The global sales of electronic expansion valves are estimated to be worth USD 886.5 million in 2025 and are anticipated to reach a value of USD 1,986.0 million by 2035. Sales are projected to rise at a CAGR of 8.4% over the forecast period between 2025 and 2035. The revenue generated by electronic expansion valves in 2024 was USD 817.8 million. The industry is anticipated to exhibit a Y-o-Y growth of 8.8% in 2025.
Electronic expansion valves (EEVs) are critical components in refrigeration and HVAC systems, as they control the amount of refrigerant flowing into the evaporator but in intelligent way considering the feedback provided during the operation.
Unlike traditional valves, EEVs utilize electronic control mechanisms to optimize system performance, ensuring efficient heat transfer and maintaining desired conditions. The expansion valves’ capacity to self-adjust with dynamic loads also improves energy efficiency and curbs costs, which, aligning with modern energy-saving goals.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 886.5 million |
| Projected Size, 2035 | USD 1,986.0 million |
| Value-based CAGR (2025 to 2035) | 8.4% |
The electronic expansion valve market is projected to create an incremental opportunity of USD 1,099.5 million and grow 2.2X by 2035. EEVs are popularly used in various applications, including industrial, commercial, and domestic refrigeration systems, where they regulate the flow of refrigerant into the evaporator based on temperature and pressure sensors.
The increasing demand for EEVs is driven by their advantages over traditional thermostatic expansion valves. EEVs offer better evaporator efficiency due to improved superheat control and can operate with a lower high-pressure/low-pressure ratio. Additionally, they are quicker to install, enhancing their usage in modern HVAC systems.
Exclusive Offer: 30% Off on Regional Reports
Get a free sample report and customize your regions for a 30% discount on your regional report!
The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and current year (2025) for the global electronic expansion valves market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year.
The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December. In the first half (H1) of the semi-annual from 2024 to 2034, the business is predicted to surge at a CAGR of 8.1%, followed by a slightly higher growth rate of 8.4% in the second half (H2).
| Particular | Value CAGR |
|---|---|
| H1 2024 | 8.1% (2024 to 2034) |
| H2 2024 | 8.4% (2024 to 2034) |
| H1 2025 | 8.2% (2025 to 2035) |
| H2 2025 | 8.7% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase slightly to 8.2% in the first half and remain relatively moderate at 8.7% in the second half. In the first half (H1) the market witnessed a increase of 10 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Energy efficiency incentives to drive adoption of electronic expansion valves across key applications
Various governmental and non-governmental organizations worldwide offer financial incentives to refrigeration system and equipment manufacturers that implement energy-efficient and environmentally friendly production processes. One prominent example is the Energy Star program, which is a voluntary initiative managed by the USA Environmental Protection Agency (EPA) and the Department of Energy (DOE).
This program provides refunds to businesses and consumers, promoting energy conservation by setting high standards for energy efficiency in refrigeration equipment. Energy Star standards are not only recognized in the USA but are also accepted in countries such as Canada, Australia, Japan, and New Zealand, helping to drive global sustainability efforts in the refrigeration industry.
The European Commission, as the executive body of the European Union has established minimum energy performance guidelines for refrigeration systems. These government program aimed at improving energy efficiency are likely to raise demand for electronic expansion valves in the global market, both for first-fit and retrofit applications.
Increasing introduction of cabin comfort features in automobiles to positively impact sales of EEVs
The electronic expansion valve industry is heavily influenced by the automotive sector. The air conditioning system is increasingly becoming an essential feature for all types of automobiles. Consumers of passenger vehicles are increasingly prioritizing recreational activities, leading to a higher demand for air conditioners and boosting the market for expansion valves.
The growing popularity of electric vehicles (EVs) is further driving the need for air conditioning systems, which in turn is fueling demand for expansion valves. Additionally, the urban heat island effect, where cities with populations around one million people experience average temperatures approximately 5 degrees warmer than surrounding rural areas, is contributing to the rising need for effective cooling solutions in both vehicles and urban environments.
The demand for private car rental services like Ola, Uber, and Lyft is expected to grow, necessitating product development to improve the client experience. Furthermore, increased competition among taxi services is likely to make it simpler to capitalize on growing differentiation in products, leading in improved customer loyalty.
Rising consumer income levels, a growing middle-class population, and changing lifestyles are expected to propel the vehicle air conditioning system market forward over the forecast period. Increased efforts by manufacturers to improve vehicle comfort levels, combined with expanding global demand for automobiles, are likely to support growth.
Shift towards alternative refrigerants to boost sales of EEVs
The shift towards alternative refrigerants, especially natural refrigerants like ammonia, propane, and carbon dioxide, is expected to drive the demand for electronic expansion valves (EEVs). These refrigerants often operate at different pressures and temperatures compared to traditional refrigerants, requiring more precise control to optimize system performance. Electronic expansion valves, with their ability to offer better accuracy, efficiency, and adaptability in managing refrigerant flow, are ideal for systems using alternative refrigerants.
Alternative refrigerants have the potential to save up to 30% of the energy utilized in the system. However, further research and development is needed in areas like materials to make technologically enhanced refrigeration systems financially viable and competitive with traditional commercial refrigeration systems.
Regulatory organizations suggest using natural refrigerants and, for the most part, restrict using refrigerants that contain hydrofluorocarbon (HFC) gases, often known as R-22, or ozone-depleting chemicals. Natural refrigerants such as ammonia, propane, and carbon dioxide are effective and environmentally beneficial solutions that are available on the market.
Over the projection period, this trend is expected to continue, providing potential possibilities for companies in the global market. Various government regulatory organizations throughout the world are working to reduce the use of fluorine-based refrigerants including CFCs, HCFCs, HFCs, and HFOs, often known as synthetic refrigerants, which are a major contributor to global warming.
Natural refrigerants, such as carbon dioxide, ammonia, and hydrocarbons, are being promoted, and their use is predicted to grow in popularity over the forecast period in-turn boosting sales of EEVs.
Refrigerators, air conditioners, water chilling facilities, deep freezers, and water coolers are just a few of the products that use electronic expansion valves. Due to increasing industrialization and urbanization and emerging economies, the sales of electronic expansion valves is rising steadily during the forecast period.
Consumers in emerging countries choose convenience products, which is projected to propel the electronic expansion valves market share during the forecast period. During the projection period, demand for electronic expansion valves is likely to be driven by the construction of commercial spaces such as hotels, hospitals, retail malls, educational institutions, and offices.
Similarly, rising consumer spending and the creation of low-cost items have made a wide range of end products more available to customers. During the forecast period, rising car demand and the introduction of electric vehicles are expected to fuel the sales of electronic expansion valves.
As the world's population grows, so does the demand for food. Countries and businesses all across the world are employing cutting-edge food storage and waste prevention techniques.
The electronic expansion valve market size is likely to be fueled further by the development of cold storage systems and the rising popularity of frozen foods, as well as an increase in the number of cold storage stores.
Tier 1 companies comprise market leaders with a market revenue of above USD 60 million capturing a significant market share of 40% to 45% in the global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling, and manufacturing utilizing the latest technology meeting regulatory standards providing the highest quality. Prominent companies within Tier 1 include The Danfoss Group, Sanhua, Fujikoki Corporation, Parker-Hannifin Corporation, Denso, Hnaon and Emerson Electric Co.
Tier 2 and other includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 60 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 2 share segment.
They are small-scale players and have limited geographical reach. Tier 2, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
Check Free Sample Report & Save 40%!
Select your niche segments and personalize your insights for smart savings. Cut costs now!
The section below covers the industry analysis for the Electronic Expansion Valves market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Western Europe, and others, is provided. The USA is anticipated to remain at the forefront in North America, with a value share of 82.2% through 2035. In East Asia, China is projected to witness a CAGR of 9.2% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| China | 9.2% |
| India | 8.8% |
| Canada | 8.6% |
| USA | 8.4% |
| Germany | 8.0% |
Germany’s electronic expansion valve market is poised to exhibit a CAGR of 3.2% between 2025 and 2035, reaching over USD 160.9 million by 2035. Currently, it holds the highest share in the European market, and the trend is expected to continue during the forecast period.
This steady growth can be attributed to several factors. Germany has strong focus on energy efficiency and sustainability drives the adoption of advanced HVAC and refrigeration systems, which rely heavily on high-quality expansion valves. The country’s rigorous environmental regulations and commitment to reducing carbon emissions further bolster demand for these energy-efficient components.
Germany has robust industrial base and advanced manufacturing sector that create a substantial market for electronic expansion valves in various applications, from automotive air conditioning to industrial refrigeration. For instance, the automotive industry, a cornerstone of Germany’s economy, continuously seeks efficient and reliable air conditioning solutions, spurring demand for advanced expansion valves.
The USA, currently captures over 82% of the electronic expansion valve market in the region. This significant share is attributed to the advanced HVAC and refrigeration industries in the USA, where high demand for efficient temperature control systems drives the market. The region's market is anticipated to grow at a rate of 4.0% over the forecast period, reflecting steady economic growth, technological advancements, and increasing emphasis on energy efficiency.
By 2035, the North American electronic expansion valve market is expected to reach a valuation of USD 890.1 million. Factors such as stringent environmental regulations, the push for sustainable building practices, and continuous innovations in HVAC technologies contribute to this growth. The USA leadership in these areas ensures its dominant position, propelling the overall regional market towards substantial expansion.
China to account for approximately 60-65% of the electronic expansion valve market in East Asia by 2025. The increase in figures can be attributed to the increasing sales of air conditioning systems, a key application of EEVs.
It is predicted that the demand for air conditioners in China will reach up to approximately 47,440 thousand units in 2025 with a 110% increase from the 2024 demand and representing about 38% of the mass global air conditioner demand. Rising temperatures, increased urbanization, and a growing middle class, all contributing to the growing need for cooling solutions.
The increasing popularity of air conditioning appliances has a direct influence on the EEV market since these valves are key component in modern HVAC systems. The increasing adoption of energy-efficient and environmentally friendly technologies further propels the demand for EEVs, positioning China as a dominant player in the regional market.
The section contains information about the leading segments in the industry. By flow type, electromagnetic expansion valves segment is estimated to grow at a CAGR of 8.6% throughout 2035. Additionally, Industrial Chemicals is projected to expand at 9% by 2035.
| Type | Electric Expansion Valves |
|---|---|
| Value Share (2035) | 68.9% |
The market for electric expansion valves is projected to increase at a compound annual growth rate of 8.6% between 2025 and 2035, with an estimated value of USD 3,299 million by the end of the forecast period. This growth is largely fueled by the increasing demand for energy-efficient solutions across industries, particularly in refrigeration, HVAC systems, and data centers. The rising need for efficient cooling systems in data centers, driven by their rapid expansion, is one of the key factors behind the growing adoption of electric expansion valves.
Electric expansion valves are well known for their precise control over refrigerant flow enabling enhanced system performance, reduced energy consumption and improved environmental sustainability. As organizations attempt to reduce operational costs and comply with increasing environmental requirements the use of electric expansion valves is becoming a strategic need.
In comparison with electromagnetic expansion valves, electric expansion valves provide a higher level of accuracy and flexibility, making them the ideal choice for modern, complex systems that require real-time adjustments. Electromagnetic expansion valves, on the other hand tend to be more cost-effective but offer less precise control making them ideal for simpler applications.
As industries increasingly focus on optimizing energy consumption and maintaining operational efficiency, the electric expansion valves market is expected to outpace the growth of electromagnetic valves. This trend aligns with broader sustainability objectives, especially as organizations in sectors like data centers look for solutions to manage their growing energy demands while minimizing their carbon footprint.
| Application | Industrial facilities |
|---|---|
| Value Share (2035) | 36.4% |
The Industrial Facilities segment is projected to generate over USD 1,742.9 million in revenue within the expansion valve industry by the end of 2035, expanding at a compound annual growth rate of 9% during the forecast period.
Such escalation is mostly due to the increasing need for more control over temperature and pressure in industrial processes. Electronic Expansion Valves allow the alteration of the amount of refrigerant leaving the system thus increasing its effective reliability and efficiency. This ability of EEV in industrial facility optimize energy consumption and maintain consistent operating conditions makes them non-replaceable in sectors such as manufacturing, pharmaceuticals, and food processing.
The growing emphasis on energy efficiency and sustainability encourages the deployment of EEVs in industrial settings. As enterprises attempt to cut operational costs and minimize environmental impact, integrating innovative technologies such as EEVs becomes a strategic priority.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
The key players in the electronic expansion valves market are actively enhancing their market presence and competitiveness through different strategies by incorporating advanced technologies like variable-speed compressors, intelligent controls, and integration with renewable energy sources to improve energy efficiency and environmental sustainability.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Recent Industry Developments in the Electronic Expansion Valves Market
In terms of flow type, the industry is divided into electromagnetic expansion valves and electric expansion valves.
In terms of working pressure, the industry is divided into up to 30 bar, 30 to 50 bar, 50 to 200 bar and above 200 bar.
In terms of material type, the industry is divided into Stainless steel, copper and brass.
In terms of application, the industry is divided into Air Conditioning, Refrigeration and Others.
In terms of End User, the industry is divided into Industrial facilities, commercial buildings, retail outlets and warehousing, residential buildings, automotive. Automotive is further segmented into OEM and aftermarket.
Key regions of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and Middle East & Africa have been covered in the report.
The global electronic expansion valves industry is projected to witness a CAGR of 8.4% between 2025 and 2035.
The global electronic expansion valves industry stood at USD 886.5 million in 2025.
The global Electronic Expansion Valves industry is anticipated to reach USD 1,986.0 million by 2035 end.
The key players operating in the global Electronic Expansion Valves industry include Danfoss, CAREL INDUSTRIES S.p.A., Sanhua Europe and VOLGA.
| Estimated Market Size (2024E) | USD 11.5 billion |
|---|---|
| Projected Market Value (2034F) | USD 17.3 billion |
| Value-based CAGR (2024 to 2034) | 4.2% |
| Market Value for 2024 | USD 81.55 billion |
|---|---|
| Market Value for 2034 | USD 123.05 billion |
| Market CAGR (2024 to 2034) | 4.2% |
| Market Value (2023) | USD 271.2 million |
|---|---|
| Market Anticipated Forecast Value (2033) | USD 413.1 million |
| Market Projected CAGR (2023 to 2033) | 4.3% |
| Market Estimated Size 2023 | USD 146 million |
|---|---|
| Market Projected Size 2033 | USD 237.8 million |
| Value-based CAGR (2023 to 2033) | 5% |
Explore Automation Auxiliary Insights
View Reports
Electronic Expansion Valves Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
