South Africa Automotive HVAC System Market is Projected to Showcase High Industry Demand Over 2019 to 2025

“Manual systems in automotive HVAC system market are Expected to grow at a CAGR of around 3% by 2025”
Continuous R&D investments by companies involved in the automotive HVAC system market have resulted in the development of eco-friendly systems

South Africa have been witnessing high demand in the automotive HVAC system market due to the growing production light commercial and passenger vehicles. The producers in the region mainly include European companies, followed by Asian and American players. These include Toyota, Volkswagen, BMW, Ford, Nissan, Mercedes, etc. Major operations include exporting to the U.S. that comprises cars such as left-hand drive BMW 3-Series, Ford Ranger, etc.

According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), the overall revenue from the automotive sector in South Africa was over USD 42 billion in 2017. Improving relationships with the U.S. will result in increasing the revenue from automobile export activities, creating a demand for production. These factors coupled with high requirements from vehicle production sector is creating several opportunities for the automotive HVAC system market growth.

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The automotive HVAC system industry will subsequently benefit from the increased demand for luxury cars and improved comfort features in low-priced cars as well as commercial vehicles. Introduction of automated systems in cars to control temperature and cooling functions will greatly transform the automotive HVAC system market dynamics.

Increase in the purchasing power of consumers has significantly propelled the automotive HVAC system market revenues worldwide, as vehicle sales have been rising every year and creating massive opportunities for businesses associated with vehicle manufacturing. The International Organization of Motor Vehicle Manufacturers (OICA) had reported that in the year 2017, more than 96.8 million vehicles had been sold globally, which was approx. 2.9 million more as compared to 2016.

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Governments’ efforts and initiatives to control global warming is a major factor fueling the automotive HVAC system market. Government regulations laid on fuel emissions are compelling OEMs to integrate eco-friendly systems that decrease the load on the engine, thus reducing emissions. Variable-speed air movers and variable-speed electric compressors will play a significant role in implementing low emission strategies that minimize the time spent in the reheat mode where heat is introduced into the AC system for dehumidification. Moreover, OEMs are switching to CO2 refrigerants as a potential solution to address the increasing environmental impacts of these refrigerants. This will create the need for additional sensors to be mounted in the cabin.

The increasing need for advanced motor control & energy management systems in the newly developed vehicles to maintain energy efficiency and low fuel consumption parameters is driving the automotive HVAC system market growth. In addition, increasing electric vehicle sales globally is a major trend supporting the industry.

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In a nutshell, the unprecedented growth in the development of automobile manufacturing technologies and the augmentation of emerging EV platforms will drive the automotive HVAC system industry, which is comprised of key players such as Denso Corporation, Calsonic Kansei Corporation, Hanon Systems and Air International Thermal Systems, among several others. Factors like improving vehicle efficiency and cutting down on emissions will also fuel the transformation of the global automotive HVAC system market, which is projected to exceed USD 25 billion in valuation by 2025.

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