According to a recent report published by Allied Market Research, the world automotive HVAC system market is estimated to reach $22.8 billion, growing at a significant CAGR from 2016 to 2022. Asia-Pacific is expected to dominate the market throughout the analysis period, growing at the highest CAGR of 10.2 per cent during the forecast period.
Factors such as automatic climate control, adoption of eco-friendly refrigerant and use of geothermal heat pumps have all resulted in the overall increase in demand for automotive HVAC systems.
However, high maintenance cost and low fuel economy are likely to affect the market growth. Vehicle manufacturers provide HVAC systems that allow individuals to control cabin temperatures as per their comfort.
According to the report, automakers aim to adopt environmentally-friendly refrigerants such as R1234yf in their HVAC systems, in an effort to provide fuel efficiency with improved performance and with mitigating hazardous risks.
On the basis of vehicle type, passenger cars generated higher revenue in comparison to commercial vehicles, accounting for over 67 per cent of the market revenue in 2015. Automakers are also increasingly providing passenger cars and commercial vehicles with faster cooling and fuel efficient HVAC systems.
Regarding manual and automatic operation, automatic HVAC systems dominated the market in 2015, contributing around 59 per cent of the total revenue.
The automatic climate control system inside a vehicle cabin is set once and the HVAC system adjusts the temperature automatically depending on the temperature outside of the vehicle.
Factors like this will continue to drive the adoption of the automatic HVAC system, particularly in passenger cars, according to the report.
Based on geography, Asia-Pacific was the highest revenue-generating region, accounting for over 46 per cent share in 2015, in terms of revenue.
This owed to high vehicle production in China, Japan, South Korea and India. Asia-Pacific is also estimated to dominate the market in future, with a CAGR of 10.2 per cent during the forecast period.
According to the report, this is due to the increasing adoption of eco-friendly refrigerants and large-scale production of commercial and passenger vehicles.