Automotive HVAC

Automotive HVAC

The heating, ventilation, and air conditioning (HVAC) system in a vehicle is used to control the temperature inside the vehicle's cabin. It consists of three subsystems, namely heating, cooling, and air conditioning, which work together to provide pure air to the car cabin, providing thermal comfort to the driver and passengers. Automatic heating and climate control systems in automobiles and increasing vehicle sales globally. Furthermore, the adoption of eco-friendly refrigerants and cheaper production of HVAC systems present lucrative growth opportunities for the players operating in the automotive HVAC systems market.

The Automotive HVAC Market size is expected to grow at a CAGR of 6% during the forecast period (2023-2030). Over the long term, a rise in demand for thermal comfort and an increase in safety due to the adoption of HVAC systems are expected to boost the growth of the automotive HVAC market. A reduction in system size and weight of the system may support the growth of the market over the coming years. The integration of electronics, sensors, and automated climate control features at a lesser cost is translating into greater adoption of HVAC units in passenger vehicles. Rising vehicle electrification is likely to increase the integration of advanced comfort and safety features in vehicles.

• Based on the technology type, the market is segmented into manual and automatic. Amongst these, the automatic segment will hold the majority of the growth of the automotive HVAC market during the forecast period. Automatic HVAC systems are becoming increasingly popular in cars due to a number of factors, including changing consumer preferences and the increasing popularity of luxury cars. In addition, the use of advanced HVAC systems such as Automatic Air Recirculation (AARC), Automatic Temperature Control (ATC), and Fogging Sensors (Fogging) can improve vehicle performance and lower overall vehicle fuel consumption.
• Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. Amongst these, the passenger vehicle type segment holds the largest market share and is expected to witness the highest CAGR during the forecast period. This is mainly owing to the factors resulting from increasing disposable income and the availability of various financial programs that are driving demand for this segment. In 2021, global auto sales were around 66.7 million units, compared with 63.8 million units in 2020. Due to these vehicle sales, the current OEM service includes air conditioning systems and advanced integrated HVAC in their proposed models. For instance, in October 2022, Polestar launched three of its electric SUV models in the global market. The SUV is equipped with an advanced climate control system to ensure passenger comfort during long journeys.
• For a better understanding of the market adoption of the automotive HVAC market, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. Asia-Pacific Automotive HVAC market is expected to present a significant CAGR throughout the forecast period. The automotive HVAC market has witnessed good growth and beneficial performance in the Asia-Pacific region, the fastest-growing region worldwide. Due to the proximity of major auto manufacturers, the large production of automobiles, and the growing demand for vehicles in the countries that produce them, such as China, Korea, and India, the HVAC market Automotive in Asia-Pacific is sure to see significant growth. Government initiatives are to boost the automotive HVAC market next year to revive the auto industry. For example, the Indian government encourages foreign investment by offering courses in the automotive industry to commercialize discoveries. China's production of passenger cars reached 996,000 units in April 2022, while sales stood at 965,000 units. This explains the decline in production and sales of 41.9% and 43.4% year-on-year, respectively. From January to April 2022, passenger car production fell 2.6% year-on-year, reaching a total of 6,494 million units.
• Some of the major players operating in the market include VALEO, DENSO CORPORATION, MAHLE GmbH, HELLA GmbH & Co. KGaA, SANDEN CORPORATION, Sensata Technologies, Inc., JAPAN CLIMATE SYSTEMS CORPORATION, MITSUBISHI HEAVY INDUSTRIES, LTD., Hanon Systems, and Motherson.