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Europe Automotive AC Compressor Market Will Experience a Dynamic Growth up to 2026

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According to the Graphical Research new growth forecast report titled “Europe 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
 

Europe Automotive AC Compressor Market
 

The rising sales of electric vehicles in Europe will drive the regional automotive AC compressor market growth in future. Stringent government regulations regarding CO2 emissions will increase the penetration of electric vehicles in the market. The European Union sets targets, allowing 95 grams per km of CO2 emissions for passenger cars. Additionally, it specified that 95% of the total fleet must meet these guidelines in 2020 and 100% by 2021. In 2019, Europe invested approximately USD 71 billion to produce electric vehicles and batteries. Moreover, the government is investing heavily to develop charging infrastructures. Environment-conscious consumers are willing to pay high prices for electric vehicles.

Many local governments are offering driving and parking benefits for electric vehicle users. Electric vehicle owners have the benefits of paying less toll & parking fees in Paris and given preferential parking permits in Amsterdam. A few governments in Europe including Norway, the UK, France, the Netherlands, Denmark, etc., are offering subsidies and incentives to encourage customers to opt for electric mobility. Many vehicle manufacturers are rapidly launching new models in the wake of soaring demand. These aforementioned trends will potentially boost electric vehicle sales in the next few years thereby assisting the growth of Europe automotive AC compressor market.

The Europe automotive AC compressor market is segmented on the basis of vehicle, type, drive and sales channel. Light commercial vehicles will grow at a 3.3% CAGR between 2020 and 2026. The rising prevalence of e-commerce and associated retail operations will accelerate the transportation of goods to ensure timely delivery. This will generate huge demand for light commercial vehicles in future and augment the sales of automotive AC compressors over the next few years.

Fixed displacement compressors will capture around 35% share by the end of the forecast period. These compressors have gained popularity due to their reliable nature and efficient operational characteristics. Additionally, these compressors have compact size and low weight. The belt driven segment will dominate the market and account for more than 95% share by 2026. Majority of present vehicle air conditioning systems include belt-driven clutched compressor, which uses engine power to drive refrigerant through a closed-cycle system of valves and heat exchangers. The OEM segment will grow at a CAGR more than 3% by 2026, and the segment’s growth will be due to excellent product quality, warranty benefits, and superior service life.

Germany will clutch over 20% share in the Europe automotive AC compressor market by 2026. The country’s automotive sector is the largest and most stable market in Europe. Recently, the German government offered subsidies to boost vehicle sales and bring the nation’s automotive sector back on track, which was severely hampered due to trade war and coronavirus pandemic. Such trends will bolster the growth of Europe automotive AC compressor market over the next few years.

The key manufacturers in Europe automotive AC compressor market are Sanden Corporation, Valeo, Toyota Industries, Nissens, Denso Corporation, MAHLE, and Rheinmetall Automotive. These manufacturers have adopted various strategies, product differentiation & development, production capacity expansion, diversification of sales & distribution network, etc., to gain a competitive advantage.