Market Trends of Off-highway Vehicle HVAC Industry
This section covers the major market trends shaping the Off-highway Vehicle HVAC Market according to our research experts:
Rising Off-Highway Vehicle Demand
Infrastructure spending by government and private players across the world has been witnessing a notable rise over the past few years, thereby offering several growth opportunities for construction equipment and associated component manufacturers, as the demand for construction equipment directly varies with investments in infrastructure development.
The government of various regions is focusing on infrastructure development which has boosted the off-highway vehicle demand. For instance, in July 2021, Canada announced over USD 33 billion in investment into Canadian infrastructure projects and over USD 180 billion in the next 12 years for the development of the country's infrastructure.
Amid this stance, players are introducing off-highway vehicles equipped with air conditioning systems. For instance:
- In June 2021, Liebherr announced the launch of the advanced 305 tons mining truck used at mining sites across the globe. The vehicle offers a powerful 3,650 hp engine and has an integrated HVAC system that provides comfort in all extreme temperatures.
Off-highway vehicles mostly work in extreme climatic conditions, such as in snow-covered terrain or the desert. HVAC manufacturers are developing lighter, more efficient, and smaller components owing to limited space availability in the cabin. Apart from comfortability, HVAC provides reduced operating hours, ultimately resulting in fuel-saving and fewer emissions.
Moreover, the rising trend of electrification is also being witnessed in off-road vehicles. Many start-ups and established players have launched their electric models with advanced HVAC systems. For instance, Nikola NZT, an electric off-road vehicle that gives a 150-mile range on a full charge, has a climate control HVAC system for heating or cooling so that the driver does not feel any discomfort.
Asia-Pacific Is Expected to Witness High Growth in the Off-highway Vehicle HVAC Market
Asia-Pacific is the manufacturing hub of construction and heavy machinery. In addition, developing economies, such as China, India, and Japan, have a huge potential for infrastructural development, mining, and agriculture, as these countries are the most populated in the world. The market for excavators and other types of construction machinery, including off-highway vehicles, is anticipated to strengthen in China over the forecast period.
China is also one of the major countries in the Asia-Pacific, with ample construction activities being supported by its growing economy. The country's growth rate is high but is gradually moving toward moderate (as the population ages and the economy rebalances from investment to consumption, from manufacturing to services, and from external to internal demand).
Despite near-term challenges in certain construction sectors, the medium to long-term growth story in India remains intact. The construction industry in India is expected to grow steadily over the forecast period, as the infrastructure sector is a key pillar for the growth of the Indian economy. The government is taking various initiatives to ensure the time-bound creation of excellent infrastructure in the country. Apart from this, the Central Vista project and the new parliament building project of the Central Government are also expected to offer support to the growth of the construction industry, i.e., In the ongoing FY 2021-22, the Government has allocated a total of INR 1,289 Crore for the development and re-development of the Central Vista project.
Considering the infrastructure and development scenarios in the Asia-Pacific, demand for better and advanced off-highway vehicles is anticipated to roll down during the forecast period, which will provide momentum to the HVAC system demand in these vehicles.
