MARKET DOMINANCE The Japanese automotive HVAC market has been estimated to dominate the market by value owing to the growing sales of vehicles
Growing vehicles sales and inclination toward safety and luxury are the main factors which are driving the global automotive heating, ventilation and air conditioning (HVAC) market, according to a study released by global market intelligence and insights provider Fact.MR.
The progression of the air conditioning systems in passenger cars, light commercial vehicles and heavy commercial vehicles has been one of the most significant advances in the twentieth century. It is assessed that more than 85% of the new passenger cars sold globally currently have an air conditioning system, and the number is expected to increase by 2027.
HVAC systems primarily consist of three subsystems namely, heating, cooling, as well as air conditioning, which collaboratively work to offer decontaminated air to the vehicle cabin, guaranteeing thermal comfort to drivers and passengers.
HVAC system controls the air temperature, scrutinises the moisture content in the air, and removes unnecessary humidity from the circulating air. Well established automotive companies such as Audi, Mercedes-Benz, Ford, and BMW, mainly focus on tailored and consumer-friendly HVAC systems.
As an example, the BMW 6, 7, 8 and 9 Series supports automatic air conditioning, including air distribution for driver and passengers, fogging sensor, and automatic climate control system.
The study assesses trends that are driving the growth of each segment on the global level and offers potential insights that could prove useful to automotive HVAC manufacturers looking to enter the market. Main regions assessed in this study include North America, Latin America, Europe, Japan, Asia Pacific excluding Japan (APEJ), and the Middle East and Africa (MEA).
The sections, separated by vehicle type, component, and the technology in the automotive HVAC market, evaluate the present scenario and growth prospects of the regional automotive HVAC market for 2018 to 2027.
The APEJ automotive HVAC market has been estimated to dominate the automotive HVAC market by value, owing to the growing sales of vehicles, accounting for a maximum revenue share of the market by end-2018.
Europe and North America automotive HVAC markets are expected to account for over 40% collaborative revenue share of the global automotive HVAC market by end-2027. Among the emerging markets, the MEA automotive, the HVAC market is estimated to exhibit a significant compound annual growth rate (CAGR) of more than 8% over the forecast period, followed by Japan with a CAGR of about 7%.
To provide in-depth insights into the pattern of demand for the automotive HVAC market, the market is divided by vehicle type. This includes passenger cars, light commercial vehicle and heavy commercial vehicles.
The passenger cars segment is expected to dominate the automotive HVAC market over the forecast period, regarding value, which accounted for more than 40% value share in 2027.
The section – automotive HVAC market analysis, by technology, analyses the market by different technology through which the automotive HVAC functions. The market is segmented into manual and automatic, as the automatic segment accounted for the highest market share in 2017. The manual segment, however, is expected to register a decline over the forecast period, owing to the increase in deployment of automatic HVAC systems across developing economies.
Increasing demand for automotive HVAC in the APEJ region is also driving the prominent manufacturers to advantageously enter in the APEJ market with an objective to target the opportunities in the region. The automotive HVAC market in North America and the Europe region is currently witnessing a stagnant growth, and hence, companies are targeting emerging economies markets to increase sales revenues.
The APEJ region is estimated to account for more than 25% market share in the global automotive HVAC market last year, and this share is expected to grow by a significant rate, causing the APEJ market to grab more than 30% market share by the end of 2027. Growing sales of passenger car and increases in disposable income coupled with luxury aspects are amongst the major features subsidising to the regional growth.
Further, the positive government initiatives to revive the automotive industry is anticipated to further propel the regional dominance over the forecasted period.
The study has profiled some of the most prominent companies active in the global automotive HVAC market, such as Sensata Technologies, the Keihin Corporation, Calsonic Kansei Corporation, Sanden Corporation, Valeo, Denso Corporation, Hanon Systems, MAHLE, Johnson Electric Holdings, and Japan Climate Systems Corporation.
Key market players in the automotive HVAC market are focusing on product innovation and collaboration. Vendors in the automotive HVAC market are focusing on developing technological advanced and innovative solutions which can meet the changing customer requirements.
The automotive HVAC market has grown consistently at a CAGR of 7.5%, and the market has been expanding at a fast pace. The vendors in the automotive HVAC market are focusing on product innovation to gain a competitive edge in the market by providing diversified product categories.
Top market players held for a marginable market share in 2017 and are anticipated to continue their dominance over the forecast period. However, the threat of new entrants in the automotive HVAC market is relatively low, owing to high manufacturing cost of HVAC systems and the need of technological advanced machinery for manufacturing.