Automotive Refrigerant Market size Will significantly Grow At CAGR of 7% By Forecast Period (2021-2031).
The key function of an automotive refrigerant is to provide thermal comfort and acceptable air condition within a vehicle. It allows one to control the temperature (warm/cold) in a car’s interior and thus, facilitates ambient comfort for on-board passengers.
The global automotive refrigerant market is mainly driven by the growing demand for thermal systems, increasing awareness pertaining to the adoption of eco-friendly refrigerators and introduction of advanced features such as automatic climate control. Increasing vehicle sales, coupled with the growing preference towards safety and luxury, is another factor expected to propel the growth of the global automotive refrigerant market during the forecast period, 2019–2026. The growing demand for private vehicles with the emergence of the rental industry and increasing average time spent in vehicles are further estimated to fuel market growth.
In today’s world, people spend more time on road traveling in their private vehicles or other means of public transport. Therefore, the increasing amount of time spent on traveling is driving the growth of the global automotive refrigerant market. Furthermore, increasing popularity of private vehicles over public transport is also expected to boost the market growth.
The automotive refrigerant market has been segmented on the basis of type, vehicle-type, and region.
The global market has been segmented into R-134a, R-1234yf, and others. R-134a is the most commonly used refrigerant in the automotive industry, owing to its no Ozone Depletion Potential (ODP). Furthermore, it is non-corrosive, non- flammable, and non-toxic. The R-134a segment is expected to hold a major share of the global automotive refrigerant market during the forecast period, 2019–2026.
The market has been segmented into cars and commercial vehicles. The commercial vehicles segment has been further sub-segmented into light commercial vehicles and heavy commercial vehicles. The cars segment is expected to dominate the global automotive refrigerant market growth due to the increasing demand for private vehicles. Additionally, the increasing production of passenger car vehicles is expected to drive the growth of the segment. According to the International Organization of Motor Vehicles Manufacturers, global car production was pegged at 70,498,388 units in 2016.
Geographically, the automotive refrigerant market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific is expected to witness significant growth in the global automotive refrigerant market due to the presence of major automobile manufacturers in the region. Increasing vehicle production, especially in countries such as India and China is expected to drive the market in Asia Pacific. According to the China Association of Automobile Manufacturers, the production of cars in China increased to 2,024,800 Units in September from 1,705,200 Units in August, 2018. Additionally, government initiatives promoting the recovery of the auto industry are anticipated to propel the growth of the global automotive refrigerant market in this region. According to the India Brand Equity Foundation, in 2017, the auto industry in India became the fourth largest in the world with sales increasing 9.5% year-on-year to 4.02 million units (excluding two wheelers).
North America is expected to witness notable growth, owing to the remarkable rise in automotive production. According to The International Trade Administration (ITA), the United States is the second largest market for vehicle production and sales. In 2017, light weighted vehicle sales the U.S. reached 17.1 million units. Additionally, increasing export activities have led to foster the market for automotive HVAC (Heating, ventilation, and air conditioning). According to the International Trade Administration (ITA), in 2017, the U.S. exported two million light vehicles and approx. 1, 30, 000 heavy and medium trucks.
The Europe market is expected to witness significant growth during the forecast period, 2019–2026. Europe is home to numerous advanced automobile companies such as Mercedes Benz, Audi and BMW, which have been deploying refrigerant and cabin comfort systems in their vehicle models, which drives the automotive refrigerant market in this region. For instance, Mercedes Benz launched the new A-Class with voice control HVAC in partnership with TIDAL.
Latin America is projected to exhibit significant growth during the forecast period, 2013–2026, owing to the increasing production and sales of vehicles and government initiatives for the rapid development of the automotive industry, especially in Brazil. The Brazilian Association of Automobile Manufacturers (Anfavea), Car production increased by 6.2% in 2018, with 213,500 vehicles manufactured and sales were also grew up by 15.7% as compared to 2017.
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