In recent years, the production and usage of automotive HVAC systems has gained significant momentum. Indeed, statistics from market research show that as of 2012, 85 percent of the new cars sold globally have HVAC systems and this number will more than likely climb even closer to 100 percent in the next few years. Given this scenario, the Global Automotive HVAC Systems market is expected to post a CAGR of 6.43 percent during the forecast period.
There are a few reasons for this region’s dominance, one of the most paramount of which is its positive government support and regulatory scenario. In addition, one of the large segments of the automotive HVAC market is the luxury auto sector, including brands such as BMW, Audi, Mercedes, and Volkswagen-all of which have a significant presence in Europe. Lastly, is the simple matter of European lifestyle. In general, consumers in Europe are increasingly focusing on comfort and performance in all purchases, especially when buying vehicles which contributes to the increasing popularity of automotive HVAC system.
Despite Europe’s current dominance however, the APAC and Americas regions are not far behind as is depicted by the diagram below:
The APAC region in particular is expected to see huge growth as China and India shift from the adoption of mid-segment and compact-segment vehicles that use traditional air conditioning system to advanced vehicles that offer automotive HVAC systems. Other contributing factors include the region’s steady economic growth, and a higher rate of disposable income which lead to more purchases of high-end vehicles fitted with automotive HVAC systems.
On the other hand, although the Americas account for the market’s second largest share, the region has seen very little growth in any automotive related industries since the recession of 2008. Many major automobile manufacturers witnessed skewed top and bottom lines; some even filed for bankruptcy protection and high rates of unemployment decreased the buying power of consumers. Yes, as of 2013 Americas’ economy has started recovering from this crisis, however it’s going to take a while before the region’s growth rate in the Automotive HVAC systems market will rival that of the APAC and EMEA.
All things considered, despite the variances in the industry dynamics across the EMEA, APAC and Americas, the market shares of each region are relatively close at 36 percent, 35 percent, and 29 percent respectively. This is a glaring indicator of the industry’s potential for growth across every corner of the world, and a sure sign that the Global Automotive HVAC Systems Market will only continue to gain leverage in the next few years.
For more information, view our 2012-2016 market research report on the Global Automotive HVAC Systems Market.
