Automotive Radiator Fan Market Report 2025 (Global Edition)

MARKET DYNAMICS

Key Drivers

• Increasing use of passenger cars and commercial vehicles is driving demand for the automated radiator fan market

The global automated radiator fan market is driven by growing demand for passenger automobiles around the world. Also, increased disposable income, population growth, urbanization, and a preference for environmentally friendly automobiles are some of the factors driving the demand for passenger cars. For instance, in 2024, India's automotive market is booming because of increased disposable incomes, a new wave of sport-utility vehicles, and affordable loan rates. In 2023, sales of passenger vehicles in India exceeded 4 million units for the first time ever. Industry estimates place sales of passenger cars at approximately 4.1 million for the most recent calendar year, up 8.2% from 3.(http://   https://economictimes.indiatimes.com/industry/auto/auto-news/a-mini-industry-spawns-under-the-hood-of-a-booming-car-market/articleshow/108263386.cms?from=mdr). Furthermore, the growing popularity of electric and hybrid cars is predicted to drive up demand for radiator fans in the passenger car market. For instance, the number of electric vehicles on the road worldwide rose by 60% in 2022 compared to 2021, with BEVs accounting for 70% of the total stock. Revenues from 2021 to 2022 were just as high as from 2020 to 2021, with a 3.5 million increase in absolute terms. The surge may be due to EV markets recovering from the COVID-19 pandemic, with an annual growth rate similar to 2015-2018. http:// https://www.iea.org/reports/global-ev-outlook-2023/trends-in-electric-light-duty-vehicle. Thus, increasing use of passenger cars and commercial vehicles is driving demand for the automated radiator fan marke.

• Growing use of air condition systems and increasing penetration of advanced cooling systems are accelerating the automated radiator fan market growth

In equatorial, hot, and tropical regions, with countries in the Middle East, Brazil, India, Indonesia, countries in Africa, Colombia, and other humid regions, integration of air conditioners in vehicle has become a requirement. Constant airflow is essential to sustain the steady cooling of the vehicle. This is achieved by an automotive radiator fan, which maintains the temperature of the engine and increases air condition performance via continuous airflow across the condenser. For instance, in 2023, Lucid has opened its first electric vehicle (EV) factory in Saudi Arabia's King Abdullah Economic City (KAEC), marking the start of production operations for the company's Lucid Air. The factory, which is Lucid's second advanced manufacturing plant, has started semi-knocked-down assembly and is expected to have an annual capacity of 5,000 cars. Lucid plans to transition AMP-2 to complete build unit (CBU) production after the middle of the decade, with an additional annual capacity of 150,000 cars. The plant's strategic location near Jeddah will also help expand the domestic supply chain, creating demand for local suppliers and fostering long-term growth. http:// https://ir.lucidmotors.com/static-files/f9bbeb85-c12f-4d10-a546-c9a7aaccef3c. Thus, growing use of air condition systems and increasing penetration of advanced cooling systems are accelerating the automated radiator fan market growth.

Key Restraint

• The high cost of the vehicles is projected to hinder the automated radiator fan market

The high cost of the vehicles and the low fuel efficiency are expected to obstruct market growth for the automated radiator market market. Also, considerable maintenance expenses and augmented insurance rates are projected to challenge the sport utility vehicle (SUV) market. An increase and regular hike in the cost of vehicles are some of the biggest restraints to grow the market in the forecast period. For instance, in 2021, the second wave of Covid-19  slowed consumption in India due to increased medical costs and uncertainty about family members' futures. The demand for vehicles has decreased due to lockdowns, metal and fuel prices, job loss concerns, and public transportation needs. The auto industry is expected to slow down in FY22, with people returning to buying only if vaccinations are faster. (http:// https://business.outlookindia.com/cars-and-bikes/covid-scare-drives-people-away-from-buying-cars-7222). Depending on the complexity of the instrument, advanced diagnostic equipment for auto repair can range in price from a few thousand to tens of thousands of dollars. Complicating the issues brought on by high initial equipment costs could be restricted access to capital and financing options.Thus, the high cost of the vehicles is projected to hinder the automated radiator fan market. 

Key Opportunities

• Digitalization and EVs are Providing Lucrative Growth Opportunities for the Market Expansion

The rate at which automotive systems are becoming more digitalized is increasing, making the usage of digital diagnostic tools necessary for the diagnosis and maintenance of systems like ADAS. The need for diagnostic and calibration tools for features like instrument consoles, airbags, sensors, and digital locks is growing as automotive systems become more digitalized. Leading Original Equipment Manufacturers' expenditures in the development of digital and autonomous vehicle technologies are anticipated to significantly increase this need. As a result, there will be a higher need for basic auto manufacture and maintenance, as well as for automotive radiator fans. Furthermore, there will be a greater requirement for car garages to have more space due to the increased need for vehicle maintenance and customization. Apart from this, OEMs are being urged to integrate cutting-edge capabilities in radiator fans as a result of the introduction of IoT-based sensors which is increasing market sales. Furthermore, the increasing adoption of electric vehicles is also creating lucrative opportunities since these vehicles also require proper engineering in order to function properly. 
For example, in 2024 ,BYD, the world's leading manufacturer of new energy vehicles, hosted the 2024 BYD Dream Day in Shenzhen, marking the unveiling of its Integrated Vehicle Intelligence strategy and the launch of XUANJI Architecture. The XUANJI Architecture is a self-developed vehicular intelligent architecture that combines electrification and intelligence, enabling real-time perception of changes in the car's internal and external environment. This system enhances driving safety and comfort, and BYD aims to accelerate the transformation of the automotive industry. The XUANJI AI Large Model, a pioneering multimodal vehicular artificial intelligence, covers over 300 vehicular scenarios and has the largest data foundation in the industry. BYD's Intelligent Driving strategy includes cutting-edge features like the DENZA N7 equipped with NOA, YANGWANG U8 with Vehicle-mounted UAS, and e4 concept car. The company plans to invest 5 billion RMB to construct the world's first all-terrain professional test drive sites in several cities across China, promoting the Chinese automotive culture in the new energy landscape. Thus, this instance dispalys how the leading industries adoption to new technological advancements in its recent launch will help generate growth of the automotive radiator fan market. (https://en.byd.com/news_category/press-release/). Thus, digitalization and EVs are providing lucrative growth opportunities for the market expansion

Impact of COVID-19 on the Automotive Radiator Fan Market

The Automotive Radiator Fan Market noticed sluggish growth in 2020. Automotive radiator fan exports dropped in the second & third quarters of 2020 due to supply chain disturbances caused by the COVID-19 pandemic. For instance, China's auto industry faces significant risks in Q2 2022 due to production halts and supply-chain disruptions from Covid-19 control measures. The industry in northeast and eastern China has been severely disrupted since mid-March due to strict quarantine restrictions. The China Passenger Car Association reported a 50% slump in wholesale deliveries of passenger vehicles in the first three weeks of April. Retail car sales have been the largest hit, with volume dropping 11% YoY in March.(http:// https://www.fitchratings.com/research/corporate-finance/chinas-auto-industry-faces-severe-disruptions-from-covid-19-29-04-2022). Furthermore, the slowdown in automotive demand has led to a significant drop in product prices. However, large-scale plant closures by OEMs in Europe and North America are likely to have an impact on the prospects of the global automotive radiator fan market in the midst of the COVID-19 crisis. In the post-COVID-19 era, numerous automotive companies are looking to expand their supply chains. For instance, some Indian companies, including Tata Motors & Maruti, are likely to lead the way in sourcing automotive components from domestic suppliers. (https://economictimes.indiatimes.com/industry/auto/auto-components/auto-parts-manufacturers-plan-diversification-of-supply-chain-in-the-post-covid-19-world/articleshow/75043178.cms?from=mdr)
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Automotive Radiator Fan Market is witnessing significant growth in the near future.

In 2023, the Mechanical segment accounted for noticeable share of global Automotive Radiator Fan Market and is projected to experience significant growth in the near future.

The Passenger Vehicle segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Johnson Electric Holdings Limited (Hong Kong) , Hella KGaA Hueck & Co. (Germany) and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)