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Home / India News / 2007 / May / May 3, 2007
Shift to Alternative Refrigerant Revives the Mature European Automotive OE HVAC Systems Market

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Shift to Alternative Refrigerant Revives the Mature European Automotive OE HVAC Systems Market

Mumbai, Maharashtra, India

European Union (EU) legislation to phase out the existing R134a refrigerant is a key driver in the European automotive original equipment (OE) heating ventilation and air conditioning (HVAC) systems market. While R744 has been widely accepted as the alternative refrigerant for R134a and commercial launch is expected by 2009, its future will depend on the success of various alternatives currently being explored by refrigerant suppliers.

Frost & Sullivan (http://www.automotive.frost.com) finds that the European Automotive OE HVAC Market earned revenues of €5.06 billion in 2006 and estimates this to reach €9.81 billion in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC) Systems Markets then send an e-mail to Ravinder Kaur, Corporate Communications, at ravinder.kaur@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"Following EU legislation to phase out the existing R134a refrigerant, R744 (commonly known as CO2) has been adopted as its replacement," notes Frost & Sullivan Research Analyst Roshan Devadoss. "In the meantime, Dupont and Honeywell have already developed alternative refrigerants that would comply with guidelines set by EU."

Honeywell's refrigerant, called H-fluid, has generated interest among both vehicle manufacturers and Tier 1 suppliers. It offers cooling efficiency and operating pressure similar to that of R134a while being comparatively more cost-effective.

A major challenge for the automotive HVAC industry will be the increase in the price of HVAC systems. The shift to alternative refrigerants will involve considerable re-engineering and re-designing of existing systems. The resultant costs incurred by suppliers will be reflected in higher prices for the systems.

"The EU's decision to opt for an alternative refrigerant will raise the cost of HVAC systems for suppliers," explains Mr Devadoss. "Existing infrastructure required to manufacture HVAC systems will need to accommodate changes to component design, resulting in higher cost outlays."

The increase in system prices is inevitable. However, suppliers are working towards cost-effective solutions that will address the concerns of vehicle manufacturers.

European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC) Systems Markets is part of the Automotive & Transportation Subscription, which also includes research in the following markets: transmission technologies and features, European OE and aftermarket for CAF, strategic assessment and capability analysis of European suspension system suppliers. All research included in subscriptions provides detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 45 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics. For more information, visit http://www.frost.com.

European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC) Systems Markets
M0E1-18

Contact:

Ravinder Kaur
Corporate Communications - South Asia, Middle East
+ 91 (044) 4204 4515
ravinder.kaur@frost.com

michael.banks@frost.com vanessa.quezada@frost.com

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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