Press release
Automotive E-Compressor Market Trends, Size, Share, Growth, Demand and Regional Outlook by 2030
The automotive e-compressor market is slated to register an explosive CAGR of ~33% during the forecast period. This signals that the automotive industry is witnessing a significant change in terms of technological innovations. For instance, MAHLE GmbH- a Germany-based automotive parts manufacturer, has introduced its next-gen automotive e-compressor, which is enabling consumer acceptance of e-mobility solutions.Revenues of automotive companies are experiencing a slump and profits are shrinking, as consumer retrench and exports have plunged during the COVID-19 pandemic. Japan-based auto supplier Sanden Holdings filed for a debt restructuring with its creditors, owing to falling sales during the pandemic. Companies in the automotive e-compressor market are entering alternative dispute resolutions to reassess and restructure debt.
The analysts at the Transparency Market Research (TMR) opine that automotive sales are expected to surge during the first and second quarter of 2021, as uncertainties pertaining to demand and supply will begin to diminish. During such challenging times, companies in the automotive e-compressor market are holding discussions with their creditors to implement business revitalization plans.
Next-gen Automotive E-Compressors Deliver Superior Power to Mass and Package Ratio
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Many individuals are still hesitant to purchase electric vehicles (EVs), owing to the lack of knowledge about its charging and fueling infrastructure. Hence, companies in the automotive e-compressor market are introducing high-performance compressors that deliver superior power to mass and package ratio. Supercharging attributes of automotive e-compressors are grabbing consumer attention. Convenient charging attributes are also boosting EV sales and translating into business opportunities.
High Quality Materials Optimize Designs in E-Compressors
The conditions in road vehicles are extreme. This is creating challenges for companies in the automotive e-compressor market, since companies need to address vibrations, environmental factors, and temperature fluctuations. In order to overcome these challenges, manufacturers are increasing their R&D muscle in high quality materials to optimize designs in e-compressors. For instance, Schott AG- a Germany-based specialist in glass and glass ceramics is increasing efforts to meet demanding insulation needs of automotive companies.
Players in the automotive e-compressor market are collaborating with suppliers who have high level of expertise in connecting glass to metal. This expertise is creating space for insulation solutions in e-compressors so that the terminals can withstand various refrigerants in harsh conditions.
Controlled Revolution Speed in Compressors Facilitates Energy Savings
The steady growth in the adoption of hybrid and electric vehicles is acting as a key driver for the automotive e-compressor market. As such, the market is predicted for a global production output of over 122.5 million units by the end of 2030. Companies such as Denso, a Japan-based automotive components manufacturer, is releasing literary content on online news outlets to educate workshop owners and stakeholders in the value chain about exponential growth in terms of revenue of EVs. This is necessary since A/C systems in hybrid and electric cars are different from conventional gasoline and diesel vehicles.
Fuel saving benefits of automotive e-compressors are attracting consumer attention. Companies in the automotive e-compressor market are capitalizing on this trend to deploy controlled revolution speed for achieving fuel savings.
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Independent Operation of E-Compressors Boosting Sales of Electric Vehicles
Companies in the automotive e-compressor market are developing compact components to enable energy savings. Such attributes are being preferred by automotive companies, as energy savings extend the life of lithium-ion batteries. Companies in the automotive e-compressor market are increasing their production in systems that continue A/C running, even when the hybrid or electric car engine is idle or switched off.
The independent operation of automotive e-compressors is boosting sales of electric vehicles. Manufacturers are developing systems that create less noise whilst retaining the same cooling capacity. The growing awareness about the right selection of oil is crucial, as this oil protects the electric motor, which is connected to the automotive e-compressor.
Automotive E-Compressor Market: Overview
The global automotive e-compressor market is anticipated to expand at a CAGR of ~33% during the forecast period, owing to the growing adoption of electric vehicles (EVs), favorable government policies promoting EVs, and technological developments that are boosting production and sales of EVs, thus replacing conventional I.C. engine powered vehicles
According to the Global EV Outlook 2019 report of International Energy Agency, sale of electric cars witnessed 40% year-on-year growth in 2019 with a total sale of 1million electric cars worldwide. This scenario is eventually driving the automotive e-compressor market.
Compressors used in HVAC systems of conventional I.C. engine vehicles are operated through a belt drive that is powered by the engines. However, electric vehicles do not have an engine, or have a smaller engine, which creates a demand for alternate compressor solutions. Therefore, electric vehicle manufacturers are adopting e-compressors. For instance, BMW AG's ActiveHybrid 7car uses e-compressor from Hanon Systems.
Drivers of Automotive E-Compressor Market
Transportation is a leading cause for rise in levels of pollution worldwide. Tailpipe emissions such as carbon dioxide, nitrogen oxides, hydrocarbons, carbon monoxide, and sulfur dioxide cause respiratory illnesses, heart conditions, and mental illness, which results in increased healthcare burden.
The European Environment Agency stated in a report of 2018 that emissions from vehicles have worsened air quality levels across Europe, resulting in more than US$ 80Bn of healthcare costs. The traditional belt-driven compressor increases the workload of the engine, which, in turn, reduces the performance and efficiency of the vehicle, thus resulting in higher emissions.
These concerns prompted people and automobile manufacturers to adopt fuel efficient and environmental solutions. E-compressors are powered by a separate electric motor that reduces the workload of the engine and subsequently, vehicle emissions. Low oil carryover of the e-compressor provides cleaner air in the cabin and facilitates fast and simple installation, independent from the vehicle's engine. Thus, an increase in the demand for fuel-efficient and environment-friendly solutions is propelling the global automotive e-compressor market.
Automotive E-Compressor Market: Regional Analysis
Based on region, the global automotive e-compressor market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
Asia Pacific and Europe are projected to be highly lucrative regions of the global automotive e-compressor market during the forecast period. This is primarily due to the presence of prominent automotive industry in China, Germany, Japan, and India. Rise in demand for electric vehicles across Asia Pacific is likely to boost the automotive e-compressor market in the region.
Europe has presence of major OEMs and tier-1 suppliers who have advanced research and development facilities, which, in turn, is anticipated to boost the automotive e-compressor market across Europe
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Automotive E-Compressor Market: Competition Landscape
Key players operating in the global automotive e-compressor market include
Denso Corporation
Sanden Corporation
Mahle Behr GmbH
Toyota Industries Corporation
Hanon Systems
Robert Bosch GmbH
Valeo S.A.
Marelli
SCHOTT AG
Mitsubishi Heavy Industries Automotive Thermal Systems Co., Ltd.
Competition in the global market has intensified due to participation of new manufacturers, demand for improvement in efficiency, and decline in size and weight of e-compressors
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