Automotive Thermal System Global Market Report 2024

The global automotive thermal system market has grown strongly in recent years. It will grow from $40.46 billion in 2023 to $42.76 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The expansion observed during the historical period can be credited to several factors, including the integration of autonomous features into vehicles, a heightened focus on enhancing vehicle safety, the globalization of the automotive industry, an increased demand for advanced cooling systems, and a growing emphasis on climate control and passenger comfort.

The global automotive thermal system market is expected to see strong growth in the next few years. It will grow to $53.4 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The anticipated growth in the forecast period can be traced to several factors, including the implementation of stricter emission standards, ongoing advancements in electric vehicle technologies, and a rising demand for climate control solutions. Key trends expected in the forecast period encompass the acceleration of electrification and hybridization, the adoption of advanced engine technologies, a shift towards innovative cooling solutions, advancements in materials and insulation, and the broader trends of globalization and standardization in the automotive industry.

The automotive thermal systems market is anticipated to experience significant growth due to increasingly stringent emission regulations enforced by governing bodies. The surge in vehicle numbers globally has heightened concerns regarding GHG emissions. Entities like the European Commission (EC) and the United States Environmental Protection Agency (US EPA) have imposed fuel economy standards and regulated fuel sulfur content to mitigate emissions' exponential effects. For instance, in December 2021, the US EPA finalized federal greenhouse gas (GHG) emissions standards for light trucks and passenger vehicles from 2023 to 2026. These standards leverage advancements in clean car technology, projecting $190 billion in net benefits for Americans by curbing climate pollution, improving public health, and reducing gas prices. The revised standards aim to prevent over 3 billion tons of GHG emissions by 2050, thus propelling the automotive thermal systems market growth.

The burgeoning electric vehicle market is poised to drive growth in the automotive thermal systems sector. Electric vehicles, powered by electricity rather than internal combustion engines, rely on automotive thermal systems to manage battery temperature, optimize electric motor performance, and enhance overall efficiency. For example, as of October 2023, Europe witnessed a significant rise in battery electric cars registered, reaching 1,126,682 in 2022, a 28.35% increase from 2021. Additionally, non-plug-in hybrid electric cars constituted 19% of new registrations in 2021, marking a 7% increase from 2020. Consequently, the escalating electric vehicle market is a driving force behind the automotive thermal systems market's expansion.

A prominent trend in the automotive thermal systems market is the development of advanced thermal solutions for the automotive industry. Extensive research and development endeavors aim to introduce innovative thermal systems. Major companies within this market segment are dedicatedly focused on creating new technological solutions to reinforce their market positions. For instance, in September 2023, Mitsubishi Heavy Industries Thermal Systems, Ltd., a Japan-based entity, introduced the TEJ35GAM electric-driven transport refrigeration units. These units, a part of the existing TE20/30 series and TEJ35AM lineup, feature a plug-in hybrid system combining a commercial plug-in power source with a dedicated refrigerator power source, offering an inventive solution for transport refrigeration needs.

Prominent companies within the automotive thermal systems market are intensifying their efforts towards developing cutting-edge products, particularly advanced thermal management systems (ATMS), aiming to secure a competitive advantage in the industry. ATMS stands as sophisticated cooling solutions meticulously crafted to address the escalating heat dissipation demands of contemporary electronic devices and systems. For instance, in September 2023, Modine Manufacturing, a Japanese thermal management company, unveiled EVantage, a novel line of thermal management systems tailored explicitly for commercial electric vehicles. These systems are engineered to regulate electric vehicle temperatures, ensuring optimal performance for batteries, traction motors, and power electronics across diverse operating conditions. The EVantage systems boast customizable features to suit various vehicle sizes across land, marine, aviation, and stationary applications. Modine's thermal management solutions find ideal application in zero-emission transit, coach, and school buses, specialty vehicles, and last-mile delivery vans.

In February 2022, BorgWarner Inc., a US-based manufacturer and distributor of automotive components, executed an undisclosed acquisition of Akasol AG. This strategic acquisition is poised to significantly enhance BorgWarner's capabilities in industrial electrification and commercial vehicles. Akasol AG, a German-based entity specializing in automotive thermal systems, aligns with BorgWarner's strategic objectives in fortifying their presence and expertise in this domain.

Major companies operating in the automotive thermal system market report are Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Incorporated, Hanon Systems, Lennox International Inc., Modine Manufacturing Company Inc., Mahle Behr GmbH & Co. KG, Robert Bosch GmbH, Valeo SA, Visteon Corporation, Calsonic Kansei Corp., Schaeffler Technologies AG & Co. KG, Johnson Electric Holdings Limited, Diakin Industries Ltd., Sanden Corporation, United Technologies Corporation, BorgWarner Inc., LG Chem Ltd., Samsung SDI Company Limited, Marelli Corporation, Behr GmbH & Co KG, Delphi Technologies, Eberspaecher Group, Hella GmbH & Co KGaA, Siemens AG, Webasto SE, ZF Friedrichshafen AG, Bergstrom Inc., Kongsberg Automotive

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

The primary categories of automotive thermal systems include compressors, HVAC (Heating, Ventilation, and Air Conditioning), powertrain cooling, and fluid transport. The compressor functions as the engine that powers the air conditioner, exerting high pressure on the refrigerant to transform it from a gas to a liquid before pumping it into the condenser. This transformation is crucial for the efficient functioning of the air conditioning system. These thermal systems cater to a range of vehicle types, including passenger cars, light commercial vehicles, heavy commercial vehicles, and others. Their applications extend to front and rear air conditioning, engine and transmission cooling, seat temperature regulation, battery temperature management, motor cooling, waste heat recovery, and power electronics temperature control.

This report provides automotive thermal systems market statistics, including automotive thermal systems industry global market size, regional shares, competitors with an automotive thermal systems market share, detailed automotive thermal systems market segments, market trends and opportunities, and any further data you may need to thrive in the automotive thermal systems industry. This automotive 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 automotive thermal system market consists of revenues earned by entities by providing vehicles temperature monitoring performance, environmental simulation management. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive thermal system market also includes sales of heat pump systems and flexheaters. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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