Global Electric Vehicle Thermal Management Systems Market is Segmented By System (Heating, Ventilation, Air Conditioning (HVAC), Powertrain Cooling, Fluid Transport, Others), By Components (Battery, Power Generation, Cabin, Motor), By Technology (Active, Passive), By Propulsion (Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV)), By Battery Capacity (Below 30 kWh, 30 – 60 kWh, 60 – 100 kWh, Above 100 kWh), By Battery (Conventional, Solid- State), By Vehicle (Passenger Vehicles, Commercial Vehicles), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Electric Vehicle Thermal Management Systems Market Size
Global Electric Vehicle Thermal Management Systems Market reached USD 3.2 billion in 2022 and is expected to reach USD 14.4 billion by 2031, growing with a CAGR of 20.6% during the forecast period 2024-2031. The market for EV thermal management systems is primarily driven by the global trend toward electric vehicles.
The need for effective thermal management systems to control battery temperature, power electronics and cabin climate is growing as more electric vehicles are on the road. For manufacturers to give passengers of electric vehicles a comfortable ride, thermal management systems are important.
The EV thermal management systems market is also fueled by the growth of fast-charging networks and charging infrastructure for electric vehicles. In order to control the temperature rise during quick charging sessions, fast charging creates more heat and requires effective cooling systems.
Asia-Pacific is among the growing regions in the global electric vehicle thermal management systems market covering more than 1/3rd of the market and Asia-Pacific has been a significant market for electric vehicles. According to the International Energy Agency (IEA), in 2020, China accounted for around 44% of the global electric car stock, followed by Japan and South Korea. The increasing adoption of electric vehicles in these countries drives the demand for efficient thermal management systems.
Market Summary
| Metrics | Details |
| CAGR | 20.6% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | System, Components, Technology, Propulsion, Battery Capacity, Battery, Vehicle and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Demand for Electric and Alternative Fuel Vehicles
The automotive industry has seen significant developments in the last ten years. Owing to the government's strict CO2 pollution standards, the demand for electric and alternative fuel vehicles has increased significantly. Such government actions are motivating automakers to get behind the emerging trend of electric automobiles. In the past, automakers and suppliers used a battery thermal management system to regulate battery temperature.
However, as technology advanced and the need to lighten vehicles increased, OEMs and suppliers were forced to integrate the battery thermal management system with other electric thermal management systems of the vehicle. Additionally, The OEMs and developers have been able to achieve the highest efficiency at the lowest cost thanks to this methodology or module. For the reason to improve thermal management, system manufacturers and developers have begun to integrate electronic components.
For instance, these components include power electronics components found in belt starter generators (BSG), electric drives (motor, generator, inverter) and inverter-converter modules. Developers and OEMs have been able to reduce vehicle weight and boost efficiency thanks to the integration of technologies with common TMS for battery and other applications.
New Lithium-Ion Batteries Feature Innovative Technology
In recent times, Japan has created a transparent lithium-ion battery that can charge by itself using sunshine without the use of a solar cell. A smart window will reportedly incorporate this battery. The battery tints and transmits 30% more light after being in the sun. The battery has completed 20 charge/discharge cycles in testing and now provides an output of over 3.6 volts.
Stanford is creating a flexible, transparent screen that can store energy, a battery concept comparable to that. Additionally, nanotechnology has the potential to provide next-generation lithium-ion batteries that provide superior performance, safety and durability at a reasonable price. That the use of nanotechnology, appropriate materials may be formed into electrodes with a large surface area, allowing the charge to move more freely. By doing this, the battery's ability to store energy and charge rapidly would be increased.
Utilizing separating the battery's electrolyte from its electrodes using nanomaterials, the battery's total lifespan can be extended. This can decrease the likelihood of a short circuit, prevent low-level discharge and extend the battery's shelf life. Lithium-ion batteries' performance value may grow with the application of such cutting-edge technology.
Difficulty in Maintaining Thermal Efficiency
A significant challenge when developing thermal components is to reduce power consumption without sacrificing the efficiency and dependability of systems. Because it might result in internal short circuits, bodily harm, a fire, or an explosion, a quick temperature rise brought on by high power can be dangerous. Due to the proximity of the cells in a battery pack, when one cell overheats, it also affects the other cells.
Heating development is a phenomenon that, in the most extreme case, results in flames or explosions. As clock speeds and the number of transistors for microprocessors rise, power dissipation becomes a crucial consideration for system design. The complexity of developing thermal components increases with the clock rate and transistor count. Systems must thus be created such that electronic components can tolerate thermal heat sinks in any temperature condition.
Market Segment Analysis
The global electric vehicle thermal management systems market is segmented based on system, components, technology, propulsion, battery capacity, battery, vehicle and region.
The rising Adoption of Electric Vehicles is Demanding Active Technology
The active segment holds a major share of around 23.4% in the global electric vehicle thermal management systems market. The electric vehicle thermal management industry is witnessing significant research and development activities aimed at advancing active technologies.
Major automotive manufacturers, technology companies and research institutions are investing in the development of innovative cooling solutions, control algorithms and sensor technologies to optimize thermal management in electric vehicles.
The rising adoption of electric vehicles globally is a significant driver for active technology in the thermal management systems market. According to the International Energy Agency (IEA), electric vehicle sales reached 3.1 million units in 2020, representing a 41% increase compared to the previous year.
Active technology plays a crucial role in maximizing the driving range of electric vehicles. Efficient thermal management systems help maintain the optimal temperature range for batteries, power electronics and cabin climate control, thereby extending the range and improving the overall efficiency of electric vehicles.
Market Geographical Share
Asia-Pacific Growing Automotive Industry and Increasing Urbanization
The Asia-Pacific electric vehicle thermal management systems market has witnessed significant growth and popularity covering 1/3th share in 2022. The largest vehicle market is in the Asia- Pacific, which includes industrialized countries like Japan and South Korea and growing economies like China and India. The area has been a center for the manufacture of automobiles in recent years.
The government leaders in the Asia-Pacific are interested in the potential to reduce carbon emissions by electrifying transportation. As a result, the Asia Pacific area has a very high prevalence of electric car use. The governments of numerous nations have also given different incentives, such as tax breaks and subsidies, to encourage the use of electric vehicles.
The availability of an automobile industry is the primary factor promoting the growth of the area market. In addition, one of the key factors boosting the success of the local market is the rising yearly production of automobiles. Additionally, elements including a higher standard of living, an increase in disposable income and an increase in urbanization are projected to favorably.
Market Companies
The major global players include BorgWarner Inc., Mahle GmbH, Valeo SA, Hanon Systems, Denso Corporation, Gentherm Incorporated, LG Electronics Inc., Continental AG, Dana Incorporated and Modine Manufacturing Company.
COVID-19 Impact on Market
The pre-COVID levels of the market for electric vehicle thermal management systems are being swiftly attained and during the projection period, a solid growth rate is anticipated, led by the economic recovery in the majority of emerging countries. Due to the frequent suspension of public transit and the virus's high contagiousness, the demand for passenger automobiles increased.
Additionally, unprecedented circumstances brought on by the anticipated third and subsequent waves of the pandemic, however, are causing a bleak prognosis. The goal of this study is to assess how various COVID-19 scenarios would affect the electric vehicle thermal management system market from 2021 to 2030.
Russia-Ukraine War Impact
The market for thermal management systems for electric vehicles (EVs) might be affected by the conflict between Russia and Ukraine. It is crucial to keep in mind, though, that the precise consequences and magnitude of these effects might differ and rely on a variety of circumstances.
The availability of raw materials needed to produce EV thermal management systems may be impacted by the dispute. There may be a rise in prices or a reduction in the supply of certain products if important raw material sources are impacted or transportation routes are disrupted.
Key Developments
- On March 16, 2022, Hanon Systems inaugurated a new plant located in Huchai, China, to manufacture heating, ventilation and air conditioning (HVAC) modules for electrified vehicles. Hanon Systems continues to grow its global business by investing in the design of innovative eco-friendly automotive solutions and supporting automakers in the electrified vehicle segment.
- On October 20, 2022, TotalEnergies merged with Valeo to develop an innovative way of cooling electric vehicle batteries using a new, very high-performance dielectric1 fluid. Not only would this innovation improve the way electric vehicles are used, but it would also reduce their carbon footprint.
- On October 8, 2021, MAHLE partnered with DTM Electric and significantly advanced the technology landscape of the sustainable racing circuit. The technological team is a pioneer in the field of thermal management, or heating and cooling for electric cars and has decades of experience and knowledge in racing. For the DTM Electric competition, MAHLE will create and provide the thermal management parts for the traction motors, gearboxes and power electronics.
Why Purchase the Report?
- To visualize the global electric vehicle thermal management systems market segmentation based on system, components, technology, propulsion, battery capacity, battery, vehicle and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of electric vehicle thermal management systems market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key technologies of all the major players.
The global electric vehicle thermal management systems market report would provide approximately 94 tables, 100 figures and 181 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
