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The automotive climate control market share is expected to increase by USD 5.92 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.75%.
This automotive climate control market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive climate control market segmentation by technology (automatic and manual) and geography (APAC, Europe, North America, South America, and MEA). The automotive climate control market report also offers information on several market vendors, including Air International Thermal Systems Inc., DENSO Corp., Hanon Systems, Japan Climate Systems Corp., Keihin Corp., MAHLE GmbH, Marelli Holdings Co. Ltd., Sanden Holdings Corp., Subros Ltd., and Valeo SA among others.
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The growing demand for automatic climate control systems is notably driving the automotive climate control market growth, although factors such as a sharp decline in automobile production and sales may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive climate control industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Climate Control Market Driver
Higher demand for automatic climate control systems than manual climate control systems is one of the key factors driving the growth of the global automotive climate control market. In the past few years, automotive climate control systems have witnessed significant growth because of the growing demand for automobiles in APAC. Automotive climate control systems manufacturers are now shifting their focus from developing manual climate control systems to automatic climate control systems. Automatic climate systems require the least human intervention. Manufacturers are striving to differentiate their products from those of their competitors by introducing compact systems, improved air quality, and sensors in climate control systems. Such technologies decrease the operational complexities and help in achieving better customer satisfaction. For instance, the demand for advanced climate control systems, such as multi-zone systems, has been increasing because of the growing demand for comfort and luxury in vehicles. This drives the demand for automatic climate control systems. Such benefits are expected to drive the growth of the global automotive climate control market during the forecast period.
Key Automotive Climate Control Market Trend
The emergence of eco-friendly automotive climate control systems will fuel the global automotive climate control market growth. Innovations in the field of automotive climate control systems are focused on improving fuel efficiency by slight design changes or by lightweight. Tata Motors and MAHLE worked together to develop an innovative, eco-friendly automotive climate control system. The automotive climate control system called the secondary loop mobile air conditioning (SL-MAC) system contains a coolant that can store energy. This energy storage is made possible by making design changes to the compressor. The compressor engages when the vehicle is decelerating or moving downhill and disengages when the vehicle is accelerating or moving uphill, resulting in maximizing energy efficiency. In addition, to have better storage capacity and reduced emission of greenhouse gases, a refrigerant hydrofluorocarbon (HFC)-152a is used instead of HFC-134a or HFC-1234yf. The incorporation of this climate control system requires design changes in vehicles because the refrigeration-related components must be positioned within the engine compartment instead of the passenger cabin. Therefore, it is expected that this type of eco-friendly system will gain popularity during the forecast period, thereby driving the market focus.
Key Automotive Climate Control Market Challenge
The sharp decline in automobile production and sales is the major challenge for the global automotive climate control market growth. The majority of passenger cars and commercial vehicles have climate control systems. Therefore, the overall production and sales of automobiles will have an impact on the global automotive climate control market. Since 2018, the global automotive market is registering a slump in terms of sales and production, which is leading to a decline in the demand for several automotive components. The sales of light vehicles in the US dropped by about 3.1% from January-March 2019 compared with the same period in the previous year. Automotive production in Germany, UK, and China, among other countries, has been declining since 2017. China registered a decline of about 12.4% in automotive sales during the first half of 2019. Automotive production in other major automotive manufacturing countries, such as India, Japan, and the US, registered growth during 2017-2018. Such factors that adversely affect automotive sales and production are reducing the demand for automotive components and parts, such as HVAC systems, in the global automotive market and hampering the growth of the global automotive climate control market.
This automotive climate control market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global automotive climate control market as a part of the global automotive components and accessories market within the global auto components market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive climate control market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive climate control market encompasses successful business strategies deployed by the key vendors. The automotive climate control market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive climate control market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive climate control market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global auto components market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Technology
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
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