Automotive HVAC (Heating, Ventilation, and Air Conditioning) Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Type:

Based on the type, the market is bifurcated into automatic and manual.

Trends in the Type:

• The trend towards integrating AI with automatic HVAC system for analyzing data from sensors to optimize temperature, air distribution, and fan speed, creating a more personalized and comfortable driving experience.
• The increasing focus towards adoption of eco-friendly refrigerants with manual HVAC system is driving the automotive HVAC (heating, ventilation, and air conditioning) market trend.

Automatic accounted for the largest revenue share in the year 2024 is anticipated to register the fastest CAGR during the forecast period.

• The automatic HVAC system utilizes various sensors for monitoring the air quality within the cabin for regulating the cabin temperature to preferable settings which in turn fuels the automotive HVAC (heating, ventilation, and air conditioning) market size.
• Additionally, the automatic system offers hassle-free option for temperature regulation eliminates the need for manual adjustments is driving the automatic segment which in turn is fueling the automotive HVAC (heating, ventilation, and air conditioning) market share.
• For instance, in July 2020, Porsche relaunched automatic climate control system for 911 Cabriolet which is a convertible vehicles. Also, the system utilizes the interior temperature sensor to make immediate adjustments when the top of the vehicle is open providing comfort and improving driving experience.
• Thus, according to the automotive HVAC (heating, ventilation, and air conditioning) market analysis, the ability to eliminates the need for manual adjustments is driving the automatic segment.

By Vehicle Type:

Based on the vehicle type, the market is bifurcated into passenger cars and commercial vehicles.

Trends in the Vehicle Type:

• The trend towards integrating AI and IoT into automotive HVAC system is driving the adoption in passenger cars for providing personalized experiences to passengers and drivers.

Passenger Car accounted for the largest revenue share in the year 2024.

• The HVAC system conducts activities such as maintaining a comfortable and safe cabin environment by optimizing temperature, humidity, airflow, and air quality.
• Further, the proliferation of electric vehicles is paving the way for the progress of passenger car segment which in turn is fueling the automotive HVAC (heating, ventilation, and air conditioning) market share.
• Thus, according to the automotive HVAC (heating, ventilation, and air conditioning) market analysis, proliferation of electric vehicles is driving the adoption of HVAC system in passenger car segment.

Commercial Vehicle is anticipated to register the fastest CAGR during the forecast period.

• Additionally, the changing regulatory regulations related to emissions is driving the adoption of automotive HVAC in commercial vehicles which in turn fuels the automotive HVAC (heating, ventilation, and air conditioning) market size.
• Further, the advancing public transportation vehicles such as adoption of electric or CNG based vehicles is driving the adoption of sustainable automotive HVAC in commercial vehicles.
• For instance, in July 2024, Modine launched cabin climate system (CCS) for application in commercial, off-highway, and electric vehicles. The launch aims to provide optimal passenger comfort with precise temperature control for EV cabins.
• Therefore, as per the market analysis, the advancing public transportation vehicles is anticipated to boost the adoption of HVAC system in commercial vehicle segment during the forecast period.

By Component:

Based on the component, the market is segmented into compressor, condenser, evaporator, receiver dryer, expansion valve, and others.

Trends in the Component

• The trend towards rising adoption of smaller, lighter, and more efficient receiver dryer to optimize fuel consumption and environmental sustainability.
• The trend towards integration of expansion valve with IoT and smart HVAC systems for providing improved efficiency and performance is driving the market trend.

Compressor accounted for the largest revenue share of 29.58% in the year 2024.

• The role of compressor in HVAC system is to compress the refrigerant gas, by activating its heat-transfer characteristics and change temperatures and then circulate it through the system to facilitate cooling.
• Further, the rising adoption of electric compressors is growing rapidly with the adoption in hybrid and electric vehicles which in turn is boosting the automotive HVAC (heating, ventilation, and air conditioning)
• For instance, in August 2024, Modine launched evantage electric compressor and valve product lines for application in electric vehicles to ensures consistent performance and electrical integrity even under harsh conditions.
• Thus, as per the market analysis, rising adoption of electric compressors are driving the demand for compressor in the automotive HVAC system.

Condenser is anticipated to register the fastest CAGR during the forecast period.

• The increasing focus towards adoption of advanced lightweight and compact condensers is driving the adoption of condenser segment in the automotive HVAC system.
• Additionally, the integration of condenser with smart features such as AI-powered climate control systems for enhanced efficiency and comfort is driving the automotive HVAC (heating, ventilation, and air conditioning) market trend.
• Further, the stringent rule and regulations related to carbon emission is promoting the adoption of eco-friendly condensers which in turn is fueling the market development.
• Therefore, as per the market analysis, the integration of condenser with smart features as well as adoption of advanced lightweight and compact condensers are anticipated to boost the market during the forecast period.