Automotive refrigerants are used in the air-conditioning systems of automobiles. These refrigerants further help in the proper functioning of the air-conditioning systems in vehicles. Refrigerants are considered to be the most integral part of automotive air systems.
The market is poised to witness a nominal growth over the course of the next five years primarily on account of burgeoning demands of the automotive users regarding the comfort in their vehicles. The trend of the installation of aftermarket air conditioning systems in vehicles is also a key factor that plays a significant role in shaping up the automotive refrigerants market growth over the course of the next five years. Furthermore, the demand for vehicles has been increasing over the past years especially in the developing economies of the world such as India, China, and Vietnam among others due to the growing disposable income and rising middle-class population further provides an impetus for the market to grow in the near future. Additionally, the participation of key market players in the development of new products and facility expansions is also fuelling the global automotive refrigerant market growth throughout the forecast period.
Furthermore, the various regulations regarding the proper emissions from vehicles and the use of approved refrigerants is also a prime factor that is expected to positively impact market growth during the coming years. However, the recent advent of COVID-19 has led to a decline in the demand as well as the production of vehicles in some countries is anticipated to inhibit the growth moderately during the short run. The graph below represents the global maternity wear market size from 2019 to 2025.
Global Automotive Refrigerants Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The Growing Deployment of Electric Cars Is Positively Influencing the Growth
Governments across the globe are taking necessary steps to meet the growing needs of vehicles that utilize greener technologies is a key factor supplementing the adoption of electric vehicles. Several initiatives are being taken by the governments of both developed and developing economies for the setting up of the necessary infrastructure for the easy deployment of electric vehicles. For instance, Electric Vehicle Initiative, a multi-government policy which was launched under the Clean Energy Ministerial (CEM), a high-level dialogue among the Energy ministers of the major economies across the globe. The main aim of this policy is to accelerate the introduction and adoption of electric vehicles worldwide. Also, in June 2017, [email protected] by the CEM for the with the goal of accelerating the deployment of electric vehicles by 30% by the year 2030. The growth in the deployment of the electric vehicle fleet also shows the propelling business growth opportunities for the manufacturers of refrigerants over the next five years. The deployment of electric vehicles reached 3.29 million units by 2018 from only 0.23 million units in 2013 (Source: IEA).
Electric Car Deployment - World, 2013 to 2018, in Million Units
Thus, it can be clearly seen that the deployment of electric cars has increased exponentially for the past five years. The developing economies are also increasingly putting their efforts into setting up the necessary charging infrastructure further aiming towards the smooth deployment of electric cars. For example, in November 2018, Indian giants such as DLF, ABB India, and Delta Electronics, and EV Motors India announced their strategic partnership for setting up around 6500 EV charging stations throughout the country over the course of the next five years. Also, the integration of new market players in the electric vehicle segment aiming the middle-income segment population is also providing an impetus for the market players to expand their market share throughout the course of the next five years.
The market for automotive refrigerants is also poised to witness a growth on account of the stringent regulations regarding the use of refrigerants in the vehicles. Several regulations such as the regulations laid down by the United States Environmental Protection Agency further promoted the use of approved refrigerants which is anticipated to positively impact the market growth during the next five years. The requirements such under section 609 of the Clean Air Act (CAA), while two additional sections of the CAA, 608, and 612 also play a significant role in shaping up the market growth through the forecast period.
The recent outbreak of the novel coronavirus disease is expected to inhibit the market growth to some extent especially during the short period of the next six to eight months. The government measures to minimize the spread of the disease have led to a temporary suspension of the manufacturing activities across the automotive sector. Many companies have shut down their plants, which has further led to a downfall in the demand for automotive refrigerants by the manufacturers, thus anticipated to restrain the market growth to some extent.
Participation by Market Players
The constant participation by the key market players in the form of facility expansions, product launches, mergers, and partnerships with an aim to expand their market share further shows the potential of the global automotive refrigerant market to grow in the near future. For instance, in June 2018, Honeywell International Inc announced the launch of its latest product, Solstice® N41, which is a non-inflammable and a low global-warming potential refrigerant for the air conditioning systems. Also, in June 2017, Honeywell International Inc and Chemours announced the opening of their manufacturing facilities for the production of HFO 1234yf. Also, in May 2017, the company announced the launch of Convenient R-1234yf Service Can especially for technicians across the automotive industry.
The global automotive refrigerant market has been segmented on the basis of refrigerant type, vehicle type, sales channel, and geography. By refrigerant type, the market has been classified on the basis of R-134a and R-1234yf. By the vehicle type, the segmentation of the market has been done into passenger vehicle and commercial vehicle. On the basis of the distribution channel, the market has been distributed as online and offline. Geographically, the market has been segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.