Overview of the Report
The global vehicle electric HVAC compressor market was valued at USD 9.36 billion in 2020, with a compound annual growth rate (CAGR) of 20.7 percent predicted from 2021 to 2028. An electric compressor is separate from the car’s engine and is responsible for cooling the cabin and the battery pack as well as keeping the battery from overheating to prevent the vehicle from breaking down. Due to the lower oil carryover, an electric compressor has fewer mechanical parts and so allows for quieter and cleaner operations. Given that electric compressors are completely independent of the vehicle engine, all of these benefits help to improve total vehicle efficiency, driving demand for these compressors.
Due to the limits and lockdowns implemented as part of the measures to stop the spread of coronavirus, manufacturing capacity remained unused. As a result, the automotive sector as a whole is expected to develop more slowly in the short term as automakers postpone short-term CAPEX to conserve cash while dealing with supply chain disruptions. Consolidation of current capacities is also expected to take precedence over development ambitions for auto component producers. Component vendors’ short-term “Cash Preserve” strategy is predicted to stifle market expansion in the short run.
The epicentre, Wuhan, had an influence on electric vehicle sales, particularly in China, due to supply chain delays. In 2020, China, which is a manufacturing base for several automotive component and semiconductor businesses, had to deal with a short-term drop in electric vehicle sales. Although supply chain interruptions and demand-side changes temporarily halted manufacturing, the economy has already rebounded to near-normal levels, fueling demand for electric vehicles and, as a result, electric compressors. As a result, any increase in electric vehicle sales is projected to boost demand for electric compressors.
The air conditioning system accounts for 20% of a vehicle’s overall energy usage and so has an impact on acceleration and range, among other things. An electric compressor can help improve the overall range and economy of an electric vehicle by lowering this ratio. Electric compressors have an integrated revolution speed control that may be adjusted to save energy consumption. Electric compressors provide high performance at low rotations while also improving the battery’s life. The energy saved can then be used to expand the vehicle’s range.
Insights into the Drivetrain
Over the projected period, the Battery Electric Vehicle (BEV) segment is expected to grow at a CAGR of 16.1 percent. The increase can be ascribed to people’s growing environmental awareness, which encourages them to choose electric automobiles. Despite the fact that the adoption of battery electric vehicles is being hampered by high pricing and range anxiety among drivers, prices are likely to fall as the popularity and demand for BEVs grows, encouraging automakers to mass produce them, hence accelerating BEV adoption.
Because hybrid electric vehicles (HEVs) can run on both gasoline and electricity, they accounted for the biggest market share. The use of electric compressors in HEVs is likely to gain popularity because they are independent of the vehicle’s engine and contribute to increased fuel efficiency. While the continuing implementation of EV charging infrastructure in developing countries is projected to enhance the adoption of BEVs and PHEVs, electric compressors’ lower energy consumption is expected to increase the range of BEVs and PHEVs, hence promoting their acceptance.
Insights into Vehicle Types
In 2020, the passenger vehicle category accounted for more than half of the revenue in the automotive electric HVAC compressor market. Electric compressors are becoming more widely used to expand the range of passenger automobiles, whose production is rapidly increasing. While many businesses are opting for smaller electric vehicles for internal usage, individuals are opting for electric passenger cars for commuting inside city limits, resulting in an increase in electric passenger vehicle sales and, as a result, an increase in demand for electric compressors.
Summary of the geographical terrain
According to industry analysts, Asia Pacific accounted for a substantial percentage of the worldwide automotive electric HVAC compressor market in 2020, thanks to a positive response to electric vehicles in China and a large number of electric blower transactions in the same year. Continuous improvements in EV charging and transportation facilities in non-industrial countries are expected to boost electric car sales and, as a result, increase demand for electric compressors in the region. Furthermore, the increasing focus of important EV producers on R&D efforts, such as South Korea and Japan, would augur well for the regional market’s development over the analysis timeframe.
In an electric car, the role of an electric compressor is far more important than that of a traditional compressor in a conventional vehicle. The compressor in an electric vehicle is in charge of chilling the entire cabin as well as the battery pack. The battery is protected from overheating by an electric compressor, which prevents the car from breaking down. As a result, an electric HVAC compressor is a critical component for an electric vehicle’s entire operation. The adoption of electric automobiles and, as a result, the demand for electric HVAC compressors has been driven by rising fuel prices combined with a growing awareness of environmental conservation.
