Global Market Study on Automotive Radiators:Replacement Rate of Old Radiators to Push Market Growth
An automotive radiator is a heat exchanger assembly containing aluminum fins, and a metal pipe network for convection heat loss from a flowing coolant and a fan. The radiator is typically installed for cooling the engine, motor, batteries, or other components in the case of hybrid or electric vehicles. With the growing demand and sales of hybrid and EVs, the automotive radiator market size is projected to expand at a steady pace over the forecast period of 2020 to 2030.
Automotive Radiator Market Trends
Auto Manufacturers Shifting to Emerging Markets: Automotive manufacturers are shifting production plants or establishing new ones in emerging automotive markets to capitalize on the growing demand for automobiles and benefit from lower capital and labor costs in these regions. Automotive component markets in countries such as China, India, Indonesia, Brazil, and Mexico are expected to benefit significantly from the increasing demand for aftermarket and OEM products. Domestic suppliers, especially of external components such as radiators, pumps, fans, pulley-belt, and others are expected to benefit considerably.
Automobile manufacturers have high preference for locally-sourced components owing to economical pricing and sustainable supply, thus benefitting domestic manufacturers. Furthermore, international players could leverage their capabilities to expand into such markets, either through collaboration with local players or by establishing production sites in these regions. Several advantages associated with low labor and material costs are attracting automobile manufacturers into the regions.
Passenger Cars to Show High Prominence in Automotive Radiator Market: Passenger cars are expected to reflect high growth potential in the global automotive radiator market, and this segment is expected to have high market attractiveness. Persistent developments in technology supported by increasing production are key factors responsible for passenger cars gaining high attraction for radiator applications. Increasing production and focused innovation in passenger cars are estimated to fuel growth even more over the coming years.
Regional Outlook of Automotive Radiator Market
The global automotive radiator market share will be dominated by 5 countries over the period of forecast - China, the U.S., Japan, Germany, and South Korea. These top 5 regions are projected to hold more than half the share of the global automotive radiator market space in 2020. The markets in India, Indonesia, Brazil, and Mexico will also thrive with stakeholders eyeing these countries due to cheap labor and lower capital requirements.
COVID-19 Impact on Automotive Radiator Market
The COVID-19 outbreak has taken the world by surprise and thrown most countries and economies off-gear. Until the virus is contained, businesses will continue to suffer, due to trade restrictions and reduced manufacturing activities across sectors. As far as the global automotive radiator market space is concerned, the OEM as well as aftermarket segments are estimated to suffer negative growth in the year 2020, owing to a drop in demand across the world. The market will gradually pick pace and go back to its normal growth rate post pandemic.
A detailed view of the global radiator paint market has led our analysts to conclude that, the market is poised to expand at a steady CAGR of around 5% from the year 2020 to 2030. Stakeholders in this competitive space can look to regions such as the U.S., Japan, China, South Korea, and Germany for increased sales and profits over the coming years. Setting up of manufacturing units in emerging markets would also be beneficial as far as operational costs and capital are concerned.