LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global automotive heat exchanger market to grow at a CAGR of close to 5% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global automotive heat exchanger market for 2017-2021. The report also lists passenger cars, LCVs, and M&HCVs as the three major application segments, of which the passenger cars segment accounted for close to 88% of the market share in 2016.
According to Praveen Kumar, a lead analyst at Technavio for automotive components research, “The increased demand for HVAC systems has resulted in the growth of the demand for heat exchangers as each HVAC system requires a heat exchanger to cool down and dissipate the excess heat to maintain the optimum performance of the engine.”
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global automotive heat exchanger market:
- Heavy dependence on IC engines for mobility in emerging countries
- Increasing sales of passenger cars
- Stringent fuel economy norms leading to the production of advanced thermal management systems
Heavy dependence on IC engines for mobility in emerging countries
Emerging countries like India and China are witnessing an increase in the preference for mobility through roadways. In 2016, IC engines held a market share of more than 95% of the total vehicles sold globally. In the commercial vehicle segment, there is hardly any vehicle that runs on battery or alternate fuels. Hence, there is a high reliance on IC engines for transportation.
One of the main reasons why road transport is opted for mobility and the transportation of cargo is the limited rail services available. The lack of sufficient rail services for logistics is forcing the freight companies to choose roadways as a reliable mode of transportation. Thus, IC engines play a key role in providing easy mobility and transporting cargo, which will drive the demand for automotive heat exchangers.
Increasing sales of passenger cars
The sales of passenger cars are correlated with the market growth of automotive heat exchangers as all passenger cars are equipped with a heat exchanger. The passenger car segment contributed to 88% of the global automotive heat exchanger market in 2016. The global car sales increased by around 3% in 2015 with SUVs and crossovers accounting for most of the sales in the Chinese and European passenger car markets. The SUV segment in Europe recorded an increase in its market share by 27% in 2015.
“Thus, the increase in the sales of passenger cars will drive the demand for heat exchangers as most of the cars are equipped with more than one heat exchanger,” says Praveen.
Stringent fuel economy norms leading to the production of advanced thermal management systems
All the global economies are focusing on restricting carbon emission. In Europe, 25% of the carbon dioxide is emitted by vehicles. As a result, European nations are trying to restrict the carbon emission by implementing stringent carbon emission rules. In 2014, Europe introduced the Euro VI norms, which aimed mainly at reducing the emission of nitrogen and particulate matters and improving the fuel economy.
The thermal management of the vehicle is an important area where OEMs are focusing on to improve the fuel efficiency of their vehicles. The improved thermal management can improve the fuel economy of the vehicle by 2%-5%. Thus, stringent emission norms are leading OEMs to enhance their thermal management systems, which will eventually drive the global automotive heat exchanger market.
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