Automotive Markets Gear Up for Energy-Efficient Expansion
New York, Wednesday, 6 August 2025.
The automotive AC compressor and 48V system markets will grow significantly from 2025 to 2029, driven by energy-efficient technologies and global sustainability efforts.
Growth Prospects in the Automotive AC Compressor Market
The automotive AC compressor market is poised for significant growth, from $9.02 billion in 2024 to $9.2 billion in 2025, marking a 2.0% compound annual growth rate (CAGR) [1]. Key drivers include increased car ownership, consumer demand for enhanced comfort, economic advances, and fluctuating climate conditions. Regulatory standards also contribute to this growth, as they drive manufacturers to innovate for increased efficiency [1]. The production increases in vehicles, such as those seen in the United States with 10,611,555 motor vehicles produced in December 2023 compared to 10,052,958 the previous year, further underscore this expansion [1].
The Rise of the Automotive 48V System Market
In parallel, the automotive 48V system market is expected to expand from $7.1 billion in 2024 to $8.84 billion by 2025, experiencing an impressive 24.5% CAGR [2]. This growth is fueled by advancements aimed at improving fuel efficiency and accommodating the rising power demands due to the electrification trend. The limitations of traditional 12V systems have catalyzed the transition towards hybridization [2]. The success of hybrid models introduced by companies like Stellantis’ Peugeot, which launched a 48V hybrid powertrain for its 3008 and 5008 models in February 2023, reduces fuel consumption by 15%, reflecting strategic investments in sustainability [2].
Industry Leaders and Market Dynamics
Leading corporations such as Continental AG, Toyota Industries Corporation, and Hanon Systems Co. are key players driving the automotive AC compressor market forward [1]. For automotive 48V systems, major players include Toyota Motor Corp., Ford Motors Company, and General Motors, among others [2]. Adapting to these evolving markets, these companies are increasingly focusing on integrating energy-efficient technologies that not only meet regulatory standards but also align with consumer expectations for sustainable mobility solutions [1][2].
Conclusion
As the automotive sector gears up for technological advancements, the focus on energy-efficient solutions underscores the importance of sustainability. This transformation, influenced by regulatory measures and shifting consumer preferences, promises substantial growth in key markets such as the automotive AC compressor and the 48V system segments through 2029. Industry players must continue to innovate and adapt to remain competitive in this evolving landscape [1][2].