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, And Segment Forecasts, 2021 - 2028

Report Overview

The global automotive electric HVAC compressor market size was valued at USD 9.36 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 20.7% from 2021 to 2028. An electric compressor is independent of the vehicle engine and is tasked with the dual role of cooling the cabin and the battery pack and protecting the battery from overheating to prevent any breakdown of the vehicle. An electric compressor boasts lesser mechanical parts and hence facilitates quieter and cleaner operations due to lower oil carryover. All these advantages aid in improving the overall efficiency of the vehicle, given that electric compressors are entirely independent of the vehicle engine, thereby driving the demand for these compressors.

Multi-functionality features and lower energy consumption are particularly expected electric vehicle OEMs to adopt electric compressors on a large scale. However, although an electric compressor serves as a critical component of an electric vehicle, the demand for electric compressors relies entirely on the demand for electric vehicles. As such, any increase in the adoption of electric vehicles would directly translate into a growing demand for electric compressors. The outbreak of the COVID-19 pandemic has taken its toll on several industries and industry verticals and the automotive industry is no exception to that.

Manufacturing capacities remained underutilized owing to the restrictions and lockdowns imposed as part of the efforts to arrest the spread of coronavirus. As such, the overall automotive industry is poised for slower growth in the short term as automakers defer short-term CAPEX to preserve cash while coping with supply chain disruptions. Auto component manufacturers are also expected to prioritize the consolidation of existing capacities rather than pursuing expansion plans. Such a short-term, “Cash Preserve” strategy being pursued by component vendors is expected to challenge the growth of the market in the short term.

Wuhan being the epicenter, impacted the electric vehicle sales, more so in China due to supply chain disruptions. China, which is a manufacturing hub for several automobile component manufacturers and semiconductor companies, had to confront a short-term decline in electric vehicle sales in 2020. Although supply chain disruptions and demand-side fluctuations stalled production in the short term, the economy returned to near normal, thereby driving the sales of electric vehicles and subsequently triggering the demand for electric compressors. As such, any uptick in the sales of electric vehicles is expected to drive the demand for electric compressors.

The air conditioning system accounts for 20% of the total energy consumption of a vehicle and hence affects the vehicle’s acceleration and range, among other aspects. An electric compressor can reduce this ratio, thereby helping in improving the overall range and efficiency of the electric vehicle. Electric compressors are equipped with built-in revolution speed control, which can be varied accordingly to reduce energy consumption. Electric compressors deliver high performance at low revolutions while also extending the life of the lithium-ion battery. The energy saved can in turn be used to extend the range of the vehicle.

Meanwhile, the hermetic construction of an electric compressor helps in ensuring that no refrigerant leaks and reacts with the air outside. However, maintenance is equally crucial for electric compressors. The electric compressors and air conditioning systems of electric vehicles continue to evolve in line with the advances in technology. These advances would be mostly aimed at reducing the energy consumption of compressors. As such, future systems may be designed with an integrated approach to make the compressors compact and feature predictive control functions to improve energy efficiency. Anticipating these new systems to materialize, workshops and owners would also have to constantly develop their expertise in maintaining electric compressors of the future.

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 2020 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 2020. 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 60% in 2020 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 2020. 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 2020 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.

Key Companies & Market Share Insights

Several automobile manufacturers from North America, Europe, and Japan are developing and launching new models of HEVs and PHEVs. As a result, the market for automotive electric HVAC compressors is increasingly getting competitive as both established and new market players are trying aggressively to cement their position in the market by promoting their electric compressors for the newer models of electric vehicles. Although electric compressors are in the initial stages of development, significant advances are in the offing over the next few years.

Industry stakeholders expect the air conditioning systems of the electric vehicles of the future to include thermal management systems managing battery and cabin cooling along with the heating system and vehicle efficiency. Thus, the automotive electric HVAC compressor market is poised for healthy growth over the forecast period. Market players, such as Toyota Industries Corporation, Hanon Systems, and Denso Corporation, among others, are engaged in developing and launching new products as well as striking strategic alliances to stay ahead in the competition. For instance, 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. The joint venture was supposed to focus specifically on the electrification of compressors, HVAC equipment, and electric-driven compressor (EDC) systems. Some of the prominent players operating in the global automotive electric HVAC compressor market are:

• Denso Corporation

• Hanon Systems

• MAHLE GmbH

• SANDEN Holdings Corporation

• Toyota Industries Corporation

• Highly Marelli Holdings Co., Ltd.

• Valeo S.A.

Automotive Electric HVAC Compressor Market Report Scope

Segments Covered in the Report

The report forecasts growth in terms of revenue at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global automotive electric HVAC compressor market report based on cooling capacity, vehicle type, drivetrain, and region:

• Cooling Capacity Outlook (Revenue, USD Million, 2017 - 2028)

  • Less Than 20 CC

  • 20-40 CC

  • 40-60 CC

  • More Than 60 CC

• Vehicle Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Passenger Vehicle

  • Light Commercial Vehicle (LCV)

  • Heavy Commercial Vehicle (HCV)

  • Buses and Coaches

• Drivetrain Outlook (Revenue, USD Million, 2017 - 2028)

  • Plug-in Hybrid Electric Vehicles (PHEV)

  • Battery Electric Vehicles (BEC)

  • Hybrid Electric Vehicles (HEV)

• Region Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa