According to the Graphical Research new growth forecast report titled “APAC Automotive AC Compressor Market Size By Vehicle (Passenger Cars, LCV, HCV), By Type (Variable Displacement, Fixed Displacement, Electric Compressor), By Drive (Belt Driven, Electric Driven), By Sales Channel (OEM, Aftermarket), Industry Analysis Report, Country Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026” To Witness Steady Growth By 2026
Increasing demand of electric vehicles in the region will trigger the industry growth. China is the largest electric vehicle market in the world and accounted for more than 40% of global market share. China is planning to completely ban internal combustion engine vehicles by 2040. The country’s government strongly supports electric vehicles. Chinese government set a target of 5 million electric vehicles on China’s roads by 2020. As per the zero emissions vehicle mandate, every Chinese vehicle manufacturer and importer have to manufacture or import at least 10% of electric vehicles. The government waived off 50% of vehicle registration fees for electric vehicles. In addition, the government offers tax exemptions and support for the construction of electric vehicles stations. According to the Chinese Electric Vehicle Charging Infrastructure Promotion Agency (EVCIPA), EV charging stations in China increased by 80% from last year. In 2019, there are approximately 808,000 charging stations in China. Countries such as Japan, South Korea, India and Australia are steadily moving towards adoption of electric vehicles. These aforementioned trends will propel the APAC automotive AC compressor market in upcoming years.
The coronavirus crisis will hamper the APAC automotive AC compressor market over a short period of time. Many countries within this region imposed strict lockdowns in order to control the spread of virus. The supply chains associated with various automotive parts & components were affected due to transportation bans. Moreover, there has been a significant decline in production output. Many Asian countries are introducing supportive policies and providing funds & tax reliefs to revive the automotive sector.
Based on vehicle, passenger cars (PC) segment dominated the APAC automotive AC compressor market with an astounding share of over 95% in 2019. Increasing disposable income and improving standards of living are factors driving the segment growth in the regional market. India ranked fourth in car manufacturing in 2019. Indian auto manufacturers manufactured over 25 million motor vehicles in 2019-20.
By type, the fixed displacement holds significant share and will witness around 4% CAGR by 2026. Fixed displacement AC compressors consist of a swash plate which is set at a fixed angle. They have gained popularity as the standard for automotive AC compressors owing to its small size, excellent efficiency, high reliability, and light weight characteristics.
On the basis of drive, the belt driven segment is expected to witness the largest market share in 2019. The belt-driven compressor is the mechanical type of automotive AC compressor. It is used in the form of conventional air conditioning (AC) system in automotive sector. It works by utilizing the energy generated by the engine. OEM is projected to foresee over 4% CAGR by 2026. It is highly popular in the automotive industry owing to its ability to offer superior quality products with warranty.
The APAC automotive AC compressor market is mainly governed by China, India, and Japan on account of significant automobile manufacturing base, increasing sales of passenger vehicles, and growing electrification of automobiles. In addition, growing middle-class and young population as well as rising trend of personal vehicles positively influences the industry. Some of the key players operating in the APAC automotive AC compressor market are Mitsubishi Heavy Industries, Hanon Systems, Subros, and Sanden Corporation.