Product Code: 69571
The off-highway vehicle HVAC market is anticipated to register a CAGR of about 5% during the forecast period (2020 - 2025).
- Growing environmental challenges, increasing per capita income, harsh working environments in off-road vehicles, and a rise in automation in various industries such as agriculture, construction, mining are expected to fuel the demand of the off-highway vehicle HVACs in the forecast period. As the off-highway vehicle has to work in very unpredictable working conditions, also there are large windows for the driver for better visibility, HVAC plays a crucial role for keeping the cabin cool/hot as the situation demands.
- Technology in the off-highway vehicle is constantly improving to increase productivity and improve operator comfort. The incorporation of HVAC systems is continually increasing in these vehicles as the majority of the new off-highway vehicle are coming with factory fitted air conditioning systems. Reduction in overall system size and weight of the system and government stringent regulations to curb CO2 emission is projected to drive the growth of the market over the forecast period.
- Agricultural vehicles are subjected to environmental conditions that change according to the application, such as dusty conditions, harmful pesticides, and herbicides vapors, owing to these extreme conditions, these vehicles demand refrigeration, heating, pressurization, and filtration. In the current scenario, agriculture is witnessing various technological advancements such as the introduction of electrification, artificial intelligence, and autonomous vehicle. For instance, John Deere Joker a fully autonomous electric tractor with articulated steering and a tracked single axle is the most technologically advanced tractor. Similarly, GridCON an electric tractor but with no batteries, its 300-kW power comes through an extension cord connected to the grid or an off-field generator. This type of advancements is posing a huge growth opportunity in the agricultural HVAC market.
Key Market Trends
Growing Environmental Concerns are Driving the Off-highway Vehicle HVAC Market Growth
Off-highway vehicles mostly work in extreme climate conditions sometimes in snow-covered terrain to sometime in the desert. HVAC manufacturers are developing lighter, efficient, and smaller components, owing to limited space availability in the cabin. Apart from comfortability HVAC also provides reduced operating hours ultimately resulting in fuel-saving and fewer emissions. For instance,
- In 2019, Bergstrom and Viatec partnered for non-idle solution for utility trucks, Vaitec SmartPTO equipped vehicle can save up to 1,890 gallons of fuel annually and reduce approximately 42,300 lbs. of carbon dioxide., this system can be easily installed in the vehicle and reduce maintenance costs by up to 69%.
The trend of electrification is also been witnessed in the off-road vehicles, many startups and the established player has launched their new electric models with advanced HVAC systems. For instance, Nikola NZT, which is an electric off-road vehicle having 150 miles range on a full charge has climate control HVAC system for heating or cooling so that driver didn't feel any discomfort.
Asia-pacific Is Expected to Witness High Growth in the Off-highway Vehicle HVAC Market
Asia-Pacific is the manufacturing hub of the construction and heavy machinery. In addition to that developing economies such as China, India, and Japan are possessing the huge potential for infrastructure development, mining, and agriculture as these countries are also the most populated in the world. The market for excavators and other types of construction machinery is anticipated to strengthen in China over the forecast period.
India is witnessing an increase in demand for construction machinery and global manufacturers are making strategic partnerships with local manufacturers this demand will also propel the growth of the HVAC system in the future. For instance,
- In 2018, Escorts and Tadano Ltd entered into a joint venture for the manufacturing of cranes in India. Whereas in 2019, CASE Construction Equipment has launched Crawler Excavator CX220C, which comes with HVAC Cabin along with Auto Climate Control function feature.
The off-highway vehicle HVAC market is moderately fragmented, although some of the major players in the market are Denso Corporation, MAHLE GmbH, Marelli Corporation, amongst others. The companies are expanding their presence by acquiring other market participants, forming strategic alliances, tapping in new and unexplored markets. For instance,
- In 2019, T/CCI Manufacturing inaugurated a new plant in Noida, India. This site is dedicated to the manufacturing and distribution of the 5H and 7H wobble plate compressors for the heavy-duty truck, construction, and passenger bus markets.
- In 2019, TATA AutoComp Systems and Fortaco group have finalized an agreement where they will share the technologies and manufacturing capabilities to manufacture safety cabins for off-highway vehicles in India.
- In 2019, MARELLI is announced that it has entered into a strategic partnership with Shanghai Highly (Group) Co., Ltd., this collaboration will strengthen its electric-driven compressors (EDC) business.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Technology Type
- 5.1.1 Semi-automatic
- 5.1.2 Automatic
- 5.2 By Application Type
- 5.2.1 Agriculture
- 5.2.2 Construction
- 5.2.3 Others
- 5.3 By Geography
- 5.3.1 North America
- 18.104.22.168 United States
- 22.214.171.124 Canada
- 126.96.36.199 Rest of North America
- 5.3.2 Europe
- 188.8.131.52 Germany
- 184.108.40.206 United Kingdom
- 220.127.116.11 France
- 18.104.22.168 Rest of Europe
- 5.3.3 Asia-Pacific
- 22.214.171.124 India
- 126.96.36.199 China
- 188.8.131.52 Japan
- 184.108.40.206 South Korea
- 220.127.116.11 Rest of Asia-Pacific
- 5.3.4 Rest of the World
- 18.104.22.168 Brazil
- 22.214.171.124 Mexico
- 126.96.36.199 United Arab Emirates
- 188.8.131.52 Other Countries
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Denso Corporation
- 6.2.2 Sanden Holdings Corporation
- 6.2.3 S.E.A srl
- 6.2.4 MAHLE GmbH
- 6.2.5 Mitsubishi Heavy Industries Ltd.
- 6.2.6 T/CCI Manufacturing LLC
- 6.2.7 Webasto SE
- 6.2.8 Elite KL Ltd
- 6.2.9 Aurora Advanced HVAC Solutions
- 6.2.10 Lazzerini Srl
- 6.2.11 Perrin Manufacturing Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS