Asia Pacific Automotive AC Compressor Market size exceeded USD 3,820 million in 2021 and is projected to exhibit a CAGR of 4% between 2022 and 2028.
In the Asia Pacific region, rapid urbanization and economic development are providing ample growth opportunities for the automotive industry. Driven by the continued expansion of the population of middle-class buyers, vehicle sales have been observing a major increase across the region. As a successful tactic in reaching a broad audience base, affordable luxury is also seen as a growing phenomenon among Asian consumers. This has consequently asserted a positive impact on automotive sales and the expansion of the market size.
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Likewise, e-mobility or electrification of transportation has also gained interest. Multiple automotive startups are rapidly introducing electric vehicle fleets in the Asia Pacific, especially in countries like China. This is because of the strong focus on mitigating climate risks and achieving the carbon emission goals. The emergence of the APAC as an EV hub is contributing to the rising popularity of the industry growth.
COVID-19 impact on Asia Pacific automotive AC compressor industry outlook
While the early impacts of the coronavirus crisis presented a dip in the number of vehicles on the road, production and sales are gradually returning to normalcy and are anticipated to grow at a commendable pace over the years ahead. Major markets like India are witnessing an increase in automotive sales, reflecting the economic recovery and higher acceptance of personal vehicles.
Furthermore, temporary supply bottlenecks will likely be reduced, with more component supplies to be available from the third quarter of 2022. As the effects of the pandemic slowly recede, AC compressors will continue to be installed in vehicles on a larger scale, which in turn, will impel the market growth.
The variable displacement segment will increase exponentially during the forecast period, owing to its high effectiveness and automation. Unique compression mechanisms, like the automatic alternation of engine displacement volume as per vehicle AC requirements, have made the compressor a great fit for multiple automobiles.
Apart from effective pressure control, this type of AC compressor exhibits key attributes, such as superior fuel economy, excellent drivability, and high passenger comfort. Since vehicular automation and efficiency are the key influential factors that attract more consumers, APAC automotive AC variable displacement compressor market will depict considerable growth through 2028.
The LCV AC compressor segment will cross USD 150 million revenue by 2028, due to the rising emphasis of prominent logistics companies on supply chain expansion in the region. The LCV segment is one of the most popular ones since they are considered a prominent vehicle category for logistics solutions.
Despite the lack of warranty and inferior quality, the automotive AC compressor aftermarket is slated to grow substantially in the Asia Pacific. In countries like India, auto repair and maintenance companies are raising significant funds, which help them serve as leading B2C players in the automotive aftermarket. This acceleration of aftermarket business in India has proved beneficial for the market development.
From a country-level perspective, the Malaysian automotive AC compressor market is depicting considerable growth through 2028, driven by the rapid introduction of favorable government policies to stay ahead of the competition in the automotive sector amid rising vehicle imports and the COVID-19 crisis.
Some of the major companies operating in the Asia Pacific market are MAHLE Group, Hanon Systems, Sanden Corporation, Subros, Mitsubishi Heavy Industries Thermal Systems, Ltd., Denso Corporation, and Toyota Industries Corporation. These companies are incorporating varied strategies such as business expansion to sustain their strong position and expand their footprint across the APAC region.