Automotive AC Compressor Market Forecast | 2028

Market Insights

The automotive AC compressor market is estimated to grow from USD 8.39 Billion in 2022 to USD 10.49 Billion by 2028 at a healthy CAGR of 3.69% during the forecast period.

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What is an automotive air conditioner compressor?

An automotive air conditioner compressor is the throbbing heart of the air conditioning system. It is accountable for keeping the refrigerant flowing and thus ensuring smooth performance. Because of global warming, the atmospheric temperature has risen drastically in recent years, increasing consumer demand for air conditioning in automobiles.

COVID-19 Impact

Following the outbreak of the pandemic in 2020, the market experienced a decline. Due to lockdowns across regions during COVID-19, production facilities around the world were temporarily shut down, and vehicle and equipment production came to a halt, disrupting the global automotive supply chain. As a result, the demand for automotive AC compressors decreased.

Market Dynamics

The automotive ac compressor market is driven by a host of factors, some of which are noted below:

• Increasing automotive production and a surge in the adoption of vehicle air conditioning systems in emerging markets
• Due to global warming, the atmospheric temperature has risen significantly in recent years, prompting customers to seek a more comfortable vehicle interior climate in their automobiles.
• The increase in the disposable income of the world population has led to a sharp increase in sales of passenger and household cars. The temperature in the vehicle interior has a significant impact on the driving experience and driver comfort
• Electric vehicles are becoming more and more popular in different countries. These vehicles have massive batteries and other electronic components that generate enormous amounts of heat while driving. Therefore, air conditioners are an integral part of electric vehicles and the growing popularity of electric vehicles.

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Segment Analysis

Vehicle Type

The market is segmented into passenger cars, LCVs, and HCV. The passenger cars segment dominated the market in 2022 and is likely to remain the key demand generator for automotive AC compressors in the foreseen future. 

The growth of the segment can be attributed to growing car sales in economies such as China and India. The proportion of passenger cars equipped with air conditioning is expected to increase significantly in the coming years.

Product Type

The market is bifurcated into variable displacement, fixed displacement, and electric compressors. Variable displacement compressors occupied a significant market share in 2022 & are expected to remain the most preferred automotive AC compressor type during the forecast period.

These compressors are in higher demand than the other types because they provide superior acceleration while emitting fewer carbon emissions and consuming less energy than fixed displacement compressors.

Furthermore, engine economizing tactics and severe fuel economy standards in automobiles are likely to create significant opportunities for variable displacement compressors in the coming years.

Sales channel type

The market is segmented as OEM and aftermarket. Between these application types, the OEM segment held a market share of more than 95% in 2022 and is expected to grow at a significant CAGR during the review period. 

Significant investment in the manufacturing sector by developing countries has resulted in increased automotive production. The growing number of working-class car owners is expected to drive product demand in the coming years.

Regional Analysis

Asia-Pacific is expected to remain the largest market during the forecast period. The growth of the region’s market is driven by the huge demand for the product in China.

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Furthermore, the initiatives taken by several Asian countries are likely to help the revival of the automotive sector, which in turn, will drive the demand for automotive AC compressors in the region during the forecast period.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories:

By Vehicle Type

• Passenger Cars
• LCV
• HCV

By Product Type

• Variable Displacement
• Fixed Displacement
• Electric Compressor

By Drive Type

• Belt-driven
• Electric-driven

By Sales Channel Type

• OEM
• Aftermarket

By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World

Key Players

Most of the companies are deploying various strategies regarding product development & differentiation, pricing, branding, technology, and customized products to gain a competitive advantage. 

The following are some of the key players in the market:

• Toyota Industries Corporation
• Denso Corporation
• Mitsubishi Heavy Industries Thermal Systems, Ltd.
• Nissens Automotive
• Subros

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s market realities and future market possibilities for the forecast period of 2022 to 2027. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.

The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Report Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

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