC System Market Overview:

The global automotive HVAC system market size reached US$ 42.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 66.6 Billion by 2032, exhibiting a growth rate (CAGR) of 4.9% during 2024-2032. The growing user demand for comfort and convenience, advancements in air conditioning technologies, regulatory pressures for energy-efficient solutions, and rising adoption of electric and hybrid vehicles are some of the factors propelling the market growth.

Automotive HVAC System Market Analysis:

• Major Market Drivers: The market is experiencing moderate growth due to the rising production of automobiles, increasing adoption of electric vehicles (EVs), and implementation of stringent regulations on vehicle emissions. Additionally, the growing advancements in heating, ventilation, and air conditioning (HVAC) technology, such as improved energy efficiency and eco-friendly systems, are positively influencing the market.
• Key Market Trends: The development of intelligent HVAC systems, which are connected to the internet of things (IoT) for improved user management, the acceptance of HVAC systems compatible with electric and hybrid vehicles, and the utilization of eco-friendly refrigerants are some of the major trends. Furthermore, there is an emphasis on using lightweight materials to enhance the overall efficiency of vehicles.
• Geographical Trends: Asia Pacific dominates the market because of its large automotive manufacturing base and increasing vehicle production.
• Competitive Landscape: Some of the major market players in the industry include Denso Corporation, Hanon Systems, Highly Marelli, Japan Climate Systems Corporation, Johnson Electric Holdings Limited, Mahle GmbH, Mitsubishi Heavy Industries Ltd, Sanden Corporation, Sensata Technologies Inc, and Valeo.
• Challenges and Opportunities: The high cost of advanced HVAC systems and the need for continuous technological innovation are influencing the automotive HVAC system market revenue. However, opportunities in the growing demand for electric vehicles (EVs) and the development of energy-efficient HVAC systems are offering a favorable market outlook.
   

Automotive HVAC System Market Trends:

Growing Adoption of Electric and Hybrid Vehicles

Electric and hybrid vehicles require specific HVAC systems that effectively regulate cabin temperature and maximize battery performance, as standard systems can deplete the battery rapidly. The shift towards electric transportation is leading to investments in creating HVAC systems that work with electric engines. Technologies, such as heat pumps and energy recovery systems, are providing efficient climate regulation without excessive use of energy. These advancements are essential for preserving the range of vehicles and ensuring passenger comfort. The rise of electrification in the automotive sector is driving the demand for cutting-edge HVAC systems designed specifically for electric and hybrid vehicles. In September 2023, Mitsubishi Heavy Industries Thermal Systems, Ltd. (MHI Thermal Systems) introduced the TEJ35GAM, an electric-powered transport refrigeration unit designed for small and mid-size trucks. It includes a plug-in hybrid system and heat pump technology to control temperatures throughout the year efficiently. This new development was designed to improve transportation effectiveness and decrease carbon emissions.

Technological Advancements and Innovations

Progress in technology and innovations in HVAC systems to improve functionality are strengthening the market growth. The advancement of intelligent HVAC systems with sensors and IoT features enables more accurate and automated climate regulation, enhancing energy efficiency and passenger comfort. New technologies, including variable displacement compressors, environment-friendly refrigerants, and heat pump systems, are becoming more popular because of their improved efficiency and reduced environmental harm. The incorporation of these cutting-edge technologies is not just improving the performance of HVAC systems but also adhering to strict regulations on emissions and energy usage. The ongoing investments in research and development (R&D) by automotive manufacturers to create advanced HVAC solutions are bolstering the market growth. In January 2023, Volkswagen introduced the ID.7, which includes advanced air conditioning with dynamically adjusted vents to enhance cabin comfort and efficiency, establishing a new benchmark in automotive climate control technology.

Regulatory and Environmental Standards

Governing bodies in many countries are implementing rules to lower vehicle emissions and enhance fuel efficiency, encouraging car manufacturers to create more energy-efficient and environment-friendly HVAC systems. The regulatory effort is resulting in the use of low global warming potential (GWP) refrigerants and advanced technologies to reduce energy usage in HVAC systems. Adhering to these rules is crucial for companies to prevent fines and improve their market standing by meeting international sustainability objectives. These strict rules are encouraging creativity as businesses allocate resources to create advanced HVAC solutions that comply with regulations and offer top-notch performance. Adhering to these regulations is shifting the industry towards sustainable practices, ensuring long-term market expansion and technological advancement. In October 2023, Sensata introduced the Resonix™ RGD sensor, which is UL-certified for detecting A2L refrigerants, helping HVAC manufacturers switch to more eco-friendly refrigerants in response to changing regulations.

Automotive HVAC System Market Segmentation:

IMARC Group provides an analysis of the key automotive HVAC system market trends in each segment, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, technology, and vehicle type.

Breakup by Component:

• Evaporator
• Compressor
• Condensor
• Receiver-drier
• Expansion Valve
• Others
   

Compressor accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes evaporator, compressor, condensor, receiver-drier, expansion valve, and others. According to the report, compressor represented the largest segment.

Compressor accounts for the majority of the market share based on the automotive HVAC system market forecast. It plays a crucial role by pressurizing the refrigerant and circulating it throughout the system, allowing for the cooling and heating functions to take place. Its significance is driven by the growing demand for advanced HVAC systems in modern vehicles, particularly with the rise of electric and hybrid vehicles that require highly efficient and reliable components. Technological advances that increase compressor efficiency, lower energy usage, and decrease environmental harm are supporting the market growth. Major companies are making notable investments in creating advanced compressor technologies like variable displacement compressors, providing better performance and flexibility in response to varying weather conditions. Hanon Systems revealed on January 29, 2024, that they had manufactured more than 500,000 CO2 (R744) electronic compressors for EV heat pumps at their Portugal facility, mainly utilized in Volkswagen's electric cars to improve heating effectiveness and increase driving distance.

Breakup by Technology:

• Automatic
• Manual
   

Automatic holds the largest share of the industry

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes automatic and manual. According to the report, automatic accounted for the largest market share.

Automatic represents the largest market share as per the automotive HVAC system market outlook. An automated HVAC system is created to regulate temperature and airflow in the vehicle cabin without needing frequent manual changes from the driver or passengers. It makes use of sensors and sophisticated control algorithms to automatically monitor and adjust climate parameters, guaranteeing ideal comfort and energy efficiency. The growing demand for automatic HVAC systems in vehicles is mainly because of the desire of users for convenience and improved comfort features. Car manufacturers are integrating these systems into their cars to satisfy user needs and set their products apart in a competitive market.

Breakup by Vehicle Type:

• Passenger Car
• Commercial Vehicle
• Electric Vehicle
   

Passenger car leads the market, accounting for the largest automotive HVAC system market share

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger car, commercial vehicle, and electric vehicle. According to the report, passenger car represented the largest segment.

Passenger car holds the biggest segment due to the large number of passenger cars being produced and sold worldwide, driven by the growing desire of users for personal convenience and comfort. Advanced features, including dual-zone and tri-zone climate control, air quality sensors, and automatic temperature adjustments, are being added to HVAC systems in passenger cars to improve passenger comfort. Increasing user demand for luxury and convenience, as well as stringent regulations on vehicle emissions and fuel efficiency, are encouraging car manufacturers to implement advanced HVAC systems in passenger vehicles. Furthermore, the rise in disposable income and urban development, especially in developing countries, is resulting in an increase in the number of car owners, which is driving the advanced automotive HVAC system demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific represents the leading market segment 

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for automotive HVAC system.

Asia Pacific dominates the market owing to the growing automotive production and sales in countries. The demand for passenger cars with advanced HVAC systems is increasing due to rapid urbanization, expanding middle class, and rising disposable incomes in the region. Furthermore, the presence of major automotive manufacturers and suppliers and rising investments in automotive R&D are encouraging the development of advanced HVAC technologies. Favorable government policies, such as incentives for electric and hybrid vehicles, are supporting the automotive HVAC system market growth. The dominance of the region is further strengthened by the increasing recognition of air quality and comfort, leading users to choose cars with top-notch HVAC systems. In April 2023, Valeo opened its new Kanda facility in Japan, specializing in manufacturing advanced HVAC systems and active grille shutters for improved vehicle energy efficiency and passenger comfort. The factory, belonging to Valeo Thermal Systems, focused on sustainability through the use of creative designs and reused materials.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include Denso Corporation, Hanon Systems, Highly Marelli, Japan Climate Systems Corporation, Johnson Electric Holdings Limited, Mahle GmbH, Mitsubishi Heavy Industries Ltd, Sanden Corporation, Sensata Technologies Inc, Valeo, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Major automotive HVAC system companies are involved in developing new products, forming strategic partnerships, and pursuing mergers and acquisitions (M&A) in order to enhance their market standings. They are making investments in cutting-edge technologies, such as environment-friendly refrigerants and intelligent climate control systems, to satisfy changing user needs and meet regulatory mandates. These companies are expanding their presence worldwide through the establishment of new manufacturing facilities and research centers. Moreover, they are concentrating on improving energy efficiency and decreasing the environmental footprint of their HVAC systems, in line with the overall industry shift towards sustainability and eco-friendly technologies. In March 2024, Samsung Electronics started a major $6 billion M&A agreement to purchase Johnson Controls' HVAC branch. This action was taken to enhance Samsung's position in the expanding HVAC sector due to increasing interest in energy-saving systems.

Automotive HVAC System Market News:

• July 2023: Marelli unveiled a new Thermal Management Module (iTMM) for EVs that enhanced HVAC systems by merging e-powertrain, battery, and cabin thermal circuits into one single part. This advancement enhanced vehicle performance, security, and range by as much as 20%.
• May 2023: Hanon Systems, a company from South Korea specializing in HVAC and automotive thermal management, revealed plans to invest $40 million in constructing a new facility in Bulloch County, Georgia. This plant will manufacture HVAC parts for cars, aiding in Hyundai's EV manufacturing.

Automotive HVAC System Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from2018-2032.
• The automotive HVAC system market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.