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The global automotive e-compressor market is anticipated to expand at a CAGR of ~33% during the forecast period, owing to the growing adoption of electric vehicles (EVs), favorable government policies promoting EVs, and technological developments that are boosting production and sales of EVs, thus replacing conventional I.C. engine powered vehicles
According to the Global EV Outlook 2019 report of International Energy Agency, sale of electric cars witnessed 40% year-on-year growth in 2019 with a total sale of 2.1 million electric cars worldwide. This scenario is eventually driving the automotive e-compressor market.
Compressors used in HVAC systems of conventional I.C. engine vehicles are operated through a belt drive that is powered by the engines. However, electric vehicles do not have an engine, or have a smaller engine, which creates a demand for alternate compressor solutions. Therefore, electric vehicle manufacturers are adopting e-compressors. For instance, BMW AG’s
The analysts at the Transparency Market Research (TMR) opine that automotive sales are expected to surge during the first and second quarter of 2021, as uncertainties pertaining to demand and supply will begin to diminish. During such challenging times, companies in the automotive e-compressor market are holding discussions with their creditors to implement business revitalization plans.
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High Quality Materials Optimize Designs in E-Compressors
The conditions in road vehicles are extreme. This is creating challenges for companies in the automotive e-compressor market, since companies need to address vibrations, environmental factors, and temperature fluctuations. In order to overcome these challenges, manufacturers are increasing their R&D muscle in high quality materials to optimize designs in e-compressors. For instance, Schott AG— a Germany-based specialist in glass and glass ceramics is increasing efforts to meet demanding insulation needs of automotive companies.
Players in the automotive e-compressor market are collaborating with suppliers who have high level of expertise in connecting glass to metal. This expertise is creating space for insulation solutions in e-compressors so that the terminals can withstand various refrigerants in harsh conditions.
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Independent Operation of E-Compressors Boosting Sales of Electric Vehicles
Companies in the automotive e-compressor market are developing compact components to enable energy savings. Such attributes are being preferred by automotive companies, as energy savings extend the life of lithium-ion batteries. Companies in the automotive e-compressor market are increasing their production in systems that continue A/C running, even when the hybrid or electric car engine is idle or switched off.
The independent operation of automotive e-compressors is boosting sales of electric vehicles. Manufacturers are developing systems that create less noise whilst retaining the same cooling capacity. The growing awareness about the right selection of oil is crucial, as this oil protects the electric motor, which is connected to the automotive e-compressor.
Drivers of Automotive E-Compressor Market
Transportation is a leading cause for rise in levels of pollution worldwide. Tailpipe emissions such as carbon dioxide, nitrogen oxides, hydrocarbons, carbon monoxide, and sulfur dioxide cause respiratory illnesses, heart conditions, and mental illness, which results in increased healthcare burden.
The European Environment Agency stated in a report of 2018 that emissions from vehicles have worsened air quality levels across Europe, resulting in more than US$ 80 Bn of healthcare costs. The traditional belt-driven compressor increases the workload of the engine, which, in turn, reduces the performance and efficiency of the vehicle, thus resulting in higher emissions.
These concerns prompted people and automobile manufacturers to adopt fuel efficient and environmental solutions. E-compressors are powered by a separate electric motor that reduces the workload of the engine and subsequently, vehicle emissions. Low oil carryover of the e-compressor provides cleaner air in the cabin and facilitates fast and simple installation, independent from the vehicle’s engine.
Automotive E-Compressor Market: Regional Analysis
Based on region, the global automotive e-compressor market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
Asia Pacific and Europe are projected to be highly lucrative regions of the global automotive e-compressor market during the forecast period. This is primarily due to the presence of prominent automotive industry in China, Germany, Japan, and India. Rise in demand for electric vehicles across Asia Pacific is likely to boost the automotive e-compressor market in the region.
Europe has presence of major OEMs and tier-1 suppliers who have advanced research and development facilities, which, in turn, is anticipated to boost the automotive e-compressor market across Europe
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Automotive E-Compressor Market: Competition Landscape
Key players operating in the global automotive e-compressor market include
Mitsubishi Heavy Industries Automotive Thermal Systems Co., Ltd.
Competition in the global market has intensified due to participation of new manufacturers, demand for improvement in efficiency, and decline in size and weight of e-compressors
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