Automotive Thermal Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Automotive Thermal Management System Market is segmented by Application (Engine Cooling, Cabin Thermal Management, Transmission Thermal Management, Waste Heat Recovery/Exhaust Gas Recirculation (EGR) Thermal Management, Battery Thermal Management, and Motor and Power Electronics Thermal Management), Vehicle Type (Passenger Car and Commercial Vehicle), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market size in value (USD Billion) and forecasts for all the above segments.

Automotive Thermal Management Market Size

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Automotive Thermal Management Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 99.97 Billion
Market Size (2029) USD 132.96 Billion
CAGR (2024 - 2029) 5.87 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific

Major Players

Automotive Thermal Management Market

*Disclaimer: Major Players sorted in no particular order

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Automotive Thermal Management Market Analysis

The Automotive Thermal Management Market size is estimated at USD 99.97 billion in 2024, and is expected to reach USD 132.96 billion by 2029, growing at a CAGR of 5.87% during the forecast period (2024-2029).

Manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic negatively affected the automotive thermal management industry. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. For instance, worldwide automobile production fell by 15.69% in 2019. Although in 2021, global automotive production increased significantly compared to the pandemic hit 2020, it was well below the figures of 2019, primarily attributed to the semiconductor shortage.

The rising need for better ride quality and heat insulation for cabin comfort is greatly emphasized in the automotive industry, leading to a much higher demand for thermal management systems. The ever-increasing number of electrical and electronic components inside vehicles also drives the need for better thermal management systems due to heat dissipation.

Over the long term, as the automotive industry moves to electric mobility, thermal management systems for IC engines are expected to go completely obsolete. However, the increasing number of heavy-duty electrical components, such as heavy-duty batteries and high-current motors, is expected to continue keeping the high demand in these aspects. With increasing automation and powertrain electrification, the demand for electrical and electronic components exponentially increased, in both passenger cars and commercial vehicles, in the automotive industry.

Major original equipment manufacturers are focusing on the development of thermal management systems to offer the best possible travel range for their electric fleet. For instance,

  • In December 2021, Volvo tested its new thermal management system that pre-heats a truck's batteries using electrical components and electronic control units. The thermal system ensures the temperature is maintained under extreme weather conditions, thus increasing their demand to a large extent.

Auto parts suppliers are accelerating efforts to strengthen their global competitiveness in the thermal energy management market with the advancement of vehicle electrification. For instance,

  • In February 2022, Borgwarner Inc. secured an agreement to supply High-Voltage Coolant Heater (HVCH) to be used in BMW Group's iX and i4 fully electric architecture. The solution controls the battery's thermal management system and cabin heating and significantly increases the driving range and reliability of the battery.

Asia-Pacific is anticipated to be the largest market due to the presence of large OEMs for automotive thermal management systems, large markets for automobiles like China, India, Japan, and South Korea, and a well-developed automobile manufacturing industry.

North America and Europe are projected to be the next biggest markets due to high vehicle ownership rates, growing electric and autonomous vehicle sales, and extensive automobile manufacturing industries.

Thus, the confluence of the aforementioned factors is anticipated to drive the growth of automotive thermal management systems.

Automotive Thermal Management Market Trends

This section covers the major market trends shaping the Automotive Thermal Management Market according to our research experts:

Battery Thermal Management to Witness Significant Growth

Vehicles that run on an all-electric powertrain or hybrid powertrain require a battery thermal management system. The battery is operated under a specific temperature for maximum charge storage and utilization efficiency. Hence, the increase in battery electric vehicles or plug-in hybrid vehicles is likely to drive the automotive thermal management market during the study period. For instance,

  • In 2021, many European countries witnessed double-digit growth in EV sales, whereas the European region captured around 34% of global EV sales in 2021 compared to 43% in 2020. The overall plug-in vehicle sales reached about 2.27 million units in 2021 compared to 1.37 million in 2020.

This spike in sales is the result of an increase in regulatory norms by various organizations and governments to control emission levels and propagate zero-emissions vehicles.

Companies are investing in making more efficient battery solutions for the upcoming battery electric vehicles. For instance,

  • In September 2022, Mahle launched its new thermal management systems for commercial electric vehicles at IAA Transportation in Hannover, Germany.

Thus, the above factors are estimated to significantly expand the market for automotive thermal systems during the forecast period.

Automotive Thermal Management Market: Sales of Battery Electric Vehicles (In Million Units)- 2019-2021

Asia-Pacific Continues to Capture Major Market Share

The growing automobile sector in Asia-Pacific (with India and China emerging as automotive part manufacturing hubs for the western automobile giants) is expected to drive the market for thermal management systems in this region.

The growing government regulations improving electric vehicle adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate the rising demand from the automotive industry in China are expected to create a positive outlook for market growth during the forecast period. For instance,

  • In August 2022, Schaeffler Group celebrated the production of five million thermal management modules in China.

The Indian automotive industry is the fourth-largest in the world, and in terms of commercial vehicle production, the country ranks seventh globally. The auto component business in the country has also increased significantly over the past five years. For instance,

  • In March 2022, the development of a new high-speed mid-torque electric motor was revealed by Matter, an Ahmedabad-based technological innovation start-up focusing on delivering futuristic sustainable solutions. The company says that Matter Drive 1.0 Motor is a new intelligent drive train that includes a variety of significant breakthroughs, such as the Integrated Intelligent Thermal Management System.

In addition, rising sales of electric and hybrid vehicles in counties like China, India, Japan, and South Korea will further augment the market for automotive thermal systems in the Asia-Pacific region.

Thus, the Asia-Pacific region is predicted to remain the largest market for automotive thermal systems in the world during the forecast period.

Automotive Thermal Management Market- Growth Rate by Geography (2022-2027)

Automotive Thermal Management Industry Overview

The automotive thermal management market is moderately consolidated, with the major players dominating the market. Some of these players include Denso Corporation, Valeo, Mahle GmbH, Hanon System, and BorgWarner Inc. These payers engage in new product launches, joint ventures, and capacity expansions to expand their business activities and cement their market position. For instance,

  • In November 2022, Denso Corp. launched a new LD9 electric zero emissions thermal management unit for buses and coaches at Bus & Coach Expo in Sydney, Australia.
  • In March 2022, Hanon Systems inaugurated a new plant located in Huchai, China, to manufacture heating, ventilation, and air conditioning (HVAC) modules for electrified vehicles.

Automotive Thermal Management Market Leaders

  1. BorgWarner Inc.

  2. Mahle GmbH

  3. Hanon Systems

  4. Valeo

  5. Denso Corporation

*Disclaimer: Major Players sorted in no particular order

Automotive Thermal Management Market Concentration
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Automotive Thermal Management Market News

  • Oct 2022: French energy giant TotalEnergies and Valeo partnered to develop a novel method for thermal management systems for electric vehicle batteries by utilizing cooling fluid developed by TotalEnergies.
  • Aug 2022: Mahle received a loan of EUR 300 million (USD 312 million) from the European Investment bank to develop technologies, including electric motors, battery components, power electronics, thermal management, and hydrogen fuel cell components for electric, hybrid, and fuel cell vehicles.
  • Aug 2022: BorgWarner Inc. announced that it had won two contracts, one from a global automaker and one Chinese automaker, to provide its advanced High-Voltage Coolant Heater (HVCH) technology for their new electric vehicle models.
  • Apr 2022: Denso Corp. won contracts to supply Toyota and Subaru's all-new, all-electric bZ4X and SOLTERRA with key electrification components, including thermal management systems like heat pump systems and radiant heating systems. Toyota electric bZ4X will be launched in May 2022, while Subaru SOLTERRA was expected to debut in mid-2022.
  • Apr 2022: Hanon Systems announced to relocate its manufacturing facility in Turkey from Gebze to Dilovasi.

Automotive Thermal Management Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Engine Cooling

      2. 5.1.2 Cabin Thermal Management

      3. 5.1.3 Transmission Thermal Management

      4. 5.1.4 Waste Heat Recovery/ Exhaust Gas Recirculation (EGR) Thermal Management

      5. 5.1.5 Battery Thermal Management

      6. 5.1.6 Motor and Power Electronics Thermal Management

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Car

      2. 5.2.2 Commercial Vehicle

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 France

        3. 5.3.2.3 United Kingdom

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 South America

        2. 5.3.4.2 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Robert Bosch GmbH

      2. 6.2.2 Dana Incorporated

      3. 6.2.3 MAHLE GmbH

      4. 6.2.4 Gentherm Incorporated

      5. 6.2.5 Hanon Systems

      6. 6.2.6 Denso Corporation

      7. 6.2.7 BorgWarner Inc.

      8. 6.2.8 Valeo Group

      9. 6.2.9 Modine Manufacturing Company

      10. 6.2.10 Schaeffler Technologies AG & Co. KG

      11. 6.2.11 Kendrion NV

      12. 6.2.12 ZF Friedrichshafen

      13. 6.2.13 Aptiv Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Automotive Thermal Management Industry Segmentation

An automotive thermal management system (TMS) monitors and controls the operating temperature of various automotive systems, such as power electronics, transmission, battery, electric drive units, engine, and passenger cabin areas, to improve efficiency and prevent damage to the components.

The automotive thermal management market has been segmented by application type, vehicle type, and geography. By application, the market has been segmented into engine cooling, cabin thermal management, thermal transmission management, waste heat recovery/exhaust gas recirculation (EGR) thermal management, battery thermal management, and motor and power electronics thermal management. By vehicle type, the market has been segmented into passenger cars and commercial vehicles. By geography, the market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The report offers the market size in value (USD Billion) and forecasts for all the above segments. The report also provides market sizing and forecast for all the above-mentioned segments.

Application
Engine Cooling
Cabin Thermal Management
Transmission Thermal Management
Waste Heat Recovery/ Exhaust Gas Recirculation (EGR) Thermal Management
Battery Thermal Management
Motor and Power Electronics Thermal Management
Vehicle Type
Passenger Car
Commercial Vehicle
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
France
United Kingdom
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East and Africa
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Automotive Thermal Management Market Research FAQs

The Automotive Thermal Management Market size is expected to reach USD 99.97 billion in 2024 and grow at a CAGR of 5.87% to reach USD 132.96 billion by 2029.

In 2024, the Automotive Thermal Management Market size is expected to reach USD 99.97 billion.

BorgWarner Inc., Mahle GmbH, Hanon Systems, Valeo and Denso Corporation are the major companies operating in the Automotive Thermal Management Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Automotive Thermal Management Market.

In 2023, the Automotive Thermal Management Market size was estimated at USD 94.43 billion. The report covers the Automotive Thermal Management Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Thermal Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Automotive Thermal Management Industry Report

Statistics for the 2024 Automotive Thermal Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Thermal Management analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Automotive Thermal Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)