Market Summary
Automotive Air Conditioning Market Overview
Automotive Air Conditioning Market Size was valued at USD 34.2 Billion in 2023. The Automotive Air Conditioning market industry is projected to grow from USD 36.29 Billion in 2024 to USD 55.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.35% during the forecast period (2024 - 2032). Increased demand for a higher cabin experience, rising consumer income levels, an escalating middle-class population, and rapidly changing lifestyles are all contributing factors, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Air Conditioning Market Trends
Rise in demand for thermal comfort is driving the market growth
Long-term growth of the automotive HVAC market is anticipated to be aided by an increase in demand for thermal comfort and an improvement in safety brought on by the use of HVAC systems. In the upcoming years, market growth may be supported by a reduction in system size and weight. The usage of HVAC systems in passenger vehicles is increasing as a result of the integration of electronics, sensors, and automated climate control features at a lower cost. Increased vehicle electrification will probably lead to a greater integration of cutting-edge comfort and safety features.
Players' offers and technological capabilities are expected to improve as a result of technology advancements and significant investments in R&D projects. In addition, the development of less expensive HVAC systems and the use of eco-friendly refrigerants offer participants in the automotive HVAC market excellent growth prospects. Major manufacturers are putting cutting-edge HVAC systems in cars to combat tiny particles in the cabin.
The requirement for the product to improve the customer experience is anticipated to increase with the rising demand for private automobile rental services like Ola, Uber, and Lyft. Additionally, it is anticipated that increased competition among taxi services will make it easier to use the emerging service distinction, boosting client loyalty.
Over the course of the forecast period, rise in the middle class, rising consumer income levels, and shifting lifestyles are anticipated to drive the market for vehicle air conditioning systems. Growth is projected to be aided by the rising global demand for automobiles and the increased efforts being made by manufacturers to increase interior comfort.
Rapid industrialization has increased air pollution levels across a number of economies. For instance, the economy's increased need for air conditioning systems is a result of Beijing's very hazardous air. The air inside the vehicles is filtered by cutting-edge cooling systems, reducing the risk of airborne infections. Over the next seven years, usage of the product in cars is anticipated to increase due to high commuting populations in various economies and growing travel distances.
Auto windows that are closed reduce wind resistance, which enhances vehicle efficiency. Additionally, it enhances its acceleration and pick-up, which increases demand. Technologies that demand less fuel to operate the air conditioning systems have been made possible by growing knowledge of energy efficiency. In order to lower vehicle operating costs and improve sustainability, the manufacturers have been creating eco-friendly and effective technology. Thus, driving the Automotive Air Conditioning market revenue.
Automotive Air Conditioning Market Segment Insights:
Automotive Air Conditioning Technology Insights
The Automotive Air Conditioning market segmentation, based on Technology, includes manual and automatic. Due to the rising demand for comfort and safety in the automobile sector worldwide, the automatic category led the global market in 2022 and is predicted to continue doing so over the forecast period. The use of physiologically controlled air conditioning, where the ideal temperature is obtained by several sets of sensors that monitor the cabin's thermal state, is anticipated to be made easier by technological improvements.
Automotive Air Conditioning Component Insights
The Automotive Air Conditioning market segmentation, based on Component, includes compressor, evaporator, receiver, and condenser. In 2022, the worldwide automotive air conditioning market was dominated by the compressor segment. This can be due to technological developments and sophisticated features made possible by compressors.
Automotive Air Conditioning Vehicle Type Insights
The Automotive Air Conditioning market segmentation, based on Vehicle Type, includes passenger car and commercial vehicle. In 2022, the passenger car category was the largest in the world's automotive air conditioning market. All automobile models' HVAC markets have been significantly impacted by passenger car sales. Around 66.7 million cars were sold worldwide in 2021 compared to 63.8 million in 2020. The global epidemic had an influence on economic activities everywhere, including auto sales, and stringent lockdowns were implemented in numerous nations to stop the virus' spread. Due to this, the quantity of cars sold in 2020 was 14.8% less than in 2019.
Figure 1: Automotive Air Conditioning Market, by Vehicle Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Air Conditioning Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Automotive Air Conditioning market, dominated this market in 2022 (45.80%), due to the increased manufacturing and consumption of vehicles, as well as the presence of important enterprises in the area. The extensive road network in nations like India, China, and Japan has raised demand for automobiles. Moreover, China’s Automotive Air Conditioning market held the largest market share, and the Indian Automotive Air Conditioning market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automotive Air Conditioning Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Automotive Air Conditioning Market is expected to register significant growth from 2023 to 2032. Customers must upgrade automotive thermal system components frequently due to stringent local environmental rules and government standards, which is also anticipated to boost the market. Further, the U.S. Automotive Air Conditioning market held the largest market share, and the Canada Automotive Air Conditioning market was the fastest growing market in the North America region.
Europe Automotive Air Conditioning market accounted for the healthy market share in 2022. Growth is anticipated to be aided by a shift in consumer preferences toward environmental management and a rise in the need for efficient and portable HVAC systems in the area. Further, the German Automotive Air Conditioning market held the largest market share, and the U.K Automotive Air Conditioning market was the fastest growing market in the European region.
Automotive Air Conditioning Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Air Conditioning market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive Air Conditioning industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Automotive Air Conditioning industry to benefit clients and increase the market sector. In recent years, the Automotive Air Conditioning industry has offered some of the most significant advantages to medicine.
Major players in the Automotive Air Conditioning market, including Denso Corporation, Hanon Systems, Mitsubishi Heavy Industries Ltd., MAHLE GmbH, Valeo SA, Keihin Corporation, Calsonic Kansei Corporation, Samvardhana Motherson Group, Subros Limited, and SMAC Auto Air, are attempting to increase market demand by investing in research and development operations.
Automotive thermal management systems are produced by Hanon Systems (Hanon), a division of Hahn & Co Auto Holdings Co Ltd. It creates, produces, and sells products for controlling the climate in automobiles. It Compressors, powertrain cooling modules, thermal and energy management products, emission products, and heating, ventilation, and air conditioning (HVAC) modules and systems are among the company's goods. Refrigerant lines, metal seal fittings, accumulators, water-cooled transmission oil coolers, air charge air coolers, fragrance systems, and versatile HVAC are all among the company's goods.
Additionally, it provides UV (ultraviolet) LED photocatalyst, traditional blade fans and motor assemblies, variable displacements, better drainage, and coated evaporator core goods. Hanon manufactures items specifically for the automotive industry. The business has operations in the Americas, Europe, South Asia, and Asia.
The headquarters of Hanon are in Daejeon, South Korea. Hanon System opened two new facilities in Hungary in November 2021: a building expansion in Rétság and a brand-new greenfield industrial plant in Pécs. The facility has 22,464 square meters of production area and has room for assembly lines, testing for automobile air conditioning (A/C) lines, and equipment for forming, brazing, welding, and bending.
Automotive supplier and partner Valeo SA (Valeo) works with automakers. It creates, manufactures, and sells CO2 emission-reducing parts, integrated systems, and modules as well as provides and distributes replacement parts to automakers and independent aftermarket operators. In addition to powertrain solutions, systems, modules, and components to regulate the thermal energy of the powertrain, the company also develops and manufactures interface systems between the driver, the vehicle, and the environment, visibility systems, and powertrain solutions.
Worldwide, Valeo provides services to original equipment manufacturers and automakers. Asia, Africa, South America, the Middle East, North America, and Europe are all commercial hubs for the corporation. The headquarters of Valeo are in Paris, France. In August 2021, Valeo unveiled the New Valeo heat pump, which uses a natural refrigerant and gets two-thirds of its energy from outside air to reduce the need for onboard batteries. At -15°C, the device allows EVs to go up to 30% further than those outfitted with more traditional heating systems.
Key Companies in the Automotive Air Conditioning market include
- Hanon Systems
- Mitsubishi Heavy Industries Ltd.
- MAHLE GmbH
- Valeo SA
- Keihin Corporation
- Calsonic Kansei Corporation
- Samvardhana Motherson Group
- Subros Limited
- SMAC Auto Air
Automotive Air Conditioning Industry Developments
Hyundai Motor Company and Kia Corporation have today announced the signing of a Car-to-Home and Home-to-Car service partnership agreement with Samsung Electronics, effective January 2024. The objective of this collaboration is to improve the connectivity between residential and mobility domains. Hyundai and Kia customers will have the capability to remotely operate digital appliances via voice and touch commands via the in-car infotainment systems of their vehicles, per the terms of this agreement.
In contrast, they will have the ability to remotely control a variety of vehicle functions via AI-enabled televisions, speakers, and smartphone applications. This achievement is facilitated by the seamless integration of the connected vehicle services offered by Hyundai and Kia with Samsung's 'SmartThings' Internet of Things (IoT) platform.Mahindra & Mahindra Ltd. (M&M), the market leader for Small Commercial Vehicles (SCVs) in India, declares with great pride the introduction of new Bolero MaXX Pik-Up models in February 2024. With the installation of fourteen new features on the iMaxx app and the incorporation of air conditioning, this most recent addition intends to provide customers with greater comfort.
The Bolero MaXX Pik-Up lineup, distinguished by its compact and adaptable design, establishes unparalleled benchmarks in terms of safety, fuel economy, payload capability, and overall driving satisfaction. The incorporation of integrated air conditioning, which includes a radiator and dehumidifier, serves to augment the driving encounter by ensuring maximum comfort throughout all journeys. When equipped with air conditioning, traversing urban traffic or driving on highways becomes an effortless task, rendering the Bolero MaXX Pik-Up lineup the optimal selection for clientele in search of enhanced comfort.
October 2022: In the international market, Polestar unveiled its three electric SUV models. The SUV has a cutting-edge climate control system to keep passengers comfortable on extended excursions.
November 2021: The Indoor Air Quality (IAQ) Purification System, created by Marelli Corporation, eliminates bacteria and viruses in enclosed spaces such as cars. Within 15 minutes, the device effectively eliminates airborne bacteria and viruses, including COVID-19, using UV-A and UV-C radiation and a titanium dioxide (TiO2) filter.
Automotive Air Conditioning Market Segmentation:
Automotive Air Conditioning: Technology Outlook
- Manual
- Automatic
Automotive Air Conditioning Component Outlook
- Compressor
- Evaporator
- Receiver
- Condenser
Automotive Air Conditioning Vehicle Type Outlook
- Passenger Car
- Commercial Vehicle
Automotive Air Conditioning Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Africa
- Latin America
Market Size & Forecast
| Attribute/Metric | Details |
| Market Size 2023 | USD 34.2 Billion |
| Market Size 2024 | USD 36.29 Billion |
| Market Size 2032 | USD 55.1 Billion |
| Compound Annual Growth Rate (CAGR) | 5.35% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Technology, Component, Vehicle Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Denso Corporation, Hanon Systems, Mitsubishi Heavy Industries Ltd., MAHLE GmbH, Valeo SA, Keihin Corporation, Calsonic Kansei Corporation, Samvardhana Motherson Group, Subros Limited, and SMAC Auto Air |
| Key Market Opportunities | The urban heat island (UHI) effect and lack of greenery leading to increasing in global temperature |
| Key Market Dynamics | Rapidly growing utilization of automatic systems, increasing requirement of superior cabin experience, and consumer income levels, growing the middle-class population, and changing lifestyles |
Major Players
Automotive Air Conditioning Market Segmentation
Automotive Air Conditioning Technology Outlook (USD Billion, 2018-2032)
Manual
Automatic
Automotive Air Conditioning Component Outlook (USD Billion, 2018-2032)
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning Vehicle Type Outlook (USD Billion, 2018-2032)
Passenger Car
Commercial Vehicle
Automotive Air Conditioning Regional Outlook (USD Billion, 2018-2032)
North America Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
US Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Canada Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Europe Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Germany Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
France Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
UK Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Italy Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Spain Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Rest Of Europe Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Asia-Pacific Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
China Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Japan Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
India Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Australia Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Rest of the World Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Middle East Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Africa Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
Latin America Outlook (USD Billion, 2018-2032)
Automotive Air Conditioning by Technology
Manual
Automatic
Automotive Air Conditioning by Component
Compressor
Evaporator
Receiver
Condenser
Automotive Air Conditioning by Vehicle Type
Passenger Car
Commercial Vehicle
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