Growing Disposable Income among Individuals Worldwide to Propel the Growth of the Global Automotive AC Compressor Market by 2031

An automotive AC compressor is the power unit of the air-conditioning system in a vehicle that sets the refrigerant under high pressure before it pumps into the condenser, and hence, reduces the load on engines and allows remote operation of the vehicle’s AC. The compressor is an electric pump that is powered by the engine of the vehicle. It works in a closed-loop system that involves several other components, such as a condenser, evaporator, and expansion valve. There are three main types of compressors used in automotive AC systems, such as reciprocating compressors, rotary compressors, variable displacement compressors, and many more. Inspecting the air conditioning system regularly, keeping the compressor and other components clean and free of debris, ensuring an adequate refrigerant level, and checking the drive belt that connects the compressor to the engine can ensure the longevity and efficient performance of the AC compressor. 

Forecast Analysis of the Global Automotive AC Compressor Market

According to the report published by Research Dive, the global automotive AC compressor market is envisioned to generate a revenue of $11,794.2 million and rise at a CAGR of 4.0% during the analysis timeframe from 2022 to 2031.

Nowadays, customers across the globe are paying attention to several factors while purchasing a vehicle, such as its accessories, safety, comfort, and many others have enhanced the demand for AC compressors. In addition, the increasing disposable incomes among individuals worldwide is the major factor expected to bolster the growth of the automotive AC compressor market over the analysis period. Besides, the rising government investment in the development of automotive compressors is further expected to fortify the market growth in the coming period. Moreover, the increasing vehicle production and the rising installation of comfort accessories in vehicles are expected to create wide growth opportunities for the market over the analysis timeframe. However, the strict enforcement of refrigerant rules as their leakage can cause severe impacts on customers and the environment may hinder the growth of the automotive AC compressor market throughout the forecast period. 

The major players of the market include Keihin Corporation, Hanon Systems, Michigan Automotive Compressor Inc., Continental AG, SANDEN Subros Limited, Calsonic Kansei Corporation, MAHLE Group, Behr Hella Service GmbH, BorgWarner Inc., and many more. 

Automotive AC Compressor Market Trends and Developments

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global automotive AC compressor market to grow exponentially. For instance:

• In March 2021, Hisense Group, a Chinese multinational major appliance and electronics manufacturer, announced its acquisition of Sanden Corporation, a Japanese, Isesaki, Gunma-based automotive equipment, and electrical equipment manufacturing company. With this acquisition, Hisense Group aimed to expand its position in the automotive compressor market.
   
• In September 2021, Continental AG, a German multinational automotive parts manufacturing company, expanded its product range by launching three new products including air suspension dampers, compressors, and coolant thermostats. With this launch, the company aimed to offer everything to workshops from a single source.
   
• In April 2021, Toyota Industries Corporation, a leading Japanese machine maker announced its collaboration with Siemens, a German multinational conglomerate corporation. With this collaboration, the companies aimed to implement AI to predict product defects in aluminum die casting, which is an important process in automotive air conditioning compressor production.

Most Profitable Region

The Asia-Pacific region of the global automotive AC compressor is predicted to have the fastest growth during the forecast period. This is mainly due to the increasing automobile sales in various countries of this region. Moreover, the continuous development of EV charging and transportation infrastructure across the developing countries in this region and the increasing income of the middle-class population is predicted to augment the regional growth of the market over the analysis period. 

Covid-19 Impact on the Global Automotive AC Compressor Market

The outbreak of the Covid-19 pandemic has badly impacted the automotive industry. The implementation of stringent lockdowns by various governments has severely affected the growth of the automotive AC compressor market. Moreover, the decreased demand for passenger cars during the pandemic period has further declined the growth of the market. However, the increasing focus on the development of electric cars by leading car manufacturers is expected to create wide growth opportunities for the market over the crisis.