Electric Vehicle Thermal Management System Market Report 2026

The electric vehicle thermal management system market size has grown rapidly in recent years. It will grow from $3.52 billion in 2025 to $4.04 billion in 2026 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to ev battery performance requirements, rise of high-capacity batteries, thermal safety concerns, early liquid cooling adoption, automotive electrification.

The electric vehicle thermal management system market size is expected to see rapid growth in the next few years. It will grow to $7.07 billion in 2030 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to expansion of fast charging networks, higher energy density batteries, extreme climate vehicle demand, efficiency regulations, next-generation ev platforms. Major trends in the forecast period include advancement in battery cooling technologies, adoption of integrated thermal systems, demand for fast charging compatibility, growth of liquid cooling solutions, focus on energy efficiency.

The growing number of electric automobiles is expected to propel the growth of the electric vehicle thermal management system market going forward. Electric automobiles are powered entirely or partially by electricity stored in rechargeable batteries or other energy storage devices. The rising demand for electric vehicles is driven by improved charging infrastructure, increased consumer interest, and supportive environmental regulations. Electric vehicle thermal management systems enhance performance, efficiency, and safety by regulating the temperature of batteries, power electronics, and motors, minimizing the impact of thermal stress on vehicle range. For instance, in 2024, according to the International Energy Agency (IEA), global electric car sales exceeded 17 million units, with electric vehicles accounting for over 20% of all new cars sold worldwide. Therefore, the growing number of electric automobiles is driving the growth of the electric vehicle thermal management system market.

Major companies in the electric vehicle thermal management system market are increasingly developing self-designed thermal management systems to gain a competitive edge. A self-developed thermal management system is engineered in-house to control temperatures of critical vehicle components, optimizing efficiency and reliability. For instance, in June 2023, ZF Group, a Germany-based engineering company, launched its self-developed thermal management system for electric vehicles. The system can increase EV range in winter by up to one-third and includes an optimized electric drivetrain with power electronics, a motor, and a reduction gearbox based on 800-volt silicon carbide technology. Automakers can integrate this thermal management system flexibly into various vehicle platforms.

In May 2023, Carrar, an Israel-based developer of thermal management solutions for electric vehicles, partnered with Gentherm Incorporated to deliver two-phase thermal management for electric vehicles and manufacture thermal products and precision valves for the automotive industry. These innovative modules will meet sustainability and safety standards for electric vehicles set by European and American regulatory bodies. By preventing micro-heat spikes and resultant damage caused by charging and acceleration, the combined battery modules are expected to triple the lifetime of EV batteries. Gentherm Incorporated, a US-based automotive company, specializes in providing cutting-edge thermal management and pneumatic comfort technologies for the automotive industry, further solidifying the partnership's capabilities in delivering advanced thermal solutions for electric vehicles.

Major companies operating in the electric vehicle thermal management system market report include Volkswagen Group, Ford Motor Company, BMW Group, Hyundai Motor Company, Tesla Inc., Nissan Motor Corporation, BYD Company Limited, General Motors Company, Geely Automobile Holdings Limited, NIO Inc., Rivian Automotive Inc., Lucid Motors Inc., Nikola Corporation, Lion Electric Company, Rimac Automobili, Workhorse Group Inc., Canoo Inc., Fisker Inc., Arrival Ltd., Guangzhou Xiaopeng Motors Technology Co. Ltd., Proterra Inc., Lordstown Motors Corp., Aptera Motors Corp., Bollinger Motors.

North America was the largest region in the electric vehicle thermal management system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electric vehicle thermal management system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle thermal management system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle thermal management system market consists of sales of battery packs, electric motors, power electronics, and auxiliary systems. 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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