The Europe Automotive Heat Exchanger Market is anticipated to register a CAGR of over 4.5% during the forecast period.
- The market in Europe is one of the largest in the global heat exchanger market. The stringency in the emission norms levied by the European Commission and EPA has brought about a lot of reforms in the manufacturing of automotive components.
- The revival of the growth of the European automotive industry is a huge propellant in the growth of the market. The increasing demand for premium and luxury passenger vehicles, which has increased usage of heat exchangers, would also help the growth of the market in the forecast period.
- Moreover, the growing demand for electric vehicles from countries like the Netherlands, Norway, Denmark, Germany, France, amongst others is also expected to drive the automotive heat exchangers market during the forecast period.
- The increased investments in the research and development of automotive heat exchangers by major OEMs like Mahle GmbH, Valeo, Denso is also driving the growth of the market.
Key Market Trends
Growing Electric Vehicle Sales to drive the Growth of the Market
The growing sales of electric vehicles in the European region is expected to drive the growth of the market. In 2019, more than 200,000 electric vehicles were sold in Europe. The major drivers for the growth in sales of electric vehicles were the introduction of a more stringent Worldwide Harmonized Light-duty vehicle test procedure (WLTP) for fuel economy rating, better availability of long-range Battery Electric Vehicles (BEVs), and changes in taxation/grants promoting more BEVs uptake. The bestselling models were Tesla Model 3 with 95,247 units sold in 2019, followed by Renault Zoe with 47,408 units sold in 2019. Many countries in the European region are aiming to eliminate the polluting emissions from the vehicles by completely removing the fossil fuel vehicle from the roads. For instance, the Norwegian government has decided on a national goal that all new cars sold by 2025 should be zero-emission (electric or hydrogen). Similarly, the Netherlands is implementing a policy starting in 2030, in which only emission-free vehicles will be registered. To make this a possibility, the government is offering many incentives to the customers opting for electric-powered vehicles. Moreover, in order to encourage the sales of electric vehicles among buyers the countries in the European region are providing additional benefits such as price subsidies, free parking, and various tax incentives. Such developments are propelling the growth of electric vehicles sales in the European region, which in turn will create a demand for automotive heat exchangers therefore the driving the growth of the market during the forecast period.
Germany to Experience High Growth Rate
The German Automotive heat Exchanger market is anticipated to register a high growth rate over the forecast period. The German automobile industry is the biggest in Europe. Moreover, the country is home to some of the biggest automobile manufacturers such as Volkswagen AG, Daimler AG, BMW AG, amongst others. The sales of automobiles in the country is witnessing a massive growth due to rising disposable incomes and high economic growth. In the year 2019, the German car market expanded by 5% to 3,607,258 vehicles which were the highest total of new vehicle registrations in the country since 2009. The sales of commercial vehicles, heavy vehicles, also increased. Sports Utility Vehicles were the fastest growing and largest segment of the German car market in the year 2019.
Some of the major automobile manufacturers registered high sales in the year 2019, like
Volkswagen AG recorded sales of 49,518 units increased by 19.2% in December compared to the same month in 2018.
BMW sold 27,544 units increased 10.8% from year 2018.
Mercedes-Benz sold 24,796 units increased 8.4% from last year.
In the year 2019, Gasoline-powered vehicles accounted for a 59.2% market share and diesel vehicles accounted for a 32% market share. However, the growing sales of new energy vehicles in the country is also driving the growth of the market. In the year 2019, more than 110,000 new plug-in electric passenger cars were sold in Germany, which is 3% of the total car sales.
Moreover, to encourage buyers to purchase new energy vehicles the government is planning to increase subsidy of electric as well as plug-in cars. The growing sales of new energy vehicles as well as gasoline-powered vehicles is anticipated to drive the automotive intercooler market in the country.
Some of the prominent players in the Europe Automotive Heat Exchanger market are Denso, Mahle GmbH, Valeo, Constellium N.V., AKG Thermal Systems (Taicang) Co., Ltd amongst others.
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