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The Air Conditioner (AC) Market for Transportation Market size is forecast to increase by USD 8.45 billion, at a CAGR of 6.46% between 2023 and 2028. The market's growth trajectory hinges on various factors, including the emphasis on enhancing comfort and passenger experience within the transportation sector. Additionally, the escalating global temperatures have spurred an increased demand for these systems within the transportation sector, further fueling market expansion. Moreover, the rapid pace of urbanization coupled with escalating traffic congestion in emerging economies has contributed significantly to market growth. These factors collectively drive the growth rate of the market, highlighting the increasing significance of transportation systems in addressing contemporary urban challenges and meeting evolving passenger needs. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
Moreover, in 2023, this market for the transportation sector in APAC experienced significant growth, attributed to various key factors. A major contributing factor was the rapid expansion of the automotive industry across APAC countries. Amber Enterprises India Ltd. emerged as a notable contributor, providing tailored air conditioning solutions for the transportation sector, including Railway, Metro, and Bus. Additionally, Daikin Industries Ltd. made substantial contributions with its transportation sector air conditioners, ensuring reliable 24/7 operations to guarantee traveler comfort throughout their journey.
Market Forecast 2024-2028
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The market is driven by increasing consumer spending and demand for convenience and comfort in transportation vehicles. Rising population and emerging markets also contribute to market growth. However, challenges such as climatic circumstances in hot and arid areas pose environmental and operational challenges. Moreover, meeting the demand for energy-efficient systems and environmentally optimized products while maintaining affordability remains a key challenge. Addressing these challenges while catering to evolving consumer preferences for portable systems and ecologically conscious goods is crucial for market sustainability. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Comfort and passenger experience are key drivers in the market, influencing purchasing decisions and technological advancements across multiple modes of transportation, such as cars, railways, and aerospace. In the aerospace industry, major players such as Boeing and Airbus prioritize cabin comfort in commercial aircraft. These companies invest in advanced systems to provide a comfortable and controlled environment for passengers on flights. For example, the Boeing 787 Dreamliner has advanced air purification systems and customizable climate control options for passengers.
Across all modes of transport, the emphasis on the passenger experience drives ongoing innovation. This includes the adoption of smart technologies, increased energy efficiency, and the use of environmentally friendly refrigerants. As travelers prioritize comfort, transportation companies and manufacturers work with vendors to provide solutions that improve the overall journey, boosting the market. These factors are expected to accelerate the market during the forecast period.
The use of alternative refrigerants is expected to be a major trend in the market for the transportation sector, driven by a shared desire to address environmental concerns and comply with stringent regulations. Traditional refrigerants, such as hydrofluorocarbons (HFCs), contribute to global warming and ozone depletion, necessitating the transition to more environmentally friendly alternatives. Major automotive system manufacturers are actively exploring and incorporating alternative refrigerants into their products. For example, consider Honeywell International Inc. Honeywell International Inc. has been a proponent of using alternative refrigerants.
Moreover, as regulatory pressures increase and environmental awareness grows, the use of alternative refrigerants is expected to become standard practice throughout the transportation industry. Manufacturers and suppliers are investing in R&D to ensure the successful integration of these alternatives, which promotes sustainability and reduces the environmental impact of these systems in passenger cars, railways, and aerospace. These factors are expected to propel the market during the forecast period.
Due to several interrelated factors, energy consumption and efficiency pose a significant challenge to the market for the transportation sector. As the demand for these systems in vehicles grows, especially as global temperatures rise, there is a greater emphasis on developing systems that strike a balance between providing optimal cooling performance and minimizing energy consumption.
The challenge is to meet passenger's expectations for a comfortable climate within vehicles while adhering to increasingly stringent energy efficiency standards and regulations. Achieving high efficiency is critical not only for meeting environmental goals but also for addressing the practical limitations of power availability in various modes of transportation, particularly electric vehicles (EV).
Further, these A/C manufacturers must continue to invest in R&D to innovate and adopt energy-efficient technologies such as variable-speed compressors, improved insulation, and advanced control systems. This emphasis on energy efficiency is not only a regulatory requirement, but it is also an important factor in influencing consumer choices and contributing to the overall sustainability of transportation. These factors will hinder the market during the forecast period.
The market exhibits diverse segmentation catering to various needs and environments. In emerging markets, characterized by rapid commercial construction and flourishing tourism industries, demand for environmentally optimized products is on the rise to ensure convenience and comfort during transportation. Consumer spending and disposable incomes influence the preference for energy-efficient systems, particularly in regions experiencing a rising population and increasing urbanization. In the unitary segment, Room AC-Windows and split systems are prevalent choices for providing cooling comfort in homes, workplaces, and shops. For larger spaces and commercial settings like entertainment venues, Ducted AC- Ceiling Concealed units offer effective cooling solutions. Additionally, portable systems cater to the need for on-the-go cooling in transportation vehicles.
The automatic segment is estimated to witness significant growth during the forecast period. Automatic A/C systems in passenger and commercial vehicles are a significant technological advancement that transforms the driving experience by seamlessly managing climate control. These systems use cutting-edge technology, such as smart sensors, electronic controls, and sophisticated algorithms, to automatically regulate temperature, airflow, and humidity within the vehicle.
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The automatic segment was the largest and was valued at USD 11.64 billion in 2018. Leading companies have played an important role in advancing these technologies, which has significantly contributed to the demand of the market for the transportation sector. Companies such as Valeo SA specialize in customized climate zones and automatic adjustments based on external conditions, offering innovative solutions. These technological advancements not only improve user comfort but also address concerns about energy consumption and environmental impact, bolstering global demand for automatic A/C systems in vehicles. Hence, these factors are expected to propel the segment of the market during the forecast period.
Based on the application, the market has been segmented into automotive, railway, and aerospace. The automotive segment will account for the largest share of this segment.? These systems in automobiles play an important role in improving occupant comfort and driving experiences. Air conditioners in automobiles are essential for maintaining a comfortable interior climate by regulating temperature, humidity, and airflow. Advanced technologies, such as automatic climate control and personalized settings, cater to individual driver and passenger preferences. The demand for sophisticated features such as dual-zone or multi-zone climate control, air purification, and smart sensing technologies contributes to the growing importance of these A/C systems in vehicles. Rising disposable income, increased urbanization, and shifting consumer preferences for comfortable and feature-rich vehicles all contribute significantly to the expansion in the adoption of air conditioning systems in the automotive car segment. These factors are expected to contribute to high demand in the automotive segment in the market during the forecast period.
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APAC is estimated to contribute 55% to the growth by 2028. Technavio's analysts have provided extensive insight into the air conditioner (AC) market for transportation forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. One major driver is the demand of the automotive industry in APAC countries. As these countries' economies grow, disposable income rises, driving up demand for passenger cars and commercial vehicles. The increase in vehicle production directly contributes to the growing use of these A/C systems in the transportation industry. The growth of the automotive sector, driven by a combination of economic development, population growth, and increasing urbanization, is the primary driver for the growth of the APAC market. The growing middle class in APAC countries is driving demand for vehicles with advanced features like efficient and dependable air conditioning systems.
Furthermore, the region's climate makes this system a necessity rather than a luxury, which drives the market. Overall, the dynamic automotive landscape and climatic factors place APAC as a key region for the market. These factors are expected to propel the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Danfoss AS - The company offers air conditioners for the transportation sector, such as train and bus air conditioning, that ensure a comfortable journey for passengers.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Amber Enterprises India Ltd., Area Cooling Solutions, Bergstrom Climate Control Systems, Daikin Industries Ltd., Danfoss AS, Eberspacher Gruppe GmbH and Co.KG, Guchen Industry, Henan kingclima industry co. ltd., JTAC, Liebherr International Deutschland GmbH, MAHLE GmbH, Mitsubishi Electric Corp., Rifled Air Conditioning, Sphere Therm, Subros Ltd., Suzhou New Tongchuang Auto Air Conditioning Co. Ltd., The Chemours Co., ThermaGroup Ltd., Trane Technologies Plc, and Valeo SA
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The air conditioner market for transportation, particularly in off-highway vehicles like tractors, faces challenges due to carbon dioxide emissions and the compressor's power consumption in conventional systems. However, advancements in technology have led to more efficient systems, offering fuel savings and meeting customer expectations for comfort. In off-highway applications, where vehicles operate in harsh conditions, the right air conditioning system can improve operator efficiency. One major constraint is the weight and size of the system, which is why OEMs are focusing on developing lighter and smaller units without compromising on comfort.
In addition, the trend is toward fully automatic air conditioning systems that provide comfort while being more environmentally friendly. Companies are investing in technologies that reduce power consumption and emissions, aligning with the industry's push for more efficient and sustainable solutions. In the passenger car segment, there's a similar focus on technological advancements to improve comfort, space, and energy efficiency. Moreover, the market for transportation faces challenges with conventional air conditioning systems in harsh operating conditions. Advancements in automotive air conditioning focus on comfort features while considering cost and the need for catalysts to improve efficiency and environmental impact.
Moreover, the market is witnessing significant growth, driven by Energy Efficiency Services Limited (EESL) initiatives and the demand for Packaged Terminal Air Conditioners (PTAC) and Rooftop ACs. The inverter segment is gaining traction due to its energy-saving capabilities compared to the non-inverter segment. Both residential and commercial segments are experiencing advancements in automotive air conditioning, focusing on thermal comfort and safety. Technology advancements and R&D projects are driving the adoption of eco-friendly refrigerants and enhancing customer experience. The market is also witnessing emerging service distinctions leading to improved client loyalty. Overall, the focus remains on enhancing interior comfort while mitigating air pollution levels through technological improvements in vehicle air conditioning systems.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.46% |
Market Growth 2024-2028 |
USD 8.45 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.93 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amber Enterprises India Ltd., Area Cooling Solutions, Bergstrom Climate Control Systems, Daikin Industries Ltd., Danfoss AS, Eberspacher Gruppe GmbH and Co.KG, Guchen Industry, Henan kingclima industry co. ltd., JTAC, Liebherr International Deutschland GmbH, MAHLE GmbH, Mitsubishi Electric Corp., Rifled Air Conditioning, Sphere Therm, Subros Ltd., Suzhou New Tongchuang Auto Air Conditioning Co. Ltd., The Chemours Co., ThermaGroup Ltd., Trane Technologies Plc, and Valeo SA |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment, COVID-19 impact and recovery and future consumer dynamics, Market condition for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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