Automotive AC Compressor Market

Automotive AC Compressor Market

A CAGR of 3.9% is expected of the global automotive AC compressor market due to the growing demand during the forecast period. It is anticipated to be appraised at USD 14.1 billion by 2033, up from USD 9.6 billion in 2023.

Growing economic values in developing countries and increasing purchasing power surging the growth of car ownership are expected to drive the global market share. Although, high initial and installment costs and maintenance issues are likely to curb automotive AC compressor sales.

On the other hand, the rise in technological developments and the introduction of new products are expected to boost the market growth for automotive AC compressors.

Various factors affect the installation of air conditioning systems in automobiles. For instance, space constraint in passenger cars causes discomfort and excessive perspiration.

Several original equipment manufacturers (OEMs) are developing more efficient, lighter, and smaller air conditioning systems for vehicles. Furthermore, these features aid in reducing the vibration levels and noise in automobiles.

There has been a rise in awareness regarding environmental protection and growing fuel costs. It is expected to augment the demand for automotive AC compressors and create options for market trends.

Attribute	Details
Market CAGR (2023 to 2033)	3.9%
Market Valuation (2023)	USD 9.6 billion
Market Valuation (2033)	USD 14.1 billion

Explore The Key Factors that are Propelling the Demand for Automotive AC Compressor

Increasing automotive production, the growth of car ownership, and the growing requirement of consumers for vehicle comfort are expected to bolster the global market growth. Moreover, the rising production of automobiles in several countries is a major factor boosting the market size.

The economic cost of air conditioning systems has surged with greater technological developments in performance and efficiency. It is anticipated to support the growth of the global market during the forecast period.

Developing countries have witnessed a conversion from public transport, such as passenger vehicles and buses, to autonomous AC vehicles. It is a crucial driver that supports the growth of the global market.

Climatic changes due to global warming have raised the temperature in recent years. Furthermore, there has been an increase in the disposable income of the population of developing economies. These factors are likely to expand the global market size.

Major Restraints Faced by the Global Market

Strict implementation of regulations regarding refrigerants is likely to hamper the market growth. It is because refrigerants are required to function as compressors, but their leakage strongly impacts the client and the environment.

High prices of luxury vehicles are also likely to be a minor restraint for the global market. It is due to the high costs of HVAC systems installed in luxury vehicles, which require premium AC compressors.

Revenue Possibilities Bolster the Global Market

The emergence of electric and hybrid vehicles in the market presents lucrative opportunities for manufacturers in the automotive AC compressor market. Moreover, there is an increasing implementation of electric chargers and charging stations. This factor supports this case and creates further options for global market growth.

Country-wise Details

Country-wise Market Value:

Countries	Market Value Share in 2023
United States	19.0%
Germany	6.5%
Japan	5.2%
Australia	0.8%

Country-wise Market CAGR:

Countries	Market CAGR Value in 2023
China	4.0%
India	3.8%
United Kingdom	3.7%

How does the Asia Pacific Market Grow?

The Asia Pacific holds the maximum market share with significant revenue. It is attributed to the increasing vehicle sales in emerging economies, especially China and India. The improving infrastructure and rising disposable income of the middle-class population support the advancement of the automotive AC compressor industry in this region.

The continued development of EV charging and transport infrastructure in developing countries are expected to boost the demand and sales of automotive AC compressor. China accounted for over half of the global AC compressor sales in 2020.

What is the Growth Aspect of the Europe Market?

With an adequate revenue of 22%, Europe is the second leading market. It is owing to the presence of several automotive OEMs in the region.

There are stringent greenhouse gas emissions policies drafted by the governments of this region and are implementing the installation of HVAC systems. It is anticipated to increase the demand for the product and drive global market growth.

Start-up Companies Taking Over the Global Market

Global warming has made it difficult to travel in the confined space of a vehicle. In developing economies such as India, the headliners can make the car interior unbearably heated during the summers.

An AC compressor's design, manufacture, and assembly need considerable precision with advanced research and development activities and technology. Several manufacturers have already accomplished the basic features required for HVAC systems.

Start-up companies strive to produce specific AC compressors that cater to the requirements of electric and hybrid cars in the future, which creates opportunities for global market share.

Competitive Landscape

The competition among key players in automotive AC compressors is fierce. It is expected to increase owing to rapid technological developments that take place in the industry. Furthermore, the major players are increasing their investments in research and development activities to offer customers more efficient and economical products.

KEY MARKET PARTICIPANTS OF THE GLOBAL MARKET

• Toyota Industries - They are a Japanese machine maker and a manufacturer of automatic looms; it is the company from which Toyota Motor Corporation developed. It is the world's larger manufacturer of forklift trucks measured by revenues.
• TD Automotive Compressor - They are a trusted Tier 1 automotive supplier and influencer providing thermal, powertrain, mobility, electrification, & electronic systems to carmakers and other manufacturers worldwide.
• Gardner Denver - They are a leading provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables, and services, which it sells across multiple attractive end-markets within the industrial, energy, and medical industries.
• Delphi PLC. - They are at the forefront of the industry in computer-aided product design, comprehensive testing, and precision manufacturing - to assure the best products for their customers.
• SANDEN USA - They provide OE specification end-to-end solutions from components to sophisticated software solutions. With a wide-ranging portfolio including gasoline fuel systems, diesel fuel systems, maintenance solutions, engine management, and vehicle electronics, backed by OE-level diagnostic and test equipment, training, and technical information - they enable garages to service and repair vehicles right the first time.

Some of the recent developments in the global market are:

• In July 2018, Sanden Huayu Automotive Air Conditioning expanded its production capability by establishing a new plant in Pudong New Area, Shanghai. Huayu Sanden has continued its compressor manufacturing and development for domestic users in China.
• In February 2021, MAHLE GmbH took over the air conditioning business from Keihin Corporation in Japan, Thailand, and the four USA production sites and one development center are presently being integrated into the MAHLE Group.
• In December 2017, Hanon Systems announced that it had signed an investment agreement with the Dalian municipal government in China to expand its automotive compressor operations to boost business expansion.
• In September 2020, Marelli Corporation signed an agreement with Shanghai Highly (Group) Co. Ltd. to form a joint venture called Highly Marelli Holdings Co. Ltd., which is supposed to focus specifically on the electrification of compressors, HVAC equipment, and electric-driven compressor (EDC) systems.

Scope of Report

Attribute	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD billion for Value
Key Countries Covered	United States, United Kingdom, Japan, India, China, Australia, Germany
Key Segments Covered	Vehicle Type, Product Type, Configuration, Sales Channel, Region
Key Companies Profiled	Toyota Industries; TD Automotive Compressor; Gardner Denver; Delphi PLC.; SANDEN USA; Denso Auto Corporation; Michigan Automotive Compressor Inc.; General Auto; OMEGA Environmental Technologies; Yantai Shougang TD Automotive Compressor Co. Ltd.; HELLA KGaA Hueck & Co.; Zhejiang Santian A/C compressor Co. Ltd.; Valeo S.A.; Calsonic Kansei Corporation; Mitsubishi Heavy Industries; Highly Marelli Holdings Co. Ltd.; Dunair Smiths Manufacturing PTY Ltd.; Behr Hella Service GmbH; Keihin Corporation; Continental AG; Robert Bosch GmbH; SANTIAN A/C COMPRESSOR CO. LTD., etc.
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Key Segments Profiled in the Automotive AC Compressor Market Survey

By Configuration:

• Scroll Type Compressor
• Rotary Type Compressor

By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By Product Type:

• Fixed Displacement Type
• Continuous Variable Displacement Type
• Electrically Operated

By Sales Channel:

• Original Equipment Manufacturer
• Aftermarket

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa
• Europe

Frequently Asked Questions

Which Countries Dominate the Automotive AC Compressor Market?

The United States, Germany and Japan dominate the global market.

What is the Growth Forecast for the Automotive AC Compressor Market?

The market is forecast to register a CAGR of 3.9% through 2033.

How is the Historical Performance of the Automotive AC Compressor Market?

From 2018 to 2022, the market recorded a CAGR of 3.9%.

Which is the Top Trend in the Automotive AC Compressor Market?

The growing rapid technology disrupts the current market trends.

What is the Projected Size of the Automotive AC Compressor Market by 2033?

The global market size is to reach USD 14.1 billion by 2033.