Automotive Heaters Market Size, Share & COVID-19 Impact Analysis, By Component (Heater Core, Blower Fan, and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2023-2030

The global automotive heaters market size was valued at USD 9.36 billion in 2022. The market is projected to grow from USD 9.69 billion in 2023 to USD 14.30 billion by 2030, exhibiting a CAGR of 5.7% during the forecast period.

Automotive heaters refer to a component or system installed in vehicles to provide warmth and regulate the interior temperature of the passenger cabin during cold weather conditions. Its primary purpose is to keep the occupants comfortable by heating the air inside the vehicle and defogging the windshield for better visibility in rainy conditions.

The increasing sales of vehicles and the government's mandate for installing heaters in vehicles drive the market growth. Automotive heaters decrease the efficiency of vehicles while running, which challenges the application of heaters in vehicles. However, major companies focusing on the development of efficient heaters to cater to the growing demand for electric vehicles is driving the market growth.

COVID-19 IMPACT

Decline in Vehicle Production and Sales during the Pandemic Impacted the Market Growth

The COVID-19 pandemic impacted the automobile production and sales significantly, which negatively influenced the automotive heaters market growth. The pandemic caused severe disruptions in supply chains, closure of manufacturing plants, and reduction in consumer demand for vehicles. This resulted in decreased production and sales of automobiles. For instance, according to the International Energy Agency (IEA), global car sales witnessed a decline of 14% in 2020. Additionally, travel restrictions and lockdown measures in many countries led to a decline in daily commute and overall mobility, adversely affecting vehicle usage and the need for a heating system.

However, as restrictions were lifted post-pandemic, the market witnessed a slow growth, similar to the growth of vehicle production and sales. As manufacturers increased their scale of production, the demand for automotive heaters also picked up a strong pace in the market. Thus, the market was negatively affected during the pandemic due to decline in vehicle production and sales and managed to recover post-pandemic, owing to the increasing production and sale of vehicles.

LATEST TRENDS

Development of Heaters for Electric Vehicles to Drive Market Progress

As the interest of people is increasing in buying electric vehicles, the automobile industry has witnessed significant growth in adopting these vehicles. For instance, according to the IEA, 10.3 million electric vehicles were sold in 2022; the sale is expected to grow to around 14 million by the end of 2023.

Due to this, manufacturers are focused on the development of automotive heaters that are compatible with electric vehicles. For example, in May 2022, Toyota, in partnership with Denso, co-developed a radiant heater specially designed for electric vehicles. The radiant heater was installed in Toyota’s bZ4X and designed to lessen the energy consumption of the vehicle by nearly 5.3%. Thus, the development of automotive heaters for the efficient performance of electric vehicles during the winter season is predicted to boost the market development during the forecast period.

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DRIVING FACTORS

Increasing Demand for Efficient Climate Control Solutions in Vehicles to Fuel Market Growth

The demand for efficient climate control solutions in vehicles, especially in cold regions, has increased the requirement for efficient heaters in vehicles. For instance, Canada records an average temperature of -25°C in winters. This boosts the significance of heaters in vehicles to operate in cold conditions.

Automotive heaters provide comfort while driving, and their use in defogging the windshield during winter and rainy seasons will fuel their demand over the forecast period. As consumers seek enhanced driving experiences and comfort, the demand for reliable and effective heating systems in automobiles has increased. Additionally, advancements in automobile technology, need for energy-efficient heating solutions, and environmental considerations are also playing a vital role in driving the market growth.

RESTRAINING FACTORS

Decreased Efficiency of Electric Vehicles Can Hinder Market Development

Automotive heaters used in electric vehicles during rainy seasons or cold weather conditions decrease the efficiency of the vehicle. These heaters utilize battery power for their operation. This decreases the driving range of electric vehicles, making it difficult to rely on them while traveling in rainy and cold conditions.

For instance, in June 2023, Consumer Reports Inc. performed a test on Ford Mustang Mach-E, Hyundai, Ioniq 5, Tesla Model Y, and Volkswagen ID.4 Pro S. The company estimated that in cold weather conditions, the electric vehicle driving range contracted to 25%.

In May 2022, according to SAE International’s published article on radiant heaters, electric vehicles witnessed an extra loss of 30-40% in driving range when a car heater was used in winter as compared to air conditioning used in summers. However, companies are focused on the development of efficient automotive heaters, which will reduce the consumption of battery power in electric vehicles. Reduction in vehicle range due to utilization of heaters will hinder the market growth.

SEGMENTATION

By Component Analysis

Blower Fans to Dominate due to Development of Advanced Technologies

Based on component, the market is segmented into heater core, blower fan, and others.

The blower fan segment dominated the market in 2022. The growth of the segment is attributed to the development of advanced blower fan technology and creation of quieter and more energy-efficient models. Major automotive companies, such as Tesla and others, are working on making their cars quieter, which will fuel the demand for low-noise blower fans in the automotive industry. This is expected to promote the segment growth during the forecast period.

The heater core segment is expected to record the fastest CAGR during the forecast period. Heater cores are essential for proper defrosting and defogging of windows, ensuring clear visibility and safe driving. Thus, these safety features offered by heaters during rainy and cold weather conditions will fuel the segment growth over the forecast period.

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By Vehicle Type Analysis

Rise in Production and Sales of Vehicles to Fuel Demand for Passenger Cars

Based on vehicle type, the market is divided into passenger cars and commercial vehicles.

The passenger cars segment held a dominant market share in 2022. The growth of this segment is driven by increasing sales and manufacturing of passenger cars globally. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), around 61.5 million passenger cars and 23.4 million commercial vehicles were manufactured in 2022.

The commercial vehicles segment is expected to record the fastest CAGR during the forecast period. This segment's development is attributed to safety regulations and standards implemented across several regions that mandate heating systems in commercial vehicles, especially those used for passenger transportation. For instance, according to a report published by the Federal Motor Carrier Safety Administration, Department of Transportation, U.S. (DOT), each bus, truck, and truck-tractor manufactured on or after December 25, 1968, must have a windshield defrosting and defogging system that meets the requirements of FMVSS No. 103, to be effective from the date of manufacture. This will increase the use of heaters in vehicles, thereby driving the market growth.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.

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Asia Pacific held the largest automotive heaters market share in 2022. The region is also expected to record the fastest CAGR during the forecast period. The region is a major hub for automobile production, with countries such as China, Japan, South Korea, and India being significant contributors. Thus, the growing production of vehicles in the region will directly fuel the demand for automotive heaters. For instance, according to the International Organization of Motor Vehicle Manufacturers, around 50 million vehicles were manufactured in Asia Pacific in 2022.

North America held a significant market share in 2022. The region experiences harsh winter conditions, which creates a high demand for efficient heating systems in vehicles to provide comfort and safety. Thus, this factor will drive the market development in North America.

Europe accounted for a considerable market share in 2022. The region has stringent environmental regulations, which has compelled the manufacturers to develop energy-efficient and eco-friendly heating solutions for passenger cars and commercial vehicles. This is anticipated to fuel the market progress in Europe.

The Rest of the World market, which includes Latin America and the Middle East & Africa, captured a major market share in 2022. As consumer spending power is increasing in certain countries, the ownership of passenger cars and commercial vehicles is also increasing, driving the market for vehicle cabin heaters.

KEY INDUSTRY PLAYERS

Companies are Collaborating and Forming Partnerships to Achieve Competitive Advantage

Key players in the market are offering a comprehensive product portfolio of automotive heating solutions, including cabin heaters and heater components. The companies are focused on catering to both passenger cars and commercial vehicles to cater to various climatic conditions. They are also capitalizing on R&D to create environment friendly solutions, offering them significant opportunities to develop efficient vehicle heaters. Some of the major players in the market include BorgWarner Inc., Mahle GmbH, and Denso Corporation, among others. BorgWarner is a prominent player in the market. The company is a global supplier of advanced technology and provides a range of heating solutions for vehicles. For instance, in August 2023, BorgWarner landed a contract from BMW for high-voltage coolant heaters. The heater will be installed in the BMW i4 and iX. The heater is developed focusing on increasing the driving range of electric vehicles during winter while the heater is running in the car.

List of Key Companies Profiled:

• CEBI (Luxembourg)


• Texas Instruments (U.S.)


• Skyworks Solutions Inc. (U.S.)


• Webasto Group (Germany)


• MAHLE GmbH (Germany)


• Smiths Group plc (U.K.)


• Thermotion (U.S.)


• Eberspächer (Germany)


• GENTHERM (U.S.)


• Denso Corporation (Japan)


• VALEO SA (France)


• Delphi Technologies (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – Webasto developed two rooftop air conditioners, the Cool Top Trail 28V and Cool Top Trail 36V. These two devices are capable of heating as well as cooling the cabin, operating at an outside temperature of -5° to +50° Celsius.


• January 2023 – Tesla developed and installed heat pumps in its electric vehicles to provide efficient heating solutions in cold climate conditions. The heat pumps will utilize the heat generated from the battery and drive units to warm up the cabin. This will also help in minimizing the loss of energy while operating the heater in winter, thereby increasing the range of the vehicle.


• August 2022 – EBERSPAECHER installed a thermal management system in the PRAWAAS 3.0 in Hyderabad, India. The AC135 AE provides heating and cooling in electric buses at a performance level between 30 kW to 40 kW.


• June 2021 – EBERSPAECHER developed AC systems, especially for electric buses, in Mexico. The AC136 AE (All-Electric) parallel roof-mounted air-conditioning system was manufactured in Monterrey, Mexico to cater to its demand in the Central and North America regions.


• February 2021 –  Mahle GmbH developed a new generation of high-voltage PTC heaters. The PTC heaters were designed and developed, providing better safety, compact format, lower costs, and efficiency. They would also help increase the driving range of the vehicle by 20%, in combination with a heat pump.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and prominent applications of the product. Besides, the report offers insights into the automotive heaters market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that contributed to the growth of the market in recent years.

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