The automotive thermal management market is expected to grow significantly owing to the rising vehicle production and sales globally. Thermal management plays a critical role in vehicle performance and fuel efficiency. It helps in maintaining optimal operating temperature for various components including engine, transmission, HVAC system, battery, and electronics. Advances in automotive technology have propelled the demand for efficient thermal management systems to ensure reliability and safety. The market offers a wide range of products including powertrain cooling modules, electric fan, electric A/C compressor, engine cooling module, exhaust gas recirculation coolers and condensers which help in dissipating heat from dense components and systems in vehicles.
The global automotive thermal management market is estimated to be valued at US$ 96.84 Bn in 2024 and is expected to reach US$ 143.62 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
Key Takeaways
Key players operating in the automotive thermal management are Robert Bosch GmbH, Schaeffler Technologies AG Co. KG., Hanon Systems, Dana Incorporated, Gentherm Incorporated, BorgWarner Inc., Valeo Group, MAHLE GmbH, Modine Manufacturing Company and Denso Corporation. These players are focusing on developing innovative thermal management solutions to enhance comfort, performance and support electrification of vehicles.
The Automotive Thermal Management Market Demand sales of electric vehicles offer opportunities for manufacturers to develop efficient thermal systems for high power battery packs and other EV components. Additionally, the development of 48V hybrid systems is augmenting demand for advanced organic transistor thermal interfaces to dissipate heat from power electronics.
Globally, the Asia Pacific region dominated the automotive thermal management market owing to large vehicle production hubs and growing EV adoption in China. However, North America and Europe are also witnessing strong growth due rising sales of luxury and high-performance vehicles equipped with advanced thermal solutions. Many OEMs are investing in expanding manufacturing facilities in growing automotive markets such as Mexico, Brazil and Central European countries.
Market drivers
The rising vehicle production and sales especially in developing economies is the key driver for automotive thermal management market. According to International Organization of Motor Vehicle Manufacturers, over 95 million vehicles were produced globally in 2021 indicating a significant rebound from pandemic-induced lows. Furthermore, the increasing stringency of emission norms worldwide is propelling OEMs to focus on mass reduction, downsizing and electrification which requires efficient thermal systems for long-lasting performance of critical components. This is expected to fuel the demand for thermal management systems during the forecast period.
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