Electric Vehicle Compressor Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Electric Vehicle Compressor Market Trends & Drivers

Focus on Efficiency and Range Optimization Is Key Trend

• The trend of increasing driving range as well as enhancing the operation of compressors is growing. Auto parts companies are spending money on R&D and focusing on making compressors that utilize less energy during operation and can give effective thermal management for electric motors and batteries.
• The improvements in smart control systems and variable-speed compressor technology further assist in boosting performance and lowering power usage.
• Additionally, advanced cooling techniques assist in controlling cooling capacity, which ensures efficient operation in different driving situations.
• Moreover, lower weight and compact compressor designs also contribute to longer driving ranges.

Surge in Demand for Electric and Hybrid Vehicles Boosting Market Development

• The increasing number of electric and hybrid vehicles is the biggest driving factor for the electric vehicle compressor market. Consumers have started to acknowledge the importance of eco-friendly transportation, while governments are making robust policies and regulations to promote the purchase of electric and hybrid vehicles.
• Seeing the increase in the number of electric and hybrid vehicles, automakers are expanding their EV portfolios to fulfill the rising demand of consumers, along with meeting the regulatory requirements.
• The players are heavily investing in R&D to bring inventions and improve the designs of compressors for electric and hybrid vehicles.
• Further, the advancements in electric propulsion, charging infrastructure, and battery efficiency, most of which are aimed at elongating the driving range, are crucial factors in the growth of the market.
• These factors help to gain the confidence of consumers in electric vehicles, which, in turn, leads to an increase in the demand for compressors and other EV components.
• In 2023, over 16% of all the vehicles sold in the U.DS. were hybrid, plug-in hybrid, and battery electric variants, as per the U.S. Energy Information Administration (EIA).

Higher Costs of EV Compressor Hamper Market Growth

• Electric vehicle compressors have a higher cost than those for the older internal combustion engine (ICE) vehicles.
• It becomes a major challenge for EV makers to achieve cost similarity with ICE vehicles with compressors without sacrificing performance and reliability.
• Due to the specific requirements of battery cooling and heating, electric vehicles have more-complicated thermal management systems compared to ICE vehicles.
• EV compressors are designed to handle such requirements, which further necessitates modern engineering and high material costs.
• Further, EV compressor manufacturers are yet to achieve economies of scale, unlike those manufacturing these components for conventional gasoline/diesel vehicles.

Electric Vehicle Compressor Industry Outlook

Type Analysis

• Scroll is the largest category, holding a market share of 40% in 2023; it is also expected to witness the highest CAGR. This is owing to the widespread usage of scroll compressors since they offer efficient compression with a small number of moving parts.
• Scroll compressors are small lightweight, which is appropriate for electric vehicles, which often have space constraints.
• They do not produce as much vibration and noise as other components. They also utilize less refrigerant and produce less emissions, which makes them suitable amidst the push for a greener environment.

This segment has five categories:

• Swash
• Wobble
• Screw
• Scroll (Largest and Fastest Type)
• Air E-Compressor
  • Braking
  • Suspension

Application Analysis

• Air conditioning is the largest application, with a market share of 35% in 2023. This is because consumers globally have started giving priority to convenience and comfort during the journey, which raises the demand for effective air conditioning, assisted by efficient compressors.
• Vehicle electronics cooling is a rapidly growing application, with a CAGR of 17.0% from 2024-2030 in the market. This growth is due to the integration of a large number of modern electronic systems in EVs, which need optimal temperatures for sensors, power electronics, and onboard computers.

During the study, these applications were analyzed:

• Air Conditioning (Largest Application)
• Battery Cooling
• Vehicle Electronics Cooling (Fastest-Growing Application)
• Others

Drivetrain Analysis

• Battery electric vehicle is the larger category, with a market share of 70% in 2023, and it is also the faster-growing category. This supremacy is due to the emergence of novel battery technologies, development of the charging infrastructure, and customer preference for sustainable transportation.
• The batteries and motors of BEVs are heavy duty, which is why they get heated quickly and extensively, thereby mandating an effective cooling system.
• The government support for BEVs is also stronger than for HEVs/PHEVs, which is why the former outsell the latter around the world.

During the study, two drivetrains were analyzed:

• Battery Electric Vehicle (Larger and Faster-Growing Vehicle)
• Hybrid/Plug-in Electric Vehicle

Sales Channel Analysis

• OEMs are the larger sales channel, with a market share of 75% in 2023, and it is the faster-growing category too. This is because OEMs are the main customers of compressors, since electric vehicles are gaining attention and production volume is being increased accordingly.
• Consequently, OEMs require these components in bulk to cope with the burgeoning demand for electric vehicles.

This segment has two sales channels:

• OEMs (Larger and Faster-Growing Sales Channel)
• Aftermarket

Vehicle Type Analysis

• Passenger vehicles are the fastest-growing category, with a CAGR of 17.2% from 2024 to 2030 and also the largest. This is ascribed to the rising demand for electric cars owing to the advancements in battery technology, focus on environmental sustainability, and government efforts for clean mobility.
• As the number of electric cars increases, the demand for compressors for various applications in them will also grow.

During the study, these applications were analyzed:

• Passenger Vehicles (Largest and Fastest-Growing Category)
  • Hatchbacks
  • Sedans
  • Utility vehicles
• Light Commercial Vehicles
• Medium- and Heavy-Duty Trucks
• Buses and Coaches
• Off-Highway Vehicles
  • Construction and mining equipment
  • Agricultural vehicles
  • Industrial vehicles

Regional Analysis

• Geographically, North America is the fastest-growing region, with a CAGR of 17.1%. This growth is due to the changing consumer choices, growing environmental concerns, and implementation of government policies.
• The region is seeing large investments in electric vehicle development and production. Existing automotive manufacturers and new EV startups are both focusing on manufacturing ZEVs, thereby driving the demand for the related compressors.
• APAC is the largest region, holding a market share of around 40% in 2023. This is due to the presence of all major electric vehicle makers and component suppliers, who are ahead in terms of investing money in R&D.
• This region is also witnessing substantial investments in the development of the charging infrastructure for electric vehicles.

These regions and countries have been analyzed in this report:

• North America (Fastest-Growing Region)
  • U.S. (Larger and Faster-Growing Country)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Largest Region)
  • China (Largest Country)
  • Japan
  • India (Fastest-Growing Country)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil
  • Mexico (Largest and Fastest-Growing Country)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country)
  • South Africa
  • U.A.E (Fastest-Growing Country)
  • Rest of MEA

EV Compressor Market Share

The market has strong competition, and various major players are bringing new strategies to survive in the competition as well as meet the consumer demand. The development of production facilities and expansion of product portfolio, along with mergers and acquisitions, add fuel to the competition.

Electric Vehicle Compressor Industry News

• In September 2023, Denso Corporation developed Everycool, which has an electric compressor particularly designed for heat exchange operations.
• Toyota Industries Corporation expanded its production units at different locations in July 2022.
• Mahle GmbH expanded its aftermarket product range with compressors and indirect air conditioning condensers in March 2022.