Automotive Heating, Ventilation, and Air Conditioning Compressor Market Forecast 2024-2028 

The automotive heating, ventilation, and air conditioning compressor market size is forecast to increase by USD 6.32 billion at a CAGR of 7.68% between 2023 and 2028. The primary catalyst propelling market expansion is the increasing adoption of HVAC systems in trucks. While nearly 100% penetration is observed in the passenger car segment, the commercial vehicle sector, particularly trucks, shows promise for volume growth. Additionally, global demand for trucks is on the rise, notably in regions like China, India, the US, and various European countries, witnessing a surge in light-duty trucks such as pickups, medium, and heavy-duty trucks. A notable trend shaping market dynamics is the rising popularity of low-noise HVAC compressors, driven by technological advancements like electric powertrains, contributing to increased complexity in the automotive HVAC compressor landscape.

This necessitates continuous innovation in product design among manufacturers to maintain a competitive edge in the market. Polestar, Cadillac, Gentherm, Marelli Corporation, Hanon System, and Valeo are some of the key players contributing to advancements in the global automotive heating, ventilation, and air conditioning (HVAC) market. They offer a wide range of components and technologies, including the MOTIX motor control kit, BLDC motor, and indoor air quality (IAQ) purification system, catering to the diverse needs of passenger cars and commercial vehicles alike.

What will be the size of the Automotive Heating, Ventilation, And Air Conditioning (HVAC) Compressor Market During the Forecast Period?

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What is the Largest-Growing Segments in the Market?

The passenger cars segment is estimated to witness significant growth during the forecast period. The penetration of automotive HVAC compressors in the passenger cars segment is almost 100%, as almost all automakers have started equipping their passenger cars with HVAC systems. Therefore, the growth of the global automotive HVAC compressor market by passenger cars is based on the increase in the production of passenger cars.

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The passenger cars segment was the largest segment and was valued at USD 8.16 billion in 2018. Furthermore, several vehicle manufacturers are working towards improving their product lineup with electric powertrain-based vehicles by introducing HEVs. For instance, Volkswagen AG (Volkswagen) has announced to launch of about 70 new electric vehicle (EV) models over the next ten years ending 2030. Thus, such initiatives from vehicle manufacturers will shift the demand for HVAC compressors from the belt-driven type to electric HVAC compressors, driving the automotive HVAC compressor market growth during the forecast period. 

Which are the Key Regions for the Market?

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APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, the passenger cars segment witnesses almost 100% penetration of HVAC systems. Hence, it is the major revenue-generating segment for the automotive HVAC compressor market in APAC. The increasing penetration rate of HVAC systems in the commercial vehicles segment is also supporting the growth of the automotive heating, ventilation, and air conditioning compressor market in APAC.

Moreover, the region will witness a rapid adoption of HEVs, PHEVs, and BEVs, particularly in China, Japan, and South Korea. This is expected to drive down the demand for electric compressors, which will contribute to the growth of the automotive HVAC compressor market in APAC. Besides, the demand for ICE-based passenger cars is expected to decline in APAC during the forecast period. However, the increasing demand for ICE-based commercial vehicles is expected to maintain the demand for conventional belt-driven automotive HVAC compressors in APAC. Therefore, the regional automotive heating, ventilation, and air conditioning compressor market is expected to witness positive growth during the forecast period.

Market Dynamics and Customer Landscape 

The pivotal driver behind the market expansion is the increasing integration of HVAC systems in trucks, a trend already ubiquitous in the passenger car segment. Consequently, the global market is poised for volumetric growth, particularly with the rising adoption of these systems in commercial vehicles, notably trucks. Additionally, there's a burgeoning demand for trucks worldwide, especially in regions like China, India, the US, and various European countries, witnessing a surge in light-duty trucks such as pickups, medium, and heavy-duty trucks. A prominent trend shaping market dynamics is the surging popularity of low-noise HVAC compressors, driven by technological advancements like electric powertrains.

However, this evolution introduces complexities, notably increased noise levels, especially in HEVs, PHEVs, and BEVs, due to the active presence of electric motors and heat pumps during operation. Moreover, fluctuating prices of HVAC compressor raw materials pose a significant challenge, impacting market growth and prompting strategic measures like long-term contracts with suppliers among key market players to mitigate the effects of price fluctuations, while smaller players struggle to implement such measures. Polestar, Cadillac, Gentherm, Marelli Corporation, Hanon System, and Valeo are prominent contributors to technological advancements in the Global Automotive Heating, Ventilation, and Air Conditioning (HVAC) Market, offering a wide array of components and solutions such as the MOTIX motor control kit and Indoor Air Quality (IAQ) Purification System, catering to diverse vehicle types and distribution channels.

Key Market Driver

Increasing adoption of HVAC systems in trucks is the key factor driving market growth. These systems witness almost 100% penetration in the passenger car segment. Therefore, the global market will witness growth in terms of volume, with the increase in the adoption of these systems in commercial vehicles, especially trucks. Moreover, the demand for trucks is witnessing growth across the globe. The adoption of light-duty trucks, such as pickup trucks and medium- and heavy-duty trucks, is consistently growing in China, India, the US, and several European countries.

In addition, truck manufacturers are increasingly installing these systems in truck cabins as an option at a less additional cost. Additionally, regulatory pressures on enhancing truck cabins with comfortable ambiance for driving are also increasing the adoption of these systems in trucks. Thus, such factors that are increasing the adoption of these systems in trucks, coupled with the rising demand for trucks across the globe, are expected to drive market growth during the forecast period.

Significant Market Trends

The increasing popularity of low-noise HVAC compressors is the primary trend shaping market growth. In alignment with current market trends and analysis, the automotive HVAC compressor landscape is undergoing increased complexity, primarily fueled by technological advances like electric powertrains. This has resulted in increased noise in these compressors, especially in HEVs, PHEVs, and BEVs, due to the presence of electric motors and heat pumps that have to be active during the operation. In addition, the demand for these systems is steadily increasing, which is compelling manufacturers to continuously innovate in terms of product design to sustain in the market with a competitive advantage.

Consequently, such continuous innovation in the market has led to the development of low-noise automotive HVAC compressors. For instance, Valeo is concentrating on developing compact and quiet electric HVAC compressors for HEVs and BEVs. In addition to reduced noise, these compressors improve interior comfort and cool down the battery during quick charging. The increasing popularity of such low-noise electric compressors among manufacturers is expected to support the growth of the market during the forecast period.

Major Market Challenge

Fluctuating prices of HVAC compressor raw materials is a challenge that affects market growth. Stainless steel, iron, bronze, and copper are the major raw materials used in the manufacturing of HVAC equipment, which are directly associated with impacts on the global market. The prices of these raw materials depend on factors such as inflation, production, and supply. Many key market players enter into long-term contracts with suppliers to lower the impact of the fluctuations in raw material prices on their business operations. However, small market players cannot enter into such contracts.

The scarcity of raw materials is a significant challenge for the overall market. In addition, most market players procure industrial-grade motors and compressors from component providers. Fluctuations in the prices and availability of raw materials negatively affect and reduce the profitability of market players, which, in turn, will impede the growth of the global market during the forecast period.

Key Market Customer Landscape

The market research report includes the adoption lifecycle of the market growth and forecasting, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Automotive Heating, Ventilation, and Air Conditioning (HVAC) Compressor Market Companies?

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.

• DENSO Corp.: The company offers automotive heating, ventilation, and air conditioning compressors such as the DENSO RV HVAC system, which is a fully integrated heating and cooling system for RV interiors.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Aotejia New Energy Technology Co. Ltd
• AutoAirOnline
• ESTRA Automotive Systems Co. Ltd.
• Hanon Systems
• HELLA GmbH and Co. KGaA
• Japan Climate Systems Corp.
• MAHLE GmbH
• Marelli Holdings Co. Ltd.
• Mitsubishi Heavy Industries Ltd.
• Ningbo Anchor Auto Parts Co. Ltd.
• OMEGA Environmental Technologies
• R and Y AC Compressors
• Sanden Corp.
• Smiths Manufacturing Pty Ltd.
• Subros Ltd.
• Toyota Industries Corp.
• Valeo SA
• Zhejiang Santian A/C Compressor Co. Ltd.
• ERAE AMS

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The Automotive Heating, Ventilation, and Air Conditioning (HVAC) Compressor Market is witnessing a significant surge in demand driven by the growing concern over global warming and the need for enhanced indoor air quality (IAQ) purification systems. Key players such as Polestar, Cadillac, and Gentherm are leading the charge, introducing innovative solutions like the MOTIX motor control kit and BLDC motor for improved cabin climate and comfort. As part of the Global Automotive Heating, Ventilation, and Air Conditioning (HVAC) Market, this segment caters to diverse vehicle types, including medium- to heavy-duty trucks, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). The market offers various compressor options, such as variable displacement and fixed displacement, to meet the specific needs of different OEMs (Original Equipment Manufacturers).

Marelli Corporation and Highly Marelli Holdings are among the prominent players dominating the market, offering solutions that prioritize energy efficiency and smart climate control. Both OEMs and aftermarket segments benefit from the availability of these advanced HVAC compressor systems. Innovations like CO2 (R744) refrigerant and distribution channels ensure that the market stays competitive and responsive to evolving consumer demands. Detailed insights provided by market reports aid vendors in making informed decisions to capitalize on emerging opportunities in this rapidly growing sector. 

 The market for Automotive Heating, Ventilation, and Air Conditioning (HVAC) is experiencing significant growth. Three primary compressor types are utilized in this sector: electric compressors, reciprocating compressors, rotary compressors, and scroll compressors. Each compressor type offers unique advantages in terms of efficiency, size, and cost.

Electric compressors are gaining popularity due to their high energy efficiency and compatibility with EV powertrains. Reciprocating compressors, known for their robustness and reliability, are widely used in traditional ICE (Internal Combustion Engine) vehicles. Rotary compressors and scroll compressors, with their compact size and smooth operation, are preferred in applications where space is a constraint. RA (Refrigerant Air) systems and RYF (Refrigerant Yield Factor) are essential considerations in the HVAC compressor market. Refrigerant air systems determine the cooling capacity and efficiency of the HVAC system, while refrigerant yield factor influences the compressor's overall performance and energy consumption. In summary, the EVS HVAC compressor market is witnessing a shift towards electric compressors, with reciprocating, rotary, and scroll compressors continuing to play essential roles. Refrigerant air systems and refrigerant yield factors are crucial factors influencing the market's growth and development.

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Segment Overview

The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as market growth and trends, historical data from 2018 to 2023 for the following segments

• Application Outlook
  • Passenger cars
  • LCVs
  • MCVs and HCVs

• Type Outlook
  • Swash plate compressors
  • Scroll compressors
  • Rotary compressors
  • Reciprocating compressors

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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