An automotive refrigerant is designed to control the internal environment of a vehicle by means of controlling the temperature through heating and cooling. Additionally, it controls the humidity level in that surrounding by controlling the movement and distribution of air within. Automotive refrigerants, further, help check the cleanliness of air in the surroundings. Thus, it can be inferred that the primary objective of automotive refrigerants is to ensure that vehicle interior are both safe and comfortable for human beings.
Geographically, the automotive refrigerant market can be segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific is expected to possess significant growth potential in the automotive refrigerant market during the forecast period, 2019–2026, driven by increasing vehicle production and demand from developing countries such as China, India, and Japan. Additionally, government initiatives that boost manufacturing activities such as “Made in India” have led to an increase in automotive production and are thus, surging demand for automotive refrigerants. Furthermore, increasing population and domestic production in India and China are also expected to propel market growth in the region.
North America is expected to witness considerable growth in the global automotive refrigerant market during the forecasted period, owing to the region’s economic recovery and increasing income levels. Advancements in automotive technology, especially in countries such as the U.S., and Mexico are likely to boost the global automotive refrigerant market growth.
The automotive refrigerant market has been segmented by type and vehicle type.
Based on type, the market can be segmented into R-134a, R-1234yf, and others. The R-1234yf segment is expected to propel market growth during the forecast period 2019-2026, owing to the stringent rules and reforms globally made to eliminate CO-2, NO-2, and other particulate matter emissions. For instance, the European Commission has implemented several policies aiming the environmental aspects of the automotive industry to ensure improvement in air quality by reducing fluorinated greenhouse gases used in mobile air- conditioning systems.
On the basis of vehicle type, the market can be segmented into cars and commercial vehicles. The commercial vehicles segment can be further sub-segmented into light commercial vehicles and heavy commercial vehicles. The commercial vehicles segment is expected to dominate the global automotive refrigerant market due to the increasing demand for private vehicles. The increasing demand from developing countries such as India where major transportation is by roadways is fuelling market growth. According to India Brand Equity (IBEF), India has one of the largest road networks globally, spanning over approx. 5.5 million km. This network transports around 64.5% of goods all over the country as it constitutes 90% of India’s transport.
Automotive Refrigerant Market Segmentation
By Vehicle Type