Radiators are also known as heat exchangers which has a primary function of cooling the internal combustion engines of the vehicles. A liquid, which is also known as a coolant, is introduced in the radiator and it transfers the heat from the fluid inside to the air outside and thereby cools down the engine.
The global radiators market is poised to show a nominal growth throughout the forecast period. The rising disposable income in the developing economies as well as the growing middle class population especially in countries like India and China are some of the major factors that led to an upsurge in the demand as well as the production of vehicles. Furthermore, the growing investments by key automakers in new production plants as well as the expansion of their existing power plants to boost their automotive production is further expected to propel the opportunities for the manufacturers over the course of the next five years. Furthermore, stringent regulations regarding vehicular emissions further act as a catalyst for the global automotive radiators market growth over the next five years.
However, the market is expected to be restrained by the fact that there is an increasing deployment of electric vehicles over the past years. Also, a significant increase in the investments by the government of various countries for setting up of the necessary infrastructure for the easy deployment of electric vehicles further shows the growing potential of the electric vehicles in the near future. This, in turn, is expected to propel the adoption of electric vehicles as the governments of various countries are taking several initiatives to promote the sales of electric vehicles which is thereby expected to slow down the adoption of conventional vehicles in the coming years. Also, the recent outbreak of the novel coronavirus disease is also expected to hamper the market growth especially during the short period of next six to eight months as several initiatives by the governments across countries such as lockdowns social distancing, and others have further led to a temporary suspension in the manufacturing activities across the industries. Several automotive manufacturers have temporarily suspended their operations, which is further expected to restrain the demand for radiators by the OEMs in the short run.
The global automotive radiators market has been segmented on the basis of material type, vehicle type, end-user, and geography. By material type, the classification of the market has been done into copper and brass, and aluminum. By the vehicle type, the segmentation of the market has been done as passenger vehicle, light commercial vehicle, and heavy commercial vehicle. By the end-user, the market has been segmented as OEMs and aftermarket. Furthermore, on the basis of geography, the market has been distributed as North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Aluminum to Hold a Notable Share
By material type, the aluminum segment is projected to hold a substantial share in the market on account of its wide adoption of passenger vehicles. The major factors supplementing the significant share of this segment during the next five years include the higher efficiency of these types of radiators than copper radiators. Furthermore, the lighter weight of aluminum radiators along with a long lifespan are some of the key factors augmenting the adoption of these radiators by the automotive manufacturers, thereby bolstering the growth of this segment throughout the forecast period. Furthermore, the copper and brass segment is expected to witness a decent growth owing to its wide adoption across the heavy vehicles such as trucks and buses. A significant increase in the production of trucks and buses due to the growing demand from the logistics sector as well as the export sector are some of the key factors supporting the growth of this segment during the coming years.
Light Commercial Vehicles to Show a Healthy Growth
By vehicle type, the light commercial vehicles segment is poised to witness a healthy growth over the course of the next five years. The booming e-commerce industry and the constantly growing logistics industry are some of the key factors propelling the growth of this segment in the next five years.
Light Commercial Vehicle Production, 2014 to 2019, in Units
Source: International Organization of Motor Vehicle Manufacturers
The above figure represents the production of light commercial vehicles globally which shows that it reached 20,223,655 units by the year 2019 from 17,897,835 in the year 2014. However, the passenger vehicle segment is expected to hold a substantial market share throughout the forecast period. The presence of a well-established manufacturing base of passenger vehicles along with a considerably high proportion of passenger vehicle production than other vehicle segments are some of the key factors supporting the share of this segment during the next five years. Furthermore, the heavy commercial vehicle segment is also expected to show a decent growth throughout the course of the next five years.
Electric Vehicle Deployment
Electric Car Deployment - World, 2013 to 2018, in Million Units
The figure above represents the deployment of electric vehicles in between 2013 to 2018. It can be clearly seen that the deployment has increased significantly over the past five years. This is expected to be a major factor that is expected to pose a threat to the demand for conventional vehicles. The governments of various countries are taking the necessary steps to boost the adoption of vehicles with greener technologies. Electric vehicles are taking a lot of attraction these days and key automotive companies are also shifting their focus to develop and manufacture passenger electric vehicles to tap the middle-income group and to expand their market share in the automotive industry. For instance, in December 2019, Tata Motors Limited, a leading automotive manufacturer based out of India, unveiled its new electric vehicle Tata Nexon EV. Thus, the growing focus towards electric vehicles is expected to slow down the demand for conventional vehicles in the coming years as these types of vehicles run on the motor and thus does not require any radiator.