Passenger Car AC Valves Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Vehicle Type (SUV, Sedan, Hatchback, MUV), By Sales Channel (OEM and Aftermarket), By Fuel Type (Gasoline and Diesel) By Region and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.65 Billion
CAGR (2026-2031)	6.96%
Fastest Growing Segment	SUV
Largest Market	Asia Pacific
Market Size (2031)	USD 2.47 Billion

Market Overview

The Global Passenger Car AC Valves Market will grow from USD 1.65 Billion in 2025 to USD 2.47 Billion by 2031 at a 6.96% CAGR. Passenger car AC valves are specialized components within vehicle thermal management systems designed to regulate refrigerant flow and ensure optimal cabin temperature stability. The market is fundamentally driven by the escalating volume of global vehicle production and a rising consumer preference for superior cabin comfort features in modern automobiles. According to the China Association of Automobile Manufacturers, in 2024, passenger car production in China surpassed 25 million units, indicating a strong industrial requirement for thermal regulation hardware.

However, the market encounters a significant obstacle regarding the elevated costs associated with advanced electronic expansion valves compared to their mechanical counterparts. This price disparity limits the integration of newer valve technologies in economy vehicle models and regions where affordability remains a primary purchasing criterion, thereby potentially slowing the overall rate of technical adoption.

Key Market Drivers

The accelerating adoption of electric vehicles requires advanced thermal management systems, fundamentally altering the technical landscape for AC valves. Unlike internal combustion engines, electric powertrains demand integrated cooling circuits for the battery pack, power electronics, and cabin, often utilizing heat pumps that necessitate multiple electronic expansion valves for precise flow regulation. This architectural complexity increases the number of valves per vehicle, driving market value and technical innovation significantly. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales neared 14 million units in 2023, representing a substantial influx of vehicles requiring these specialized thermal components. Consequently, valve manufacturers are pivoting production lines to accommodate the stringent leakage and durability standards required by these high-voltage electrified platforms.

Simultaneously, the resurgence in global passenger vehicle manufacturing volumes acts as a primary catalyst for the widespread procurement of standard and multi-zone AC valves. As automotive supply chains stabilize, major industrial regions are experiencing a rebound in assembly output, directly translating to higher order volumes for essential HVAC hardware. According to the European Automobile Manufacturers’ Association, January 2024, in the 'Passenger car registrations: +13.9% in 2023', new car registrations in the European Union reached 10.5 million units, indicating a robust recovery in demand for climate control systems. This upward trend extends beyond Europe; according to the National Automobile Dealers Association, in 2024, United States new light-vehicle sales totaled 15.5 million units for the full year of 2023. These production increases ensure sustained revenue streams for valve suppliers catering to both economy and premium vehicle segments.

Download Free Sample Report

Key Market Challenges

The primary obstacle impeding the expansion of the Global Passenger Car AC Valves Market is the substantial price differential between advanced electronic expansion valves and their traditional mechanical counterparts. While electronic valves offer precise refrigerant control necessary for modern thermal efficiency, their complex engineering results in significantly higher per-unit manufacturing costs. This financial burden forces automobile manufacturers to exercise caution when selecting components for entry-level and economy platforms, where profit margins are already narrow. Consequently, OEMs frequently opt to retain legacy mechanical valves in lower-priced vehicle segments to keep the final product affordable for the mass market, thereby stifling the widespread adoption of higher-value electronic valve technologies.

This sensitivity to component pricing is most acute in rapidly developing regions that command a large share of global automotive volume. According to the Society of Indian Automobile Manufacturers (SIAM), in the fiscal year ending 2025, passenger vehicle sales in India reached a record 4.3 million units. In such massive, price-driven markets, the inability to absorb the premium costs associated with advanced AC hardware significantly slows the overall rate of technical evolution, ensuring that lower-cost mechanical solutions continue to dominate a substantial portion of the industry.

Key Market Trends

The adoption of high-pressure valves compatible with R-744 (CO2) refrigerants is emerging as a critical trend driven by stringent environmental regulations targeting per- and polyfluoroalkyl substances (PFAS). Unlike traditional refrigerants, R-744 operates at pressures exceeding 100 bar, necessitating the re-engineering of AC valves with reinforced housings and robust sealing materials. This shift is visible in the strategies of suppliers scaling production of natural refrigerant hardware to future-proof against chemical bans. According to the Mobile Air Conditioning Society, September 2025, in the article 'VW selling ID.4 EVs in Canada with R-744 (CO2) Heat Pump Systems', supplier Hanon Systems deployed over 500,000 CO2 heat pump systems in 2024, underscoring the rapid industrial validation of this technology.

Simultaneously, the market is transitioning toward the integration of discrete valves into holistic thermal management modules. Manufacturers are consolidating expansion and multi-way valves into unified manifold blocks to minimize piping complexity and reduce vehicle weight. This architectural consolidation enables sophisticated control logic that optimizes energy consumption across the cabin and powertrain. According to Valeo, September 2025, in the press release 'Valeo awarded new contracts to supply next-generation climate system to leading Chinese automaker', their newly developed Dual Layer HVAC system cuts component energy use by 15% on average compared to standard units. This efficiency gain drives the procurement of integrated valve solutions to extend electric vehicle range.

Segmental Insights

The Sport Utility Vehicle segment represents the fastest-growing category within the Global Passenger Car AC Valves Market. This upward trajectory is primarily driven by the global shift in consumer preference toward larger automobiles that require robust heating, ventilation, and air conditioning architectures to maintain optimal cabin temperatures. Larger interior volumes often necessitate multi-zone climate control systems, which utilize a higher quantity of expansion and control valves compared to smaller vehicle classes. Consequently, the consistent increase in SUV manufacturing and sales volumes directly supports the heightened demand for these essential thermal management components.

Regional Insights

Asia Pacific holds the leading position in the Global Passenger Car AC Valves Market, primarily due to its status as the central hub for global automotive manufacturing. The region benefits from substantial vehicle production volumes in key economies such as China, India, and Japan. Rising consumer purchasing power has accelerated passenger car ownership, while a growing preference for cabin comfort ensures air conditioning remains a standard requirement. Furthermore, the rapid transition toward electric mobility necessitates precise thermal management, supporting the integration of specialized valves. Compliance with rigorous environmental standards regarding emissions also drives the adoption of efficient climate control components.

Recent Developments

• In November 2025, Valeo was recognized as a CES Innovation Awards Honoree for its Compact 5-Ways Refrigerant Valve, a breakthrough component developed for next-generation electric vehicles. This innovative valve was designed to simplify thermal management architectures by reducing the overall number of components required, which in turn lowered system weight and freed up packaging space. The technology enabled efficient switching between heating and cooling modes and optimized refrigerant flow distribution for both battery regulation and passenger comfort. The award underscored the company's success in developing sustainable technologies that address the complex thermal challenges of electrified mobility.
• In September 2025, Sanhua Automotive launched the eDual (SECD04), a next-generation dual electronic expansion valve controller designed to optimize thermal management performance. The device featured an advanced PID algorithm capable of managing two independent expansion valves within the same circuit, ensuring precise automatic adjustment of superheat for maximum efficiency. Its compact, rail-mounting design and robust functionality allowed for easier installation and seamless integration into modern vehicle systems. This product launch highlighted the company's ongoing commitment to providing intelligent control solutions that meet the demanding energy efficiency requirements of the global automotive market.
• In August 2024, Hanon Systems announced the development of the world's first fourth-generation heat pump system for electric vehicles. This advanced system integrated the Refrigerant Control Module and the Coolant Control Module into a unified control unit, significantly streamlining the thermal management architecture. The technology utilized a parallel heat source recovery method, harvesting waste heat from the motor and battery as well as external air to manage cabin and battery temperatures. First implemented in the Kia EV3, the system demonstrated the company's ability to deliver high-efficiency solutions that improve electric vehicle driving range and performance.
• In April 2024, Vitesco Technologies and Sanden International announced a strategic collaboration to jointly develop an integrated thermal management system for battery electric vehicles. The partnership focused on creating a standardized, compact module that incorporated essential components such as coolant pumps, sensors, and Coolant Flow Control Valves. By consolidating these functions into a single indirect system, the companies aimed to reduce manufacturing complexity and assembly costs for automakers. The optimized solution was designed to enhance vehicle efficiency, extend driving range in cold conditions, and support the industry's transition toward natural refrigerants like propane.

Key Market Players

• Mahle Group
• Knorr-Bremse AG
• Hitachi Ltd.
• Federal-Mogul Holdings Corp
• Eaton Corporation Plc.
• Denso Corporation
• FUJI OOZX Inc.
• FTE automotive GmbH
• Delphi Automotive PLC
• Continental AG

By Vehicle Type	By Sales Channel	By Fuel Type	By Region
SUV Sedan Hatchback MUV	OEM and Aftermarket	Gasoline and Diesel	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Passenger Car AC Valves Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Passenger Car AC Valves Market, By Vehicle Type:

• SUV
• Sedan
• Hatchback
• MUV

• Passenger Car AC Valves Market, By Sales Channel:

• OEM and Aftermarket

• Passenger Car AC Valves Market, By Fuel Type:

• Gasoline and Diesel

• Passenger Car AC Valves Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE