HVAC systems have become a standard feature across passenger cars, and are expected to be a major driver behind the growing automotive industry. An increase in private vehicle demand and average time spent in cars is anticipated to boost automotive HVAC market size over the forecast period. According to the United States Department of Transportation (DoT), average daily distance travelled on urban highways in January 2015 showed a rise of 4.3% on yearly basis.
Global automotive HVAC market size forecast pegs $23.19bn revenue by 2023 - as per a new research report by Global Market Insights. The ecosystem comprises component suppliers, system suppliers and automakers.
Incorrect adjustment of the HVAC controls results in decreased fuel efficiency, which may restrain growth. Low demand across the LCV and HCV segments as compared to passenger cars may limit industry potential.
High initial investment and presence of major players may restrict new entrants. Companies enter into long term service contracts with customers, therefore new entrants may have to face difficulties to win new contracts and partnerships. Automakers may not switch to new participants owing to quality and cost concerns.
The European automotive HVAC market share is estimated to account for over 20% of the global revenue through the forecast period, spurred by vehicle production. Favourable regulatory scenario to limit energy consumption is a key regional trend.
US automotive HVAC market share is likely to witness gains at 7.9% CAGR over the forecast period. This is primarily credited to increase automotive production coupled with a high penetration of premium vehicles in the region.
Asia Pacific automotive HVAC market size was over $5.3bn in 2015, with growth prospects of over nine percent from 2016 to 2023.
Localised/spot systems provide energy saving and better customer experience; however, cost may act as a challenge to adoption. Automotive HVAC market share is consolidated in nature - key companies include Denso, Hanon Systems, Mahle Group and Valeo.