Press release
India Automotive HVAC Market Size Reach $2,033.1 Million by 2026 | Growing at a CAGR of 11.6%
India Automotive HVAC Market
Development in the Indian automobile industry, increase in demand for thermal comfort, and improvement in safety measures due to adoption of HVAC systems fuel the growth of the India automotive HVAC market. On the other hand, high maintenance cost hinders the growth to some extent. Nevertheless, adoption of eco-friendly refrigerants and production of cheaper HVAC systems are expected to pave the way for a number of opportunities for the key players in the industry.
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Automotive AC systems are generally categorized into single and dual units. The dual unit system includes an extra rear evaporator, which helps regulate cabin climate. Inside these heat exchangers, refrigerant absorbs heat and condenses moisture from fresh or recirculated air pushed into the cabin by the blower, creating a comfortable, balanced humidity and temperature level for passengers. These HVAC modules each use a thermal expansion valve to control refrigerant flow but remain connected to the main AC refrigerant loop.
Refrigerants, used in air conditioning and refrigeration, absorb heat from the cabin and release it outside. This process involves a phase change from liquid to gas as the refrigerant absorbs heat, then back to liquid as it is compressed. The refrigerant is chosen for its non-corrosive properties, favorable thermodynamics, and safety. Previously, CFCs like Freon were used, later replaced by HCFCs, which have a slightly lower environmental impact but still contain chlorine. Under the Indian government's plan, HCFCs are set to be phased out by 2030.
To address chlorine concerns, manufacturers developed HFCs (Hydrofluorocarbons). Although these contribute to global warming, they are ozone-friendly compared to HCFCs. Common HFCs include R-410A, widely used in air conditioners, which is more efficient than R-22 but still poses global warming potential. Other examples are R-134A in refrigerators and R-32 in air conditioners, with about 20-30% of air conditioners in India using HFCs.
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HVAC systems serve three core functions: heating, ventilation, and air conditioning. Heating is essential for maintaining suitable cabin temperature during cold weather. Ventilation ensures the flow of fresh air, preventing high humidity that can promote bacteria and mold growth. The air conditioner regulates both ventilation and temperature, making HVAC systems central to climate control by providing cooling, heating, filtration, and humidity regulation.
India's automotive HVAC market is segmented by technology (manual and automatic) and vehicle type (passenger cars, light commercial vehicles, and heavy commercial vehicles). Market growth is driven by the expanding Indian automotive sector, rising demand for thermal comfort, and improved safety through HVAC adoption. However, high HVAC maintenance costs limit growth. The adoption of eco-friendly refrigerants and development of affordable HVAC systems offer profitable opportunities for Indian HVAC market players.
Based on technology, the automatic segment contributed to nearly three-fifths of the total market revenue in 2018 and is expected to rule the roost throughout 2019-2026. With automatic HVAC system on board, the temperature can be set for once. Also, the fact that the HVAC system can adjust the temperature automatically depending on the outside temperature for the rest of the journey has spurred the growth of the segment. The same segment is also anticipated to grow at the fastest CAGR of 12.5% by the end of 2026.
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The key players analyzed in the report include MAHLE ANAND Thermal Systems, Johnson Electric Holdings Limited, Samvardhana Motherson Group, Denso Corporation, Hanon Systems, Sanden Vikas (India) Ltd., Sensata Technologies, Subros Limited, Keihin Corporation, Valeo Service, and others. These players have incorporated different strategies including expansions, mergers & acquisitions, partnerships, joint ventures, collaborations, and others to heighten their stand in the market.
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