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

U.S. Electric Vehicle Compressor Market Size

U.S. Electric Vehicle Compressor Market Trends and Growth Drivers

Technological Advancements in Electric Vehicle Compressors Are Key Trend

• There are continuous technological advancements in EV compressors, as manufacturers are investing in R&D to improve their performance, efficiency, and features.
• Additionally, better energy management is made possible by the integration of power electronics into e-compressors.
• Better control over power usage is made possible by this integration, which makes thermal management systems for electric cars more effective.
• EV compressors with real-time diagnostics, predictive maintenance capabilities, and connectivity to vehicle management systems are also trending among OEMs.

Rise in Demand for Electric Vehicles Is Driving the Market Growth

• There is a rapid increase in the sales of electric vehicles in the U.S. due to the growing focus on sustainable development and government concerns about environmental safety.
• According to the International Council on Clean Transportation, new electric light-duty car sales in the U.S. grew to around 1.4 million units in 2023 from over one million in 2022.
• The U.S. is the largest greenhouse gas emitter after China.
• Transportation is the economic sector in the country with the highest GHG emissions, accounting for 28% of all GHG emissions, as per the EPA.
• Therefore, the country is moving toward electric vehicles to reduce these emissions.

High Initial Cost of Electric Vehicle Compressors Act as a Challenge to Market Growth

• The high manufacturing costs of electric motors, advanced control systems, and power electronics included in EV compressors raise the overall production costs.
• Additionally, advanced alloys and high-efficiency magnets are preferred in these compressors.
• Advanced alloys have low density, high strength, low thermal expansion, and high corrosion resistance, while high-efficiency magnets deliver greater range and allow manufacturers to produce lighter electric vehicles, which increases the overall production cost of the EV compressors.
• The compressors used in electric vehicles are extensively tested for longevity and dependability, raising their total cost of manufacturing and hindering the expansion of the industry.

U.S. Electric Vehicle Compressor Market Analysis

Type Insights

• The scroll category will hold the largest market share, of 40%, in 2024, and is expected to grow at the highest CAGR, of 17.7%, during the forecast period. This is because of the high efficiency and reliability of these compressors.
• Additionally, scroll compressors are compact and have a lightweight design, which is suitable for EVs.
• Moreover, they produce lower sound emissions in comparison to other compressors.

The types analyzed in this report are:

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

Application Insights

• The air conditioning category will hold the largest market share, of 35%, in 2024, due to the increasing consumer focus on comfort and convenience.
• Geographically, the U.S. is a diverse nation with a vast range of climates. The Southwest has a warm climate, due to which air conditioning becomes an essential part of improving comfort.
• The vehicle electronics cooling category is expected to grow at the highest CAGR, during the forecast period.
• It is essential to maintain the temperature of the components used for the operation of EVs, such as sensors, power electronics, and onboard computers.
• With the increased temperature during their operation, these components have the potential to undergo thermal runaway, which can reduce component efficiency. This thermal runaway can be prevented with the help of good thermal management.

The applications analyzed in this report are:

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

Drivetrain Type Insights

• The battery electric category will hold the larger market share, of 65% in 2024, and is expected to grow at a higher CAGR of 17.5%, during the forecast period.
• BEVS feature zero emissions and come with low operational costs, which make them popular.
• Increasingly, consumers in the U.S. are focusing on BEVs because of the declining cost of electrical batteries and the expansion of charging stations, which is driving up demand for compressors for pure-electric variants.

The drivetrain types analyzed in this report are:

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

Distribution Channel Insights

• The OEM sales channel will hold the larger market share, of 70%, in 2024, and is expected to grow at a higher CAGR during the forecast period.
• OEMs provide better quality and dealership warranties than the aftermarket, which makes it a better channel.
• Furthermore, they focus on safety, and mass production of the products.

The distribution channels analyzed in this report are:

• OEMs (Larger and Faster Growing Category)
• Aftermarket

Vehicle Type Insights

• Passenger vehicles will hold the largest market share, in 2024, and are expected to grow at the highest CAGR, of 17.4%, during the forecast period.
• This is due to the rise in the demand for electric cars and motorcycles in the U.S., as people are increasingly focusing on environmental sustainability.
• Furthermore, this rise in the sale of passenger electric vehicles is due to new government policies regarding environmental concerns and sustainable development.

The vehicle types analyzed in this report are:

• Passenger Vehicles (Largest Category and Faster-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

Geographical Analysis

• The West region will hold the largest market share, of around 55%, in 2024, and is expected to grow at the highest CAGR of 17.5% over the forecast period.
• This is due to the increasing sales of electric vehicles in the particular region.
• California has been a leader in the EV industry by setting encouraging manufacturing and purchase policies. In California, EV registrations increased by more than 60% between 2021 and 2022.
• Additionally, the average number of electric cars (EVs) per 1,000 registered vehicles in the Golden State is 25.02, which is more than any other state in the U.S.

The regions analyzed in this report are:

• Northeast
• Midwest
• West (Largest and Fastest-Growing Region)
• South

U.S. Electric Vehicle Compressor Market Share

• The market for electric vehicle compressors in the U.S. is consolidated, as most of the market share is held by large-scale vendors.
• Due to the intense competition, these large players are investing in research and development of their products to make them more cost-effective and efficient.
• Additionally, the country is facing challenges regarding climate change and environmental degradation. The government is more focused on sustainable development, due to which large and small-scale vendors are improving their product portfolio and merging with each other to improve their position in the market.

U.S. Electric Vehicle Compressor Market News

• In November 2023, the first mass-production automotive air conditioning compressor assembly plant for electric vehicles was inaugurated by Sanden International USA.
• In August 2023, Gardner Denver announced the new Electra Saver II G2 60-hp compressor.
• In May 2024, Ingersoll Rand Transport Solutions, in collaboration with GHH RAND, launched electrically powered air compressor solutions designed for BEVs.