Europe Automotive AC Compressor Market size surpassed USD 2,460 million in 2021 and is anticipated to expand at 3% CAGR from 2022 to 2028. Consistent developments in electric cars and more efficient HCVs could strengthen the industry potential.
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The market growth is propelled by the surging demand for passenger vehicles, growing research and development activities in the space, and the rising need for comfortable travel experience. To improve the passenger comfort and subsequent purchasing behavior, several vehicle producers are seeking to enhance the existing air conditioning features in the automotive fleet and introducing new features.
Citing an instance, in 2022, Honeywell declared its plans of offering Solstice 456A in-car air conditioning systems across the European economies. It has also quoted that the component would be commercially available to the European automotive aftermarket in the latter half of 2022.
Europe Market, By Drive
The electric-driven segment will witness remarkable growth till 2028, attributed to the compressors’ easy installation and maintenance. In addition, electric-driven AC compressors boast the ability to control speed revolutions, thus significantly contributing to energy savings. These are also recognized to generate less noise in contrast to conventional belt-driven AC compressors, thus emerging as ideal option in electric vehicles in the coming years.
Europe Market, By Vehicle
Increasing production and sales of passenger cars in the European continent will add to the market dynamics. The European Automobile Manufacturers’ Association predicted that the passenger car sales in the region would receive a 7.9% boost in 2022, surpassing the total sales by 10.5 million units by the year end. This growth is subject to the elevating purchase parity, robust economic conditions, increasing inclination towards vehicle ownership, and changing consumer lifestyles.
Europe Market, By Type
The compressor type segment will observe around 4% growth rate during the forecast period, due to the product’s ability to offer maximum performance at any engine speed and delivering optimum comfort while maintaining the energy efficiency. Some of the other benefits of incorporating electric compressors in cars include reduction in emissions and fuel saving. Besides, for EVs, electric compressors are required to allow for cabin comfort and keep the electric powertrain away from the overheating.
Europe Market, By Sales Channel
The OEM segment will increase exponentially through 2028, owing to the umpteen advantages offered by OEMs such as relatively lower cost, superior product quality, and longer shelf-life of automotive parts, that is expected to benefit the large-scale and MNCs across the automotive industry. However, of late, the popularity of OEMs is increasing across the small-scale businesses, providing new avenues for the market growth.
Europe Market, By Country
Geographically, France would emerge as a major market for automotive AC compressors in near future. The robust growth in the regional market is backed by the introduction to supportive policies and investments by the French government, aligned with the packages to revive the automotive sector during the post-COVID 19 situation in the country. For example, the government announced the French COVID-19 stimulus package, which includes an incentive of USD 7,313.25 (7,000 Euros) when purchasing a battery EV. Such deals would enhance the market prospects.
Competitive Industry Landscape
Major players involved in the Europe automotive AC compressor market are Denso Corporation, Toyota Industries, Rheinmetall Automotive, MAHLE, Nissens, Valeo, and Sanden Corporation.