Thermal Systems Global Market Report 2024

The global thermal systems market has grown steadily in recent years. It will grow from $47.59 billion in 2023 to $49.83 billion in 2024 at a compound annual growth rate (CAGR) of 4.7%. During the historic period, the growth can be attributed to several factors including the expansion of industrialization, heightened energy consumption, governmental efforts promoting energy efficiency, an increased focus on environmental sustainability, the expansion of the construction sector, escalating urbanization trends, and the adoption of combined heat and power (CHP) technologies.

The global thermal systems market is expected to see steady growth in the next few years. It will grow to $59.64 billion in 2028 at a compound annual growth rate (CAGR) of 4.6%. In the upcoming forecast period, the anticipated growth is tied to several factors, notably the increasing shift towards electrification, a rising trend in adopting geothermal heating and cooling solutions, the emergence and adherence to green building standards, strategic partnerships within the industry, and a growing demand for temperature-controlled storage solutions. Some major trends expected in this period include the integration of renewable energy sources, advancements in heat pump technology, the development of smart and connected thermal systems, innovations in energy storage solutions, the expansion of district heating and cooling systems, advancements in thermal insulation materials, and the implementation of waste heat recovery systems.

The expanding demand for electric vehicles is anticipated to drive the growth of the thermal systems market. Electric vehicles, or battery electric vehicles (BEVs), operate without an internal combustion engine, relying on electric motors. Thermal systems play a crucial role in maintaining optimal temperatures in battery packs, power electronics drives, and electric motors, addressing external-internal temperature scenarios in electric vehicles. As per the International Energy Agency, global sales of electric vehicles, including completely electric and plug-in hybrid vehicles, reached a record high of 6.6 million units in 2021, bringing the total number of electric vehicles on the road worldwide to approximately 16.5 million by the end of the same year. China alone witnessed a significant surge in electric vehicle sales, nearly tripling to 3.3 million units in 2021, constituting roughly half of the global total. This surge in demand for electric vehicles is a key driver propelling the growth of the thermal systems market.

The trend of increasing urbanization is poised to contribute to the growth of the thermal systems market. Urbanization, characterized by the concentration of populations in specific geographic areas, is driving the demand for heating, ventilation, and air conditioning (HVAC) systems, along with thermal management solutions for buildings and infrastructure. According to a report by the World Bank, over 50% of the world's population resides in urban areas as of 2022. The number of urban dwellers is projected to reach 6 billion by 2045, representing a 1.5-fold increase. By 2030, urban land consumption is expected to expand at a rate up to 50% faster than population growth, leading to an additional 1.2 million km2 of urban built-up area. This surge in urbanization is a significant factor driving the growth of the thermal systems market.

Technological advancements stand out as a key trend in the thermal systems market, with major companies introducing innovative technologies to sustain their market position. A notable example is Alfalevel, a Sweden-based provider of products in the areas of separation, heat transfer, and fluid handling, launching the E-PowerPack in April 2022. The E-PowerPack generates power from waste heat, allowing for energy savings and compliance. Leveraging Organic Rankine Cycle (ORC) technology, the E-PowerPack converts waste heat into clean electrical power, accommodating a range of heat sources from jacket cooling water at 75°C to engine exhaust gas at 550°C. Its modular approach enables the integration of smaller units into larger systems, offering flexibility and efficiency in energy generation. This technological innovation contributes to the advancement of the thermal systems market.

Prominent companies in the thermal system market are actively engaged in developing innovative products, including advanced thermal management systems, as part of strategic efforts to expand their customer base, boost sales, and increase overall revenue. Thermal management systems refer to devices or processes designed to maintain a desired temperature within a specific environment. A noteworthy example is Modine Manufacturing Company, a US-based thermal technology provider, which introduced the EVantage Thermal Management Systems for commercial electric vehicle (EV) chassis in May 2022. This product line includes the EVantage Battery Thermal Management System (BTMS) and the EVantage Electronics Cooling Package (ECP). The EVantage BTMS is designed to regulate battery temperatures across diverse environmental conditions, utilizing multi-stage cooling and heating to manage the temperature range for an entire battery bank with a single unit while minimizing power consumption. Meanwhile, the EVantage ECP focuses on ensuring optimal performance for traction motors and power electronics. It employs multi-zone cooling to maintain optimal fluid temperatures for these critical components, with fan arrays operating only as needed to conserve energy.

In August 2023, Mission Critical Group (MCG), a US-based provider of electrical equipment solutions, acquired Johnson Thermal Systems (JTS) for an undisclosed amount. This strategic acquisition positions JTS to continue delivering integrated design and manufacturing solutions while gaining access to the comprehensive system design, application engineering, manufacturing, on-site professional services, and ongoing support capabilities offered by the broader MCG platform. Johnson Thermal Systems, a US-based provider of thermal solutions, brings valuable expertise and capabilities to the MCG portfolio, enhancing their position in the thermal systems market.

Major companies operating in the thermal systems market report are Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Inc., Hanon Systems, Lennox International Inc., Modine Manufacturing Company Inc., MAHLE GmbH, Robert Bosch GmbH, Valeo SA, Visteon Corporation, Schaeffler Technologies AG & Co. KG, Johnson Electric Holding Ltd., Behr GmbH & Co. KG, Sanden Corp., United Technologies Corporation, Diakin Industries Ltd., Calsonic Kansei Corp., BorgWarner Inc., ZF Friedrichshafen AG, Honeywell International Inc., Parker Hannifin Corporation, Siemens AG, Aavid Thermalloy LLC, Advanced Cooling Technologies Inc., American Standard Companies Inc., Boyd Corporation, Delta Electronics Inc., Laird Technologies Inc., Lytron Inc., Nortek Air Solutions LLC, Thermacore Inc., Thermotek Inc., Vertiv Co., Wakefield-Vette Inc.

North America was the largest region in the thermal systems market in 2023. The regions covered in the thermal systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the thermal systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary constituents of the thermal system include an air filter, condenser, compressor, water pump, motor, heat exchanger, heater control, thermoelectric generator, and other essential elements used across different vehicle types like ICE, electric, off-vehicle, and ATV. Air filters function as devices aimed at purifying the air by removing harmful airborne particles, which have adverse effects on both the environment and human health. These components find applications in various vehicle systems such as front and rear A or C, powertrain, seat, steering, battery, motor, power electronics, waste heat recovery, and sensor technologies.

This report provides thermal systems market statistics, including thermal systems industry global market size, regional shares, competitors with thermal systems market share, detailed thermal systems market segments, market trends, and opportunities, and any further data you may need to thrive in the thermal systems industry. This thermal systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The thermal systems market includes revenues earned by entities by Egr valve, A/C valve, oxygen sensor, temperature sensor, and charge air cooler. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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