HVAC system is designed to control the environment where it really works. It achieves this by controlling the temperature of room by means of heating and cooling. Additionally, it controls humidity level in that surrounding by controlling movement and distribution of air within the room. Moreover, system also guarantees cleanliness of air in surroundings.
Automotive HVAC systems include switches or knobs on frontend and at the backend of the system, various additives including blower vehicles, refrigeration unit, and actuators are coupled with ducts from where air is transferred into indoors space of car.
HVAC is a competitive market, which undergoes various development strategies. There are several different players involved in growth of the market. These players undergo various development strategies such as product launch, acquisition, expansion, collaboration, and others to sustain growth in the market. On the other hand, local players are trying to expand their presence in the global automotive HVAC market by selling their product at low cost.
Geographically, global automotive HVAC market is segmented into five major regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Asia Pacific is expected to dominate global automotive HVAC market due to presence of major automobile manufacturers. Increasing vehicle demand, especially in countries such as India and China, are likely to drive the market in Asia Pacific. According to India Brand Equity Foundation, it is estimated that in 2017, auto industry in India became the 4th largest in world with sales increasing 9.5 percent year-on-year to 4.02 million units (excluding two-wheelers).
North America market is expected to witness a considerable growth owing to a considerable rise in motorized production. According to International Trade Administration (ITA), United States is second largest market for vehicle production and sales. In the year 2017, U.S. light weighted vehicles sales reached to 17.1 million units. Additionally, increasing export activities has led to foster market. According to International Trade Administration (ITA), in 2017, U.S. exported two million light vehicles and approx. 1, 30, 000 heavy and medium trucks.
Europe automotive HVAC market is expected to hold major share during the forecast period 2018–2026. Europe comprises some of advanced automobile companies such as Mercedes Benz, Audi, and BMW, who have been engaging HVAC and cabin comfort systems in most of the vehicle models, thus propelling global automotive HVAC market in this region. For instance, Mercedes Benz launched new A-Class with voice control HVAC in partnership with TIDAL.
However, MEA automotive HVAC market is experiencing a steady growth rate due to less automotive infrastructure, and less disposable income of population.
Global automotive HVAC market is segmented into technology, vehicle-type.
Based on technology, automotive HVAC market is segmented into manual and automatic. Automatic segment is expected to hold major share during the forecasted period owing to ease of operation and increased acceptance of technology among consumers.
On the basis of vehicle type, market is segmented into cars and commercial vehicles. Commercial vehicles are sub-segmented into light commercial vehicles and heavy commercial vehicles. Commercial vehicles segment is expected to dominate market growth due to increasing demand for private vehicles. Increasing demand from developing countries such as India, China, and Japan where major transportation is by roadways which in turn, fuel the market. According to India Brand Equity (IBEF), India has one of the largest road network globally which is approx. 5.5 million km. This network transports around 64.5 percent of goods all over the country as it constitutes 90 percent of India’s transport.
Automotive HVAC Market Segmentation