Market Trends of China Automotive Heat Exchanger Industry
Increasing Electric Vehicle Sales in the Country Boosts the Market-
The automotive industry is actively shifting toward sustainable, clean fuels. The sales and the production of electric vehicles are further expected to witness a phenomenal growth rate. Increasing awareness about environmental concerns led to the adoption of new energy vehicles. The rising adoption of electric vehicles in China compelled manufacturers of traditional heat exchangers to develop efficient battery thermal management systems like liquid-cooled plate heat exchangers and expand their product portfolio. For instance,
- In July 2023, Magneti Marelli launched a new integrated thermal management module for electric vehicles to improve the vehicle's efficiency, safety, and driving range by up to 20%.
The increasing sales of electric vehicles such as battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles led to an increase in the demand for Lithium-ion batteries. These batteries can store energy in a small space. However, there are various issues associated with Lithium-ion batteries used in electric vehicles. For instance, if the charging limit exceeds 4.2 volts, then it could cause overheating of the lithium plating.
It damages the cells and reduces the overall performance and battery life. The battery thermal management system plays a significant role in improving the performance and efficiency of the electric vehicle. Such advantages of battery thermal management systems are expected to boost the market for China's automotive heat exchangers during the forecast period.
Demand for Passenger Cars and Light Commercial Vehicles Drive the Demand-
Demand for passenger cars and light commercial vehicles in China is expected to grow during the forecast period, leading to a high demand for automotive heat exchanger units in China. The country is home to more than 500 heat exchanger manufacturers, with a massive presence of domestic players. The increased penetration of passenger vehicles over the last three years in the country drove the growth of the automotive heat exchanger.
China continues to be the world's largest automobile vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025. Based on data from the China Association of Automobile Manufacturers, over 27 million vehicles were sold in 2022, including 23.24 million passenger vehicles, an increase of 8.19% from 2021. These increasing domestic sales of passenger vehicles are anticipated to boost the Chinese automotive heat exchanger market in the forecast period.
Moreover, several automobile manufacturers are focusing on hybrid technology, which uses both gasoline or diesel-powered and electric power. The increasing country's sales and production of motor vehicles led to a consistent increase in demand for automotive components such as radiators, condensers, evaporators, heaters, intercoolers, battery thermal systems, HVAC systems, and oil coolers, among others. It, in turn, is expected to drive the China automotive heat exchanger market during the forecast period.
