"Market Intelligence for High-Geared Performance"
The global automotive heaters market size was valued at USD 9.36 billion in 2022. The market is projected to grow from USD 9.69 billion in 2023 to USD 14.30 billion by 2030, exhibiting a CAGR of 5.7% during the forecast period.
Automotive heaters refer to a component or system installed in vehicles to provide warmth and regulate the interior temperature of the passenger cabin during cold weather conditions. Its primary purpose is to keep the occupants comfortable by heating the air inside the vehicle and defogging the windshield for better visibility in rainy conditions.
The increasing sales of vehicles and the government's mandate for installing heaters in vehicles drive the market growth. Automotive heaters decrease the efficiency of vehicles while running, which challenges the application of heaters in vehicles. However, major companies focusing on the development of efficient heaters to cater to the growing demand for electric vehicles is driving the market growth.
Decline in Vehicle Production and Sales during the Pandemic Impacted the Market Growth
The COVID-19 pandemic impacted the automobile production and sales significantly, which negatively influenced the automotive heaters market growth. The pandemic caused severe disruptions in supply chains, closure of manufacturing plants, and reduction in consumer demand for vehicles. This resulted in decreased production and sales of automobiles. For instance, according to the International Energy Agency (IEA), global car sales witnessed a decline of 14% in 2020. Additionally, travel restrictions and lockdown measures in many countries led to a decline in daily commute and overall mobility, adversely affecting vehicle usage and the need for a heating system.
However, as restrictions were lifted post-pandemic, the market witnessed a slow growth, similar to the growth of vehicle production and sales. As manufacturers increased their scale of production, the demand for automotive heaters also picked up a strong pace in the market. Thus, the market was negatively affected during the pandemic due to decline in vehicle production and sales and managed to recover post-pandemic, owing to the increasing production and sale of vehicles.
Development of Heaters for Electric Vehicles to Drive Market Progress
As the interest of people is increasing in buying electric vehicles, the automobile industry has witnessed significant growth in adopting these vehicles. For instance, according to the IEA, 10.3 million electric vehicles were sold in 2022; the sale is expected to grow to around 14 million by the end of 2023.
Due to this, manufacturers are focused on the development of automotive heaters that are compatible with electric vehicles. For example, in May 2022, Toyota, in partnership with Denso, co-developed a radiant heater specially designed for electric vehicles. The radiant heater was installed in Toyota’s bZ4X and designed to lessen the energy consumption of the vehicle by nearly 5.3%. Thus, the development of automotive heaters for the efficient performance of electric vehicles during the winter season is predicted to boost the market development during the forecast period.
Request a Free sample to learn more about this report.
Increasing Demand for Efficient Climate Control Solutions in Vehicles to Fuel Market Growth
The demand for efficient climate control solutions in vehicles, especially in cold regions, has increased the requirement for efficient heaters in vehicles. For instance, Canada records an average temperature of -25°C in winters. This boosts the significance of heaters in vehicles to operate in cold conditions.
Automotive heaters provide comfort while driving, and their use in defogging the windshield during winter and rainy seasons will fuel their demand over the forecast period. As consumers seek enhanced driving experiences and comfort, the demand for reliable and effective heating systems in automobiles has increased. Additionally, advancements in automobile technology, need for energy-efficient heating solutions, and environmental considerations are also playing a vital role in driving the market growth.
Decreased Efficiency of Electric Vehicles Can Hinder Market Development
Automotive heaters used in electric vehicles during rainy seasons or cold weather conditions decrease the efficiency of the vehicle. These heaters utilize battery power for their operation. This decreases the driving range of electric vehicles, making it difficult to rely on them while traveling in rainy and cold conditions.
For instance, in June 2023, Consumer Reports Inc. performed a test on Ford Mustang Mach-E, Hyundai, Ioniq 5, Tesla Model Y, and Volkswagen ID.4 Pro S. The company estimated that in cold weather conditions, the electric vehicle driving range contracted to 25%.
In May 2022, according to SAE International’s published article on radiant heaters, electric vehicles witnessed an extra loss of 30-40% in driving range when a car heater was used in winter as compared to air conditioning used in summers. However, companies are focused on the development of efficient automotive heaters, which will reduce the consumption of battery power in electric vehicles. Reduction in vehicle range due to utilization of heaters will hinder the market growth.
Blower Fans to Dominate due to Development of Advanced Technologies
Based on component, the market is segmented into heater core, blower fan, and others.
The blower fan segment dominated the market in 2022. The growth of the segment is attributed to the development of advanced blower fan technology and creation of quieter and more energy-efficient models. Major automotive companies, such as Tesla and others, are working on making their cars quieter, which will fuel the demand for low-noise blower fans in the automotive industry. This is expected to promote the segment growth during the forecast period.
The heater core segment is expected to record the fastest CAGR during the forecast period. Heater cores are essential for proper defrosting and defogging of windows, ensuring clear visibility and safe driving. Thus, these safety features offered by heaters during rainy and cold weather conditions will fuel the segment growth over the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Rise in Production and Sales of Vehicles to Fuel Demand for Passenger Cars
Based on vehicle type, the market is divided into passenger cars and commercial vehicles.
The passenger cars segment held a dominant market share in 2022. The growth of this segment is driven by increasing sales and manufacturing of passenger cars globally. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), around 61.5 million passenger cars and 23.4 million commercial vehicles were manufactured in 2022.
The commercial vehicles segment is expected to record the fastest CAGR during the forecast period. This segment's development is attributed to safety regulations and standards implemented across several regions that mandate heating systems in commercial vehicles, especially those used for passenger transportation. For instance, according to a report published by the Federal Motor Carrier Safety Administration, Department of Transportation, U.S. (DOT), each bus, truck, and truck-tractor manufactured on or after December 25, 1968, must have a windshield defrosting and defogging system that meets the requirements of FMVSS No. 103, to be effective from the date of manufacture. This will increase the use of heaters in vehicles, thereby driving the market growth.
The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.
Asia Pacific Automotive Heaters Market Size, 2019-2030 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific held the largest automotive heaters market share in 2022. The region is also expected to record the fastest CAGR during the forecast period. The region is a major hub for automobile production, with countries such as China, Japan, South Korea, and India being significant contributors. Thus, the growing production of vehicles in the region will directly fuel the demand for automotive heaters. For instance, according to the International Organization of Motor Vehicle Manufacturers, around 50 million vehicles were manufactured in Asia Pacific in 2022.
North America held a significant market share in 2022. The region experiences harsh winter conditions, which creates a high demand for efficient heating systems in vehicles to provide comfort and safety. Thus, this factor will drive the market development in North America.
Europe accounted for a considerable market share in 2022. The region has stringent environmental regulations, which has compelled the manufacturers to develop energy-efficient and eco-friendly heating solutions for passenger cars and commercial vehicles. This is anticipated to fuel the market progress in Europe.
The Rest of the World market, which includes Latin America and the Middle East & Africa, captured a major market share in 2022. As consumer spending power is increasing in certain countries, the ownership of passenger cars and commercial vehicles is also increasing, driving the market for vehicle cabin heaters.
Companies are Collaborating and Forming Partnerships to Achieve Competitive Advantage
Key players in the market are offering a comprehensive product portfolio of automotive heating solutions, including cabin heaters and heater components. The companies are focused on catering to both passenger cars and commercial vehicles to cater to various climatic conditions. They are also capitalizing on R&D to create environment friendly solutions, offering them significant opportunities to develop efficient vehicle heaters. Some of the major players in the market include BorgWarner Inc., Mahle GmbH, and Denso Corporation, among others. BorgWarner is a prominent player in the market. The company is a global supplier of advanced technology and provides a range of heating solutions for vehicles. For instance, in August 2023, BorgWarner landed a contract from BMW for high-voltage coolant heaters. The heater will be installed in the BMW i4 and iX. The heater is developed focusing on increasing the driving range of electric vehicles during winter while the heater is running in the car.
The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and prominent applications of the product. Besides, the report offers insights into the automotive heaters market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that contributed to the growth of the market in recent years.
An Infographic Representation of Automotive Heaters Market
To get information on various segments, share your queries with us
CAGR of 5.7% from 2023 to 2030
Value (USD Billion)
By Vehicle Type
As per the Fortune Business Insights study, the market size was USD 9.36 billion in 2022.
The market is likely to record a CAGR of 5.7% over the forecast period of 2023-2030.
By vehicle type, the passenger cars segment dominated the global market in 2022.
The market size in Asia Pacific stood at USD 5.20 billion in 2022.
Demand for efficient climate control solutions in vehicles will fuel the market growth.
Some of the top players in the market are BorgWarner Inc., Mahle GmbH, and Denso Corporation.
Asia Pacific led the market in 2022.
Decreased efficiency of electric vehicles will hinder the market growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry