The global automotive thermal management market is expected to register a CAGR of 5.89%, during the forecast period, 2019-2024.

  • With growing advancement in-vehicle electronics and electrification systems (such as infotainment, navigation, and HVAC systems, electric drive and transmission, etc.), the need for the efficient power distribution as well as maintaining the above system’s temperature has been significantly driving the demand for thermal management system in the automotive industry.
  • The electric vehicle market is rapidly growing across the world. Among, the regions, Europe is likely to see faster adoption of electric vehicles compared to other regions during the forecast period. In Europe, electric vehicle sales increased by 50% in 2018, as compared to that of 2017. By 2040, nearly 54% of the new car sales and 33% of the global car fleet are expected to be electric. The European government formulated various policies and started projects for building the charging infrastructure across the region, primarily to meet the electric vehicle sales target.
  • Auto parts suppliers are accelerating efforts to strengthen their global competitiveness in the thermal energy management market with the advancement of vehicle electrification.
  • Asia-Pacific continues to capture a major share of more than 25% in the global market, followed by Europe and North America. Additionally, companies in the Asia-Pacific are expanding their production capacities to capture the growing demand in the region during the forecast period.



Key Market Trends

Battery Thermal Management Witness Major Market Share

In vehicles, battery thermal management system is primarily used for managing and controlling the cell’s temperature in a battery pack. Safe and optimum use of the energy stored is highly essential in a vehicle battery pack, due to the growing electrification in vehicles. Also, features like start/stop, electric power steering, and electric braking systems have increased the power load on the battery. Therefore, prioritizing all these electrical loads on a scale from comfort to safety level has been a major issue in the vehicle electric system. Therefore, the intelligent battery management system (IBMS) has been gaining attention among the automakers, which aided its adoption across the world.

Moreover, factors such as the increasing demand for electric vehicles and energy storage systems and growing consumption of rechargeable batteries in consumer electronics, coupled with technical advancements, are aiding the market’s growth significantly. For instance, in 2019, the electric vehicle sales have reached nearly 2.2% of the global electric vehicle market as a slew of new models hit the road.

Asia-Pacific Continues to Capture Major Market Share

The growing automobile sector in the Asia-Pacific region, with India and China emerging as automotive part manufacture hubs for the western automobile giants, is expected to drive the market for the thermal management system in this region.

Additionally, with growing sales of hybrid and electric vehicles in the region, the demand for high performance and lightweight thermal management system is likely to grow with the production of electric vehicles during the forecast period.

Thus, to capture the growing demand in the market, companies in the region have started developing and extending their business operations. For instance, in August 2019, Marelli Corporation (Kita-ku, Saitama City, Japan) announced that it had signed a strategic partnership agreement with China-based Shanghai Highly (Group) Co., Ltd.

Competitive Landscape

The automotive thermal management market is moderately consolidated, with major players, like Denso Corporation, Robert Bosch GmbH, Mahle GmbH, Modine Manufacturing Company etc.

With growing trend of lightweight and fuel-efficient vehicles, companies have started investing to produce more advanced thermal management systems to improve the vehicle efficiency and meet the growing demand for vehicle electrification systems in the global automotive industry.

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