Automotive AC Compressor Market Analysis

Automotive AC Compressor Market Analysis

Automotive AC compressor market from the passenger cars segment is set to account for nearly USD 9 billion by 2028. Passenger automobiles are likely to increase at the quickest rate led by rising car sales in countries such as China and India. The proportion of passenger cars stocked with air-conditioning systems is poised to rise dramatically.

The OEM segment will dominate with more than95% of the automotive AC compressor market share by 2028. Developing economies are substantially investing in the manufacturing sector to establish a strong export potential, resulting in increased automotive production. The demand for automobile air conditioner compressors is propel by rising number of working-class individuals owning cars.

Despite the imposition of lockdowns and production halts globally, the car industry has enjoyed significant growth in 2021 impelled by the ongoing COVID-19. The China Association of Automobile Manufacturers (CAAM) claims that China's motor vehicle production and sales totaled 26.082 million units and 26.275 million units in 2021, thus rising by 3.4% and 3.8% year-on-year.

Variable displacement compressors segment is forecast to generate around USD 6 billion revenue by 2028. These compressors are in high demand in Europe and North America as they provide exceptional acceleration while emitting fewer carbon emissions and using less energy than fixed displacement compressors. The compressor adjusts the angle of the revolving swash plate and may control the amount of refrigerant expelled. This smooth control is related to engine & driving circumstances that not only improve driving comfort but also improve vehicle environmental performance by lowering compressor energy consumption.
 

The variable displacement segment earned considerable revenue owing to the growing usage of fuel-efficient and environmental-friendly components in automobiles. Engine economizing tactics and severe fuel economy standards in cars will create significant opportunities for variable displacement compressors.
 

Asia Pacific automotive AC compressor market led by China is predicted to account for over 50 million units demand by 2028. In 2021, as per the OICA, Asia Pacific alone witnessed more than half of the global automotive production. Furthermore, the measures taken by various Asian countries are anticipated to aid the revival of the automotive sector such as China's incentive scheme that rewards buyers who pay less than USD 47,000 with USD 470, whereas buyers who pay more than USD 47,000 with USD 780, followed by a USD 780 unified award on the purchase of modern energy vehicles.