Automotive Electric HVAC Compressor Market Size, Share & Trends Analysis Report By Cooling Capacity (Less Than 20 CC, 20-40 CC, 40-60 CC), By Vehicle Type, By Drivetrain, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive electric HVAC compressor market size was estimated at USD 9.39 billion in 2023, is expected to surpass around USD 62.65 billion by 2033, and is poised to grow at a compound annual growth rate (CAGR) of 20.9% during the forecast period of 2024 to 2033.

Key Takeaways:

• The Asia Pacific regional market accounted for a significant share of over 62% in 2023 as a result of the high rate of EV adoption in China.
• The 20-40 CC segment is expected to register the highest CAGR of more than 15% over the forecast period. 
• The Battery Electric Vehicle (BEV) segment is expected to register a CAGR of 16.1% over the forecast period.
• The passenger vehicle segment accounted for the largest revenue share of more than 50% of the automotive electric HVAC compressor market in 2023.

Automotive Electric HVAC Compressor Market: Overview 

The automotive industry is experiencing a significant shift towards electrification, driven by the growing demand for eco-friendly solutions and stringent emission regulations. Within this landscape, the Automotive Electric HVAC (Heating, Ventilation, and Air Conditioning) compressor market has emerged as a pivotal sector, offering innovative solutions to enhance vehicle comfort and efficiency. This overview delves into the dynamics, trends, and key players shaping the Automotive Electric HVAC Compressor market.

Automotive Electric HVAC Compressor Market Growth

The growth of the Automotive Electric HVAC Compressor market is propelled by several key factors. Firstly, the increasing demand for energy-efficient solutions in vehicles, driven by environmental concerns and regulatory pressures, has led to a surge in adoption of electric HVAC compressors. Additionally, the rapid advancements in electric vehicle technology, coupled with the rising popularity of electric vehicles, are fueling the demand for electric-driven HVAC systems. Furthermore, stringent emission regulations worldwide are compelling automakers to integrate eco-friendly HVAC solutions, further boosting the market growth. These factors collectively contribute to the expansion of the Automotive Electric HVAC Compressor market, with sustained growth projected in the foreseeable future.

Automotive Electric HVAC Compressor Market Report Scope

Automotive Electric HVAC Compressor Market Dynamics

The Automotive Electric HVAC Compressor market dynamics are characterized by two primary factors driving its evolution. Firstly, the escalating demand for energy-efficient solutions within the automotive sector is a significant driver. With increasing environmental awareness and stringent emissions regulations, automakers are prioritizing electric HVAC compressors for their superior efficiency compared to traditional mechanical counterparts. This shift aligns with the industry's broader transition towards sustainability and reduced carbon footprint.

Secondly, the rapid advancements in electric vehicle (EV) technology play a pivotal role in shaping the Automotive Electric HVAC Compressor market. As the adoption of EVs continues to soar, the demand for electric-driven HVAC systems grows in tandem. Electric vehicles require efficient cabin temperature control without compromising driving range, making electric HVAC compressors indispensable components. Consequently, the market is witnessing heightened investments in research and development to innovate and optimize electric HVAC compressor designs tailored to the specific requirements of electric mobility.

Automotive Electric HVAC Compressor Market Restraint

Two significant restraints affecting the Automotive Electric HVAC Compressor market include infrastructure challenges and cost considerations. Firstly, infrastructure challenges, such as the availability of charging infrastructure for electric vehicles, pose a significant hurdle to market growth. While the demand for electric HVAC compressors rises with the increasing adoption of electric vehicles, the lack of adequate charging infrastructure could limit the widespread adoption of electric vehicles, thereby constraining the market for electric HVAC compressors.

Secondly, cost considerations play a crucial role in shaping market dynamics. Despite the benefits of electric HVAC compressors in terms of energy efficiency and environmental sustainability, their initial cost tends to be higher than that of traditional mechanical compressors. This upfront investment can deter cost-conscious consumers and automakers from adopting electric HVAC compressor technology, especially in price-sensitive market segments. As a result, addressing cost concerns through technological innovations and economies of scale will be essential to drive broader market acceptance and penetration of electric HVAC compressors.

Automotive Electric HVAC Compressor Market Opportunity

Two significant opportunities within the Automotive Electric HVAC Compressor market include technological advancements and the expanding electric vehicle (EV) market. Firstly, continuous technological advancements present significant opportunities for innovation within the Automotive Electric HVAC Compressor market. Advancements in materials, design, and manufacturing processes enable the development of more efficient, compact, and lightweight electric compressors. Additionally, the integration of smart technologies such as IoT sensors and predictive analytics offers opportunities to enhance the performance, reliability, and user experience of electric HVAC systems, further driving market growth.

Automotive Electric HVAC Compressor Market Challenges

Two significant challenges facing the Automotive Electric HVAC Compressor market include battery limitations and thermal management concerns. Firstly, battery limitations pose a challenge to the widespread adoption of electric HVAC compressors in electric vehicles (EVs). Electric HVAC systems draw power from the vehicle's battery, which can impact overall driving range and battery life. Balancing the energy requirements of HVAC systems with the driving range expectations of consumers remains a challenge for automakers and electric HVAC compressor manufacturers.

Secondly, thermal management concerns present challenges in maintaining optimal performance and efficiency of electric HVAC compressors. HVAC systems are subjected to varying ambient temperatures and operating conditions, which can affect compressor performance and reliability. Ensuring effective thermal management to prevent overheating and maintain consistent HVAC performance is crucial, particularly in extreme climates or high-demand driving scenarios. Addressing thermal management challenges requires innovative design solutions and advanced materials to enhance heat dissipation and system durability, thus ensuring reliable operation of electric HVAC compressors in diverse operating conditions.

Segments Insights:

Cooling Capacity Insights

The 20-40 CC segment is expected to register the highest CAGR of more than 15% over the forecast period. The growth can be attributed to the high adoption of electric compressors in passenger vehicles and light commercial vehicles. Compressors in this cooling range are capable of sustaining the heat load of small vehicles and of medium vehicles to an extent. The compact size and lighter weight of this type of compressors help in ensuring optimum performance for passenger cars and light commercial vehicles.

The less than 20 CC segment accounted for the second-largest share in 2023 owing to the deployment of these compressors in smaller vehicles. Although compressors with a cooling capacity of less than 20 CC are too small to be used in commercial vehicles due to their lower heat-absorbing capacity, their adoption is expected to increase in line with the growing popularity of smaller vehicles. The more than 60 CC segment is expected to witness moderate growth over the forecast period as compressors with a cooling capacity of more than 60 CC are required for large passenger vehicles and they also tend to be expensive.

Drivetrain Insights

The Battery Electric Vehicle (BEV) segment is expected to register a CAGR of 16.1% over the forecast period. The growth can be attributed to the rising environmental awareness among individuals, which is encouraging them to opt for electric vehicles. Although the adoption of battery electric vehicles is facing a double whammy of high prices and range anxiety among drivers; prices are particularly expected to plummet as the growing popularity and demand for battery electric vehicles encourage automakers toward mass production, thereby driving the adoption of BEVs.

The hybrid electric vehicles segment accounted for the largest market share because Hybrid Electric Vehicles (HEVs) offer a dual fuel option. The installation of electric compressors in HEVs is expected to gain traction as electric compressors are independent of the vehicle engine and contribute toward improving fuel efficiency. While the continued rollout of EV charging infrastructure across developing countries is expected to encourage the adoption of BEVs and PHEVs, the lower energy consumption of electric compressors is expected to boost the range of BEVs and PHEVs, thereby driving the adoption of electric compressors.

Vehicle Type Insights

The passenger vehicle segment accounted for the largest revenue share of more than 50% of the automotive electric HVAC compressor market in 2023. Electric compressors are increasingly being adopted to extend the range of passenger vehicles, production of which is rising significantly. While several organizations are opting for smaller electric vehicles for use within the premises, individuals are also opting for electric passenger cars for commutation within the city limits, thereby driving the sales of electric passenger vehicles and subsequently the demand for electric compressors.

On the other hand, several governments have deployed electric buses for passenger transport as part of the efforts to curb vehicular pollution. However, the adoption of electric compressors in heavy vehicles is still in its nascent stages owing to the high cost of these systems. Meanwhile, governments of various countries are offering subsidies and tax rebates to encourage the adoption of electric vehicles. As such, several e-commerce companies are also considering increasing the deployment of light commercial vehicles for delivering goods, thereby driving the growth of the commercial vehicles segment.

Regional Insights

The Asia Pacific regional market accounted for a significant share of over 62% in 2023 as a result of the high rate of EV adoption in China. China accounted for more than half of the global electric compressor sales in 2023. The continued development of EV charging and transport infrastructure in developing countries across Asia Pacific is expected to boost the sales of electric vehicles and subsequently the demand for electric compressors over the forecast period. Asia Pacific countries, such as South Korea and Japan, are home to several prominent EV manufacturers that are pursuing various research & development initiatives aggressively, which bodes well for the growth of the Asia Pacific regional market over the forecast period.

Europe held the second-largest market share in 2023 owing to the presence of several automotive OEMs in the region. Moreover, the adoption of EVs is growing significantly across Europe in line with the stringent greenhouse gas emission policies drafted by the EU. As reported by the European Environment Agency, electric vehicle registrations reached around 550,000 units in 2019, up over the year by 2% to 3.5%. The adoption of electric vehicles is also gaining traction across Latin America following the announcement of government incentives and the addition of electric vehicles to the public transport fleet. Given that an electric HVAC compressor is a critical component of the electric vehicle, any boom in EV sales is expected to translate into the growth of the market over the forecast period.

Some of the prominent players in the automotive electric HVAC compressor market include:

• Denso Corporation
• Hanon Systems
• MAHLE GmbH
• SANDEN Holdings Corporation
• Toyota Industries Corporation
• Highly Marelli Holdings Co., Ltd.
• Valeo S.A.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive electric HVAC compressor market.

Cooling Capacity

• Less Than 20 CC
• 20-40 CC
• 40-60 CC
• More Than 60 CC

Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicle (LCV)
• Heavy Commercial Vehicle (HCV)
• Buses and Coaches

Drivetrain

• Plug-in Hybrid Electric Vehicles (PHEV)
• Battery Electric Vehicles (BEC)
• Hybrid Electric Vehicles (HEV)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)