Automotive E-Compressor Market Size

The global automotive e-compressor market size was valued at USD 3.6 billion in 2024 and is projected to grow at a CAGR of 11.1% between 2025 and 2034. The growing focus on thermal management systems is significantly driving the demand for automotive e-compressors, particularly as EVs and hybrids become more advanced. Thermal management is essential for maintaining optimal performance by controlling the temperatures of critical components such as the battery, electric motor, cabin, and power electronics.

For EVs, effective heat management is crucial to improving battery life, performance, and driving range. As a result, manufacturers are increasingly using advanced thermal systems, including e-compressors, to manage temperatures across various vehicle systems.

For instance, in January 2024, Hanon Systems achieved a significant milestone by producing over 500,000 CO2 (R744) electronic compressors (eCompressors) specifically designed for electric vehicle (EV) heat pumps at its factory in Palmela, Portugal. This production milestone highlights the company's commitment to providing environmentally friendly thermal management solutions for electrified vehicles. The eCompressor operates independently of the vehicle's engine, allowing for effective cabin cooling even when the vehicle is off. This feature is particularly beneficial for EVs, which do not generate sufficient waste heat for cabin heating.

EVs use electric compressors, or e-compressors, which are powered by the vehicle's electrical system to operate efficiently and independently. These e-compressors are essential for maintaining cabin temperatures and cooling systems in EVs, where managing energy use is critical. Effective climate control is particularly important in EVs because excessive heat can reduce battery performance and driving range. By improving thermal management, e-compressors help keep batteries at an ideal temperature, enhancing their performance, lifespan, and range.