Automotive HVAC Market Size - By Type (Automatic HVAC Systems, Manual HVAC Systems), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Component, By Propulsion Type & Forecast, 2024 - 2032

Automotive HVAC Market Size

Automotive HVAC Market size was valued at USD 61 billion in 2023 and is anticipated to grow at a CAGR of over 5% between 2024 and 2032, driven by the increasing demand for enhanced passenger comfort. Modern consumers prioritize a comfortable driving experience, which includes maintaining an optimal cabin temperature regardless of external weather conditions.
 

For instance, in February 2024, researchers at Birmingham University announced the development of the e-Thermal bank, a microwave-based thermochemical HVAC system for electric vehicles (EVs). Promising a range boost of up to 70%, the system offloads HVAC duties from the battery, significantly enhancing energy efficiency and reducing costs.
 

Technological advancements in HVAC systems are significantly driving market growth. Innovations like automatic climate control, which adjusts temperature and airflow based on sensor inputs, are becoming increasingly popular. The development of more efficient components, such as compressors, heat exchangers, and refrigerants, are further boosting the market. A key example is the automotive air filters, which enhance system performance and integration. The incorporation of HVAC systems with other vehicle electronics, including infotainment and navigation systems, provides a seamless user experience, making modern vehicles more appealing.
 

The burgeoning automotive production and sales, particularly in emerging markets, are further propelling the growth of the automotive HVAC market. Countries in Asia-Pacific, Latin America, and the Middle East are witnessing rapid urbanization and rising disposable incomes, leading to increased vehicle ownership.  This surge in demand for passenger and commercial vehicles necessitate the adoption of advanced HVAC systems to meet consumer expectations.
 

The development and production of advanced HVAC systems like the e-Thermal bank involves significant research and development expenditures. The need for specialized materials, sophisticated engineering, and rigorous testing processes adds to the overall cost. These high initial costs can be a barrier for manufacturers, especially those operating in competitive and price-sensitive markets.
 

Integrating new HVAC technologies into existing vehicle platforms presents substantial technical challenges. Ensuring compatibility with the vehicle's electrical and mechanical systems requires extensive engineering work. Moreover, advanced systems like the e-Thermal bank must demonstrate reliability and durability under a wide range of operating conditions, from extreme heat to severe cold.
 

Automotive HVAC Market Trends

A significant trend in the automotive HVAC industry is the development and integration of advanced heat pump systems utilizing natural refrigerants like propane (R290). These systems are designed to provide efficient thermal management for electric vehicles (EVs), significantly enhancing range and performance, especially in extreme weather conditions.
 

By using innovative technologies that reduce energy consumption and improve cooling capacity, these HVAC solutions support the overall push for sustainability and energy efficiency in the automotive industry. The compact and lightweight design of these systems facilitates easier integration into EVs, making them a viable solution for improving vehicle efficiency and reducing environmental impact.
 

For instance, in July 2023, ZF unveiled the EVbeat concept, featuring an 800V propane (R290)-based heat pump for advanced thermal management. This innovative system significantly boosts cooling efficiency and EV range, highlighting ZF's commitment to compact, lightweight, and sustainable solutions in electric vehicle technology.
 

Automotive HVAC Market Analysis

Based on type, the market is divided into automatic HVAC systems, manual HVAC systems. The automatic HVAC systems segment is expected to reach a value over USD 55 billion by 2032.
 

• Consumers are increasingly expecting advanced comfort features in their vehicles, including automatic climate control that adjusts temperature and airflow based on internal and external conditions. Automatic HVAC systems are equipped with sophisticated sensors and control algorithms that enhance comfort, efficiency, and convenience, driving their adoption.
   
• The global expansion of e-commerce and the complexity of supply chain networks further propel the demand for hardware components. Companies require reliable hardware infrastructure to support their logistics operations, ensuring seamless connectivity, data accuracy, and operational efficiency. As logistics industries worldwide continue to invest in upgrading their technological capabilities, the hardware segment is set to witness substantial growth, meeting the evolving demands of a digitally driven logistics landscape.
   

Based on vehicle type, the automotive HVAC market is divided into passenger cars, commercial vehicles, and electric vehicles (EVs). The electric vehicles (EVs) segment is the fastest growing segment with a CAGR of over 5% between 2024 and 2032.
 

• The rising popularity of EVs, driven by environmental concerns, government incentives, and advancements in battery technology, is boosting demand for specialized HVAC systems tailored to these vehicles.
   
• EVs require efficient HVAC systems to manage cabin temperature and battery temperature effectively. Automatic and advanced HVAC systems are essential for optimizing energy use and extending the vehicle’s range. Innovations in HVAC technology that improve energy efficiency, comfort, and integration with EV systems contribute to the growing demand for advanced HVAC solutions in EVs.
   

North America dominated the global automotive HVAC market in 2023, accounting for a share of over 25%. The region is home to major automotive manufacturers and suppliers, fostering innovation and adoption of advanced HVAC technologies. North America is seeing a surge in EV adoption, which necessitates specialized HVAC systems designed to manage battery and cabin temperature effectively. The region benefits from continuous technological advancements and investments in automotive HVAC solutions, including smart and automatic systems.
 

The U.S. Automotive HVAC industry is expanding rapidly, driven by the high rate of vehicle ownership and a strong demand for advanced climate control systems. As the automotive industry in the U.S. embraces technological innovations, particularly in electric vehicles, the need for efficient HVAC systems is growing.
 

China’s automotive HVAC market is witnessing robust growth, driven by the country's rapid expansion in the automotive sector and increasing vehicle ownership. The government's strong push for electric vehicle adoption, supported by subsidies and regulatory incentives, is significantly boosting demand for advanced HVAC systems designed for EVs.
 

South Korea's automotive HVAC industry is expanding due to the country's focus on technological innovation and high vehicle production rates. The growth of the electric vehicle sector, supported by government policies and incentives, is a key driver for the demand for advanced HVAC systems.
 

Japan’s automotive HVAC market is experiencing steady growth, fueled by the country's leadership in automotive technology and innovation. The emphasis on electric vehicles and hybrid cars are driving demand for advanced HVAC systems that ensure optimal performance and energy efficiency. Additionally, Japan’s stringent environmental regulations and high consumer expectations for vehicle comfort are contributing to the increased adoption of automatic HVAC systems across the market.  
 

Automotive HVAC Market Share

Denso Corporation and Hanon Systems hold a significant share in the automotive HVAC industry. Denso Corporation is a major player in the market, renowned for its advanced climate control solutions. The company leverages cutting-edge technology to develop high-performance HVAC systems that cater to various vehicle types, including passenger cars and electric vehicles (EVs). Hanon Systems also commands a substantial share of the market. The company offers a broad range of HVAC products, including those designed for energy efficiency and reduced environmental impact.
 

Automotive HVAC Market Companies

Major players operating in the automotive HVAC industry are:

• Calsonic Kansei Corporation (Marelli Corporation)   
• Delphi Technologies (BorgWarner Inc.)
• Denso Corporation
• Hanon Systems
• Mahle GmbH
• Sanden Holdings Corporation
• Valeo SA
   

Automotive HVAC Industry News

• In March 2024, Mahle GmbH unveiled its latest lightweight HVAC systems designed to improve fuel efficiency and reduce emissions. These systems are expected to set new standards in the automotive industry, reflecting Mahle’s commitment to technological advancement.
   
• In January 2024, Sanden Holdings Corporation introduced a new line of HVAC systems utilizing eco-friendly refrigerants. This innovation is part of Sanden’s strategy to meet environmental regulations and cater to the growing demand for sustainable automotive solutions.
   

The automotive HVAC market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Type

• Automatic HVAC Systems
• Manual HVAC Systems

Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicles 
  • LCV
  • HCV

Market, By Component

• Sensors
  • Temperature Sensors
  • Pressure Sensors
  • Humidity Sensors
  • Air Quality Sensors
  • Position Sensors
• Heat Exchangers
  • Condenser
  • Evaporator
• Compressor
•  Expansion Device
• Receiver/Drier
• Blower Motor
• Others

Market, By Propulsion Type

• ICE
• Electric 
• Hybrid

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA