GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET

 

INTRODUCTION

HVAC stands for Heating, Ventilation and Air Conditioning. The primary purpose of HVAC is to clean, cool, heat, regulate, ventilate and dehumidify the air entering the cabin.

 

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The desire for more comfort and luxury has led to development of climate control system inside an automobile. Major components of an HVAC are compressor, condenser, evaporator, control module, blower motor, HVAC controls and other misc. such as plumbing and wiring components. Compressor is the most crucial and valued component. It accounts for ~33% of the total HVAC cost in a vehicle.

 

GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET SEGMENTATION

By Technology

  • Conventional
  • Electric

By Type

  • Fixed Displacement
  • Variable Displacement

By Vehicle Type

  • Passenger Vehicle
  • Commercial Vehicle

By Geography

  • US
  • Europe
  • China
  • Japan
  • ROW

 

GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET DYNAMICS

The sale of new vehicles will have direct influence on automotive compressor sales and thus in 2020, the compressor sales is expected to drop by at least 19% Y-o-Y. The ongoing pandemic may propel the automakers to reduce the average B-2-B price of the compressors for the year 2020, to lower the overall price and thus attracting the customers to buy a new vehicle. This reduction in price will bring the market value of the compressors further down in 2020.

 

GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET BY TECHNOLOGY

Conventional HVAC compressors are still the most dominated type of compressors globally and still around 92-93% of the vehicles are fitted with conventional compressors.

Global volume of electric compressors in 2019 was around 5.4 Million units. The average B-2-B price of these electric compressors are at least 2 times the price of conventional compressors.

 

GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET BY VEHICLE TYPE

Passenger vehicles holds the majority share in the market and the segment has the highest scope for penetration and continuous development in the sector takes place to enhance the comfort and convenience of the passengers.

Commercial vehicles are experiencing steady growth in the HVAC market. The major factors being air quality inside the truck cabin, the need to improve it and to increase the thermal comfort of the driver. Increase in vehicles used by E-commerce and logistics sector is expected boost the HVAC market in commercial vehicles. Commercial vehicles account for only 10% of the HVAC compressor market in the world.

 

US AUTOMOTIVE HVAC COMPRESSOR MARKET

Owing to high pricing of vehicles and the compressors itself the market value of automotive compressors is highest in the country than compared to any other region in the world. SUVs accounted for 55% of the car sales in 2019 and this contributed majorly for high market value in the country. The average B-2-B price of the compressors is highest in the country.

 

EUROPE AUTOMOTIVE HVAC COMPRESSOR MARKET

In Europe the hatchbacks accounted for major market share in 2019 and thus the compressor market value is slightly lower compared to others since lower capacity compressors are used attributing to lower price. Thus, the average B-2-B price of the HVAC compressor is also comparatively less than other regions.

CHINA AUTOMOTIVE HVAC COMPRESSOR MARKET

HVAC compressor volume in China is the highest for any country owing to its high car sales than other regions. Even the electric compressor volume was highest in China in 2019 and predicted to be the leader in 2025 too.  The compressor capacity on average used in China is highest as the SUVs dominate the passenger vehicle segment. And also the country has most number of buses demanding for higher capacity compressors.

 

GLOBAL AUTOMOTIVE HVAC COMPRESSOR MARKET SIZE AND FORECAST

Automotive HVAC Compressor market is slowly inclining towards the electric compressor. By 2025, the electric HVAC compressor volume is estimated to be more twice the number in 2019 and is expected to account for 15% of the total HVAC compressor market.

In July 2019, Sanden established a technical center in Ho Chi Minh, Vietnam. The center is to devote the resources to development of electric driven compressors for EVs and reinforce its development structure.

 

RECENT MARKET TREND

  • Sanden announced to start collaboration on research and development with Nidec for automotive thermal management system
  • Hyundai Motor Group ahs developed 3 technologies to manage the air quality in a vehicle. The three technologies are After Blow, Multi-Air Mode and Fine Dust Indicator which will be introduced in upcoming cars of the brand and also in the upcoming models of Kia and Genesis brands.
  • The German company Brose Fahrzeugteile GmbH, has developed the electric compressor which is can be used in vehicles with electric system ranging from 48V to 810V. It is capable of working with both chemical refrigerant and CO The series production of these compressors is expected to begin in 2020.
  • In August 2019, Marelli the subsidiary of Calsonic Kansei has entered into a partnership Chinese firm Shanghai Highly Group expert in compressor manufacture. The JV is between the JCH (Johnson Controls-Hitachi Air Conditioning) and Highly group. This will allow Marelli with greater access to Chinese market and strengthen its business in EDC for passenger vehicles. The JCH holds 25% of the JV and the total investment in the JV is 38.24 Million USD.
  • Mahle’s activities at R&D centres of conventional air conditioning compressors plant in Luxembourg is proposed to be ceased by mid-2021, as the focus on product development of electric compressor is looming up.

 

COMPETITVE LANDSCAPE

The top global automotive HVAC manufacturers are mostly Japanese such as Toyota Industries, Denso Corporation, Keihin Corporation and Sanden Corporation. Some of the other Global HVAC manufacturers are Mahle GmbH (Germany), Valeo (France), Hanon Systems (South Korea) and Estra Automotive (Luxembourg). 75% of the European HVAC manufacturers are from Germany.

 Japanese accounted for more than 50% share in the global automotive HVAC segment. Major Chinese automotive HVAC manufacturer is Aotecar New Energy Technology. It is the market leader in China with more than 60% share of Chinese market. Shanghai Highly is the market leader in electric compressor for buses and supplies its products to tier-1 suppliers.

 

COMPANY PROFILE

  1. Denso Corporation
  2. Mahle GmbH
  3. Hanon Systems
  4. Valeo
  5. Mitsibushi Heavy Industries Ltd
  6. Johnson Electric
  7. Calsonic Kansei Corporation
  8. Sanden Corporation
  9. Keihin Corporation
  10. Brose Fahrzeugteile GmbH & Co. Kg
  11. Estra Automotive
  12. Aotecar New Energy Technology
  13. Shanghai Highly
Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

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