Europe witnessed an annual sale of 15.8 million units of passenger vehicles for the year 2019. The sales volume was in 2019 was found to be the highest for the region for the past 5 years.


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The only region to witness a significant rise in car sales in the year in 2019. The market witnessed a 35% rise in Plug in EV sales in first half of 2020 and is estimated to be the only major EV market to end 2020 with a double-digit growth.



Unlike US and China, Europe’s major chunk of new car sales are acquired by hatchback vehicles which are usually low priced and the average HVAC content per vehicle is lowest for this segment. This contributed for low market value in the region.

Rear AC fitment in the region was comparatively low and was at par with the India’s rear AC penetration.

Installation of air purifier in the cars is growing significantly and the premium cars are equipped mostly with ‘micro active carbon’ filter. The Volkswagen cars are mostly equipped with allergy filters.  



Automatic HVAC System had around ~69% penetration among the passenger vehicles in 2019. If only the top selling premium vehicles are considered the automatic HVAC system was equipped in every top selling model in the region.

Manual HVAC system was mostly limited to hatchbacks and the budget cars in the region. Budget cars from mostly Renault and Fiat accounted for highest number of models with manual HVAC system.

OEM wise luxury car makers Audi, BMW and Mercedes had the highest penetration for automatic HVAC system and almost every model of these automakers was equipped with rear AC technology.

HMI (Human Machine Interface) or the HVAC controller design among the top selling cars is mostly knobs and dials. The touchscreen HVAC control technology is present in the premium segment cars. 


Automatic dual zone climate control was the most popular technology in the region. It is found in almost 1 out of every 2 vehicles in the region. The tri zone climate control which was equipped in only 3 models out of top 30 best selling vehicles in the region, had a significant rise in penetration among the top selling premium cars. The four-zone climate control was limited to luxury segment cars and was had almost negligible penetration among C and D segment cars.   



The rear AC fitment in the region has a considerable scope and in coming years more models are expected to be fitted with rear AC technology.

The shift towards EVs and PHEVs will directly boost the market value in the region, as these vehicles are bound to be equipped with electric HVAC compressor.

Many manufacturers are striving hard to develop compact and light weight HVAC systems. This will help in less fuel consumption, and help in boosting the HVAC market.

Announcement of generous incentives by European countries such as Germany, France, Italy and UK for the customers buying EVs will boost the HVAC market.



The top global automotive HVAC manufacturers are Mahle GmbH (Germany), Hanon Systems (South Korea), Toyota Industries (Japan), Denso Corporation (Japan), Johnson Electric (Hongkong) and Keihin Corporation (Japan).


  1. Denso Corporation
  2. Mahle GmbH
  3. Hanon Systems
  4. Valeo
  5. Toyota Industries
  6. Johnson Electric
  7. Calsonic Kansei Corporation
  8. Sanden Corporation
  9. Keihin Corporation
  10. Estra Automotive
  11. Brose Fahrzeugteile GmbH & Co. Kg
Sl noTopic
1Market Segmentation
2Scope of the report
4Research Methodology
5Executive Summary
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


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