Automotive AC Compressor Market Size By Vehicle (Passenger Cars, LCV, HCV), By Type (Variable Displacement, Fixed Displacement, Electric Compressor), By Drive (Belt Driven, Electric Driven), By Sales Channel (OEM, Aftermarket), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Oct 2020  |  Report ID: GMI4840  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 220   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Automotive AC Compressor Market size valued at USD 8.8 billion in 2019 and is estimated to exhibit 3.8% CAGR from 2020 to 2026. The rising automotive production along with increasing adoption of the vehicle air condition system in the emerging economics will boost the industry growth.

Increasing adoption of air-conditioning system for superior thermal comfort in passenger cabin and innovation in the transportation industry, pursues to improve the comfort and convenience for the driver is expected to create significant opportunity for market participants. The growing adoption of next-generation vehicles, such as hybrid electric vehicles (HEV/PHEV) and electric vehicles (EV), is escalating the number of new electric vehicle models across Europe, North America, Japan, and China, which will further strengthen AC compressor demand.

Automotive AC Compressor Market

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Numerous manufacturers are focusing on developing eco-friendly products, that comply with the current emission standards laid by various government authorities. The large amount of carbon emissions by automotive AC compressors during their operation is owing to fuel consumption. Strong competition among manufacturers has impacted the market price trend. Industry players are focusing on value addition of the product, such as smaller size, lower weight, and improved efficiency, with reduced noise and vibration.

The rising remanufacturing and repair services of automotive air-conditioning compressors to support industry proliferation. The ongoing covid-19 pandemic has affected automotive production across the globe due strict lockdown and social distancing norms by numerous government authorities worldwide. Moreover, the average shutdown duration of an automotive manufacturing plant is nearly 30 working days, which is likely to affect the overall sales of automotive AC compressors in 2020.

Automotive AC Compressor Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 8.82 Billion (USD)
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 3.8% 2026 Value Projection: 10.24 Billion (USD)
Pages: 220 Tables, Charts & Figures: 298
Geographies covered (21): U.S., Canada, Germany, France, Italy, Spain, U.K , Russia, Poland, China, India, Japan, Malaysia, Indonesia, South Korea, Brazil, Mexico, Argentina, Turkey, South Africa, Iran
Segments covered: Vehicle, Type, Drive, Sales Channel, and Region
Companies covered (15): Toyota Industries, Denso Corporation, Mitsubishi Heavy Industries Automotive Thermal Systems Co., Ltd., Nissens, Subros, SANDEN, Hanon Systems, MAHLE, Standard Motor Product Inc., Aotecar New Energy Technology Co., Ltd, Marelli Corporation, Valeo, Rheinmetall Automotive AG and BorgWarner Inc. (Delphi Technologies)
Growth Drivers:
  • Increasing focus on light-weighting and fuel efficiency products
  • Growth in passenger vehicle sales
  • Increasing automotive production & presence of auto players
  • The increasing adoption of EVs is likely to surge the industry proliferation
Pitfalls & Challenges:
  • Higher operation life and ease of repair likely to curb the market
  • Prohibitive cost of Air-Conditioning System

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Growing passenger vehicle sale to spur automotive AC compressor market demand

The passenger cars segment to generate over USD 7 billion revenue in 2019. Increasing passenger cars sales in the past few years and demand from the aftermarket segment will propel the market revenue. In the emerging countries, such as, India, Indonesia, and Mexico, among others, the potential for sales of AC compressors is enormous as the proportion of passenger cars fitted with air-conditioning systems is expected to increase significantly. Furthermore, the increasing penetration of air-conditioning systems in pickup trucks and vans will lead to a greater demand.

OEM segment to capture majority market share

The OEM sales channel is likely to hold around 95% automotive AC compressor market share in 2026. The increasing automotive production to meet the rising demand is escalating the segment penetration. The ongoing Covid-19 has significantly impacted the automotive production in 2020, and despite the forced locked down and automotive production halt worldwide, the automotive industry has witnessed significant growth. According to the China Association of Automobile Manufacturers (CAAM) from January to September 2020, China alone has produced around 13.2 million passenger cars and 3.7 million commercial vehicles.

High fuel efficiency & lower carbon emissions to enhance variable displacement compressors market

Automotive AC Compressor Market Size

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The automotive AC compressor market from variable displacement compressor is poised to witness more than 3.5% CAGR during 2020 to 2026. The variable displacement has significant demand across North America and Europe since it offers excellent acceleration with lower energy consumption and has lower carbon emissions compared to fixed displacement compressors. The variable displacement is gaining recognition in the industry as it controls the amount of refrigerant being liquidated by fluctuating the angle of the rotating swash plate, which is linked to vehicle driving conditions and engines, improving the driving comfort and reducing the compressor's energy consumption and carbon emission.

The variable displacement segment generated significant revenue in 2019 driven by the increasing adoption of fuel-efficient and eco-friendly products in vehicles. The engine economizing strategies and implementation of strict regulations on fuel efficiency in vehicles will create substantial market opportunities.

Asia Pacific to hold major share on the back of presence of major industry players

Automotive AC Compressor Market Regional Insights

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Asia Pacific led by China to register growth rate of above 4% through 2026. In 2019, according to the OICA, Asia Pacific alone held over half of the global automotive production. Additionally, favorable policies by various Asian governments are expected to support the recovery of the automotive industry. The China automotive production is expected to continue its recovery drive in the second half of the year, due to various government policies such as 50% subsidy for electric vehicle till 2022 and a revival in demand by consumers.

The industry to be highly consolidated

The industry is highly consolidated with major five players accounting for significant market share. Major participants are engaged in partnerships with automotive air condition system manufacturers or automotive manufacturers to gain a competitive edge over other companies. With increasing demand for electric compressors, many manufacturers are investing in these technologies to gain a competitive advantage, for instance, in October 2018, MAHLE inaugurated an electric compressors production plant.

The automotive AC compressor market players include Toyota Industries, Denso Corporation, Mitsubishi Heavy Industries, Automotive Thermal Systems Co., Ltd., Nissens, Subros, SANDEN, Hanon Systems, MAHLE, Standard Motor Product Inc., and Aotecar New Energy Technology Co., Ltd. , among others. Some of the key strategies adopted by these manufacturers are production capacity expansion, acquisition, collaboration with automotive manufacturers, and new product development.

This market research report on automotive AC compressor includes in-depth coverage of the industry with estimates & forecast in terms of volume in Thousand Units and revenue in USD million from 2016 to 2026 for the following segments:

Market, by Vehicle Type

  • Passenger Cars
  • LCV
  • HCV

Market, by Type

  • Variable Displacement
  • Fixed Displacement
  • Electric Compressor

Market, by Drive

  • Belt Driven
  • Electric Driven

Market, by Sales Channel

  • OEM
  • Aftermarket

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K
    • Russia
    • Poland
  • Asia Pacific
    • China
    • India
    • Japan
    • Malaysia
    • South Korea
    • Indonesia
  • Latin America
    • Mexico
    • Argentina
    • Brazil
  • Middle East & Africa
    • Turkey
    • South Africa
    • Iran

Frequently Asked Questions (FAQ) :

With increased production of hybrid and electric vehicles as well as consistent demand for passenger cars, global market for automotive ac compressors will register over 3.8% CAGR through 2026.
For automotive ac compressor industry, more than USD 7 billion in remunerations was attributed to passenger cars owing to increased vehicle sales in emerging economies like India, Mexico & Indonesia.
Automotive ac compressor sales across the OEM channel will account for nearly 95% of the global share by 2026, with continuous automobile production to keep up with expanding consumer demand.
The deployment of variable displacement compressor will expand at 3.5% CAGR through 2026 since the product delivers improved acceleration with low consumption of energy as well as lower carbon emissions.
The market in APAC will witness around 4% CAGR up to 2026, owing to significant auto production in countries like China and government policies to boost automotive sector recovery and EV production.

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Premium Report Details

  • Published Date: Oct 2020
  • Pages: 220
  • Tables: 276
  • Charts / Figures: 22
  • Companies covered: 15
  • Countries covered: 21

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