Global Automotive Industry Current and Future Outlook
The global COVID-19 pandemic has caused a huge slowdown in the growth of the automotive industry across several regions. Even the leading global players were not spared by the adverse effects of the pandemic, witnessing the shutting down of numerous production units and disruptions in the supply chain.
However, with the speeding up of vaccination drives across countries like the U.S., the U.K., China, India, and Germany, the manufacturers are realizing the importance of creating resilient supply chains and manufacturing operations for growth in the future.
Expansion and innovation-driven efforts of major players in the automotive heater core market are likely to create lucrative avenues for market growth. The advent of technologies, such as the incorporation of ceramic positive temperature coefficient (PTC) components as core elements of heater core has resulted in silent operations and reduced energy waste in heating systems of vehicles.
A moderate 2.9% CAGR has been foreseen for the automotive heater core market by a recent Fact.MR report.
With the advent of hybrid and electric passenger cars, automotive heating systems are perceiving continuous developments. The heater core in vehicles is on the cusp of becoming a component of the past, as manufacturers focus on reversing refrigerant flow via air-conditioning systems for transmuting the evaporator core into a condenser. This would further provide ample heat for passenger compartments.
Aftermarket to Pave Lucrative Opportunities for Automotive Core Heater Market
Automotive heater core failures, although less prevalent, are a key concern among automakers and consumers alike. Known as essential compact radiators, automotive heater cores witness failure on account of corrosion and pressure on the cooling system. Replacement or repair of the automotive heater core is a challenging and expensive activity, as they are located inside the passenger compartment. Aftermarket automotive heater cores produced currently are relatively less expensive than their OEM counterparts, and are better designed to function as OEM-produced heater cores.
Aftermarket vendors take immense efforts in maintaining the material quality and structure of automotive heater cores, along with using new foams for every product manufactured, similar to that of OEM-approach. This has paved lucrative opportunities for automotive heater cores in the aftermarket.
Automotive Heater Core Perceives Rise in Demand from Electric Vehicles
New production plants apropos of high voltage heater manufacturing are being opened by leading manufacturers, in order to cater to demand from hybrid and battery electric vehicles. Eberspaecher’s new electric heaters production plant in Tianjin is a prime example of such installments. The company seeks to reinforce its domestic footprint by this new production plant, while expanding its capacities to tap the rapidly expanding Chinese passenger car industry, particularly for battery electric vehicles.
Major stakeholders in the automotive heater core market such as BorgWarner, and Eberspaecher are taking expansion and innovation efforts for capitalizing on the growing penetration of electric vehicles. BorgWarner, the global leading company in clean & efficient technology solutions for electric, hybrid, and combustion vehicles, has recently announced its plan on supplying advanced high-voltage positive temperature coefficient (PTC) heating technology to a well-known electric vehicle manufacturer.
This innovative automotive heating technology incorporates ceramic PTC components as its core elements, which contributes to reduced energy waste and noise-less operation of HVAC systems in vehicles. The advent of such technologies is likely to underpin automakers in designing and developing next-generation, efficient & clean vehicles.
Manufacturer Company Profiles
Calsonic Kansei Corporation
Sanden Holdings Corporation
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