Automotive HVAC Market Size & Forecast

The Automotive HVAC Market is expected to reach $86.1 billion by 2031, at a CAGR of 5.4% from 2024 to 2031. The growth of the automotive HVAC market is driven by the increasing demand for thermal systems features and growing demand for environmentally friendly refrigerants and automotive coolants. Furthermore, the increasing demand for automatic climate control features is expected to generate growth opportunities for the players operating in this market.

Automotive HVAC Market Growth Drivers

Increasing Demand for Thermal Systems Features

In recent years, the demand for thermal systems features in cars has increased. Automotive manufacturers are developing HVAC systems that play a crucial role in providing thermal comfort and managing the overall thermal environment inside vehicles. There is a growing Implementation of HVAC systems that help regulate the temperature inside the vehicle cabin, ensuring passengers are comfortable regardless of external weather conditions. These systems can heat the cabin during cold weather and cool it down during hot weather, which provides a comfortable driving experience.

Moreover, the HVAC system is equipped with air filtration and purification components that help to remove pollutants, allergens, and odors from the cabin air. With the increasing demand for thermal system features in vehicles, several companies are launching HVAC systems. For instance, in March 2023, SIROCO HVAC (France), an international provider of thermal and electrical solutions for industrial vehicles, launched its new 12-24V CAN/LIN bus HVAC electronic controller. This controller is a compact, intelligent, and flexible solution to manage your thermal systems. With component diagnostics, short-circuit protection and a safe start-up charger, manage HVAC components and vehicle thermal management with a complete and configurable solution. Such developments help increase the demand for HVAC systems for thermal control features during the forecast period.

Automotive HVAC Market Trends

Increasing Use of Automated HVAC Systems

The automatic HVAC systems help maintain a consistent and comfortable temperature inside the vehicle without requiring manual adjustment. These systems can detect changes in the cabin temperature and adjust settings, providing a hassle-free driving experience. Additionally, the automatic HVAC systems are designed to optimize energy usage, which helps to improve fuel efficiency in vehicles. Thus, the use of these systems helps to adjust the airflow and temperature based on real-time conditions, which helps to minimize energy waste and reduce load on the vehicle engine.

Moreover, maintaining a comfortable temperature inside the vehicle is crucial for driver alertness and focus. Automatic HVAC systems help to ensure that the driver remains comfortable and attentive, which increases overall road safety. Additionally, the increasing use of automatic HVAC systems because they offer various smart features such as voice control, integration with mobile apps, and compatibility with other vehicle systems. These features enhance the overall user experience and make it easier to manage HVAC settings while on the go. Such grooving benefits help to increase the growth of automatic HVAC systems during the forecast period.

Automotive HVAC Analysis: Key Findings

By Offering: In 2024, the Hardware Segment to Dominate the Automotive HVAC Market

Based on offering, the global automotive HVAC market is segmented into hardware and services. In 2024, the hardware segment is expected to account for a larger share of above 83.0% of the global automotive HVAC market. The segment's large market share is attributed to the adoption of HVAC systems for a comfortable environment inside the vehicle regardless of the external weather conditions. The HVAC systems help to clear fogged or misted windows, enhancing visibility and ensuring safer driving conditions. The increasing adoption of HVAC systems to optimize airflow distribution to minimize energy consumption.

Also, this segment is expected to register the highest CAGR during the forecast period.

By Operation Mode: In 2024, the Manual HVAC System Segment to Dominate the Automotive HVAC Market

Based on operation mode, the global automotive HVAC market is into segmented manual HVAC systems and automatic HVAC systems. In 2024, the manual HVAC system segment is expected to account for a larger share of above 54.0% of the global automotive HVAC market. The segment's large market share is attributed to the increasing use of manual HVAC systems due to their simple design and operation; manual HVAC systems are typically less expensive to manufacture and install compared to automatic systems. The manual HVAC systems provide drivers and passengers with direct control over temperature settings, fan speed, and airflow direction.

However, the automatic HVAC system segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the automatic HVAC systems utilizing sensors to monitor external and internal conditions such as ambient temperature, humidity, and sunlight intensity. The automatic HVAC systems offer various energy-saving features, such as variable-speed fans and intelligent airflow management, and the automatic HVAC systems are integrated with other vehicle systems, such as GPS, engine management, and occupancy sensors.

By Application: In 2024, the ICE Vehicles Segment to Dominate the Automotive HVAC Market

Based on application, the global automotive HVAC market is segmented into ICE vehicles and electric vehicles. In 2024, the ICE vehicles segment is expected to account for a larger share of above 62.0% of the global automotive HVAC market. The segment's large market share is attributed to the increasing use of HVAC systems in ICE Vehicles for efficient heat exchange that helps to regulate engine temperature and prevent overheating. The HVAC systems help to clear fogged or misted windows, mirrors, and windshield wipers that enhance visibility and ensure safer driving conditions, and the increasing demand for thermal systems features.

However, the electric vehicle segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the increasing adoption of HVAC systems in Ev’s that allow drivers to heat or cool the cabin while the vehicle is still plugged in and charging. The HVAC systems in EVs comply with regulations related to cabin air quality and emissions, and the HVAC systems in EVs integrate with vehicle navigation systems to adjust settings based on route and weather conditions.

By End User: In 2024, the Original Equipment Manufacturers Segment to Dominate the Automotive HVAC Market

Based on end user, the global automotive HVAC market is segmented into original equipment manufacturers and aftermarket. In 2024, the original equipment manufacturers segment is expected to account for a larger share of above 66.0% of the global automotive HVAC market. The segment's large market share is attributed to the HVAC systems that allow OEMs to differentiate their vehicles in the market by offering advanced climate control features. The adoption of reliable and effective HVAC systems reflects positively on the OEM's brand reputation, and the OEMs optimize supply chain management by partnering with reputable HVAC component suppliers.

Also, this segment is expected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, Asia-Pacific Region to Dominate the Automotive HVAC Market

In 2024, Asia-Pacific is expected to account for the largest share of above 49.0% of the global automotive HVAC market. Asia-Pacific’s significant market share can be attributed to the increasing demand for energy-efficient HVAC systems across several automotive manufacturers and the growing technological advancements such as enhanced thermal management systems and integration with intelligent controls. The increasing sale of electric vehicles in countries, such as China, Japan, and India; the growing demand for environmentally friendly refrigerants and automotive coolants.

Also, this market is expected to register the highest CAGR of above 6.5% during the forecast period.

Automotive HVAC Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the automotive HVAC market are Johnson Electric Group (Hong Kong), MAHLE GmbH (A Subsidiary of Mahle Stiftung GmbH) (Germany), Sensata Technologies, Inc. (U.S.), DENSO Corporation (Japan), Hanon Systems (South Korea), Valeo Service SAS (France), Air International Thermal Systems, Inc. (U.S.), Sanden Corporation (Japan), Brose Fahrzeugteile SE & Co. KG (Germany), Keihin North America, Inc. (U.S.), Mitsubishi Heavy Industries, Ltd. (Japan), OMEGA Environmental Technologies (U.S.), Kongsberg Automotive ASA (Norway), and Gentherm Inc. (U.S.).

Automotive HVAC Industry Overview: Latest Developments from Key Industry Players

• In September 2023, DENSO Corporation (Japan) launched Everycool, an advanced cooling system that provides comfort and energy efficiency when a commercial vehicle’s engine is off. It can also be used when a truck's engine is not running. Everycool achieves the dual objectives of improving driver working conditions during hot summer seasons, reducing environmental impact, and promoting efficient energy utilization by lowering fuel consumption.
• In March 2021, SANDEN Holdings Co., Ltd. (Japan) signed an agreement with Hisense Home Appliances Group Co., Ltd. (China) to provide an integrated thermal management system with more advanced air conditioning control and control technology utilizing AI.

Automotive HVAC Market Research Summary

Key questions answered in the automotive HVAC market report: