Automotive Compressor Market Size, Share & COVID-19 Impact Analysis, By Drive Type (Electric and Conventional), By Type (Swash-Plate Compressor, Rotary Compressor, and Scroll Compressor), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2023-2030

The global automotive compressor market size was valued at USD 12.56 billion in 2022. The market is projected to grow from USD 13.34 billion in 2023 to USD 23.56 billion by 2030, exhibiting a CAGR of 8.47% during the forecast period.

The automotive compressor is an important component in the vehicle’s air conditioning system, designed to compress and circulate refrigerant gas. The compressor is the key element in the vehicle’s refrigeration cycle, responsible for cooling the car's interior. The cycle involves the continuous circulation of refrigerant through various components to absorb and release heat. The compressor's primary function is to compress the low-pressure, low-temperature gaseous refrigerant from the evaporator into high-pressure and high-temperature gas. By compressing the refrigerant gas, it increases its temperature and energy, sending it to a condenser located at the front of the vehicle. In the condenser, the refrigerant gas releases heat and transforms into high-pressure liquid, which then flows through the expansion valve.

The AC compressor is crucial for providing comfortable driving conditions, especially during hot weather. It helps to regulate the cabin temperature, remove humidity from air, and improve overall air quality. It also enhances the safety by preventing driver fatigue, ensuring clear visibility by defogging windows, and maintaining a comfortable environment for passengers. These factors are expected to increase global automotive compressor market growth over the forecast period.

COVID-19 IMPACT

Severe Impact on Auto Sales Temporarily Amid Pandemic Obstructed the Market Growth 

The global automotive industry experienced a profound impact due to the coronavirus disease pandemic. Numerous countries globally implemented nationwide lockdown measures to curb the spread of the virus. Car sales experienced a significant decrease in the second half of 2020 due to the pandemic and strict social distancing regulations. Social distancing rules and strict nationwide lockdowns led to a complete shutdown of various HVAC (heating, ventilation, and air conditioning) manufacturing facilities in the automotive industry. This disrupted the transportation of raw materials needed to manufacture products and directly or indirectly impacted thousands of workers and industries. Additionally, unemployment, lockdowns, and shifts in consumer savings patters resulted in reduced demand for cars and consumer purchasing power. For example, DENSO Corporation's 2020 net sales decreased by 4.08% compared to 2019.

In the latter part of 2021, numerous manufacturers reinstated their activities, operating with 50% of their workforce and strictly adhering to social distancing standards to mitigate the transmission of the virus. Concurrently, countries across the globe initiated widespread vaccination campaigns in an effort to contain the virus's spread. These combined efforts gradually boosted the demand for product in the automotive market, thereby fueling global growth.

LATEST TRENDS

Increasing Adoption of Variable Displacement Compressors is a Prominent Market Trend

One of the latest trends in automotive AC compressors is the shift toward more energy-efficient and eco-friendly technologies. Specifically, variable displacement and electric compressors are gaining prominence in the automotive industry. Traditional vehicle AC compressors operate at a fixed displacement, continuously pumping a consistent volume of refrigerant, regardless of cooling needs. Variable displacement compressors can adjust the volume of refrigerant they pump based on the requirement of the AC system. This adjustment is made in response to the desired cabin temperature and cooling load. By using energy more efficiently, vehicles with variable displacement compressors can reduce their carbon emissions, contributing to a greener environment. The variable displacement compressor operates based on requirement, resulting in less wear and tear of components. Traditional compressor, when cycled on and off, frequently experiences more stress, whereas variable displacement compressor adapts to the load and operate more smoothly and with less strain.

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DRIVING FACTORS

Rising Demand for Passenger Vehicles to Drive the Market Growth

The increasing demand for passenger vehicles drives higher production rates. As a result, the market experiences a surge in demand since every vehicle requires a functional air conditioning system, including a compressor. Air conditioning has become a standard feature in most passenger vehicles. With consumers emphasizing comfort and convenience during their journeys, the demand for vehicles equipped with efficient air conditioning systems, powered by compressors, rises substantially. Additionally, car manufacturers are constantly implementing new ideas to enhance fuel economy of vehicle to meet stringent global environmental norms. Additionally, as number of passenger cars on road increases, there is a growing need for compressor replacements and upgrades. Vehicle owners are seeking more efficient and durable compressors, contributing to the aftermarket segment of the market.

Stringent Environmental Regulations to Boost the Market Growth

Environmental regulations play a vital role in shaping this industry. Governments and regulatory bodies worldwide are imposing stringent emission standards and advocating for sustainable practices in the automotive sector. Compressors used in vehicles, especially in air conditioning systems, are under scrutiny to become more energy-efficient and eco-friendly. Manufacturers are compelled to invest in research and development to create compressors that use alternative refrigerants with lower global warming potential (GWP) while adhering to regulations such as the European Union’s MAC Directive (Mobile Air Conditioning Directive) and the U.S. EPA’s SNAP (Significant New Alternative Policy) program.

Additionally, the industry is focused on developing compressors with reduced leakage rates, enhanced sealing technologies, and improved energy efficiency. These advancements ensure compliance with environmental standards and contribute to an increasing demand for automotive compressors that align with sustainable practices and regulations.

RESTRAINING FACTORS

High Manufacturing Cost May Hamper the Market Growth

One significant factor restraining the growth of the industry is the rising cost associated with integrating advanced technologies into compressors. Consumer’s demand and regulatory requirements are driving the need for more efficient, eco-friendly, and technologically advanced air conditioning systems. This is placing immense pressure on manufacturers to invest heavily in research & development and the implementation of cutting-edge compressor technologies.

Higher production cost directly impacts the overall cost of vehicles. As a result, consumers might face increased prices when purchasing cars equipped with the latest technologies. This can create a market barrier, especially for budget-conscious consumers, potentially slowing down the widespread adoption of vehicles with advanced and environmentally friendly air conditioning systems. Furthermore, the automotive industry operates on thin profit margins, making it challenging for manufacturers to absorb the additional costs without passing them on to consumers. Balancing the integration of innovative compressor technologies with affordability remains a significant challenge. It acts as a restraining factor in the widespread adoption of these advanced systems in the industry.

SEGMENTATION

By Drive Type Analysis

Increasing Adoption of Cost Effective Components to Drive Conventional Segment Growth

Based on drive type, the market is segmented into electric and conventional.

The conventional segment holds the largest automotive compressor market share of 57.49% and is expected to dominate over the forecast period. The conventional compressors are used in vehicles as they are highly reliable and durable. Manufacturers and end-users prefer conventional compressors, especially in region where infrastructure for repairing and maintaining advanced system may be limited. For many consumers, the reliability of traditional compressor outweighs the potential benefits of newer, more complex technologies. Conventional compressors are generally most cost-effective option compared to their advanced counterparts. This affordability makes them a preferred choice for budget-conscious consumers, especially in emerging markets and entry-level vehicle segments. As a result, automakers continue to install conventional compressors in vehicles to make them more accessible to a broader customer base.

The electric segment is anticipated to hold the second-largest position in the market. The automotive industry is undergoing a significant transformation with a growing focus on electric vehicles (EV) and hybrid electric vehicles (HEVs). The internal combustion engine vehicles, EVs and HEVs rely entirely or partially on electric power. Electric compressors are a natural fit for these vehicles as they operate independently of the engine, ensuring efficient cooling without putting extra load on the vehicle’s powertrain. As the demand for electric and hybrid electric vehicle increases, the demand for e-compressors is expected to rise during the forecast period. The electric compressors offer precise control over the air conditioning system, allowing for efficient modulation of cooling capacity based on real-time demands. By reducing unnecessary energy consumption, these compressors contribute to improved overall energy efficiency and fuel economy. Automakers are under pressure to meet stringent fuel efficiency standards and reduce greenhouse gas emissions. Electric compressors assist in achieving these goals by optimizing the AC system’s performance, making them a preferred choice for manufacturers and consumers.

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By Type Analysis

Swash-Plate Compressor Segment to Dominate As They Are Highly Efficient In Compressing Refrigerant Gases

Based on type, the market is segmented into swash-plate compressors, rotary compressor, and scroll compressor. The swash-plate segment holds the largest market share and is anticipated to maintain its dominance in the market during the forecast period.

The swash-plate segment in the market is growing owing to the entrance of new market players who are focused on providing good quality, reliable, and affordable products.

The swash-plate is highly efficient in compressing refrigerant gases. Their compact design allows automobile manufacturers to save space under the hood, making them an ideal choice for modern vehicles, where space optimization is crucial. These compressors provide consistent and reliable cooling performance. As automobile designs become more complex and efficient, the demand for air conditioning systems that can quickly cool down the interior is increasing. Swash-plate compressors meet these demands, ensuring passenger comfort during short and long drives.

With a focus on environmental sustainability and fuel efficiency, automobile manufacturers are increasingly adopting technologies that reduce the overall load on the engine. Swash-plate compressors operate with minimum power loss, thereby improving the vehicle's fuel efficiency. This is particularly important regarding stricter emission standards and the push toward greener transportation options. In recent years, the swash plate compressors have been designed to operate with reduced vibrations and noise levels. To provide a quieter and smoother driving experience, automobile manufacturers prefer compressors that generate minimum vibration. Swash-plate compressors aligned with this requirement enhance the overall driving experience for passengers. For instance, in September 2020, T/CCI Manufacturing announced that it would partner with Air Tata International TOYO Radiator Thermal System to manufacture compressors for the commercial vehicle segment in India. Through this partnership, T/CCI would supply the QP25 swash-plate compressor to meet the increasing cooling needs of school bus and light bus applications.  

The scroll compressor segment is expected to hold the second-largest segment in this market. In automobiles, where the load on the compressor can vary based on the desired cooling level, the efficiency of the compressor is crucial. The scroll compressor provides efficient cooling, ensuring the air conditioning system consumes less energy. This efficiency directly contributes to fuel savings and reduced emissions, aligning with the automotive industry’s focus on environmental sustainability and energy efficiency. The scroll compressors have fewer moving parts than other types, increasing reliability, and lowering maintenance requirements. In the automotive industry, reliability is paramount, as vehicles need components that can withstand diverse operating conditions.

Scroll compressors offer precise temperature control, ensuring the air conditioning system can quickly adapt to changing external conditions. This precision is vital for maintaining a comfortable interior environment for passengers, regardless of external temperature fluctuations. Accurate temperature control enhances passenger comfort and satisfaction. The demand for efficient and adaptable air conditioning systems has increased with the rise of hybrid and electric vehicles. Scroll compressors are well-suited for these vehicles due to their energy efficiency and ability to operate effectively in varying conditions. As the automotive sector is shifting toward greener technologies, scroll compressors play a vital role in meeting the air conditioning needs of these vehicles.

By Vehicle Type Analysis

Passenger Cars Segment Dominates Owing to Higher Demand for Personal Transportation

This market is segmented into passenger cars and commercial vehicles based on vehicle type.

The passenger cars segment holds the largest global automotive compressor market share. The rise in urbanization and enhanced living standards in developing nations has led to an increased desire for personal transportation, thereby elevating the demand for passenger cars in the market. In addition to personal use, the commercial utilization of these vehicles, particularly in the form of taxis, further contributes to the growth of this market segment. The dominance of the segment can also be attributed to several factors. Advancements in automotive technology have made passenger cars more fuel-efficient, environmentally friendly, and equipped with advanced features. This makes them more appealing to consumers, encouraging them to upgrade their vehicles more frequently. Additionally, consumer preferences are shifting toward personal vehicles ownership, especially in regions where public transportation systems are less efficient or widespread. This change is due to the desire for comfort, safety, and convenience.

Commercial vehicles are essential for transporting raw materials, goods, and products in a variety of industries, contributing to economic growth. For example, in July 2023, the American Trucking Association reported that the transportation of cargo by trucks amounted to 11.46 billion tons, surpassing the 10.93 billion tons recorded in 2022. This surge in cargo volume generated a substantial revenue of USD 940.8 billion. Furthermore, growth of the logistics industry and the rapid industrialization drive the sale of light commercial vehicles and heavy commercial vehicles, especially those used in last-mile delivery. These factors are expected to witness steady growth of automotive compressors in the commercial vehicle segment. In addition, climate control is a vital component for transporting goods sensitive to temperature fluctuations, such as perishable goods, pharmaceuticals, and electronics. Automotive compressors are used in refrigeration systems to maintain specific temperature levels inside commercial vehicles, ensuring the quality and integrity of transported goods.  

REGIONAL INSIGHTS

Based on geography, the market is divided into Europe, the Asia Pacific, the rest of the world, and North America.

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In 2022, the market size in the Asia Pacific region reached USD 5.32 billion and is forecasted to reach USD 8.89 billion by 2030, reflecting a notable CAGR of 6.86%. The region is poised to maintain market dominance throughout the study period.

The increasing demand for production and sales of passenger cars from emerging economies such as India, Malaysia, and China, has heightened the product demand, consequently propelling Asia Pacific growth. The rapid urbanization and economic development in this region present many growth opportunities for the automotive industry. Car sales across the region significantly increased as middle-class buyers grew. The emergence of affordable luxury goods has also gained popularity among Asian consumers, with successful strategies to reach a broader demographic. This has had a positive impact on car sales and market expansion.

North America holds the second-largest market share due to the region's development of new technologies and materials. Air conditioning is now a standard feature in all types of vehicles, including light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). In countries such as the U.S. and Canada, have witnessed a rising trend in installing aftermarket air conditioning in cars, and this trend is expected to continue in the coming years. Canada is the second-largest automobile market in North America, relies heavily on imported cars. This account for approximately 75% of the new car market. Most foreign automakers have branches in Canada, and five of them - Ford, General Motors, Toyota, FCA, and Honda - also have local production lines. Both countries share similar regulatory frameworks for the automotive sector, with more than 90% of their respective road safety laws being the same. Improved legislation has made vehicles many times safer, attracting significantly more customers. Since the signing of the United States-Mexico-Canada Agreement (USMCA), the pace of passenger vehicle electrification has accelerated, impacting the North American supply chain. The automotive air conditioner compressor market is growing significantly due to the high automobile production in the region.

The European market is expected to grow significantly during the forecast period. The increasing demand for environmentally friendly refrigerants is expected to drive the region's demand for air conditioner compressors. Manufacturers are investing heavily in research and development to replace HFC-134a refrigerant with HFO-1234yf, which is less environmentally harmful. Market growth is also driven by increasing demand for passenger vehicles, growth in research and development activities, and increasing consumer demand for a comfortable travel experience. Several automakers are improving their vehicles' existing climate control capabilities and introducing new features to improve passenger comfort and purchasing behavior. For instance, in January 2023, Volkswagen launched smart air conditioning, namely ID.7, which responds to voice commands, considers the sun's position, and caters to individual user preferences.

KEY INDUSTRY PLAYERS

Key Players are Focusing on Partnerships, Acquisition, and Building Advanced Compressors to Gain a Competitive Edge

Some companies dominate the market due to their critical strategic decisions and robust product portfolio. Companies are adopting partnership, acquisition strategies to expand their market share. For instance, in April 2023, Liebherr collaborated with ZF to develop new high speed compressors for medium size, heavy duty as well as for hydrogen fuel cell vehicles. The partnership aims to develop new high speed compressors in different power classes for the application in various sized vehicles powered with fuel cell technology.

LIST OF KEY COMPANIES PROFILED:

• Brogwarner Inc (U.S.)


• Mahle GmbH (Germany)


• Subros Ltd (India)


• Mitsubishi Heavy Industries Thermal System Ltd. (Japan)


• Toyota Industries Corp (Japan)


• Sanden Corp (Japan)


• Highly Marelli Holdings (Japan)


• Valeo S.A (France)


• Denso Corp (Japan)


• Hanon Systems (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Garrett Motion Inc. is a leading technology innovator in the automotive sector and supports the BMW Group's efforts to develop zero-emission hydrogen fuel cell vehicles. This support came in the form of an innovative electric fuel cell compressor (FCC) designed and developed by Garrett's experienced research and development team.


• March 2023: The new GP35FP portable compressor was introduced by ELGi North America (ELGi) during the highly anticipated CONEXPO-CON/AGG 2023 held at the Las Vegas Convention Center. ELGi currently has nine models in his portable air compressor lineup with capacities ranging from 35 CFM to 900 CFM.


• September 2022: TCCI launched its first 850V electric compressor for commercial vehicles at IAA 2022 in Hannover. The 850V electric compressor is a key component in new battery electric trucks offering the industry's longest lifespan and fastest charging.


• August 2021: Valeo S.A had launched its electrically driven compressor (EDC) to meet the specific need of hybrid electric and electric vehicles. This comperessor have capability to provide vehicle interior comfort and battery cooling during fast charging and also reduce CO2 emission owing to its less consumption.


• March 2021: Sanden Holdings Co., Ltd entered into an agreement with Hisene Group. Under this agreement, both companies focused on providing thermal management system with more advanced air conditioning system and control technology using AI.

REPORT COVERAGE

The market report provides detailed analysis and focuses on key aspects, such as leading companies, types, vehicle type, and drive type. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.

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