Automotive HVAC market revenue to reach $27.5bn
As per the report 'Automotive HVAC Market By Type (Passenger Cars and Commercial Vehicles (HCVs and LCVs), By Technology (HVAC and Manual HVAC), Industry trends, Estimation & Forecast, 2016 - 2024', the global automotive HVAC market was valued at $13.66bn in 2016, and is projected to reach $27.5bn by 2024, growing at a CAGR of 9.3% from 2017 to 2024.
In 2016, passenger car HVAC system segment generated the highest revenue share of $ 9.1bn growing at a CAGR of 9.8% in the global automotive HVAC system market. Among major regions, Asia Pacific Automotive HVAC system market was the highest revenue generating market valued at $6.3bn in 2016.
Pace grabbing countries, such as China, Japan, France, and India, are expected to experience significant growth in the application of Automotive HVAC System technology. APAC will experience the fastest growth geographically in the overall automotive HVAC market owing to the presence of some growing automotive manufacturing countries such as Japan and India.
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Passenger car segment projected to lead the market throughout the forecast period
The passenger car segment was the largest application segment of the automotive HVAC system market in 2016. Development of automobile market and the introduction of new vehicles with advanced technologies in the Asia-Pacific region is the key factor anticipated to drive the growth of the automotive HVAC system market. The transportation industry is one of the potential markets for HVAC system. China is the leading car manufacturing country in the world followed by US, Japan, and Germany, hence pushing the HVAC technology market in the respective regions.
Automatic technology capture more than 60% of the market by 2024
The automatic HVAC technology market is projected to lead the technology type segment of the automotive HVAC system market. Increasing demand for luxury cars with more comfort has led the manufacturers to enhance their vehicles with automatic HVAC system and hence adding up a steep growth to the market. Automatic HVAC technologies such as automatic recirculation can reduce the fuel consumption of an HVAC system by 35% by, recirculating the air through the air conditioning unit back into the cabin and limit the fresh air inlet to the minimum, while fulfilling the air parameters set by the driver and/or the system’s specifications. Hence, the upgraded technology is estimated to grow in the near future.
Light commercial vehicles are leading the market with a CAGR of 8.3% over the forecast
In the current scenario, commercial vehicles are also updated with the HVAC systems as per the current requirement or demand of the clients. Vehicles like commercial taxis, mini trucks, and mini school vans are using HVAC systems to improvise their comfort levels. Germany is a manufacturer of cars in Europe, and hence, the market of HVAC technology as well, growing at a CAGR of 6.6% over the forecast period.
Asia-Pacific was the highest revenue-generating region, garnering for over 40% share in 2016
In terms of Geography, Asia Pacific is the leading market, owing to high vehicle production in countries such as China, Japan, South Korea, and India. Asia-Pacific is estimated to dominate the market witnessing a CAGR of 10.5% during the forecast period, owing to increasing adoption of eco-friendly refrigerants and large scale production of commercial and passenger vehicles.
Key Insights of the automotive HVAC system market
- Asia Pacific region is expected to have the fastest growth with a CAGR of 10.5% over the forecast period. The region generated the revenue of $6.3bn in 2016.
- Asia Pacific holds the major segment of the automotive HVAC system market
- Passenger car segment is expected to witness the highest growth with a CAGR of 9.8% over the forecast period (2017-2024)
- In Europe, Germany holds the highest share of automotive HVAC system.
- The light commercial vehicle segment is expected to witness the highest growth with the CAGR of 8.3% over the forecast period.