The Latin America Automotive HVAC market share is projected to reach US$ 11,399.6 Million in 2032. The current need for automotive HVAC systems has been growing as a result of the expanding sales and demand for vehicles in the automotive industry.
According to FMI, the Latin America Automotive HVAC market is estimated to be valued at US$ 7,270.6 Million in 2022 and is projected to increase at a CAGR of 4.6% in the forecast period from 2022 to 2032.
| Attributes | Details |
|---|---|
| Market Size (2021) | US$ 7,045.2 Million |
| Market Size 2022 | US$ 7,270.6 Million |
| Market Size 2032 | US$ 11,399.6 Million |
| Value CAGR (2022 to 2032) | 4.6% |
The automotive HVAC industry in Latin America is gaining from rising incomes and shifting consumer demographics, new auto engines are prompting more market participants to produce automotive HVAC systems. Such systems are being installed as an absolute necessity in modern vehicles, including entry-level automobiles.
Vehicle air-conditioning systems and products, including electronic temperature control, have been developed as a consequence of the growth in demand for automobile HVAC technology. There are two different kinds of vehicle air-conditioning systems for motor vehicles, automatic and manual. Automatic HVAC systems are among the more popular of the two types in the luxury and premium segment cars because they require less maintenance and human intervention.
Heating, ventilating, and air conditioning technology (HVAC) controls the average temperature in the passenger cabin of a vehicle. Automotive HVAC allows the owner to control the temperature inside the cabin to be either hot or cold, providing comfort to passengers in the vehicle. The heating element of an automotive HVAC system could be a touch-sensitive pad, a button, or a knob on the front of the vehicle; the controller is the system's backend, which houses blower motors, refrigeration units, and other equipment required for HVAC.
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The analysis of automotive HVAC demand from 2017 to 2021 exhibited a deflated growth rate of under 1% CAGR. Latin America region is facing challenges relating to commodity price rise, electronics, components, and other raw material import dependency over North America and China is further restraining growth prospects in Automotive Industry.
In developing countries where a lot of agricultural output or mining occurs, growth in demand for passenger and commercial vehicle fleets may offer further incentives for more investments in automotive HVAC equipment.
In the beginning, the COVID-19 pandemic brought about recessionary downturns in the form of lower demand and sales, store closings, and brief interruptions in the manufacturing cycle, which momentarily crushed growth expectations.
However, due to infection curves flattening as of 2022, industrial production activity has restarted in emerging markets. As a result, the market for automotive HVAC systems in Latin America is expected to grow at a CAGR of 4.6% by 2032.
The primary factors driving the Latin American automotive air-conditioning market are the growth of the automotive industry, rising demand for high-tech features in cars, and increasing development of cabin comfort features by automobile manufacturers.
The market for heating, ventilation and air conditioning (HVAC) equipment may be growing as stakeholders, such as governments and NGOs, are promoting energy-efficient technologies. As environmental consciousness has increased in emerging economies as well as developed nations, there has been a clear trend toward the installation and utilization of more green-labeled products. For instance, significant companies have increased their investments in solar-based HVAC systems, including Daikin Industries, Ltd. and Lennox International Inc.
The demand for concepts that are incorporated with autonomous climate control and thermal management systems to the provision of automobiles is driving the demand for automobiles in Latin America's automotive HVAC systems market. Automotive HVAC systems provide a marketplace differentiator in response to vehicles' luxury quotient. A number of the most important development areas of this market are enhancing fuel efficiency and maintaining the quality of our environment.
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The heating, ventilation and cooling business is growing, as the temperatures are getting more extreme and the climate is getting unstable. There are several key challenges to this business's development, with the biggest being high business start-up expenses and fierce competition. The players in the industry are engaged in fierce competition, which is leading to important advancements and achieving more compact, efficient, and effective hardware.
The noise created by these systems within the cabin of a driver's vehicle, making the passengers uneasy, is one of the reasons that the automotive HVAC market faces challenges. These systems' interactions with the airflow and HVAC parts create clanging noises. Currently, HVAC manufacturers incorporate passive absorbers into their designs to reduce heat flowing through the system. Considering the current expectations of customers for rapid service and a long lifespan from automotive systems, it is essential to preserve your clients and market position in the highly competitive automotive HVAC sector.
The market expansion of HVAC tools has been reduced sharply by the surge in the costs for raw materials and parts, including cooling panels. The intense competition has resulted in some HVAC companies selling their products for a cheap price. Additional barriers to entry for new companies include a lack of skilled personnel and expensive start-up costs.
The Latin American passenger automobile market is currently recovering following the effects of the severe devaluation of currencies and fiscal catastrophes in parts of the region. The Mexican and Brazilian markets play a central role in turning out their output, exports, and sales.
It is expected that, during the projection period, Brazil will maintain a position of dominance in the automobile air conditioning segment of the passenger vehicle industry, whereas Mexico will grow its leading position in the compartment for the transportation industry.
Due to rising consumer demand and sales as well as government measures for the quick development of the automotive component sector, Brazil's automotive HVAC market is anticipated to maintain its leadership for the coming years with a substantial CAGR.
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Halla Visteon Climate Control Corp. recently opened a new production plant in the Brazilian state of Sao Paulo, Atibaia, to facilitate localization and improve customer service. Denso Corporation, Delphi Automobile PLC, Visteon Corporation, Valeo SA, and Behr GmbH & Co. Kg are the key participants in the Latin American automotive HVAC market.
Most of the companies in the automotive HVAC market have built significant financial investments in extensive research and development, primarily to produce new and developed products. Product development, mergers, and acquisitions are the business strategies used by the major companies in the automotive HVAC market.
These market participants also engage in new developments and product launches, along with mergers, acquisitions, and collaborations while obtaining regulatory permission.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 4.6% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Million, Volume in Units, and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Technology Type, Vehicle Type, Country |
| Key Countries Covered | Argentina, Brazil, Mexico, Rest of Latin America |
| Key Companies Profiled | Halla Visteon Climate Control Corp.; Denso Corporation; Delphi Automobile PLC; Visteon Corporation; Valeo SA; Behr GmbH & Co. Kg; Johnson Controls International plc; United Technologies Corporation; Ingersoll-Rand plc; Daikin Industries Ltd; Mitsubishi Electric Corporation |
| Customization & Pricing | Available upon Request |
In 2021, the value of the Latin America Automotive HVAC market reached over US$ 7,045.2 Million.
During the forecast period, the Latin America Automotive HVAC market is estimated to expand at a CAGR of 4.6% from 2022 to 2032.
The Latin America Automotive HVAC market is projected to reach US$ 11,399.6 Million by the end of 2032.
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Latin America Automotive HVAC Market
