There is no doubt that CO2 air conditioning is a "greener" solution than current technology, and that it will in most forms offer superior performance. However, the expectation is that the first applications of the new technology could cost as much as 30% more than current systems.

To further complicate the picture, it appears as of the first quarter of 2006 that North America will not adopt R744 in the near future. Therefore most suppliers can expect to have to conduct business on two fronts - carbon dioxide for Europe and Japan, HFCs in North America. And the cost pressures in the sector are not expected to ease.

Brand new research on the automotive HVAC sector

This report highlights the findings of research conducted throughout 2005 by ABOUT Automotive in the automotive air conditioning market. It is largely based on our research and analysis and interviews with a number of industry experts, gathering individual perspectives.

The study updates and extends our first analysis of this sector, published in November 2001 and 2003, providing some insights in a number of areas, including:

The report provides answers to such vital questions as:

Report coverage:

Chapter two sets out our forecast for global OE sales of air conditioning systems through 2008 and includes coverage on a regional basis, including Europe, Japan, Asia-Pacific, North America and South America. It also identifies the market leaders for HVAC in each region, comparing how their positions have changed over the last two years as well as some market value estimates for the OE air conditioning market in each world region, forecasting through 2010. We also present some more detailed analysis of the fitment of automatic climate control systems to all car segments in Europe.

We take a look at the design and installation of HVAC systems in platform based vehicles, such as Volkswagen Group's PQ 35 cars.

In addition, we examine the increasing number of OEMs offering HVAC systems as a no-cost option to incentivise consumers. We analyse the impact this has on cost and volumes for suppliers; the effect on consumer expectations; and the impact that the shift to CO2 may have on this marketing strategy.

Chapter three reviews the technical advances in vehicle air conditioning during the last decade, reviewing the effects on the industry following the switch to CO2 (carbon dioxide) as a refrigerant in air conditioning systems. In fact, Denso is one of a few major suppliers developing CO2-based systems, which have less impact on the environment than ozone-damaging fluorocarbons. Developers say the systems will also be more efficient, thereby drawing less power from the engine, and can be doubled as heat-pumps, providing heat that could help diesel engines warm up faster, or provide extra heating in small cars. Opinions are mixed as to how soon mass-market CO2 air conditioning units could be seen, and critics say there remain many challenges regarding the cost, weight, reliability, servicing and maintenance of such new systems.

Chapter four provides brief profiles of the major automotive air conditioning equipment manufacturers: