Global Automotive Thermal System Market Size, Share & Industry Trends Analysis Report By Propulsion (ICE Vehicles and Electric & Hybrid Vehicles), By Application, By Vehicle Type, By Regional Outlook and Forecast, 2022 - 2028
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Market Report Description
The Global Automotive Thermal System Market size is expected to reach $59.7 billion by 2028, rising at a market growth of 5.0% CAGR during the forecast period.
Automotive thermal system is a system that regulates and controls the temperature of prime automotive components through alternative engine block monitoring temperatures and reduced temperature component fluctuations. It regulates the temperature of numerous components in automobiles, including the battery, motor, and cabin, to improve performance, fuel economy, and comfort. Through seat heaters, front air-conditioning system, and rear air conditioning, improved heat management allows automotive components to work in the optimal temperature range while also providing greater comfort in the vehicle interior.
The demand for this technology would surge as more people choose electric vehicles as a result of increasing concern for the environment and the enforcement of strict emission standards as well as rising prices of fuels. Electric vehicles are adopted by several countries throughout the world to meet their net zero-emission targets. Furthermore, incorporating a thermal system into an electric vehicle improves battery performance and effective range. In addition, the automotive industry is emphasizing the need for greater driving qualities and heat shielding for cabin comfort. Due to heat dissipation, the ever-increasing number of electrical components within vehicles needs stronger thermal management systems.
Automobile manufacturers across the world are focusing on the development of electric and hybrid vehicles. Several manufacturers have started to produce electrical equipment such as electric compressors and battery cooling equipment for electric and hybrid vehicles in the context of electric vehicles. For example, Johnson Electric introduced a high-power electric compressor in August 2021, which helps to reduce heat produced by the batteries while high-rate fast-charging stations for electric vehicles.
COVID-19 Impact Analysis
The COVID-19 crisis caused market uncertainty, a severe slowdown in the supply chain, a drop in corporate confidence, and an increase in panic among client segments. Governments in various regions imposed complete lockdown as well as temporary suspension of operations among organizations, negatively impacting overall automobile thermal system production and sales. In addition, the supply chain disruptions caused by the pandemic resulted in a shutdown of automotive production facilities, which caused poor passenger car sales around the world.
Market Growth Factors:
Electric vehicle demand is on the rise
The automobile industry all over the world has shifted its focus toward producing efficient, inexpensive, long-range battery-powered passenger cars that can compete with and eventually replace fossil-fuel vehicles in recent years. However, the design of battery electric vehicles (BEVs) and the infrastructure requirements for mixed and plug-in hybrid and electric vehicles are being developed. Fast charging methods would also aid in the development of long-range batteries with easy access to charging infrastructure. It's crucial that auxiliary loads like cabin heating and cooling, and electric car components, do not degrade vehicle range. Because the amount of wasted heat energy in BEVs is so minimal, these cars demand more efficient auxiliary systems.
Increasing Demand for luxury vehicles with enhanced features and comfort
Luxury automobiles come with high levels of safety and modern technology. They are equipped with features such as heated and cold airbags, seats, and heated steering wheels. The demand for luxury vehicles has increased as disposable income and living standards have improved. Advanced thermal systems are being integrated into luxury automobiles to enhance performance and energy efficiency. As a result, the automotive thermal system market is projected to grow at a rapid pace. The electric grid and its automotive integrated thermal management system have received broad attention as essential components of modern vehicle technology are pursuing high performance and lightweight in automobile design.
Marketing Restraining Factor:
The lack of consistency in automotive thermal system
Local or regional producers must adhere to the regulating body's emission regulations or norms. However, since emission restrictions vary according to the area and region, a lack of standardization might make it difficult to export thermal systems. In addition, emission reduction is required in numerous developed and underdeveloped countries. In undeveloped countries, however, such regulation does not exist. As a result of the absence of standardization, producers are unable to source raw materials or inventory, hampering the export business. Low-volume production by manufacturers results in high production costs. Engine technology must be upgraded according to the particular standards that are imposed by the administration of the country.
Based on Propulsion, the market is segmented into ICE Vehicles and Electric & Hybrid Vehicles. The ICE segment acquired the highest revenue share in the Thermal System Market in 2021. The rising growth of this segment is attributed to the fact that internal combustion engines (ICE) are the most popular type of heat engine, with applications in ships, boats, aero planes, trains, and automobiles. They are increasingly gaining popularity because gas is burned for the engine to run. The same fuel and air mixture is ejected as exhaust. A piston or a turbine can be used to accomplish this. Internal combustion heat engines are based on the ideal gas law, which states that increasing the temperature of gas raises the pressure, causing the gas to expand. In an internal combustion engine, fuel is introduced to a chamber, which ignites to enhance the temperature of the gas.
Based on Application, the market is segmented into HVAC, Powertrain Cooling, Fluid Transport, and Others. The Powertrain Cooling segment witnessed a significant revenue share in the Automotive Thermal System Market in 2021. Thermal management is important for reducing emissions, increasing efficiency, and extending the range of conventional combustion, hybrid, and electric vehicles. Its primary role is temperature management in the engine cooling system, but it also controls the temperature of many other components in the drive train, including turbo cooling, gearbox cooling, transmission cooling, and indoor temperature. Because the thermal module is adjacent to the engine, it must operate over a wide temperature range of -40°C to 160°C without leaking. In addition, for accurate valve control, very minimal friction and no stick-slip are necessary. Due to this, the demand for this segment is increasing.
Vehicle Type Outlook
Based on Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. The passenger car segment garnered the largest revenue share in the Automotive Thermal System Market in 2021. The increasing growth of this segment is attributed to the increased penetration of sophisticated comfort features, strict government requirements for vehicle emissions, and advancements in thermal system solutions. In addition, increased per capita disposable income and a higher standard of living are two major reasons driving passenger car sales in many countries. Moreover, the market is likely to be driven by a growing demand for comfort and luxury, as well as increased demand for advanced amenities such as heated steering, heated/ventilated seats, and rear air conditioning.
|Market size value in 2021||USD 42.8 Billion|
|Market size forecast in 2028||USD 59.7 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 5% from 2022 to 2028|
|Number of Pages||227|
|Number of Tables||354|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Propulsion, Vehicle Type, Application, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, Asia Pacific procured the largest revenue share in the Automotive Thermal System Market. The rising growth of this region is owing to the growth of the region as a manufacturing hub for automobiles. OEMs have increased automotive manufacturing in the region due to evolving consumer demands, rising middle-class per capita income, and cost benefits. As a result, automobile production in India, China, and Japan has increased significantly. The region's vast vehicle production presents major great potential for the automotive thermal system market. The Asia Pacific is also a suitable market for automobile OEMs due to the favorable investing and the availability of low-cost labor. In this region, increased demand for premium cars with improved cabin comfort has boosted the consumption of automotive thermal systems.
Free Valuable Insights: Global Automotive Thermal System Market size to reach USD 59.7 Billion by 2028
KBV Cardinal Matrix - Automotive Thermal System Market Competition Analysis
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Continental AG is the major forerunner in the Automotive Thermal System Market. Companies such as BorgWarner, Inc., Dana Incorporated and Mahle GmbH are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include BorgWarner, Inc., Robert Bosch GmbH, Continental AG, Denso Corporation, Dana Incorporated, Valeo SA, Hanon Systems, Mahle GmbH, Gentherm Incorporated, and Grayson Automotive Services Limited.
Recent Strategies Deployed in Automotive Thermal System Market
» Partnerships, Collaborations and Agreements:
- Aug-2021: BorgWarner came into a partnership with ZEEKR Intelligent Technology, a new electric mobility technology, and solutions brand. Through this partnership, the companies aimed to enhance battery-operated collection by commanding the battery temperature at an ideal level while also improving traveler comfort by providing an optimum internal climate.
» Acquisitions and Mergers:
- Apr-2022: BorgWarner took over Santroll Automotive Components, a carve-out of Santroll’s eMotor enterprise. Through this acquisition, the company aimed to reinforce BorgWarner’s vertical scale, combination and offering depth in light vehicle e-motors while enabling for growing pace to market.
- Feb-2022: BorgWarner took over AKASOL, a German manufacturer of batteries for electric vehicles. Under this acquisition, the company is predicted to bolster the enterprise's commercial vehicle and organizational electrification abilities, which positions the enterprise to exploit what it believes to be a rapidly growing battery systems market.
- Feb-2021: MAHLE completed the acquisition of Keihin Corporation, a Japanese automotive and motorcycle parts company. Through this acquisition, the companies aimed to reinforce their existence and consumer affiliation in Asia and North America in an enterprise area that would become even more crucial not only for ordinary drives but specifically for alternative drives.
- Oct-2020: BorgWarner acquired Delphi Techno, which delivers a comprehensive range of proven software solutions. This acquisition aimed to reinforce BorgWarner’s electronics and power electronics abilities, products, and scale.
- Aug-2020: Continental formed a joint venture with aft automotive, the suppliers for the modern automotive industry. Through this joint venture, the companies aimed to produce integration made of high-performance plastics for future flexibility. Additionally, the joint venture would improve skills as a system provider and allow us to constantly expand technological competence in efficient plastics for the future.
» Product Launches and Product Expansions:
- Sep-2021: MAHLE unveiled its entire new cooling system for batteries. Under this launch, an electrically nonconductive coolant flows around the cells, thus ensuring that the maximum temperature of the battery drops markedly while charging and overall temperature is fragmented much more homogeneously. In addition, Immersion cooling woul reduce the charging times in electric cars significantly.
- Nov-2020: Valeo unveiled a fully combined dense electric powertrain system in India. The enhanced powertrain technology from Valeo would aid electrification at an economical price for tiny flexibility vehicles, two and three-wheelers that are completely utilized for the first and last mile in accordance in the country.
» Geographical Expansions:
- Mar-2022: Hanon Systems expanded its new plant in Hubei, China to strengthen the enterprise growing support to manufacturers in the electrified vehicle segment. This expansion would start the production of heating, ventilation, and air conditioning component for electric vehicles.
- Sep-2021: Hanon Systems expanded its two-site inaugurations in Hungary, a new greenfield production facility in Pécs, and a building expansion in Rétság. The new expansion facility offers 22,464 square meters of production space and contains gears such as welding, brazing, bending, and forming assembly lines and a trial for automotive air conditioning lines.
- Mar-2021: Hanon Systems expanded its construction of the fifth site in Korea. This expansion aimed to manufacture a range of solutions such as coolant valve assemblies and heat pump modules to support electric vehicles for the Genesis brand and Ioniq 5 representation of the Hyundai Motor Group. Additionally, Hanon Systems predict the Gyeongju facility would provide ecological solutions on around 300,000 electric vehicles by 2024.
Scope of the Study
Market Segments Covered in the Report:
- ICE Vehicles
- Electric & Hybrid Vehicles
- Powertrain Cooling
- Fluid Transport
By Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- BorgWarner, Inc.
- Robert Bosch GmbH
- Continental AG
- Denso Corporation
- Dana Incorporated
- Valeo SA
- Hanon Systems
- Mahle GmbH
- Gentherm Incorporated
- Grayson Automotive Services Limited
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