Automotive Air Conditioning Market Size

Automotive Air Conditioning Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The automobile air-conditioning market is booming. The market for automobile air-conditioning is projected to grow from $34 billion in 2024 to $55 billion in 2032. The growth rate is 5.35 percent. The increasing demand for passenger comfort and the rising global temperature are driving the installation of advanced air conditioning systems in vehicles. The trend of using electric vehicles is also driving the market. To improve the performance and sustainability of electric vehicles, manufacturers are also investing in energy-saving and cooling equipment. The automobile air-conditioning industry has many key players, such as Denso, Valeo and Mahle. They are constantly taking strategic measures to seize the market. The focus is on innovation, through strategic cooperation and R & D investment, to create more efficient and environmentally friendly air conditioning solutions. Also, the use of smart and IoT technology in air conditioning systems is becoming increasingly common. This not only improves the passenger's experience and energy management, but also reduces the cost of the system. The development of the automobile industry is bound to influence the development of the automobile air-conditioning market. The development of the automobile air-conditioning market is driven by technological development and the needs of the times.

Regional Market Size

Regional Deep Dive

The air-conditioning of automobiles is undergoing a remarkable transformation across various regions. Technological advances, regulatory changes and changing consumer preferences are driving this transformation. In North America, the market is characterised by a strong emphasis on energy efficiency and the environment. As a result, the use of eco-friendly refrigerants is increasing. In Europe, the increasing popularity of electric vehicles is causing air-conditioning systems to be redesigned to meet the special requirements of electric vehicles. Meanwhile, in the Asia-Pacific region, rapid urbanization and rising incomes are driving the demand for automobiles and therefore for automobile air-conditioning. The Middle East and Africa (MEA) are characterised by harsh climate conditions, which call for robust air-conditioning systems. The growing automobile production in Latin America is enabling it to adopt more advanced air-conditioning systems.

North America

• The EPA of the United States has put strict regulations on the use of refrigerants, forcing manufacturers to use low GWP refrigerants such as HFO-1234yf.
• Major car manufacturers such as Ford and General Motors are developing new systems for regulating the temperature in vehicles, which are more energy-efficient and less polluting, in response to the increasing demand for greener vehicles.
• The era of the interconnected car is bringing smart climate control into the foreground, enabling personal comfort settings and more energy-efficient driving.

Europe

• The Green Deal, which aims to make Europe climate-neutral by 2050, has forced car manufacturers to develop air conditioning systems that comply with strict emissions standards.
• In electric cars, the development of heat pumps is now being driven by the German companies.
• The emergence of mobility sharing in cities is influencing the design of air conditioning systems, which must be able to provide for a large number of users, while improving comfort and air quality.

Asia-Pacific

• China's auto market is rapidly developing, and the development of electric vehicles is accelerating, which is driving the demand for air conditioning equipment that can operate in a variety of climates.
• Japanese car makers, such as Toyota and Honda, have invested in new refrigerant and air-conditioning systems in order to meet both domestic and international standards.
• Among the connected vehicles, the most advanced systems of air-conditioning are now being used in India.

MEA

• The stifling heat in the Middle East has led to a demand for high-efficiency air-conditioning systems, and companies such as Daikin and Trane have developed systems suited to the local climate.
• The government’s efforts to promote energy-efficient vehicles are also having a positive impact on the automobile air conditioning market.
• The increasing use of luxury vehicles in the region has resulted in the introduction of advanced climate control systems which enhance passenger comfort and thus drive demand.

Latin America

• Brazil's car industry is undergoing a shift towards more energy-efficient air-conditioning systems, driven by the government's incentive to develop sustainable technology.
• Local manufacturers are increasingly collaborating with international manufacturers to develop and produce HVAC solutions that meet the requirements of the local market.
• The rising middle classes in Latin America are increasing vehicle ownership, and therefore also the demand for car air-conditioning systems.

Did You Know?

“About 30 per cent of the energy consumed by a car comes from the air-conditioning system, which makes it an important factor in reducing emissions.” — International Energy Agency (IEA)

Segmental Market Size

The automobile air-conditioning market is currently growing steadily, driven by the growing demand for comfort and increased vehicle performance. In addition, the stricter regulatory requirements for the reduction of vehicle emissions are driving manufacturers to use more efficient air-conditioning systems. Furthermore, the rapid development of electric vehicles requires new solutions for air-conditioning that are in line with the sustainability goals.

In the meantime, the market for electric cars has reached a mature stage of development, and manufacturers like Toyota and Tesla are integrating advanced air-conditioning systems into their EVs. It is a matter of life and death for consumers of luxury cars, passenger cars, and commercial vehicles to have the air-conditioning system they want. And the trend toward green products and the requirements for reducing CO2 emissions will be a driving force behind this growth. Variable refrigerant flow systems and eco-friendly refrigerants will be the driving forces behind the development of the industry. These innovations will not only help to reduce energy consumption, they will also contribute to the world’s sustainable development.

Future Outlook

The market for car air-conditioning is set to grow significantly from 2024 to 2032. The value of the market is expected to rise from $34 billion to $ 55 billion, with a compound annual growth rate (CAGR) of 5.35 percent. The growth will be mainly driven by increased demand for vehicle comfort and stricter regulations on vehicle emissions and energy efficiency. Also, the increasing use of electric vehicles (EVs) will require the integration of advanced air-conditioning systems with environment-friendly refrigerants, which will help drive market growth.

The development of VRF systems and the adoption of smart climate control are expected to reshape the car air-conditioning market. VRF systems not only improve energy efficiency, but also enhance the comfort of the passengers by personalizing the settings of the climate control. Also, the growing focus on the environment and the transition to low-GWP refrigerants are expected to have a major impact on the market. The penetration of advanced air-conditioning systems in new car models is expected to rise considerably. By 2032, it is expected that more than 70 per cent of new vehicles will be equipped with these systems.

The emergence of the Internet of Things in the air conditioning of vehicles will increase the efficiency of the system and the participation of the customer. The remote control and monitoring of the climate through mobile applications will become a standard feature, which will be appreciated by the technically advanced consumers. The further development of the automotive industry, the advent of the driverless car, will further increase the demand for more sophisticated climate control systems that will meet the diverse needs of passengers. The air conditioning market is entering a phase of strong growth, driven by technological innovations, new regulations and changing consumer preferences.