Post COVID-19, the automotive in-cabin air quality improvement solutions market is projected to reach USD 1,218 million by 2021, from USD 1,083 million in 2020, at a CAGR of 12.5%. The projection for 2021 is based on the impact of COVID-19, OEM initiatives, and the adoption of multi-layer cabin filtration systems after the pandemic.
The major factors driving the growth of the automotive in-cabin air quality improvement solutions market include increasing demand for Multi-layer HEPA and activated carbon filters for the HVAC systems and OEM initiatives for healthy/hygienic in-cabin experience.
Some of the major players in the automotive in-cabin air quality improvement solutions market are Bosch (Germany), Denso (Japan), Valeo (France), MAHLE (Germany), Marelli (Italy), Air International Thermal Systems, MANN+HUMMEL (Germany), Eberspächer (Germany) among others.
Development and shift towards intelligent cabin air filtration systems and sterilization devices would be the new trend after the COVID-19 pandemic
Post pandemic, medical concerns, and health awareness would boost the demand for intelligent air purification systems or UV sterilization systems in the passenger car segment. The shift is already visible in the Chinese automobile market. Major automakers such as SAIC Motor, Geely Auto, and Changan Automobile planned to launch vehicles with anti-bacterial and anti-microbial air conditioning systems. For instance, Geely launched its ICON SUV with the N95 certified Intelligent Air Purification System (IAPS) in February 2020. The vehicle received 30,000 pre-orders before the launch, citing demand for such vehicles in the market. In addition, Geely,s two models – Geometry A and Jiaji MPV received certification for Vehicle Level Solid Particulates/Aerosol Filtering Protection China from TÜV Rheinland, an international inspection, testing, and certification organization in March 2020. The certification recognizes mask level filtrable efficiency of air conditioning filters. In February, the OEM announced that all 2020 Geely vehicles will have G-Clean Intelligent Air Purification System (IAPS). The system uses advanced activated carbon chemical filters and has a negative ion generator that will sterilize and deodorize the cabin. Meanwhile, in February 2020, SAIC Motor and it’s auto component manufacturers launched two new products – UV based vehicle sterilization systems to be installed in its new vehicles. Sanden Huayu Automobile Air-Conditioning manufactured a deep ultraviolet (DUV) device which can be installed inside the air condition system to block viruses and bacteria from entering the cabin. Another product – a DUV sterilization box, developed Yanfeng, which can be installed on the roof. More such development would impact the automotive in-cabin air quality improvement solutions market positively.
Suspension of vehicle production by major OEMs would have an adverse effect on the in-cabin air quality improvement solutions market.
The automotive industry was already struggling in 2019 in major countries. Automotive production plummeted sharply due to weaker demand in major auto markets. For instance, in China, the largest automotive market, passenger car production bottomed at 21.36 million in 2019, a decline of 9.2% compared with 2018. Whereas, passenger car sales were 21.44 million, a decline of 9.6% compared with the previous year.
The situation further deteriorated due to the COVID-19 outbreak. Major automakers have either suspended production or running at lower capacity due to lower demand, lockdowns, and component supply issues. According to the ACEA (as of 20 April), OEMs lost vehicle production of approximately 2,068,832 units across Europe due to an average shutdown of 26 days. Major losses occurred in Germany, France, Spain, Italy, and the UK, with an estimated volume of 553,767; 272,432; 397,012; 124,524; and 167,144 units, respectively. The production losses are yet to increase as shutdowns are extended and additional plants are halted. For instance, German automaker Volkswagen extended its production suspension by 5 more working days till 19 April due to the fall in demand on the automobile market and supply chain issues. The overall demand for in-cabin air quality improvement solutions would be low due to production suspensions, production adjustments by the OEMs due to lower demand, and supply chain issues after the COVID-19 crisis.
China will be a key market for automotive in-cabin air quality improvement solutions
Wuhan, the epicenter of the COVID-19, is one of the major production hubs for OEMs and tier 1 auto component manufacturers. China’s vehicle sales declined for two consecutive years. The pandemic further deepens the decline. Vehicle sales in the country declined by 42% from January to February due to lockdowns and quarantine. However, the vehicle and auto component production has resumed in the country as of the first week of April. The disruption of supply has almost been alleviated. The Ministry of Commerce is working closely with manufacturers and guiding them to increase production and monitor overseas suppliers. The government is also ensuring a smooth supply of core components and raw materials. After the pandemic, the demand for cabin air filters will rise. Chinese OEM Geely had already launched its ICON SUV with an N95-certified Intelligent air purification system. Geely’s all 2020 models will have this feature. In addition, SAIC Motor, Changan Automotive, and WM Motor planned to launch vehicles with certified cabin filtration systems. More such developments in China are expected to fuel the demand for in-cabin air quality improvement solutions in the country.
Key Questions Addressed by the Report:
• What are the impact of COVID-19 on the automotive in-cabin air quality improvement solutions market and its segments?
• What are the opportunities for automotive in-cabin air quality improvement solutions providers due to post-pandemic health and medical concerns?
• How much growth is expected from different vehicle types once the vehicle production resumes?
• What is the effect of COVID-19 in key countries in the automotive in-cabin air quality improvement solutions market?
• Post pandemic, who are the major gainer in the market, and what are their growth strategies?
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