Cost-Effective Solutions Are the Key to Propel Growth in the European Automotive OE Heating Ventilation and Air Conditioning Systems Markets

Business Wire, April 19, 2007

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c54496) has announced the addition of the Frost & Sullivan report: European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC) Systems Markets to their offering

This Frost & Sullivan research titled European Automotive Original Equipment Heating Ventilation and Air Conditioning Systems Markets provides an analysis of the market which helps to gain an understanding of the future growth of this mature market. The study examines key market drivers and restraints. It also provides an insight into the future trends of the market, such as sensor fusion and analyses the impact of legislative trends. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments: manual, semi-automatic and automatic systems.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Geographical Region:

- The United Kingdom

- Germany

- France

- Spain

- Austria, Belgium, Finland

- Italy, the Netherlands, Portugal

- Sweden

Technologies

The following technologies are covered in this research:

- HVAC: This refers to heating, ventilation and air conditioning components that are used to cool heat on a hot day or provide warmth on a cold day.

- Manual HVAC System: This refers to HVAC systems that need constant user intervention to maintain comfort level.

Semi-automatic HVAC System: Semi-automatic HVAC systems are partially automated through sensors to maintain the comfort levels.

- Automatic HVAC System: These systems are fully controlled by sensors to provide and maintain the optimum level of comfort.

- Refrigerant: A refrigerant is a coolant fluid used to remove heat from the cabin.

- H Fluid: This is the alternative refrigerant developed by Honeywell.

Topics Covered

1. Executive Summary

2. Total European Passenger Car Air Conditioning Systems Market

3. Market Drivers Restraints and Challenges Analysis

4. Technology Market and Legislative Trends

5. Total Market Measurements

6. Competitive Analysis

7. Strategic Conclusions and Recommendations

List of Figures

Summary

Shift to Alternative Refrigerant Revives European Automotive OE Heating Ventilation and Air Conditioning Systems Markets

The European automotive original equipment (OE) heating ventilation and air conditioning (HVAC) systems markets are going through a mature phase. The shift to alternative refrigerants and the increase in the use of sensors are major factors influencing the markets. Market penetration for manual systems is expected to decrease with the market moving towards semi-automatic and automatic systems. However, manual systems will not be phased out of the market since they offer a cost-effective solution. Apart from this, the penetration of air quality sensors (interior and exterior) is projected to gain momentum by 2010.

The important trends affecting the automotive OE HVAC systems market are related to legislative actions and comfort enhancements such as reducing complexity to the end-user. Legislative trends have created the need to look into alternative refrigerants such as R744, H152a and H fluid, among others. Following the EU legislation to phase out R134a, R744 (commonly known as CO2) has been widely accepted as the refrigerant that will replace the existing R134a refrigerant. Its market launch is expected in 2009. "The European Union's legislation to phase out the existing R134a refrigerant is the key driving factor in the automotive OE HVAC systems market," notes the analyst of this research service. "The market is currently in an interesting phase, where the future of R744 as alternative refrigerant is at stake in view of the announcements from other refrigerant suppliers."

Cost-effective Solutions: Key to Propel Market Growth

Recently, Dupont and Honeywell have developed an alternative refrigerant that will comply with the guidelines set by the EU. Honeywell's refrigerant, known as H-fluid, has generated interest among vehicle manufacturers and Tier 1 suppliers alike. It offers similar cooling efficiency and operating pressure as that of the R134a and is a cost-effective refrigerant compared to the CO2. However, it is unlikely to meet the deadline set by the EU.

One of the major challenges in the markets is the increase in the pricing of the automotive HVAC systems. The prices of the systems are expected to rise due to the switch to alternative refrigerants. The increase in costs is attributed to the cost of re-engineering and design of the existing systems. "The European Union's directive to switch the existing R134a refrigerant with an alternative refrigerant is expected to result in increased cost to suppliers," explains the analyst. "The shift would mean that the existing infrastructure required to manufacture HVAC systems will need to accommodate changes to component design, thereby increasing costs." While the increase in the price of the system is inevitable, suppliers are working towards a cost-effective solution to satiate the pressure from vehicle manufacturers.