Automotive In-Cabin Air Quality Improvement Solutions Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars and Commercial Vehicles), By Product Type (HVAC System with Built-in Solution, HEPA Filter-Based Solution, Activated Carbon-Based Solution, Independent Air Purifier/Ionizer, and Independent Ozone Generator), and Regional Forecasts, 2021-2028

The global automotive in-cabin air quality improvement solutions market size was USD 1.85 billion in 2020. The market is projected to grow from USD 1.94 billion in 2021 to USD 4.87 billion in 2028 at a CAGR of 14.1% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 14.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

As the atmospheric air quality is lowering due to various harmful contaminants, bacteria, and viruses, the demand for automotive in-cabin air quality improvement solutions is rapidly increasing worldwide. These solutions are employed in passenger as well as commercial vehicles for air filtration to maintain hygiene and prevent the driver and passengers from harmful viruses and bacteria. Additionally, the quality of air inside the vehicle is poor as compared to the quality of the air outside the vehicle cabin. Therefore, manufacturers are focused on the development of advanced automotive in-cabin air quality improvement solutions for their upcoming automotive models.

Various types of solutions are employed for automotive in-cabin air quality improvement, including HEPA filter-based solutions, HVAC systems with built-in solutions, and others. Increasing demand for hygienic in-cabin experience is propelling the popularity of these solutions among OEMs and aftermarket solution providers. Moreover, an increasing number of health-conscious populace due to pandemic situations is also likely to fuel the demand for these solutions worldwide.

COVID-19 IMPACT

Negative Impact of COVID-19 on Global Automotive Sales to Hamper Market Growth

The coronavirus pandemic shrunk the economic growth of major countries due to the government-mandated lockdowns, movement restrictions, and curfews, which also captiously impacted the automotive industry globally. Therefore, disruption in automotive production & sales coupled with the extensive social distancing guidelines disrupted the automotive in-cabin air quality improvement solutions market growth. 

For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), overall global automotive sales dropped from 90 million units in 2019 to 78 million units in 2020.

Nonetheless, a quick recovery is anticipated in the following years due to increasing medical concern and health awareness amongst the population post-pandemic. The ability of these air quality improvement solutions to prevent impurities, bacteria, and viruses from entering the automotive cabin is expected to fuel the automotive in-cabin air quality improvement solutions adoption post-pandemic.

LATEST TRENDS

Rising Adoption of Intelligent Air Purification Systems To Drive Market Growth

Technological advancement in the automotive industry and growing environmental pollution worldwide are encouraging automakers to employ intelligent air purification and UV sterilization in automobiles for effective in-cabin air quality improvement. Additionally, automakers are also developing automotive in-cabin air filters with various organic and customized materials for improved air filtration capacity.

For instance, in July 2021, Ford Motors unveiled its new in-cabin air filter called Refresh95. The new filter removes at least 95 percent of 2.5-micron size traffic exhaust, organic material, metals, and road dust particles. According to the EPA (the U.S. Environmental Protection Agency), particles less than 10 microns in diameter and particularly those with less than 2.5 microns diameter, pose the greatest health risk. Therefore, the growing adoption of these advanced filters for improved filtration capacity is anticipated to boost the market growth in future.

DRIVING FACTORS

Escalating Medical and Health Concern to Drive Market’s Growth

An increasing medical and health concern among the populace due to the COVID-19 pandemic and the number of the populace with allergies and other medical conditions are expected to surge the demand for automotive in-cabin air improvement solutions worldwide. Moreover, automakers’ focus on improving in-cabin hygiene for enhanced driving experience is also likely to accelerate the market’s growth in upcoming years.

Growing Industrialization and Urbanization to Uptick Market’s Growth

The growing industrialization and rising urbanization are adversely affecting the quality of atmospheric air. Therefore, increasing environmental air pollution and its awareness among the health-conscious populace is likely to boost the market growth during the forecast period. According to the Center for Science and Environment India, air pollution kills an average of 8.5 out of every 10,000 kids in India before they turn five. Hence, increasing awareness regarding the harmful effects of degrading air quality is likely to boost the market’s growth in the coming years.

Increasing Automotive Sales Worldwide to Uptick Market’s Growth

Increasing automotive sales worldwide with built-in air quality improvement solutions such as in-cabin air filters in HVAC systems and others are anticipated to propel the market growth during the forecast period. Additionally, increasing demand for the replacement of old in-cabin air filters is expected to surge the demand for these solutions in the aftermarket. Moreover, automakers’ efforts to improve the capacity of its in-cabin air quality improvement solutions for compatibility with government standards will also accelerate the market growth.

RESTRAINING FACTORS

High-Cost Automotive Air Purification Systems may Impede Market’s Growth

The high prices of automotive in-cabin air purification systems are likely to hinder the market’s growth during the forecast period. Moreover, lack of awareness regarding these air quality improvement solutions across some developing and underdeveloped countries coupled with other factors such as shortage and price fluctuations in raw materials is anticipated to hamper the market growth in future. 

SEGMENTATION

By Product Type Analysis

Rising Preference for High Capacity In-Cabin Air Filters to Drive Segment Growth

On the basis of product type, the market is classified into an HVAC system with built-in solution, HEPA filter-based solution, activated carbon-based solution, independent air purifier/ionizer, and independent ozone generator.

The HVAC system with built-in solution segment held the largest share in the market at 29.50% in 2020. The HVAC system is employed to control the internal temperature of the automotive cabin. It consists of three subsystems heating, cooling, and air conditioning, which work together to regulate purified air to the vehicle cabin. More than 90% of the vehicles currently use an HVAC system with in-cabin air filters to provide purified air to the vehicle cabin. Therefore, increasing automotive sales, increasing adoption of an automotive HVAC system, and increasing demand for hygienic in-cabin experience are some of the factors driving the growth of the segment.

The HEPA filter-based solution is expected to experience eye-catching growth rate during the forecast period. HEPA filter’s high efficiency in trapping harmful airborne particles is expected to fuel the segment growth. Additionally, its improved product design is further accelerating its adoption. Moreover, increasing demand for multi-layer HEPA filters for the automotive HVAC system is anticipated to boost the segment’s growth in the forthcoming years.

The independent air purifier/ionizer segment is predicted to exhibit a steady growth rate during the prediction period. Ionizers are easy to install and use. Moreover, they are also suitable devices for people with breathing diseases. Therefore, their soaring demand among the populace with breathing diseases and high performance along with the capability to eliminate harmful impurities in-cabin air is estimated to accelerate the segment’s growth in the near future.

The activated carbon-based solutions are expected to register a considerable growth rate during the forecast period. Their increasing adoption in HVAC systems due to activated carbon’s ability to absorb harmful contaminated gases and impurities is likely to propel the segment’s growth in years to come. The independent ozone generators are also expected to register a considerable growth rate due to their ability to remove strong odor and provide clean air to the vehicle cabin.

By Vehicle Type Analysis

Surge in Adoption of In-Cabin Air Purification Products in Commercial Vehicles to Amplify  Segment Growth

On the basis of vehicle type, the market is bifurcated into commercial vehicles and passenger cars.

The passenger cars segment led the market in 2020 and is predicted to dominate during the forecast period. Surging passenger cars sales worldwide are fostering the segment’s growth. Additionally, automakers’ efforts to improve in-cabin air quality by developing advanced automotive in-cabin air quality improvement solutions for their upcoming passenger car models are likely to boost the segment’s growth in upcoming years. For instance, automakers such as BMW, Ford, and others have already developed various advanced air quality improvement solutions compatible with their passenger cars.

The commercial vehicles segment is predicted to garner exponential growth in the coming years. Increasing demand for healthier in-cabin air quality in commercial vehicles and surging adoption of commercial vehicles across developed economies such as the U.S. are likely to accelerate the segment growth in upcoming years. Moreover, commercial vehicle manufacturers such as Volvo, BMW, and others are equipping their vehicles with advanced air purification solutions, which is likely to fuel the segment’s growth in the near future.

REGIONAL INSIGHTS 

Asia Pacific dominated the global market and held the market size of USD 0.83 billion in 2020 and is anticipated to bestride in years to come. The strong presence of the automotive industry and high automotive sales are driving the market growth in the region. For instance, as per the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, overall automotive sales in China were 25 million units, which were higher than any other country globally. Furthermore, lowering air quality due to urbanization and industrialization in emerging countries such as India, China, Japan, and others is likely to magnify the demand for automotive in-cabin air quality improvement solutions in the region.

Europe is expected to witness a significant growth rate over the forecast period. The presence of a strong automotive industry and the presence of key players in the region are some of the factors driving the market growth. Additionally, automakers’ initiative to develop advanced in-cabin air filters to make their automobile models compatible with government standards is also expected to drive the market growth during the forecast period.

North America held the second-largest market share in 2020 and is expected to witness a considerable growth rate during the forecast period. Increasing automotive sales in North America coupled with rapid industrialization and urbanization is expected to fuel the demand for automotive in-cabin air quality improvement solutions. Additionally, technological advancement in the region and increasing sales of commercial vehicles are also anticipated to influence the market growth. Moreover, increasing demand for a comfortable and hygienic driving experience in developed countries of North America will create lucrative revenue growth opportunities in upcoming years.

The Rest of the World is expected to witness a considerable CAGR from 2021 to 2028. The expanding automotive industry coupled with changing standard of living in Latin America is expected to drive market growth in the near future. Moreover, degrading air quality in the region is also anticipated to fuel the demand for automotive in-cabin air quality improvement solutions during the forecast period.

KEY INDUSTRY PLAYERS

Increasing Investment on R&D to Drive the Competition

The market is considerably fragmented with the presence of several players. The companies are investing in research & development and innovation to roll out new in-cabin air quality improvement products and technology. For instance, in November 2021, Mann+Hummel announced to roll out the first Mann+Hummel HEPA filter system for its vehicles. Similarly, major players in the automotive industry, including BMW, Ford, and others are investing heavily in the R&D of in-cabin air filters for their upcoming models.

Valeo is A Top Player in the Market 

Valeo is one of the top automotive products suppliers headquartered in France. The company supplies a wide range of automotive products to automakers and aftermarket. Additionally, it has 187 production bases and 63 R&D centers across 33 countries globally. The company provides automotive HVAC systems with multi-layer high-efficiency particle cabin air filters and activated carbon filters to prevent harmful gaseous particles and pollutants from entering the cabin. In April 2019, Valeo demonstrated its innovative smart cabin air quality solutions during Shanghai Auto Show.

LIST OF KEY COMPANIES PROFILED:

• Valeo (Paris, France)


• MAHLE GmbH (Stuttgart, Germany)


• Bosch (Gerlingen, Germany)


• DENSO Corporation (Aichi, Japan)


• MANN+HUMMEL (Ludwigsburg, Germany)


• Marelli (Corbetta, Italy)


• Air International Thermal Systems (Michigan, U.S.)


• Ford Motor Company (Michigan, U.S.)


• Toyota (Aichi, Japan)

KEY INDUSTRY DEVELOPMENTS:

• October 2021: MANN+HUMMEL Unveiled its New HEPA Filter In October 2021, MANN+HUMMEL unveiled its new HEPA filter systems for vehicles. The system will offer solutions for air pollution in vehicles.


• May 2021: BMW Expanded the Availability of Nano-Particle Cabin-Air Filters May 2021, BMW expanded the availability of Nano-Particle Cabin-Air Filters for the BMW 5 Series range, 6 Series GT, and M5. The company is providing these filters as an optional feature for these models.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of automotive in-cabin air quality improvement solutions. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation