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EVs Emerge as Bright Spot to Keep Economies Running during COVID-19 Pandemic

The automotive industry has been worst hit due to the COVID-19 pandemic. It is anticipated that the industry will be taking as long as four years minimum to fully recover and run as per normal business practices. Such predictions are creating challenges for stakeholders in the automotive AC compressor market.

Companies in the automotive AC compressor market are adopting the plug and play mode to adapt to slow growth in the overall industry. The volatile demand and supply has compelled car makers to increase their focus in electric vehicles (EVs), since consumers have become conscious about their spending and aiming for long-term investment to own various goods and commodities.

automotive ac compressor market segmentation

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Automatic Climate Control Decreases Load on AC Compressors, Betters Mileage

The automotive AC compressor market is slated to clock a sluggish CAGR of ~3% during the forecast period. This is evident since AC compressors are often prone to common symptoms such as high cabin temperature, loud noises, and leaking fluid, which might damage the car engine. Such issues could lead to increased insurance costs and inhibit growth of the overall market. Hence, manufacturers are increasing their production capabilities to incorporate automatic climate control feature in automotive AC compressors to decrease the load on the compressor.

Less operation of AC compressors with the help of automatic climate control plays an instrumental role to better the mileage of cars.

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Electric Compressors Help Reduce Temperature of Lithium-ion Batteries in EVs

The proliferation of electromobility is signaling that AC compressors are being operated electrically. SCHOTT, a company in the automotive AC compressor market, is taking advantage of this opportunity to develop optimum electric compressor feedthroughs for both high voltage and 48V operations. Manufacturers are increasing their production capabilities in copper conductors for high current and additional insulation by means of special synthetic elastomer meant for high voltage applications.

Apart from the U.S. and Europe, experts in the automotive AC compressor market are expecting high growth rates of electric compressors (e-compressors) in India. The issue of high temperature in lithium-ion batteries for EVs is being solved by battery-powered compressors.

E-compressors Offer Future Scope for Shorter Charging Times in EVs

Manufacturers in the automotive AC compressor market are boosting their production capabilities in e-compressors. Vehicle technology provider Mahle is investing in R&D for e-compressors that not only cool the vehicle cabin but also the battery used in vehicles. E-compressors are gaining importance if an AC system fails to function, the electric and hybrid vehicles cannot operate due to safety risk posed as a result of battery overheating.

Rising fuel prices in India is encouraging people to opt for electric and hybrid vehicles. Such trends are translating into business opportunities for companies in the automotive AC compressor market. Compressors are playing a crucial role in battery thermal management and extending range & maintenance of battery life, whilst increasing scope for shorter charging times in the future.

Anticipated Ban on Diesel Engines in Europe Gives Rise to E-compressor Production

Voltage, performance, and displacement are important factors to take into consideration while determining the correct electric compressor for off-road vehicles. Evolving regulations are driving many people to embrace electric and hybrid vehicles. It has been found that European countries are expected to impose a ban on diesel engines by 2025. Such trends are contributing toward the expansion of the Europe automotive AC compressor market in the EV segment.

Although the upfront cost of electric vehicles might be high, long-term investment in EVs show improved efficiency, comfort, and low total cost of operation. Hence, companies are bolstering their manufacturing capabilities for e-compressors that suit electric and hybrid vehicles.

Hydrogen a Realistic Alternative to Fossil Fuel-based Vehicles

Current technologies and performances of hydrogen compression for stationary and automotive applications are acting as key drivers for the automotive AC compressor market. Hydrogen is posing as a game changer in making vehicles emission-less, and contributes toward sustainable development of the global automotive industry. This is evident since hydrogen is one of the most abundant elements available and virtually present everywhere, thus serving as a never-ending source of energy.

Hydrogen can be directly converted into electric energy using fuel cells without producing toxic gases. Moreover, it can be produced using renewable sources including biomass, solar, and wind energies, thus reducing the carbon footprint in the environment. However, several issues related to the shortage and delivery of hydrogen for both stationary and automotive applications are causing an impediment in market growth. As such, innovations in mechanical compressors such as reciprocating & ionic liquid compressors and non-mechanical technologies including electrochemical and adsorption compressors for hydrogen applications are increasing market scope. Thus, hydrogen tech is emerging as a realistic alternative to traditional fossil fuel-based vehicles in the automotive AC compressor market.

Improvements in Lubricants, Awareness about Compressor Maintenance Benefits Car Companies

Complimenting factors such as improvements in lubricants for reciprocating compressors and rotary screw compressors are boosting growth of the automotive AC compressor market. Reciprocating compressors are estimated to dominate a higher revenue share as compared to rotary compressors during the forecast period. Since automotive AC compressors are susceptible to several issues including fault in working of the compressor clutch, OEMs and stakeholders in aftermarkets are increasing awareness about condenser cleaning to avoid costly compressor and engine repair.

E-compressors are emerging as a new sensation in the automotive AC compressor market. These compressors in hybrid and all-electric vehicles are enabling long distance travel under electric power.

automotive ac compressor market infographic

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Analysts’ Viewpoint

Rising fuel prices in countries such as India are building future growth prospects for robust EV penetration in the automotive sector and revive market growth after the slowdown caused by the COVID-19 pandemic. The automotive AC compressor market is expected to cross US$ 30.4 Bn by the end of 2031.

In cold regions, most EVs are using electrically powered heating solutions to warm the cabin and battery. The integrated thermal system (ITS) uses a vehicle’s refrigerant system to transfer thermal energy into coolant, which can then be used elsewhere in the vehicle. Such trends are helping to significantly improve the EV cruising range. However, the introduction of this new technology poses as a challenge in many workshops. Hence, OEMs and stakeholders in aftermarkets should increase awareness about training to workers and carmakers in order to work on vehicles with e-compressors.

Automotive AC Compressor Market: Overview

  • The global automotive AC compressor market was valued at US$ 22.6 Bn in 2020. It is estimated to expand at a CAGR of ~3% from 2021 to 2031. The AC compressor is driven by electric motor or powered by an engine’s belt drive to draw in, compress, and discharge fluids in order to maintain optimal cabin conditions. ACs have become a standard feature in most cars sold across the globe. This necessity of the AC compressor and increasing applications in all types of vehicles are driving the global automotive AC compressor market.
  • The emergence of new electrically powered AC compressors have boosted the integration of AC systems in vehicles by reducing the load on engines and facilitating remote operation of the vehicle’s HVAC so that when the driver or passenger enters, the vehicle the temperature would be already set to the preferred comfort level. Demand for these advanced automotive AC compressors is anticipated to increase significantly in the near future.

Drivers of Automotive AC Compressor Market

  • Rise in disposable income of the global population has led to a surge in the sale of passenger as well as domestic vehicles. Customers, while purchasing new vehicles, are more concerned about the amenities the vehicle has to offer, its safety level, ride comfort level, and other such aspects. The vehicle’s cabin temperature has a strong impact on the ride experience and driver comfort. Optimal cabin temperatures reduce fatigue while driving, which lowers the probability of accidents and hence increases safety. These benefits have prompted HVAC systems to become a standard feature in most vehicles sold across the globe. The AC compressor is utilized to pressurize the AC unit and keep R134a flowing so that it can work properly. Thus, rise in sale of vehicles and changing customer expectations are driving the automotive AC compressor market across the globe.
  • Global warming has led to an increase in the Earth’s atmospheric temperature by approximately 1-2 degrees Celsius per year. This rise in global warming is propelling the consumer demand for air conditioning in vehicles for better vehicle interior environment during commute, considering the extensive time spent in vehicles during commute.
  • Electric vehicles are gaining popularity in several countries. These vehicles have huge battery pack and other electronic components that generate tremendous heat during the vehicle’s operation, which needs to be dissipated for the safety of passengers and optimal functioning of the components. Therefore, ACs are a vital component of electric vehicles and the rising popularity of electric vehicles is propelling the automotive AC compressor market across the globe.

Challenges for Automotive AC Compressor Market

  • Design, manufacture, and assembly of an AC compressor needs considerable precision, advanced R&D facilities, and more advanced technology. Furthermore, it requires technical expertise and high investment. Advancements in material, components, and systems boost the price of AC compressor compared to that of other types of compressors. Consequently, the price of a vehicle equipped with an AC compressor is higher, due to the high price of the automotive AC compressor. Maintenance issues, technical restraints, and high prices of luxury vehicles are expected to act as minor restraints for the market during the forecast period.
  • The recent outbreak of COVID-19 hampered majority of businesses across the globe, owing to the forced lockdown, which led people to stay at home. This pandemic hindered the sale of vehicles and their components, which disrupted the automotive supply chain across the world and hampered the automotive AC compressor market.

Automotive AC Compressor Market Segmentation

  • The global automotive AC compressor market has been segmented based on design, drive type, vehicle, and sales channel
  • Based on design, the reciprocating type segment dominated the automotive AC compressor market, in terms of revenue, in 2020. Reciprocating wobble plate compressor has a stationary plate and a rotating cam & piston to obtain the compression. This compressor is compact and consumes low power, which has led to its widespread adoption.
  • Based on vehicle type, the passenger vehicle segment dominated the global automotive AC compressor market, in terms of revenue, in 2020. Customers of passenger vehicles are more concerned about a vehicle’s ride experience, comfort level, and other amenities. These customers are willing to spend extra for these amenities and hence, automakers have made AC a standard offering in most of their vehicle models in order to cater these demands.

Automotive AC Compressor Market: Regional Analysis

  • Based on region, the global automotive AC compressor market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
  • Asia Pacific accounted for a major share of the global automotive AC compressor market. Consistent rise in sales of vehicles in several countries, such as China, India, Japan, and South Korea, has fueled the demand for automotive AC compressors. Furthermore, automakers in the region are increasing their production to cater to the local as well as export demand for vehicles, which, in turn, is fueling the automotive AC compressor market in Asia Pacific.

Automotive AC Compressor Market: Competition Landscape

  • Key players operating in the global automotive AC compressor market include
    • Behr Hella Service GmbH
    • Calsonic Kansei Corporation
    • Continental AG
    • Hanon Systems
    • Keihin Corporation
    • Michigan Automotive Compressor, Inc.
    • SANDEN
    • Subros Limited
    • MAHLE Group
    • BorgWarner Inc.
    • Robert Bosch GmbH
    • DENSO CORPORATION
    • TD Automotive Compressor Georgia Toyota Industries Corporation
    • Valeo SA
  • Key players operating in the global automotive AC compressor market are expanding their presence by engaging in merger and acquisition activities or by establishing new facilities. For instance, on February 12021, MAHLE GmbH took over the air conditioning business from Keihin Corporation in Japan, Thailand, and the U.S. Four production sites and one development center are presently being integrated into the MAHLE Group. This acquisition enabled MAHLE to consolidate its position in the field of air conditioning systems.
  • On December 152017, Hanon Systems announced that it had signed an investment agreement with the Dalian municipal government in China to expand its automotive compressor operations to boost business expansion in the country

Automotive AC Compressor Market – Scope of the Report

Transparency Market Research’s recent report on the automotive AC compressor market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the automotive AC compressor market analyzes the scenario for the period of 2021 to 2031, wherein, 2020 is the base year and 2019 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.

This TMR study on the automotive AC compressor market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the automotive AC compressor market gives readers an individual understanding of the market.

Key Questions Answered in This Report on Automotive AC Compressor Market

  • How much value will the automotive AC compressor market generate by the end of the forecast period?
  • Which segment of the market is likely to account for the maximum market share by 2031?
  • What are the impact factors and their effects on the market for automotive AC compressor?
  • Which regions currently contribute the maximum share to the overall automotive AC compressor market?
  • What are the indicators expected to drive the automotive AC compressor market?
  • Which region is likely to be a lucrative market during the forecast period?
  • What are the essential strategies by key stakeholders in the automotive AC compressor market to expand their geographic presence?
  • What are the major advancements witnessed in the automotive AC compressor market?
  • How regulatory norms affected the market for automotive AC compressor market?

This report answers these questions and more about the automotive AC compressor market, aiding major stakeholders and key players in making right decisions and strategizing for the advancement of their business.

Automotive AC Compressor Market – Research Methodology

This TMR report on the automotive AC compressor market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the automotive AC compressor market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by key players, researchers of the automotive AC compressor market arrive at predictions and estimations, and calculate the forecast for the market.

This report uses an analytical triangulation method to estimate the numbers and figures of the automotive AC compressor market, with both a bottom-up and top-down approach.

This detailed assessment of the automotive AC compressor market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the automotive AC compressor market is estimated to expand are based on carefully vetted primary and secondary sources.

Automotive AC Compressor Market – Segmentation

This report on the automotive AC compressor market provides information on the basis of design, drive type, vehicle, sales channel, and region.

Design
  • Reciprocating Type
    • Swash
    • Wobble
  • Rotary Type
    • Scroll
    • Vane
    • Screw
Drive Type
  • Electric
  • Conventional (Belt Driven)
Vehicle
  • Passenger Vehicle
  • Commercial Vehicle
    • LCV
    • HCV
    • Buses & Coaches
Sales Channel
  • OEM
  • Aftermarket
Region
  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

This study also discusses the underlying trends and impact of various factors that are driving the automotive AC compressor market, along with their influence on the evolution of the market.

This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the automotive AC compressor market in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.

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Automotive Ac Compressor Market

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