Market Dynamics

Gradual increase in sales of passenger vehicles across the globe, rapid technological advancements in automotive sector and players focus on development of efficient HVAC systems are major factors expected to drive the growth of global market. Condensers are widely used in HVAC systems in automotive vehicles. Heat exchanger cores are specially designed to shed airborne material buildup, allowing the A/C system to operate at peak efficiency with minimal maintenance, assuring years of trouble-free service.

Global passenger car sales have dropped to 80.6 million in 2018 from 81.8 million in 2017. Increasing spending capacity of consumers in developing countries and increasing vehicle production is resulting in demand for condensers which is another factor expected to boost the growth of target market.

Manufactures are spending high on product development activities and their inclination towards development of product that is lightweight, reliable and resisting corrosion this factor is expected to support the growth of target market. Manufacturers are offering various products with the focus to provide optimum solution according to customer need. They are widely focused on development of aluminum products with superior fin wave design that offers higher heat transfer and maximum refrigerant condensation.

Major players approach towards business expansion through strategic merger and acquisition in order to increase the revenue share and enhance the business is another factor expected to boost the growth of target market.

In 2020, Subros Ltd a leading manufacturer of thermal products for automotive applications acquired Zamil Air Conditioners Private Ltd a leading manufacturer in air conditioner. This acquisition is expected to help the company to enhance the business presence and increase the revenue share in the target market.

In 2019, Denso Corporation a global automotive components manufacturer acquired EASE Simulation Inc. a company that specializes in automotive diagnostics technology. This acquisition is expected to help the company to enhance the customer reach and improve the automotive diagnostics technology.

In 2018, Hindalco Industries Limited a copper manufacturing company acquired Aleris Corporation global aluminum rolled products. This acquisition is expected to help Novelis Inc a parent company of Hindalco Industries Limited to strengthen its position in automotive sector.

The recent trend witnessed in the market is use of aluminum in condenser owing to its benefits such as low cost of raw material, highly reliable, and small size & light weight. Aluminum gives the manufactures to enhance the product quality and deliver the customer better quality product.

However, factors such as fluctuation in raw material prices impacting the end product cost and low sale of vehicles due to unstable economy in developing countries are expected to hamper the growth of global market. In addition, availability of other raw materials is expected to challenge the growth of target market.

Rapid technological advancements by major players and focus on introduction of innovative products are factors expected to create new opportunities for players operating in the target market over the forecast period. In addition, increasing electric vehicle sale in emerging economies and manufactures focus on development of light weight reliable components is expected to support the revenue transaction of target market.

Segment Analysis by Region

The market in Asia Pacific is expected to account for major revenue share in the global market due to increasing passenger vehicle sale. In addition, major player’s inclination towards shifting the manufacturing unit to developing countries due to easy availability of raw material and low cost labor is expected to support the growth of target market in this region.

In addition, increasing focus on partnership and agreements in order to strengthen the distribution channel is expected to impact the growth of target market.

Competitive Landscape                                                                                 

The global market is high highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.

Report coverage

Automotive Condenser Market Segment Analysis, 2019

The global market is segmented into type, material type, vehicle type, and sales channel. The material type segment is bifurcated into copper, brass, aluminum, and stainless steel. Among the material segment the aluminum segment is expected to witness faster growth due to high reliability and low weight.

The vehicle type segment is divided in to passenger vehicle and commercial vehicle; among the vehicle type passenger vehicle segment is expected to account for major revenue share in the target market due to high sale of vehicles in developing economies.

The players profiled in the report are Subros Ltd., Denso Corporation, Delphi Automotive PLC, Robert Bosch GmbH, MAHLE GmbH, Hanon Systems, Valeo SA, Modine Manufacturing Company, Standard Motor Products, Inc., Keihin Corporation, Calsonic Kansei Corporation, Sanden Philippines, and Air International Thermal Systems.

Market Segmentation

Market By Type

Single Flow

Tubes & Fins

Serpentines

Parallel Flow

Market By Material Type

Copper

Brass

Aluminum

Stainless Steel

Market By Vehicle Type

Passenger Vehicle

Commercial Vehicle

Market By Sales Channel

OEMs

Aftermarket

Market By Region

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa