Industry Overview
The Global Automotive Thermal System Market was worth USD 41.2 billion in 2023 and is expected to reach USD 50.5 billion by the year 2030, growing at a CAGR of 3.8 % forecast from 2025 to 2030.
The thermal management system is one of the critical systems of automobiles which ensures the efficient regulation of heat flow inside the vehicle. In addition, components in vehicles must operate within their respective optimal temperature range for efficient working. In a combustion engine vehicle, thermal management majorly involves optimization of thermal balance inside a vehicle by controlling the temperature of internal combustion components based on fuel consumption, and operating point, which in return can help in emission reduction. However, the thermal management system in electric vehicles is more compared to ICE vehicles and can be used to extend the vehicle’s range.
Also, rising environmental concerns and enforcement of norms by governments of various countries related to the emission of greenhouse gases from vehicles contribute to the growth of electric vehicle adoption, which in turn is anticipated to propel the growth of the automotive thermal system market. Furthermore, an adaptation of thermal systems in electrified vehicles helps enhance the battery performance, operating range, and comfort inside the vehicle, which is one of the major factors that is expected to boost the growth of the market during the forecast period 2025-2030.
Market Segmentation
Insight by Component
Based on components, the global automotive thermal system market is divided into, compressor, HVAC, powertrain cooling, and fluid transport. In components, the compressor is anticipated to account for the largest market share and is expected to maintain its lead during the forecast period. In addition, propelling the adoption of compressors in air conditioning systems to maintain the optimum temperature inside the cabin is boosting the growth of the market for the compressor.
Insight by Application
Based on application, the global automotive thermal system market is classified into, front & rear AC, engine & transmission, seat, battery, motor, waste heat recovery, and power electronics. The power electronics unit is primarily used to control and process electrical energy in plug-in and hybrid electric vehicles, and thus the thermal system is used to maintain the optimum temperature for efficient operation. In addition, the waste recovery unit in the automotive thermal system is used to convert the waste heat to electricity and thus reduce the consumption of fuel in the vehicle by limiting the load on the car alternator. Also, waste heat recovery consists of the highest market share in the year 2023 and is anticipated to maintain its lead throughout the forecast period owing to factors such as the implementation of exhaust gas recirculation (EGR) owing to increasing government norms related to emission and growing sales of automobiles in commercial vehicle segment.
Insight by Vehicle Type
Based on vehicle type, the automotive thermal management system market is analyzed into segments such as passenger vehicles and commercial vehicles. In addition, the passenger vehicles segment is anticipated to account for a major market share and is anticipated to dominate the market during the forecast period. Also, increasing sales of automobiles in the Asia-Pacific region owing to increasing disposable income is anticipated to propel the growth of the automotive thermal management system market in the passenger vehicle segment.
Global Automotive Thermal System Market Report Coverage
|
Report Metric
|
Details
|
|
Historical Period
|
2018 - 2023
|
|
Base Year Considered
|
2024
|
|
Forecast Period
|
2025 - 2030
|
|
Market Size in 2023
|
U.S.D. 41.2 Billion
|
|
Revenue Forecast in 2030
|
U.S.D. 50.5 Billion
|
|
Growth Rate
|
3.8%
|
|
Segments Covered in the Report
|
By Component, By Application and By Vehicle Type
|
|
Report Scope
|
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
|
|
Regions Covered in the Report
|
North America, Europe, Asia-Pacific, Middle East and Rest of the World
|
Industry Dynamics
Industry Trends
Growing demand for luxurious and comfortable vehicles and increasing demand for electric vehicles owing to government support for electrified vehicles are anticipated to propel the growth of the global automotive thermal management system market.
Growth Drivers
The stringent government regulations imposed by government agencies of various countries and the increasing necessity for the reduction of greenhouse emissions from vehicles are the major factors boosting the growth of the global automotive thermal system market. In addition, increasing demand for luxury vehicles with features such as front and rear air conditioning, turbochargers in the commercial vehicle segment, and heated steering is expected to drive market growth over the forecast period. Furthermore, the market is also anticipated to exhibit a significant growth rate owing to factors such as the implementation of thermal sensors in passenger vehicles and the growing demand for smart thermal management systems in automobiles. Also, the companies operating in the global automotive industry are majorly focusing on the design and development of hybrid and electric vehicles across the world. Thus, the majority of companies involved in electric vehicle manufacturers have incorporated the development of thermal system components such as battery cooling systems and electric compressors, for electrified vehicles to manage and maintain optimum temperature to achieve maximum efficiency. For instance, in August 2021, Johnson Electric introduced a new high-power electric compressor, which effectively reduces the excessive generated by the battery of electric vehicles during high-rate fast charging.
Challenges
Lack of standardization in the thermal system due to the variation in emission regulations across various countries is one of the major reasons hindering the growth of the global automotive thermal system market. In addition, the high cost associated with the implementation of thermal systems is anticipated to restrict the growth of the market over the forecast period.
Opportunities
Government norms and regulations to support and boost the adoption of electric vehicles in the coming years are expected to provide lucrative growth opportunities to the players operating in the global automotive thermal management system market. Also, the introduction of advanced, lightweight HVAC solutions and the adoption of eco-friendly refrigerants are the factors anticipated to offer growth opportunities to companies during the forecast period.
Geographic overview
The global automotive thermal system market is anticipated across regions such as North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific holds the major market share of the global thermal system market owing to increasing automobile sales in the region due to increasing disposable income among the population. In addition, Latin America is expected to exhibit a significant growth rate during the forecast period due to factors such as rapid urbanization, the growing automobile industry, and government support to adopt electric vehicles in the region.
Competitive Insights
Mahle GmbH is a German automotive parts manufacturer based in Stuttgart, Germany. It is one of the largest automotive suppliers worldwide.
Dana Incorporated is an American supplier of axles, electrodynamic, thermal, driveshafts, transmissions, sealing and digital equipment for conventional, hybrid and electric-powered vehicles. The company's products and services are aimed at the commercial vehicle, light vehicle and off-highway equipment markets.
Grayson Thermal Systems design, manufacture and supply OE and aftermarket cooling and heating products for buses and coaches, specialist off-road vehicles and commercial vehicle industries across the world. The company is responsible for the installation, sales and servicing of Thermo King vehicle air conditioning systems to the bus and coach industry throughout the UK.
Key Players Covered in the Report
Key players operating in the global automotive thermal system market are BorgWarner Inc., Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Incorporated, Hanon Systems, Mahle GmbH, Robert Bosch GmbH, and Valeo S.A.
Recent Development by Key Players
BorgWarner which is a global product leader in delivering innovative and sustainable mobility solutions, has received a contract to deliver its high-voltage eFan system for use on a major global OEM’s series of heavy- and medium-duty battery electric vehicles (BEVs) in North America.
The automotive thermal system market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Component
- Compressor
- HVAC
- Powertrain Cooling
- Fluid Transport
- By Application
- Front & Rear AC
- Engine & Transmission
- Seat
- Battery
- Motor
- Waste Heat Recovery
- Power Electronics
- By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
.png "Automotive Thermal System Market Size and Market Analysis")