The global automotive HVAC market size is estimated to reach USD 28.95 billion by 2025, according to a study by Grand View Research Inc., expanding at a CAGR of 8.6% during the forecast period. The market is driven by increasing development of innovative, fuel efficient, and eco-friendly HVAC solutions coupled with surging global demand for passenger vehicles. Rising disposable income and growing inclination towards more luxurious and comfortable travel are anticipated to foster the growth of the automotive HVAC market.
In current scenario, an automotive HVAC unit has become an integral part of passenger vehicles, offering comfort features that influence consumer buying behavior. Rising concerns regarding global warming are leading to increase in temperature levels, which in turn is resulting in increased demand for enhanced interior environment and comfort. Technological innovations and substantial investments in R&D activities are leading to innovation of fuel-efficient and eco-friendly HVAC units coupled with innovative designs to lower the weight and size of systems for better adaptability.
Spiraling demand for private vehicle owing to flourishing car rental industry and rising average time spent on vehicles is expected to boost the growth of the market. Additionally, affordable automobile finance schemes and increasing preference to use private vehicles rather than public transport can also favor the growth of the automotive HVAC market. Asia Pacific is anticipated to dominate the global market throughout the forecast horizon owing to presence of key automobile manufacturers coupled with a broader consumer base boosting vehicle demand. Rising concerns about environmental effects of refrigerants and high maintenance costs can hinder the growth of the automotive HVAC market.
Further Key findings from the study suggest:
- Passenger car is likely to dominate the market through 2025. Increasing personnel mobility needs and growing urbanization will contribute to the growth of the segment
- Macroeconomic condition and regulations such as mining ban in India may affect the demand for Heavy Commercial Vehicle (HCV). Increasing demand for LCVs, particularly in rural areas, is projected to supplement the growth of the segment
- Burgeoning popularity of electric or hybrid vehicle can also positively influence the growth of the market. Increasing adoption of premium automobile brands in countries such as India and China are estimated to bolster the growth of the market
- Asia Pacific is poised to progress at the highest CAGR during the forecast period owing to rising middle-class population and increasing disposable income. There has been a sharp rise in the number of vehicles produced in China over the last decade, with more than 23 million vehicle productions in 2014, which accounted for 27.0% of the global production
- The key industry participants include Hanon Systems, Denso Corporation, Valeo Group, Mahle Behr GmbH, and Japan Climate Systems Corporation
- Other prominent vendors include Johnson Electric, Sanden Holdings Corporation, Air International Thermal Systems, Engineered Plastic Components, Calsonic Kansei, Brose Fahrzeugteile GmbH & Co. Kg, DelStar Technologies, and Sensata Technologies.