Off-highway Vehicle HVAC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Off-highway Vehicle HVAC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The off-highway vehicle HVAC market is anticipated to register a CAGR of about 5% during the forecast period (2020-2025).

Key Highlights

• 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, and mining, are expected to fuel the demand for off-highway vehicle HVACs during the forecast period. As the off-highway vehicle has to work in very unpredictable working conditions, with 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 operator comfort. The incorporation of HVAC systems is continually increasing in these vehicles, as most of the new off-highway vehicles are integrated with factory fitted air conditioning systems. Reduction in the overall system size and weight of the system and governments' stringent regulations to curb CO2 emissions are projected to drive the growth of the market studied, 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 such 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 is an electric tractor with no batteries. Its 300-kW power comes through an extension cord connected to the grid or an off-field generator. Such advancements are posing a huge growth opportunity in the agricultural HVAC market.

Key Market TrendsGrowing Environmental Concerns are Driving the Off-highway Vehicle HVAC Market

Off-highway vehicles mostly work in extreme climatic conditions, such as in snow-covered terrain or in the desert. HVAC manufacturers are developing lighter, efficient, and smaller components, owing to limited space availability in the cabin. Apart from comfortability, HVAC provides reduced operating hours, ultimately resulting in fuel-saving and fewer emissions. For instance,

• In 2019, Bergstrom and Viatec partnered to create a non-idle solution for utility trucks. Vaitec's 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 being witnessed in off-road vehicles. Many start-ups and established players have launched their electric models with advanced HVAC systems. For instance, Nikola NZT, an electric off-road vehicle that gives a 150-mile range on a full charge, has a climate control HVAC system for heating or cooling, so that the driver does not 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, the developing economies, such as China, India, and Japan, have the huge potential for infrastructural development, mining, and agriculture, as these countries are 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 the demand for construction machinery. The global manufacturers are making strategic partnerships with local manufacturers, to cater to this growing demand, which may propel the growth of HVAC systems in the future. For instance,

• In 2018, Escorts and Tadano Ltd entered a joint venture to manufacture cranes in India. Iin 2019, CASE Construction Equipment launched Crawler Excavator CX220C, which comes with a HVAC Cabin, along with an Auto Climate Control function feature.

Competitive Landscape

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Denso Corporation
Sanden Holdings Corporation
S.E.A SRL
MAHLE GmbH
Mitsubishi Heavy Industries Ltd
T/CCI Manufacturing LLC
Webasto SE
Elite KL Ltd
Aurora Advanced HVAC Solutions
Lazzerini SRL
Perrin Manufacturing Inc.

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