A look into the technology and supply chain of the global automotive thermostatic expansion valve sector
The demand for thermostatic expansion valves (TXVs) is forecast to see a growth of around 14% between 2018 and 2024, mainly due to the growing LV volume globally. The component volume is linked to the demand for A/C systems in LVs, which already have a very high fitment rate globally. The higher value electronic expansion valves (EXVs) which are fitted on alternative energy BEVs and full HEVs can provide added impetus to the business.
For quite some time now, effective cabin temperature control has been right up there with premium cabin materials and multimedia features, along with ergonomic and comfortable seating, as one of the cornerstones of passenger cabin experience. OEMs have not only obliged but have taken it up a notch – with modern vehicles increasingly incorporating advanced sensor driven intelligent multizone automatic climate control, heated and cooled cabin surfaces, etc. This level of technology sophistication, which usually debuts with the OEMs’ flagship offerings, is now cascading down into the humbler siblings within the product range at a more accelerated pace. The trend has been helped by the increased economy of scale afforded by vehicle platform sharing, drop in the cost of technology, and rapid prototyping techniques.