Automotive Air Conditioning Market

nikhilghodse94 March 9, 2022

5 min read

The global automotive air conditioning market is projected to expand at a CAGR of 8.5% during the forecast period, 2021-2028.The growth of the market is attributed to the increasing demand for passenger vehicles owing to increasing disposable income. Furthermore, rising need for comfortable and luxurious travel is driving the market growth.

An automotive air conditioning unit has become an essential part of the passenger vehicles, as it offers different comfort features that can directly influence customer’s choice. These units provide automatic temperature control features, fogging sensors, and controls to vary the fan speed.

Market Drivers, Restraints, Trends, and Opportunities

Swift changes in lifestyles and growing population is anticipated to spur the market growth.The marginal cost of sensors and integration of automated climate control features in the AC units are expected to drive the market growth during the forecast period.Private car rental players are intended to make air conditioning as a basic feature in their cars to improve the customer satisfaction, which is anticipated to spur the market growth in the foreseeable future.Innovations such as energy efficient and eco-friendly AC units are the recent trends of the market. Manufacturers are encouraged to design units with lower weight and compact systems to improve the performance of vehicles and adaptability in the same.Government initiatives to introduce energy efficient and green technology solutions are expected to positively influence the market growth.Growing awareness among consumers regarding the decline in environmental conditions due to increasing CO2 emissions is expected to create lucrative opportunities for the product development in the market.

Global Air Conditioning Market Segment Insights

In terms of technology, the market is divided into manual and automatic. In manual systems, the user need to select the blower settings and control the temperature manually, which may consume lot of consumer’s time . Moreover, its low efficiency is expected to restrain the market growth. On the other hand, the automatic segment is speculated to exhibit a CAGR of over 9.5% owing to its several advantages over manual systems. Furthermore, evolving consumer preferences and increasing demand for luxury vehicles are some of the key factors driving the growth of the automatic AC system segment.

Based on vehicles, the market has been segmented into passenger cars, light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). The availability of various financial schemes and rising disposal income are the prime factors driving the growth of the passenger cars segment during the forecast period. On the other hand, the demand for automotive AC systems in LCVs is expected to rise at a healthy pace owing to increasing demand from rural & urban areas. This is speculated to propel the growth of the light commercial vehicles (LCVs) segment.

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to witness an impressive growth due to the presence of major automobile manufacturers and the large scale production of vehicles in this region. Emerging nations such as India, South Korea, and China are witnessing an escalating vehicle demand owing to the various initiatives taken by the state government bodies to revive the automotive industry in these countries. The market in North America is anticipated to expand at a CAGR of 8% during the forecast period. This due to the the improving macroeconomic conditions and rising investment in the R&D activities.

About Growth Market Reports:

GMR provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Industry Intelligence Solutions”. GMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain. Our key analysis segments, though not restricted to the same, include market entry strategies, market size estimations, market trend analysis, market opportunity analysis, market threat analysis, market growth/fall forecasting, primary interviews, secondary research & consumer surveys.