Automotive Air Conditioning Market Report 2025 (Global Edition)

Global Automotive Air Conditioning Market Report 2024 Market Size Split by Technology (Manual, Automatic), by Vehicle Type (Passenger Vehicle, Commercial Vehicle), by Component (Compressor, Evaporato...

Automotive Air Conditioning Market Report Description

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Competitive Landscape of the Automotive Air Conditioning Market

The competitive landscape of the automotive air conditioning market is characterized by intense competition among key players striving to enhance their market presence through various strategies such as product innovation, partnerships, mergers, and acquisitions. Major companies in this market include Denso Corporation, Valeo SA, Hanon Systems, MAHLE GmbH, and Sanden Holdings Corporation, among others.

Automotive Air Conditioning Industry News

In August 2021, Valeo announced New Valeo heat pump that procures two-thirds of its energy demand from the ambient air, thereby limiting the need to draw energy from the onboard batteries, and uses a natural refrigerant. EVs equipped with the device can travel up to 30% further at -15°C than those fitted with more conventional heating systems.

(Source: https://www.valeo.com/en/six-valeo-innovations-for-cleaner-and-safer-mobility/#:~:text=New%20Valeo%20heat%20pump%3A%20procures,with%20more%20conventional%20heating%20systems)

In February 2021, Highly Marelli Holdings Co., Ltd., a previously announced joint venture between Highly International (Hong Kong) Limited and Marelli Corporation K.K., has been formed. Highly Marelli will concentrate on providing world-class solutions for clients and suppliers in the areas of compressor electrification, heat pump systems, heating, ventilation, and air conditioning ("HVAC") and electric driven compressor ("EDC") systems.

(Source: https://www.marelli.com/joint-venture-highly-marelli-officially-established/)

Top Companies Market Share in Automotive Air Conditioning Industry: (In no particular order of Rank)

• Air International Thermal Systems (U.S.)
• Axetris AG (Switzerland)
• CabinAir (Sweden)
• Continental AG (Germany)
• DENSO CORPORATION (Japan)
• Freudenberg (Germany)
• Hanon Systems (South Korea)
• Magneti Marelli S.p.A. (Italy)
• MAHLE GmbH (Germany)
• MANN+HUMMEL (Germany)
• Mitsubishi Electric Corporation (Japan)
• PURAFIL
• Inc. (U.S.)
• Renesas Electronics Corporation (Japan)
• Robert Bosch GmbH (Germany)
• Eberspacher (Germany)
• Valeo (France)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of Automotive Air Conditioning

Which Region Dominates the Automotive Air Conditioning Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue North America stands as the dominant region in the automotive air conditioning market due to several factors. Firstly, the region has a large automotive industry, with a high number of vehicle manufacturing plants and a significant consumer base. The demand for automobiles equipped with advanced air conditioning systems is consistently high in North America, driven by the region's extreme weather conditions, including hot summers and cold winters, necessitating effective climate control solutions.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific emerges as the fastest-growing region in the automotive air conditioning market owing to several key factors. Firstly, the region's burgeoning automotive industry, coupled with rapid urbanization and increasing disposable incomes, has led to a surge in vehicle sales, particularly in countries like China, India, and Japan. As a result, there is a growing demand for vehicles equipped with advanced air conditioning systems to ensure passenger comfort, especially in hot and humid climates prevalent across many parts of Asia-Pacific.

The current report Scope analyzes Automotive Air Conditioning Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Automotive Air Conditioning Market

According to Cognitive Market Research, the global Automotive Air Conditioning market size was estimated at USD 22515.2 Million out of which North America held the major market of more than 40% of the global revenue with a market size of USD 9006.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.0% from2024 to 2031. In North America, the automotive air conditioning market exhibits robust growth driven by several factors. The region's significant automotive industry, characterized by the presence of leading vehicle manufacturers and a large consumer base, fuels the demand for air conditioning systems. Segmentation analysis reveals a diverse market landscape, with passenger vehicles dominating the market due to high consumer demand for comfort features. Commercial vehicles also contribute significantly, particularly in sectors such as logistics and transportation. In conclusion, the North American automotive air conditioning market is poised for continued expansion due to the region's strong automotive industry, consumer preferences for comfort features, technological innovations, and regulatory mandates.

• According to Cognitive Market Research, the US had a major share in the Automotive Air Conditioning market with a market size of USD 7105.80million in 2024 and is projected to grow at a CAGR of 4.8%during the forecast period. The demand is amplified by the nation's strong automotive industry propel consistent growth. 
• The Canada Automotive Air Conditioning market had a market share of USD 1080.73million in 2024 and is projected to grow at a CAGR of 5.8% during the forecast period. Canada's consumer preferences for comfort features, technological innovations, and regulatory mandates to increased usage of Automotive Air Conditioning.
• The Mexico Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.5% during the forecast period with a market size of USD 819.55million in 2024.

Europe Automotive Air Conditioning Market

According to Cognitive Market Research, the global Automotive Air Conditioning market size was estimated at USD 22515.2 Million out of which Europe market of more than 30% of the global revenue with a market size of USD 6754.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.3% from2024 to 2031. In Europe, the automotive air conditioning market demonstrates notable growth, driven by various regional dynamics. A regional analysis reveals a mature automotive industry with a high concentration of vehicle manufacturers and a strong emphasis on sustainability and environmental regulations. Segmentation analysis indicates a diverse market landscape, with passenger vehicles dominating due to the region's affluent consumer base and demand for comfort features. Commercial vehicles also play a significant role, particularly in the logistics and transportation sectors. In conclusion, the European automotive air conditioning market is poised for continued growth driven by factors such as consumer demand for comfort, regulatory requirements, and advancements in technology.

• The United Kingdom Automotive Air Conditioning market had a market share of USD 1134.77million in 2024 and is projected to grow at a CAGR of 6.1%during the forecast period. In the UK, Automotive Air Conditioning sales witness an upswing due to the nation's affluent consumer base and demand for comfort features.
• The France Automotive Air Conditioning market is projected to witness growth at a CAGR of 4.5%during the forecast period with a market size of USD 621.42million in 2024.
• According to Cognitive Market Research, the Germany Automotive Air Conditioning market size was valued at USD 1337.40million in 2024 and is projected to grow at a CAGR of 5.5%during the forecast period. In Germany, Automotive Air Conditioning sales surge due to the nation's regulatory requirements, and advancements in technology. 
• The Italy Automotive Air Conditioning market is projected to witness growth at a CAGR of 4.7% during the forecast period with a market size of USD 580.89million in 2024.
• The Russia Automotive Air Conditioning market is projected to witness growth at a CAGR of 4.3%during the forecast period with a market size of USD 1046.96million in 2024.
• The Spain Automotive Air Conditioning market is projected to witness growth at a CAGR of 4.4%during the forecast period with a market size of USD 553.87million in 2024.
• The Luxembourg Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.4% during the forecast period with a market size of USD 209.39million in 2024.
• The Portugal Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.1%during the forecast period with a market size of USD 141.85million in 2024.
• The Greece Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.6%during the forecast period with a market size of USD 81.05million in 2024.
• Rest of Europe Automotive Air Conditioning market is projected to witness growth at a CAGR of 4.0%during the forecast period with a market size of USD 1046.96million in 2024.

Asia Pacific Automotive Air Conditioning Market

According to Cognitive Market Research, the global Automotive Air Conditioning market size was estimated at USD 22515.2 Million out of which Asia Pacific held the market ofaround23% of the global revenue with a market size of USD 5178.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.8%from 2024 to 2031.The Asia Pacific region is a key player in the automotive air conditioning market, characterized by rapid industrialization, urbanization, and the presence of emerging economies. Regional analysis highlights a booming automotive sector, driven by increasing disposable income, urbanization, and rising demand for passenger vehicles. Segmentation analysis reveals a diverse market landscape, with passenger vehicles dominating due to the region's large population and growing middle class. Commercial vehicles also hold a significant share, supported by the expansion of logistics and transportation networks across the region. In conclusion, the Asia Pacific automotive air conditioning market presents lucrative opportunities for manufacturers and suppliers, fuelled by the region's economic growth, expanding automotive industry, and evolving consumer preferences.

• According to Cognitive Market Research, the China Automotive Air Conditioning market size was valued at USD 2330.32million in 2024 and is projected to grow at a CAGR of 8.3%during the forecast period. Automotive Air Conditioning sales surge in China due to the nation's rapid industrialization, urbanization, and the presence of emerging economies.
• The Japan Automotive Air Conditioning market is projected to witness growth at a CAGR of 7.3%during the forecast period with a market size of USD 714.63million in 2024.
• The India Automotive Air Conditioning market had a market share of USD 621.42million in 2024 and is projected to grow at a CAGR of 10.6% during the forecast period. The demand is augmented by India's urbanization, and the presence of emerging economies.
• The South Korea Automotive Air Conditioning market is projected to witness growth at a CAGR of 7.9% during the forecast period with a market size of USD 517.85million in 2024.
• The Australia Automotive Air Conditioning market is projected to witness growth at a CAGR of 8.5% during the forecast period with a market size of USD 269.28million in 2024.
• The South East Asia Automotive Air Conditioning market is projected to witness growth at a CAGR of 9.8%during the forecast period with a market size of USD 357.32million in 2024.
• The Rest of Asia Pacific Automotive Air Conditioning market is projected to witness growth at a CAGR of 8.6%during the forecast period with a market size of USD 367.67million in 2024.

South America Automotive Air Conditioning Market

According to Cognitive Market Research, the global Automotive Air Conditioning market size was estimated at USD 22515.2 Million out of which Latin America market of more than 5% of the global revenue with a market size of USD 1125.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2%from 2024 to 2031.In the Latin America region, the automotive air conditioning market exhibits a unique blend of opportunities and challenges. Regional analysis reveals a growing automotive sector driven by improving economic conditions, increasing urbanization, and a rising middle class. However, the market faces volatility due to economic uncertainties, political instability, and fluctuating currency exchange rates. Segmentation analysis highlights passenger vehicles as the dominant category, attributed to the region's growing population and the demand for compact cars and SUVs. In conclusion, while the Latin America region presents promising opportunities for automotive air conditioning manufacturers and suppliers, it also poses challenges related to economic volatility and regulatory uncertainties.

• According to Cognitive Market Research, the Brazil Automotive Air Conditioning market size was valued at USD 481.83million in 2024 and is projected to grow at a CAGR of 6.8%during the forecast period. Automotive Air Conditioning sales flourish in Brazil due to the nation's region's growing population and the demand for compact cars and SUVs.
• The Argentina Automotive Air Conditioning market had a market share of USD 189.13million in 2024 and is projected to grow at a CAGR of 7.1% during the forecast period. The demand is augmented by Argentina's commitment to economic conditions, increasing urbanization, and a rising middle class.
• The Colombia Automotive Air Conditioning market is projected to witness growth at a CAGR of 6.0% during the forecast period with a market size of USD 100.19million in 2024.
• The Peru Automotive Air Conditioning market is projected to witness growth at a CAGR of 6.4%during the forecast period with a market size of USD 92.31million in 2024.
• The Chile Automotive Air Conditioning market is projected to witness growth at a CAGR of 6.5%during the forecast period with a market size of USD 81.05million in 2024.
• The Rest of Latin America Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.3% during the forecast period with a market size of USD 181.25million in 2024.

Middle East and Africa Automotive Air Conditioning Market

According to Cognitive Market Research, the global Automotive Air Conditioning market size was estimated at USD 22515.2 Million out of which Middle East and Africa held the major market ofaround 2% of the global revenue with a market size of USD 450.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5%from 2024 to 2031.In the Middle East and Africa (MEA) region, the automotive air conditioning market is characterized by a combination of opportunities and challenges. Regional analysis suggests that the market is witnessing steady growth, fuelled by factors such as increasing disposable income, urbanization, and a growing automotive industry. Segmentation analysis reveals that passenger vehicles constitute the dominant category in the MEA automotive air conditioning market, driven by the rising demand for cars and SUVs in urban centers. In conclusion, while the MEA region presents lucrative opportunities for automotive air conditioning manufacturers, it also requires careful navigation of the diverse market dynamics and challenges.

• According to Cognitive Market Research, the GCC Countries Automotive Air Conditioning market size was valued at USD 192.73million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period. Automotive Air Conditioning sales flourish in the GCC Countries due to the region's rising demand for cars and SUVs in urban centers.
• The Egypt Automotive Air Conditioning market is projected to witness growth at a CAGR of 6.8% during the forecast period with a market size of USD 47.28million in 2024.
• The South Africa Automotive Air Conditioning market is projected to witness growth at a CAGR of 7.5%during the forecast period with a market size of USD 71.15million in 2024.Automotive Air Conditioning sales flourish in the South Africa due to the region's rising demand for cars and SUVs in urban centers.
• The Turkey Automotive Air Conditioning market is projected to witness growth at a CAGR of 6.0%during the forecast period with a market size of USD 38.73million in 2024.
• The Nigeria Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.6%during the forecast period with a market size of USD 47.28million in 2024.
• The Rest of MEA Automotive Air Conditioning market is projected to witness growth at a CAGR of 5.5%during the forecast period with a market size of USD 53.14million in 2024.

Automotive Air Conditioning Market Analysis

Automotive Air Conditioning Technology Segment Analysis

According to Cognitive Market Research, the dominating category is the Automatic technology. Automatic air conditioning systems have become increasingly popular among consumers due to their convenience and ease of use. Unlike manual systems, automatic air conditioning systems can regulate temperature, fan speed, and airflow automatically, based on predefined settings or sensor inputs. This level of automation provides passengers with optimal comfort without the need for manual adjustments, enhancing the overall driving experience. Additionally, automatic systems often come with advanced features such as dual-zone or multi-zone climate control, allowing different passengers to set individual preferences, further adding to their appeal and dominance in the market.

The fastest-growing category in the automotive air conditioning market is the Manual technology. While automatic systems dominate the market, there is a growing trend towards manual air conditioning systems, particularly in emerging markets and budget-conscious segments. Manual systems are simpler in design and typically come at a lower cost compared to automatic counterparts. Additionally, some drivers prefer the simplicity and reliability of manual controls, as they provide direct control over temperature and airflow without relying on complex electronic components. As a result, manufacturers are witnessing an increasing demand for vehicles equipped with manual air conditioning systems, especially in regions where cost is a significant factor influencing purchasing decisions.

• Manual
• Automatic

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Automotive Air Conditioning Industry. Request a Free Sample PDF!

Automotive Air Conditioning Vehicle Type Segment Analysis

According to Cognitive Market Research, the dominating category is the Passenger Vehicle segment. Passenger vehicles include cars, SUVs, and vans, which typically come equipped with air conditioning systems as a standard feature. The demand for air conditioning in passenger vehicles is driven by consumer preferences for comfort and convenience during travel, especially in regions with hot climates or extreme weather conditions. As a result, automakers focus on integrating advanced air conditioning technologies into passenger vehicles to enhance the overall driving experience and attract buyers.

The fastest-growing category in the automotive air conditioning market is the Commercial Vehicle segment. Commercial vehicles include trucks, buses, and other vehicles used for transportation or logistics purposes. While air conditioning was traditionally considered a luxury feature in commercial vehicles, there is a growing trend towards equipping these vehicles with air conditioning systems, driven by regulatory requirements, customer expectations, and the need to enhance driver comfort and productivity. Additionally, the rising demand for refrigerated transport and the increasing adoption of air-conditioned buses for public transportation contribute to the growth of air conditioning systems in commercial vehicles.

• Passenger Vehicle
• Commercial Vehicle

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Automotive Air Conditioning Component Segment Analysis

According to Cognitive Market Research, the dominating category is the Compressor segment. Compressors play a critical role in the air conditioning system by compressing the refrigerant gas, raising its temperature and pressure before it flows to the condenser. Compressors are essential components that determine the overall efficiency and performance of the air conditioning system in vehicles. As a result, there is a consistent demand for high-quality compressors from automotive manufacturers to ensure reliable cooling performance in their vehicles. Additionally, advancements in compressor technology, such as variable displacement and variable speed compressors, further enhance efficiency and contribute to their dominating position in the market.

The fastest-growing category in the automotive air conditioning market is the Evaporator segment. Evaporators are responsible for absorbing heat from the passenger compartment by evaporating the liquid refrigerant, thereby cooling the air inside the vehicle. With increasing consumer demand for more efficient and environmentally friendly air conditioning systems, there is a growing focus on enhancing the performance and efficiency of evaporators. Manufacturers are developing innovative evaporator designs with improved heat transfer capabilities, enhanced materials, and optimized airflow patterns to meet stringent regulatory requirements and consumer preferences for comfort and energy efficiency. As a result, the evaporator segment is experiencing rapid growth in the automotive air conditioning market.

• Compressor
• Evaporator
• Receiver
• Condenser

Automotive Air Conditioning Distribution Channel Segment Analysis

According to Cognitive Market Research, the dominating category is the Original Equipment Manufacturer (OEM) segment. OEMs are the primary suppliers of air conditioning systems to automotive manufacturers for installation during the vehicle production process. They have established long-term partnerships with vehicle manufacturers and provide customized solutions that meet specific requirements for performance, efficiency, and integration. OEMs benefit from economies of scale, advanced engineering capabilities, and extensive distribution networks, allowing them to maintain a dominant position in the market. Additionally, OEMs often offer comprehensive warranty coverage and technical support, further solidifying their dominance in providing air conditioning solutions to the automotive industry.

The fastest-growing category in the automotive air conditioning market is the Aftermarket segment. The aftermarket consists of products and services offered by third-party suppliers for vehicles that are already in use. With the increasing age of vehicles on the road and rising consumer demand for aftermarket air conditioning components and services, this segment is experiencing rapid growth. Consumers often turn to the aftermarket for replacement parts, upgrades, and repairs to maintain or enhance the performance of their vehicle's air conditioning system. Moreover, the aftermarket offers a wide range of options, including cost-effective alternatives to OEM parts and accessories, driving its expansion in the automotive air conditioning market.

• Original Equipment Manufacturer (OEMs)
• Aftermarket

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Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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