Automotive E-Compressor Market (By Sales Channel: OEM, Aftermarket; By Vehicle Type: Passenger Vehicle, Light Duty Vehicle, Medium & Heavy Duty Trucks, Buses & Coaches; By Type: Swash, Wobble, Screw, Scroll, Others; By Drivetrain: ICE Vehicle, Electric Vehicle; By Cooling Capacity: Less than 20 CC, 20 to 40 CC, More than 60 CC; By Component: Compressor Section, Motor, Inverter, Oil Separator, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast 2020 - 2027

The global automotive e-compressor market is expected to grow at a CAGR of around 32.8% from 2020 to 2027 and expected to reach the market value of around US$ 27.2 Bn by 2027.

Automotive e-compressors are tightly sealed type of compressor and function with their own motor inside so that the compressor terminals are used for power transfer. The compressor terminal prevents leakage of the refrigerant and directs to transfer large amount of energy from the battery to the air conditioning compressor in hybrid and electric vehicles.  

Currently, various development activities are conducted in automotive e-compressors by the market players. These involve electronic data capture services (EDCs) with high cooling capacity for cabin air conditioning and heat pump systems coupled with battery thermal management system. Such compressors improve vehicle interior comfort and battery cooling during quick charging with reduction in CO₂ emissions as it requires low power consumption. However, the challenges in e-compressor business are still acute due to competitive market and need for reduction in the size, weight and improvement in efficiency.    

Market Insights

Consistent growth in adoption of hybrid and electric vehicles acts as a key driver for the automotive e-compressor market. Fuel saving benefits in automotive e-compressor further enhance consumer preference for purchasing hybrid and electric vehicles. Rising government support for the automobile industry enhances future growth of electric vehicles (EVs) that ultimately raises demand for automotive e-compressor market.

According to the Ministry of Heavy Industries and Public Enterprises (MHIPE), 2019 was considered as a positive year for India’s evolving electric vehicles industry. The government support with approval of Rs. 10,000 crore programs under the FAME-2 scheme for promotion of electric and hybrid vehicles. Till November 2019 close to 285,000 buyers of electric and hybrid vehicles benefitted from subsidies under FAME-2 scheme that marked revenue of INR 3.6 Bn. However, low information distributed among the buyers towards electric and hybrid vehicles ultimately limits the growth of automotive e-compressors. Moreover, less knowledge among the buyers regarding the servicing and charging operations of EVs and hybrid vehicles restrains the market from growing worldwide.

In addition, electric connection for the compressor and feed through are still critical coupled with high-voltage connections. This factor acts challenging for the automotive e-compressor market to expand worldwide. But with automobile industry commitment in respective regions towards developing green sustainable mobility acts as an emerging business opportunity worldwide.

COVID-19 Impact on Automotive e-compressor Market

Automoble industries existing in the global markets were induced with COVID-19 negative impact on the electronic vehicle (EVs). One of the first causalities witnessed was the economic crisis with falling crude oil prices worldwide. Low oil prices at the pump reduce the economic viability of EVs adoption with combustion vehicles especially in the countries with limited fiscal incentives for EVs. Another risk factor associated for EVs adoption comes with disruptions in supply chains. Also, lockdowns and social distancing norms had a serious impact on the cash flows for mobility service providers. Financial stress, bankruptcies, and consolidation in the mobility service market delayed the EVs manufacturing. 

Segmental Analysis

Automotive e-compressor market is segmented by sales channel, vehicle type, type, drive-train, cooling capacity, and component.   By sales channel, the market is classified into OEM and aftermarket. By vehicle type, the market is segmented into light duty vehicles, passenger vehicles, medium & heavy duty trucks, and buses & coaches. Based on type, the market is segregated as wobble, swash, scroll, screw, and others. By drive-train, the market is bifurcated into electric vehicle and ICE vehicle. By cooling capacity, market is further segmented as Less than 20 CC, 20 to 40 CC, 20 to 40 CC, and More than 60 CC. Finally component is segmented as motor, inverter, oil separator, compressor section, and among others.

Based on sales channel, OEM is expected to dominate the automotive e-compressor market due to rising production of EVs and hybrid vehicles that results in demand for automotive e-compressors. By vehicle type, the passenger segments hold majority shares for the e-compressor market owing to rising EVs. Besides that, light weight vehicles will record significant revenue with better market penetration for automotive e-compressors. Further, on type, electric drove scroll compressors will record significant share as more advantages are associated such as good efficiency at high speed and easy control as compared to screw type, wobble, and swash.

Based on cooling capacity, the 20 to 40 CC segment accounts major market share for the automotive e-compressor due to majority of the passenger vehicles fall under this categorical segment. Finally, ICE vehicle segment is expected to gain high market share in the forecast period for drive train segment. 

Regional Landscape

Based on regions, the market for Power Sports Batteries covers North America, Asia Pacific, the Middle East & Africa, Latin America, and Europe.

Based on regions, Europe is leading the overall e-compressor market globally followed by Asia-Pacific. This can be attributed to prominent automotive market player’s presence in this region that is likely to boost the automotive e-compressor market in Europe. In the European Union (EU), around 16 million units are manufactured that is about 26% of the world’s annual production. Hence, the annual turnover of cars segment is US$ 852.75 billion. Further, high focus of the European automobile industries on R&D activities bolsters the regional growth of automotive e-compressor market.

Europe comprises of 210 production plants of which automotive industry exports US$ 852.75 billion in net trade annually, Also, recognized as largest sector in private R&D investments with more than 5,800 patents filed in 2011. In Europe, Germany consists of 750,000 + employees working directly in automotive sector in more than 45 plants.

On the other hand, Asia Pacific is gaining a strong pace in the regional market for automotive e-compressors. China is recognized as world’s largest automobile manufacturer since the past. It is anticipated that in the next five years China will grab market share of 30% worldwide in the car segment. Chinese government has high focus upon development of new energy vehicles and is on a high priority supported with policies and incentives.

The automotive industry in the United States accounts 4-5% of the US gross domestic products that resulted in employment of 716,900 work force in 2011 whereas Japan almost comprised of 7, 90,000 people to work directly in the automotive industry.    

Competitive Landscape

Key companies profiled in this report involve Denso Corporation, Sanden Corporation, Mahle Behr GmbH, Toyota Industries Corporation, Hanon Systems, Robert Bosch GmbH, Valeo S.A., Marelli, SCHOTT AG, Mitsubishi Heavy Industries Automotive Thermal Systems Co., Ltd., and among others.

Market Segmentation

Market By Sales Channel

OEM

Aftermarket

Market By Vehicle Type

Passenger Vehicle

Light Duty Vehicle

Medium & Heavy Duty Trucks

Buses & Coaches

Market By Type

Swash

Wobble

Screw

Scroll

Others

Market By Drivetrain

ICE Vehicle

Electric Vehicle

Market By Cooling Capacity

Less than 20 CC

20 to 40 CC

More than 60 CC

Market By Component

Compressor Section

Motor

Inverter

Oil Separator

Others

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa