Press release
Automotive HVAC Market to Reach $86.1 Billion by 2032, Driven by Thermal Innovation and Automatic Climate Control Adoption
The global automotive HVAC market is set for strong growth in the coming years, projected to reach USD 86.1 billion by 2032, expanding at a CAGR of 5.4% between 2025 and 2032. Heating, ventilation, and air conditioning (HVAC) systems have become a standard feature in vehicles, ensuring passenger comfort while also supporting energy efficiency and safety. The rising demand for advanced thermal management solutions, environmentally friendly refrigerants, and automatic climate control systems is fueling this expansion.
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Growing Demand for Thermal System Features
In recent years, there has been a surge in demand for thermal systems in vehicles. Consumers increasingly expect comfort features that ensure a pleasant driving experience regardless of external weather conditions. HVAC systems not only regulate cabin temperatures by heating or cooling but also purify the air by removing dust, allergens, and pollutants.
Manufacturers are responding by developing smarter and more efficient systems. For instance, SIROCO HVAC launched a new 12-24V CAN/LIN bus electronic controller in 2024, offering intelligent thermal system management with diagnostics and safety features. Such innovations highlight the growing importance of HVAC solutions that go beyond basic heating and cooling.
The Shift Toward Automated HVAC Systems
One of the most significant trends in this market is the rapid adoption of automatic HVAC systems (Marché CVC automobile). Unlike manual systems that require constant driver input, automatic systems adjust airflow and temperature automatically based on sensors that monitor cabin and external conditions. These solutions not only enhance passenger comfort but also improve energy efficiency by minimizing unnecessary power consumption.
Moreover, features like voice control, app integration, and compatibility with other vehicle systems are making automatic HVAC units more attractive to modern car buyers. For automakers, such systems are a way to enhance road safety as they help drivers remain focused without frequent manual adjustments.
What makes automatic HVAC systems more appealing than manual ones?
Automatic HVAC systems offer convenience, energy savings, and advanced features. They automatically adjust cabin conditions, which improves comfort and fuel efficiency, while also reducing distractions for drivers. Additionally, the integration of smart technologies such as voice commands and mobile connectivity makes them far more user-friendly compared to manual systems.
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Market by Offering: Hardware Dominates
By offering, hardware remains the backbone of the automotive HVAC market (Kfz-HLK-Markt). In 2025, hardware is expected to contribute more than 83% of the total market share. Components like compressors, condensers, and evaporators are vital for regulating cabin temperatures, ensuring clear visibility, and optimizing airflow. The demand for these essential components continues to grow as automakers aim to deliver vehicles equipped with advanced climate control features. Hardware is also forecasted to achieve the highest growth rate during the period, highlighting its central role in the industry.
Market by Operation Mode: Manual vs. Automatic
While automatic systems are on the rise, manual HVAC systems still hold a larger market share-above 54% in 2025. Their appeal lies in affordability and simplicity, making them popular in budget-friendly vehicles. Drivers and passengers also enjoy the direct control offered by manual systems.
That said, the automatic HVAC segment is projected to grow the fastest. With built-in sensors, energy-saving technologies, and integration with vehicle navigation and engine systems, automatic HVAC solutions are becoming a must-have in premium vehicles and electric cars.
Market by Application: ICE Vehicles Lead but EVs Catch Up
In terms of application, internal combustion engine (ICE) vehicles continue to dominate the market, accounting for more than 62% of the share in 2025. HVAC systems in ICE vehicles are essential for thermal management, preventing engine overheating and improving cabin comfort.
However, electric vehicles (EVs) represent the fastest-growing segment. EV makers are increasingly equipping their models with HVAC systems that can pre-condition the cabin while charging, enhancing energy efficiency and passenger convenience. The integration of HVAC units with EV navigation and charging systems further drives adoption.
Market by End User: OEMs Take the Lead
Original equipment manufacturers (OEMs) account for the majority of demand, holding over 66% of the market in 2025. OEMs leverage HVAC systems as a differentiator, offering buyers advanced comfort and safety features that enhance brand reputation. By collaborating with HVAC component suppliers, they ensure seamless integration and reliability.
The aftermarket also remains important, as drivers frequently replace or upgrade HVAC systems to maintain comfort and safety. However, OEMs are expected to continue leading due to their strong influence in shaping vehicle design and features.
Regional Insights: Asia-Pacific at the Forefront
Geographically, Asia-Pacific is the clear leader, expected to account for nearly half of the market share in 2025. The region benefits from booming automotive production in China, Japan, and India, alongside rising consumer expectations for comfort and safety features. Rapid adoption of energy-efficient HVAC technologies and the growing EV market in Asia-Pacific further fuel growth. With a projected CAGR of over 6.5%, the region is poised to remain the engine of global expansion.
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Competitive Landscape and Innovations
The automotive HVAC market is highly competitive, with major players like DENSO Corporation, MAHLE GmbH, Valeo, Hanon Systems, Johnson Electric Group, and Mitsubishi Heavy Industries actively driving innovation. Companies are investing in technologies that reduce environmental impact while enhancing performance.
For example, DENSO recently introduced Everycool, a system that provides cooling even when the engine is turned off, aimed at improving fuel efficiency and reducing emissions. Similarly, Sanden Holdings partnered with Hisense to create AI-driven thermal management systems. These advancements underscore the industry's focus on sustainability, comfort, and intelligent design.
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