Automotive Climate Control Market

Automotive Climate Control System Market Overview:

The Automotive Climate Control System market size was valued at USD 9.31 Billion in 2023. The automotive climate control system industry is projected to grow from USD 10.69 Billion in 2024 to USD 28.32 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.93% during the forecast period (2024 - 2032). Growing adoption of luxurious automobiles and technological advancements in manufacturing automotive climate control systems are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Climate Control System Market Trends

Stringent emission regulations are driving the market growth

Market CAGR for automotive climate control systems is being driven by the rising number of government rules and regulations. Government initiatives to increase electrification across various transport modes have intensified immensely over the last few years. According to the IEA, about 60% of car sales across the globe are protected by the Zero-Emission Vehicle (ZEV) mandate, the EU CO2 emission restrictions, and the New Energy Vehicle (NEV) mandate in China. For instance, in 2019, the EU consented to a recent fuel economy standard and CO2 emission standard for cars & vans and heavy-duty vehicles, respectively.

Technological innovations and substantial investments in R&D initiatives are poised to enhance players' offerings and technological capabilities. They are leading to the innovation of energy-efficient systems and eco-friendly automotive climate control units coupled with innovative designs to lower the weight and size of systems for better adaptability and improved vehicle performance. The operation of these automotive climate control systems requires considerable power and has a negative effect on fuel economy.

Original equipment manufacturers in developing regions, such as China, India, and Japan, are adapting to the changing regional and segment patterns of supply and demand concerning their production & supply base footprints, supply chains, and product portfolio. In addition, the rise in urbanization and an increase in population boosts the demand for vehicles among consumers. For instance, North America is the home to the largest vehicle producers in the world, including General Motors and Ford, which account for 25% of global vehicle production. Moreover, the emergence of global potential automobile manufacturers, including Volkswagen AG and General Motors, concentrating their plants in China via joint ventures with local manufacturers is anticipated to expand the HVAC demand and drive the growth of the automotive climate control system market revenue.

Increasing demand for environment-friendly refrigerants and rising production of cheaper climate control systems create lucrative opportunities for the market players. Environment-friendly refrigerants decrease pollution from vehicles and also increase fuel efficiency. Moreover, the unaffordability of low-income people to buy vehicles equipped with cheaper climate control systems demands a cheaper climate control system. Also, market players are mainly focusing on using green technologies for evolving energy-efficient systems to lessen maintenance costs, which is expected to generate lucrative opportunities for market growth.

Automotive Climate Control System Market Segment Insights:

Automotive Climate Control System Technology Insights

The Automotive Climate Control System market segmentation, based on technology, includes automatic and manual. The automatic segment dominated the market, accounting for 35% of market revenue (3.26 Billion). An automatic air conditioning system is highly suitable as the system works at a particular level set by the occupant. However, the manual is the fastest-growing category, commonly installed in low-specification budget vehicles. Manual air conditioners permit users to determine the amount of airflow via physical knobs and dials.

Automotive Climate Control System Vehicle Type Insights

The Automotive Climate Control System market segmentation, based on vehicle type, includes passenger vehicles and commercial vehicles. The commercial vehicle category generated the most income (70.4%) owing to the increasing adoption of battery-electric buses in developed regions. However, passenger vehicle is the fastest-growing category owing to decreasing battery prices that will reduce the total cost of ownership and significant progress concerning range improvement.

Figure 1: Automotive Climate Control System Market by Vehicle Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Climate Control System Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American automotive climate control system market will dominate due to improving macroeconomic conditions and increasing vehicle production in the region. Further, the US automotive climate control system market held the largest market share, and the Canadian automotive climate control system market was the fastest-growing market in the North American 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 Climate Control System Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's automotive climate control system market accounts for the second-largest market share owing to the rising disposable income and surging demand for luxury vehicles, which are projected to stimulate market growth in this region. Further, the German automotive climate control system market held the most extensive market share, and the UK automotive climate control system market was the fastest-growing market in the European region.

The Asia-Pacific automotive climate control system market is expected to grow at the fastest CAGR from 2024 to 2032. This is owing to the existence of major automobile manufacturers, large-scale production of vehicles, and spiraling vehicle demand in developing nations such as India, South Korea, and China. Government initiatives to revive the automotive industry. Moreover, China’s automotive climate control system market held the most extensive market share, and the Indian automotive climate control system market was the fastest-growing market in the Asia-Pacific region.

Automotive Climate Control System Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive climate control system market grow even more. Market participants are also undertaking various 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, the automotive climate control system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Automotive Climate Control System industry to benefit clients and increase the market sector. Major players in the automotive climate control system market, including General Air International Thermal Systems (Thailand), Delphi Technologies (UK), Brose Fahrzeugteile GmbH & Co. (Germany), TOYOTA INDUSTRIES CORPORATION (Japan), and others, are attempting to increase market demand by investing in research and development operations.

Valeo SA is an automotive supplier and partner to automakers. It designs, produces and sells components, integrated systems and modules to reduce CO2 emissions and delivers and distributes extra parts for automakers and separate aftermarket operators. In addition to powertrain solutions, systems, modules, and components to regulate the thermal energy of the powertrain, the firm also develops and manufactures interface systems between the driver, the vehicle, and the environment, visibility systems, and powertrain solutions. In August 2021, Valeo announced a New Valeo heat pump that procures two-thirds of its energy demand from the ambient air, thereby limiting the requirement to draw energy from the onboard batteries and utilizing a natural refrigerant. EVs equipped with the device can travel up to 30% further at -15°C than those fitted with more conventional heating systems.

Hanon Systems, a Hahn & Co Auto Holdings Co Ltd subsidiary, manufactures automotive thermal management systems. It develops, manufactures and markets automotive climate control products. The company offers automotive climate control system modules and systems, compressors, powertrain cooling modules, thermal and energy management products, and emission products. The company's products also include refrigerant lines, metal seal fittings, accumulators, water-cooled transmission oil coolers, air charge air coolers, fragrance systems and omnifarious automotive climate control systems. It also offers variable displacements, conventional blade fans and motor assembly, UV (ultraviolet) LED photocatalyst, improved drainage, and coating evaporator core products. In November 2021, Hanon System inaugurated two new establishments in Hungary a new Greenfield production facility in Pécs and a building expansion in Rétság. The facility delivers 22,464 square meters of manufacturing space and accommodates equipment, such as forming, welding, brazing, and bending, assembly lines and testing for automotive air conditioning (A/C) lines.

Key Companies in the Automotive Climate Control System market include

• Keihin Corporation (Japan)
• Sensata Technologies Inc. (US.)
• SANDEN HOLDINGS CORPORATION (Japan)
• Calsonic Kansei Corporation (Japan)
• Valeo (France)
• DENSO CORPORATION (Japan)
• Johnson Electric Holdings Limited (China)
• Hanon Systems (South Korea)
• JAPAN CLIMATE SYSTEMS CORPORATION (Japan)
• MAHLE GmbH (Germany)
• MITSUBISHI HEAVY INDUSTRIES LTD. (Japan)
• OMEGA Environmental Technologies (US.)
• Trans/Air Manufacturing Corp. (US.)

Automotive Climate Control System Industry Developments

30 April, 2024: The XUV 3XO will be launched in India by Mahindra & Mahindra tomorrow. This tiny SUV, which is a redesigned alternative to the XUV 300, will be equipped with a wide range of improvements on the interior as well as the outside. Throughout the last several weeks, Mahindra has been teasing the XUV 3XO by unveiling a multitude of important elements, including the improvements to the design, the interior, the performance figures, and the fuel economy.

It is possible to see similarities between the interior design of the Mahindra XUV 3XO and that of the XUV 400 electric SUV; nevertheless, there are some minor variations, such as chrome decorations. There are a number of notable characteristics that are quite similar to those found in the electric sport utility vehicle (e-SUV), including the dual-tone black and white dashboard design, HVAC vents, temperature controls, steering wheel, storage compartments, and even the seating configuration.

The XUV 3XO's introduction of the new inside is a substantial update, putting it competitively against competitors such as the Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, Kia Sonet, Nissan Magnite, Renault Kiger, and others. The cabin of the previous XUV 300 was antiquated, thus the introduction of the new interior in the XUV 3XO is noteworthy. In the interior, the introduction of a panoramic sunroof, which is a first in its category, is a feature that stands out as particularly noteworthy.

This is accompanied by a standalone infotainment system with a touchscreen measuring 10.25 inches and supporting wireless Apple CarPlay and Android Auto, a digital instrument cluster measuring 10.25 inches, an automatic climate control system, a steering wheel with mounted controls, AdrenoX connectivity, adjustable headrests, a Harman Kardon surround sound system with seven speakers, and Zip, Zap, and Zoom modes.

February 2021: Highly Marelli Holdings Co., Ltd., announced a joint venture between Highly International (Hong Kong) Limited and Marelli Corporation KK has been formed. Highly Marelli will concentrate on providing world-class solutions for clients and suppliers in the areas of compressor electrification, heat pump systems, heating, ventilation, air conditioning and electric-driven compressor systems.

Automotive Climate Control System Market Segmentation:

Automotive Climate Control System Technology Outlook

• Automatic
• Manual

Automotive Climate Control System Vehicle Type Outlook

• Passenger Vehicle
• Commercial Vehicle

Automotive Climate Control System 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 Segmentation

Automotive Climate Control System Technology Outlook (USD Billion, 2018-2032)

• Automatic

• Manual

Automotive Climate Control System Vehicle Type Outlook (USD Billion, 2018-2032)

• Passenger Vehicle

• Commercial Vehicle

Automotive Climate Control System Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • North America Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • US Outlook (USD Billion, 2018-2032)

  • US Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • US Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • CANADA Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Europe Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Germany Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • France Outlook (USD Billion, 2018-2032)

  • France Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • France Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • UK Outlook (USD Billion, 2018-2032)

  • UK Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • UK Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • ITALY Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Spain Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • REST OF EUROPE Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Asia-Pacific Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • China Outlook (USD Billion, 2018-2032)

  • China Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • China Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Japan Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • India Outlook (USD Billion, 2018-2032)

  • India Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • India Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Australia Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Rest of Asia-Pacific Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Rest of the World Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Middle East Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Africa Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Automotive Climate Control System by Technology

    • Automatic

    • Manual

  • Latin America Automotive Climate Control System by Vehicle Type

    • Passenger Vehicle

    • Commercial Vehicle