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Automotive HVAC Market Revenue to Attain USD 98.96 Bn by 2033
15 Nov 2024
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Automotive HVAC Market Revenue and Trends
The global automotive HVAC market revenue surpassed USD 55.11 billion in 2024 and is predicted to attain around USD 98.96 billion by 2033, growing at a CAGR of 6.73% during the forecast period. The increasing demand for passenger safety and comfort with advanced vehicle features like climate control systems how long ago the growing demand for electric and hybrid vehicles are expanding the market for automotive HVAC.
Market Overview
The heating, ventilation, and air conditioning (HVAC) system helps control the temperature inside the car and cleans the air by providing passenger safety and comfort. It helps control temperature, maintain airflow, analyze the amount of wetness in the air, and reduce the humidity in vehicles. The HVAC system comprises a compressor, condenser, evaporator, pressure regulator, thermal expansion valve, receiver drier, and accumulator that captures the refrigerant gas and removes the heat. Whenever the compressed gases come in contact with the condenser, they cool down and escape as a high-pressure fluid. The evaporator then reduces the heat inside the vehicle by controlling the flow and pressure.
The market is experiencing significant growth due to rising demand for passenger comfort and the rising production of vehicles. In addition, stringent emission regulations and the rising concerns about changing climatic conditions boost the demand for automotive HVAC. Market players are continuously launching new products to meet consumers’ varying demands.
For instance, in August 2024, Hanon Systems launched the world’s first fourth-generation heat pump system for electric vehicles. This system utilizes a parallel heat source recovery method, which uses waste heat from the motor and battery as well as heat from external air. The recovered heat is then used for heating, cooling, and controlling battery temperature.
Report Highlights of the Automotive HVAC Market
Based on technology, the automatic segment dominated the automotive HVAC market in 2023 due to the rising demand for automatic climate control features. Automated HVAC controls temperature, maintains humidity levels, and filters out pollutants. With the growing adoption of electric vehicles, the demand for automatic HVAC systems is rising, thus boosting segmental growth. On the other hand, the manual/semi-automatic segment is expected to expand at the fastest rate in the coming years. This is due to the lower cost of semi-automatic HVAC systems than fully automatic. Moreover, semi-automatic systems allow drivers or passengers to control temperature and airflow manually, further enhancing comfort.
On the basis of vehicle type, the passenger car segment held the largest share of the market in 2023. This is mainly due to the rise in demand for comfort and safety features in personal vehicles. Moreover, the rise in sales of passenger cars bolstered the segment. For instance, according to a report published by the Society of Indian Automobile Manufacturers (SIAM), sales of passenger cars increased from 14,67,039 to 17,47,376 units in FY-2022-23 compared to the previous year.
Automotive HVAC Market Trends
Rising production of vehicles: With the increasing production of vehicles worldwide, the demand for HVAC systems is rising. HVAC systems control air quality in vehicles, ultimately enhancing passengers’ comfort. The rapid shift toward electric and hybrid vehicles encourages manufacturers to develop HVAC systems that can run longer and use less power.
High preference for luxury vehicles: The increasing preference for luxury vehicles further boosts the demand for convenience features, including automated heat and air control systems, which fuels the growth of the market.
Demand for environmentally friendly refrigerants and cheaper HVAC systems: With the rising awareness about cabin air quality and its health repercussions, the demand for HVAC systems in vehicles is rising. Also, the demand for HVAC systems that utilize natural refrigerants and energy-efficient technologies is increasing rapidly due to the automotive industry’s focus on sustainability. Such HVAC systems reduce air pollution and improve fuel efficiency. In addition, the rising demand for cheap and easily installable automated technologies contributes to the market's growth.
Technological advancements: Technological advancements have led to the innovation of advanced HVAC systems. Implementing technologies like artificial intelligence in automotive HVAC systems analyzes real-time data about internal as well as external temperature and adjusts airflow accordingly. This saves energy and enhances fuel efficiency.
Regional Snapshot
In 2023, Asia Pacific led the automotive HVAC market by holding the largest share. The region is expected to continue its dominance in the market throughout the forecast period. This is mainly due to the rapid expansion of the automotive industry. The country stands out as a strong competitor in the automotive sector. India, China, Japan, and South Korea boast well-known car manufacturers such as Tata, Toyota, and Maruti Suzuki. Moreover, the increasing sales of luxury vehicles further boost the automotive HVAC market within the region.
According to the CEO of Audi India, Balbir Singh Dhillon, India will sell more than 100,000 luxury cars a year by 2030, up from 48,500 sold in 2023.
The market in North America is expected to grow at the fastest rate in the upcoming years. There is a high demand for advanced systems, such as heated and ventilated seats and automated HVAC systems. The rising adoption of electric vehicles further boosts the demand for energy-efficient HVAC systems. In addition, the increasing demand for climate control systems and the rising integration of smart technologies contribute to regional market growth.
Automotive HVAC Market Coverage
Report Attribute
Key Statistics
Market Revenue in 2024
USD 55.11 Billion
Market Revenue by 2033
USD 98.96 Billion
CAGR
6.73% from 2024 to 2033
Quantitative Units
Revenue in USD million/billion, Volume in units
Largest Market
Asia Pacific
Base Year
2023
Regions Covered
North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Market News
In September 2024, Honeywell announced the European launch of its “Direct to YF Retrofitting Program,” offering a simplified approach for transitioning older vehicles to low Global Warming Potential (GWP) refrigerants. This move aligns with Europe’s F-Gas Regulation and positions Honeywell as a leader in advancing sustainable solutions across the automotive sector.
In August 2024, Hyundai Motor Company and Kia Corporation introduced three temperature control technologies at ‘Heat Tech Day’ in Seoul, South Korea. These technologies are designed to regulate vehicle interior temperature and enhance passenger comfort and energy efficiency.
Market Segmentation
By Technology
Manual/Semi-automatic
Automate
By Vehicle Type
Passenger Cars
LCV
HCV
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