The global automotive air conditioning system market is anticipated to grow at a rapid pace owing to rise in demand for vehicles from developing economies. The air conditioning systems constitute refrigerant, ventilation, and control system. Essential components of refrigerant include condenser, refrigerant cartridge, expansion valve and the evaporator. The refrigerant system is responsible for providing the cooling effect inside the vehicle.
The ventilation system is responsible for procuring air from the environment, its filtration, and cooling to meet the automobile temperature requirements. Control system helps to achieve the desired temperature through proper distribution and air intake within the vehicle.
The semi and manual air conditioning systems market have been witnessing maturity owing to rapidly growing utilization of automatic systems. Increasing requirement of superior cabin experience is expected to propel demand over the next seven years.
The urban heat island (UHI) effect and lack of greenery have led to increasing in global temperature, thus leading to growing demand for the product. The annual mean air temperature of urban heat island, with an approximate population of a million, is estimated to be nearly 5 degrees Fahrenheit warmer in comparison to its surrounding rural areas.
Rising demand for private car rental services including Ola, Uber and Lyft is expected to propel need for the product to enhance the consumer experience. Moreover, growing competition among various taxi services is projected to facilitate utilization to the developing differentiation in services, thereby increasing customer loyalty.
Rising consumer income levels, growing the middle-class population, and changing lifestyles are expected to propel automotive air conditioning system market growth over the forecast period. Surging demand for automobiles throughout the world coupled with increasing efforts by manufacturers to enhance comfort levels in the vehicle is likely to augment growth.
Rapid industrialization in various economies has led to rising in air pollution levels. For instance, high toxicity level of air in Beijing has led to increased demand for air conditioning systems in the economy. Advanced cooling technologies help to filter the air within the vehicles, thereby preventing airborne diseases. High commuting population in various economies coupled with increasing travel distances are expected to propel utilization of the product in automobiles over the next seven years.
Reduced wind resistance due to closed auto windows helps in improving the efficiency of the vehicles. It also improves its pick up and acceleration, thus propelling demand. Rising awareness about energy efficiency has been facilitating technologies which require less fuel to power the air conditioning systems. The manufacturers have been developing green and efficient technologies to reduce running cost of vehicles and increase sustainability.
The majority of the fully automatic air conditioning devices used in automobiles control themselves based upon temperature measured in the area near the driver. Technological advancements are expected to facilitate utilization of physiologically controlled air conditioning; wherein the optimum temperature is attained by different sets of sensors which measure the thermal state in the automobile cabin.
Asia Pacific, being the largest automotive manufacturer, is expected to dominate the automotive air conditioning system market over the forecast period. Countries including India, China, and Japan, have a vast network of roads leading to increased demand for automobiles.
Europe is also projected to be an emerging market with the demand for cars increasing drastically in countries including UK, Italy, Germany, and France. Change in preferences of customers towards controlling the environment and increasing the need for efficient & compact heating, ventilation, and air conditioning systems in the region are expected to augment growth. Furthermore, strict government norms and environmental regulations in the area require customers to upgrade constantly the components of the automotive thermal systems which are also expected to have a positive impact on the market.
Key companies include Hanon Systems (South Korea), Mitsubishi Heavy Industries Ltd, Denso Corporation (Japan), Sanden Holding Corporation and Calsonic Kansei Corporation. The manufacturers have been adopting numerous strategies including new product launches, product development, acquisitions and partnerships to strengthen their global position.
Denso Corporation introduced a smaller, lighter and more fuel efficient technology for hybrid buses. The product has integrated electric compressor which uses about 50.0% less power compared to its previous versions. It has an improved efficiency and provides greater comfort to passengers.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.