Air Conditioner Market for the Transportation Sector: Key Drivers, Trends, and Challenges
The development of the railway sector is notably driving the air conditioner market growth for the transportation sector, although factors such as fluctuations in raw material prices may impede market growth. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Air Conditioner Market Driver for the Transportation Sector
One of the key factors driving growth in the air conditioner market for the transportation sector is the development of the railway sector. Since most developed regions, such as the Americas and Europe, have metros and railways that incorporate AC systems in their network, the demand for air conditioners is expected to increase. In addition, countries such as India and China are planning to invest to develop their railway infrastructure and improve connectivity and provide ease to passengers. Metros and rails are the most feasible means of transportation for a mass population. Air-conditioned rail cars make travel more comfortable and minimize the passengers' exposure to air and noise pollution. A majority of the population in countries, such as India and China, use railways as a means of commute. To improve the railroad network, governments are investing in developing the infrastructure. This is expected to drive the demand for air conditioners in the transportation sector.
Key Air Conditioner Market Trend for the Transportation Sector
The innovation in air conditioners for the transportation sector is another major factor supporting the air conditioner market for the transportation sector. Manufacturers are constantly involved in developing technologically advanced products to meet the expectations of consumers and sustain in the competitive market. Companies, such as Valeo, Hanon Systems, and others, have developed advanced a/c units for transport vehicles. The development of a/c systems for motorcycles as well will positively impact the growth of the global air conditioners market for the transportation sector.
Key Air Conditioner Market Challenge for the Transportation Sector
The fluctuations in raw material prices will be a major challenge for the air conditioner market for the transportation sector. The main raw materials used for manufacturing air conditioners are aluminum and steel. The cost of raw materials depends on economic conditions and inflationary pressures. Due to the volatility in raw material prices, the productivity of manufacturers is affected with respect to the number of units required to be produced. When the price increases, vendors bear the excess cost of ownership. The unpredictability of raw material prices is affecting vendors in the global air conditioner market for the transportation sector and the vendors are constantly under pressure to deal with price fluctuations to sustain in the market.
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Who are the Major Air Conditioner Market Vendors for the Transportation Sector?
The air conditioner market for transportation sector is quite competitive and consists of numerous manufacturers occupying significant market shares. The vendors in the bus air conditioning system market focus on innovative technologies and competitive pricing to stay ahead of their competition. Customer service, pricing optimization, inventory management, and distribution optimization are some of the factors determining the success of the air conditioning unit manufacturers in this marketspace.
The leading vendors in the market are -
- CALSONIC KANSEI
- DENSO
- Hanon Systems
- Keihin
- Valeo
The other prominent vendors in the market are Bergstrom Climate Control Systems, Delphi Automotive, Gentherm, Johnson Electric, MAHLE, Samvardhana Motherson Group, SANDEN HOLDINGS, Sensata Technologies, Shanghai Velle Automobile Air Conditioner, Subros, and Xiezhong International Holdings.
What are the Revenue-generating Application Segments in the Air Conditioner Market for the Transportation Sector?
- Automotive
- Railways and aerospace
During 2016, the automotive segment accounted for the major shares of the air conditioner market for the transportation sector. The increase in demand for passenger vehicles, light-duty trucks, and heavy-duty trucks will contribute to the growth of this industry segment in the coming years. Moreover, the growing market for electric buses is also expected to drive the demand for bus air conditioning system market in the coming years.
Which are the Key Regions for Air Conditioner Market for the Transportation Sector?
This market study estimates that in terms of geographic regions, APAC will be the major revenue contributor to the bus air conditioning system market throughout the forecast period. Factors such as the rising demand for commercial passenger vehicles, aerospace, and railways and changes in the standard of living have increased the demand for vehicles in the region, which will consequently boost the demand for air conditioners for the transportation sector.
What are the Key Data Covered in this Air Conditioner Market Report for the Transportation Sector?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive air conditioner market growth for transportation sector during the next five years
- Precise estimation of the air conditioner market size for transportation sector and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the air conditioner industry for transportation sector across Americas, APAC, and EMEA.
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of air conditioner market vendors for transportation sector
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