Automotive E-Compressor Market Size, Share & Analysis

[232 Pages Report] The global automotive e-compressor market size was valued at USD 6.6 billion in 2024 and is expected to reach USD 18.9 billion by 2033, at a CAGR of 12.5%, during the forecast period 2024-2033. The key factors driving the market are the growing demand for electric cars, stringent emission regulation & heightened environmental concerns, along with the increased awareness about climate control & comfort features.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Market Dynamics

DRIVER: Rising global demand for electric vehicle.

With the growing popularity of electric vehicles, automotive manufacturers are scaling up their production of electric models, leading to an increased demand for e-compressors. These components are critical to the efficient operation of the climate control systems found in electric vehicles. Contrary to traditional ICE vehicles, electric vehicles rely on e-compressors to manage air conditioning and heating functions. As the global automotive industry continues to shift toward electrification, with more automakers investing in EV technology and expanding their product lines, the demand for e-compressors is expected to surge.

RESTRAINT: Lack of sufficient EV charging infrastructure in developing economies

There are limited EV charging stations, particularly in developing countries such as India, Brazil and Mexico. This leads to the lower availability of public EV charging for electric vehicles, thus reducing demand. Although various countries are in the process of installing EV charging infrastructure, most have not been able to install the required number of EV charging stations. The demand for electric vehicles will increase with a well-developed EV charging network. Most countries have yet to develop such charging networks.

OPPORTUNITY:Advancement in e-compressor technology

Advancements in e-compressor technology present significant opportunities for the automotive industry. Improved e-compressor efficiency and faster charging times for electric vehicles lie in the optimization of energy usage within the vehicle’s power system. When an e-compressor operates more efficiently, it consumes less energy to maintain the vehicle’s climate control systems, such as HVAC, thereby maintaining the battery charge for driving range. This enhances convenience for consumers and addresses challenges pertaining to the time required for recharging and range anxiety. Advanced technologies enable the integration of intelligent climate control systems that use sensors and data analytics to adapt to the vehicle’s surroundings. Smart e-compressors can adjust their operation based on ambient temperature, passenger preferences, and real-time traffic conditions, providing a personalized and efficient climate control experience.

CHALLENGES: High initial cost of e-compressors compared to conventional belt-driven compressors

E-compressors, especially those designed for electric vehicles, incorporate electric motors, power electronics, and advanced control systems. These components are often more expensive to manufacture and integrate. They also require specialized engineering and manufacturing processes, driving up production costs. Additionally, e-compressors often utilize premium materials and undergo rigorous testing to ensure reliability and longevity, further contributing to their initial expense.

A major factor driving the cost disparity is the need for power electronics and inverter systems in e-compressors. These components are essential for controlling the electric motor efficiently. Further, the materials used in e-compressors include advanced alloys and high-efficiency magnets, resulting in an increase in overall cost.

Automotive E-Compressor Market Ecosystem.

The automotive e-compressor market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the market include DENSO CORPORATION (Japan), Hanon Systems (South Korea), MAHLE GmbH (Germany), VALEO (France), and Sanden Corporation (Japan).

The Small Capacity Compressor segment, by compressor type, holds the largest automotive compressor market share.

Small e-compressors are primarily used for compact vehicles, mild hybrid systems, and applications where space and power consumption are limited. Compact vehicle designs are largely preferred in densely populated urban areas with limited parking spaces. Manufacturers in this segment are focusing on lightweight and compact designs to optimize space utilization and improve overall vehicle efficiency. The integration of small e-compressors into mild hybrid systems is becoming more prevalent, driving the market demand. Compact cars and subcompact vehicles are major segments fueling the demand for small e-compressors due to their space constraints and the need for efficient cooling solutions.

Innovations such as improved motor efficiency, advanced thermal management systems, and integration with emerging vehicle architectures are further anticipated to drive advancements in this segment. Additionally, collaborations between automotive OEMs and compressor manufacturers to develop custom-tailored solutions for specific vehicle platforms will likely become more common, catering to the diverse needs of the automotive compressor market.

The Light Commercial vehicles are the fastest-growing segment in vehicle type for the automotive e-compressor market.

The surge in demand for light commercial vehicles (LCVs) is influencing the automotive e-compressor market, reflecting a broader trend toward electrification in commercial transportation. LCVs, including vans, pickup trucks, and delivery vehicles, are critical in urban logistics, last-mile delivery, and small-scale transportation operations. As cities worldwide implement strict emissions regulations and environmental initiatives, businesses are increasingly turning to electric LCVs to meet sustainability targets and reduce their carbon footprint.

Electric LCVs offer numerous advantages over their ICE counterparts, with e-compressors playing a pivotal role in enhancing their appeal. These compressors ensure cabin comfort for drivers and passengers while contributing to the overall energy efficiency and environmental friendliness of electric LCVs. As businesses prioritize operational efficiency, cost savings, and sustainability, the demand for e-compressors tailored to the specific needs of electric LCVs continues to rise, driving innovation and investment in the electric vehicle ecosystem.

Asia Pacific is dominating market in the automotive e-compressor market.

Asia Pacific covers China, Japan, South Korea, and India for market analysis. Rapid urbanization and industrialization lead to a surge in automotive production and sales in the region. As Asia Pacific countries experience economic growth and improved living standards, the demand for electric vehicles equipped with climate control systems is increasing. This growing consumer demand, coupled with government initiatives to reduce emissions and promote clean transportation, is fueling the adoption of e-compressors in the region. Asia Pacific is also home to several leading automotive manufacturers & suppliers and has a robust ecosystem of technology companies specializing in electric vehicles. These companies are investing in research and development to innovate and improve e-compressor technologies, driving down costs and enhancing performance.

The governments of emerging economies have further recognized the growth potential of the electric vehicle compresssor market and, hence, have taken several initiatives to attract OEMs to manufacture electric vehicles in Asia Pacific. For instance, China, the e-mobility leader in the region, had set a target of over 20% EV sales by 2025, which it had already achieved in 2022. Similarly, South Korea, Japan, and India have announced plans to shift to electric vehicles in the coming years. India plans to have 30% of its passenger car sales to be electric by 2030. South Korea and Japan also aim to be among the world’s top five electric vehicle producers by 2030. These factors will positively impact the Asia Pacific automotive e-compressor market.

Key Market Players

The automotive e-compressor market is consolidated with players such as DENSO CORPORATION (Japan), Hanon Systems (South Korea), MAHLE GmbH (Germany), VALEO (France), and Sanden Corporation (Japan). are the key companies operating in the market. These companies adopted new product launches, expansion, contracts and agreements to gain traction in the market.

Want to explore hidden markets that can drive new revenue in Automotive E-Compressor Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company’s specific needs.

The study segments the automotive e-compressor market:

Automotive E-Compressor Market, By Compressor Type

• Scroll Compressors
• Rotary Compressors
• Centrifugal Compressors
• Reciprocating Compressors
• Axial Compressors

Automotive E-Compressor Market, By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Automotive E-Compressor Market, By Capacity

• Small
• Medium
• Large

Automotive E-Compressor Market, By Propulsion Type

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Vehicle (PHEV)
• Fuel-cell Electric Vehicle (FCEV)
• Hybrid Electric Vehicle (HEV)

Automotive E-Compressor Market, By Technology Type

• VFD
• Fixed Speed

Recent Developments

• In Feb 2024, Hanon Systems announced the opening of a new engineering center located on the company’s compressor manufacturing campus in Palmela, Portugal. The new center supports the Palmela plant, the company’s European flagship for the electric scroll compressor. It is a two-story structure with around 2,488 square meters of space for existing and new test operations.
• In Jan 2024, Robert Bosch expanded its product offerings by introducing AC components to repair requirements. The expansion includes AC compressors and condensers for vehicles from different manufacturers in Europe.
• In Aug 2023, VALEO presented the REVO-E- HP R744 in Busworld 2023. It is a zero-emission HVAC unit designed for buses with alternative drives. The use of natural refrigerant R744 enables the HVAC system to be environmentally neutral for cooling the bus. The system has integrated the compressor, giving a compact design, low refrigerant charge, and low energy consumption.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst