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The Americas HVAC for Automotive Market size is forecast to increase by USD 2.11 billion, at a CAGR of 6.27% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the increasing adoption of HVAC in trucks is driving market expansion. Secondly, the launch of new automotive HVAC technologies is fueling innovation and demand. Lastly, the rising preference for luxury vehicles, which often come equipped with advanced climate control systems, is also contributing to market growth. Overall, the Automotive Heating, Ventilation, and Air Conditioning market in the Americas is poised for continued growth in the coming years.
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The Americas HVAC for Automotive market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The passenger vehicle segment is estimated to witness significant growth during the forecast period. The penetration of automotive HVAC in the passenger vehicle segment is almost 100%, as the majority of automakers have started equipping their passenger cars with HVAC systems. Thus, the growth of the Americas - automotive heating, ventilation, and air conditioning market by passenger cars is based on the increase in the production of passenger cars.
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The passenger vehicle segment was the largest segment and was valued at USD 4.51 billion in 2018. Moreover, the sales of electric powertrain-based passenger cars have witnessed growth and are expected to grow significantly during the forecast period. Thus, several vehicle manufacturers are working toward improving their product lineup with electric powertrain-based vehicles by introducing pickup trucks and HEVs. Furthermore, the US and Canada are the largest manufacturers of luxury and sports cars. In addition, Canada has witnessed significant investments in capacity expansions and the setting up of new automobile manufacturing facilities. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
With the ongoing trend towards vehicle electrification, manufacturers are increasingly focusing on eco-friendly refrigerants and innovative solutions like the heat pump system, which significantly improves energy efficiency and reduces environmental impact. The impact of the pandemic has prompted a renewed emphasis on R&D in the automotive sector and HEV, driving advancements in vehicle equipment and cabin comfort features that enhance the overall driving experience. As production facilities ramp up, the market is seeing declining prices for many Heating, Ventilation, and Air Conditioning components, making luxury features more accessible to consumers. These value-added features not only elevate the comfort level but also provide significant consumer benefits, ensuring a more enjoyable ride. As the industry progresses, the integration of these advanced technologies will continue to play a crucial role in shaping the future of automotive HVAC systems, delivering both comfort and sustainability. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of HVAC systems in trucks is notably driving the market growth. The demand for trucks is witnessing signifcant demand in the Americas. In addition, the adoption of light-duty trucks, such as pickup trucks and medium- and heavy-duty trucks, is consistently growing in the US, Canada, and other countries. Furthermore, the developed automotive markets in the Americas, such as the US and Canada, witness high popularity and sales of vehicles such as pickup trucks for commercial purposes.
Moreover, medium- and heavy-duty trucks have been the backbone of commercial activities, including logistics, construction, mining, and any trade-related activities. In addition, regulatory pressures on enhancing truck cabins with comfortable ambiance for driving are also increasing the adoption of Heating, Ventilation, and Air Conditioning systems in trucks. Hence, such factors are positively impacting the Americas automotive heating, ventilation, and air conditioning (HVAC) market. Therefore, such factors that are increasing the adoption of HVAC systems in trucks, coupled with the rising demand for trucks across the regions, are expected to drive the market during the forecast period.
The increasing popularity of low-noise HVAC is an emerging trend in the market. With the rising technological advances such as electric powertrains, the complexity of automotive HVAC has surged. In addition, this has resulted in increased noise in Heating, Ventilation, and Air Conditioning, especially in HEVs, PHEVs, and BEVs, due to the presence of electric motors and heat pumps that have to be active during the operation.
Moreover, the demand for automotive HVAC systems is steadily increasing, which is compelling automotive In addition, HVAC compressor manufacturers to continuously innovate in terms of product design to sustain in the market with a competitive advantage. Furthermore, such continuous innovation in the market has led to the development of low-noise automotive Heating, Ventilation, and Air Conditioning. Hence, such factors are positively impacting the Americas - automotive heating, ventilation, and air conditioning market. Therefore, it is expected to drive the market during the forecast period.
Vehicle recalls due to potential HVAC compressor failure are a major challenge hindering the market growth. Defective products or potential failures of systems in vehicles lead to product recall by vehicle manufacturers. Traditionally, vehicle manufacturers had to bear the complete cost of a product recall. However, the enhancement in company relationships and collaborative work with suppliers across the upstream of the value chain have encouraged suppliers and manufacturers to share the recall cost.
Moreover, even though this has reduced the cost burden on vehicle manufacturers, tier-1 suppliers, and other stakeholders in the value chain, it is still adding a certain cost for these stakeholders, thereby leading to a reduced profit margin. Thus, vehicle recalls due to defective products or potential system failures constitute a challenge for all the stakeholders related to the products. Hence, such factors are negatively impacting the Americas - automotive heating, ventilation, and air conditioning (HVAC) market. Therefore, it is expected to hinder the market during the forecast period.
The Americas HVAC for Automotive market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Americas HVAC for Automotive market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BorgWarner Inc: The company offers automotive HVAC solutions such as Delphi Automotive microport condenser tubes for heat transfer.
The Americas HVAC for Automotive market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Americas HVAC for Automotive market is evolving rapidly, driven by increased passenger car sales and advancements in technology in automotive HVAC. The focus on eco-friendly items and eco-friendly products is enhancing energy efficacy while also improving cabin comfort systems in vehicles. Collaborations like that of Denso and Toyota are paving the way for advanced systems that integrate comfort technologies with luxuries such as heated seats and power windows. A positive outlook for the industry is supported by ongoing R&D in the automotive sector, leading to advanced technologies that contribute to weight reduction and system size efficiency. As vehicle production levels rise, manufacturers are shifting towards cheaper systems without compromising quality. The impact of the pandemic has also prompted innovation in automatic systems that minimize human intervention and enhance adjustment ease. Features like sunroof systems and other value-added features now come with a premium price tag, yet consumers benefit from improved fuel efficiency and overall comfort.
The market is witnessing significant transformation, particularly with the involvement of key players like Marelli Corporation and the Denso and Toyota collaboration. The market landscape depends on the Automotive HVAC market industry, impact of pandemic, R&D in automotive sector, production facility, medium- and heavy-duty trucks, value added features, luxury feature. This partnership has been instrumental in enhancing the thermal comfort of vehicles like the Prius, integrating advanced HVAC systems that prioritize both safety and efficiency.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.27% |
Market Growth 2024-2028 |
USD 2.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.63 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BorgWarner Inc., Continental AG, DENSO Corp., Engineered Plastic Components Inc., ESTRA Automotive Systems Co. Ltd., Gentherm Inc., Hanon Systems, HELLA GmbH and Co. KGaA, Hitachi Ltd., Japan Climate Systems Corp., MAHLE GmbH, Marelli Holdings Co. Ltd., Mativ Holdings Inc., Mitsubishi Heavy Industries Ltd., Sanden Corp., Sensata Technologies Inc., Toyota Motor Corp., Valeo SA, Visteon Corp., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, market report , market growth analysis , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our Americas HVAC for Automotive market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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