Status : Published Published On : Apr, 2022 Report Code : VRAT9618 Industry : Automotive & Transportation Available Format : Page : 200
2022
2028

Global Automotive Thermal System Market – Analysis and Forecast (2021-2027)
Industry Insight by Component (Compressor, HVAC, Powertrain Cooling, and Fluid Transport), by Application (Front & Rear AC, Engine & Transmission, Seat, Battery, Motor, Waste Heat Recovery, and Power Electronics), by Vehicle Type (Passenger Vehicles and Commercial Vehicles), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global automotive thermal system market was worth USD 41.2 billion in 2021 and is expected to reach USD 50.5 billion by the year 2027, growing at a CAGR of 3.8 % between 2021 and 2027.

Automotive Thermal System Market Highlights

The thermal management system is one of the critical and important systems of automobiles which ensures the efficient regulation of heat flow inside the vehicle. In addition, it is necessary that components in vehicles should operate within their respective optimal temperature range for efficient working. In a combustion engine vehicle, thermal management majorly involves optimization of thermal balance inside a vehicle by controlling the temperature of internal combustion components based on fuel consumption, and operating point, which in return can help in emission reduction. However, the thermal management system in electric vehicles is more compared to ICE vehicles and can be used to extend the vehicle’s range.

Also, rising environmental concerns and enforcement of norms by governments of various countries related to the emission of greenhouse gases from the vehicles contribute to the growth of electric vehicle adoption, which in turn is anticipated to propel the growth of the automotive thermal system market. Furthermore, an adaptation of thermal systems in electrified vehicles helps in enhancing the battery performance, operating range, and comfort inside the vehicle, which is one of the major factors which is expected to boost the growth of the market during the forecast period 2021-2027.

Market Segmentation

Insight by Component

Based on component, the global automotive thermal system market is divided into, compressor, HVAC, powertrain cooling, and fluid transport. In components, the compressor is anticipated to account for the largest market share and is expected to maintain its lead during the forecast period.  In addition, propelling the adoption of compressors in the air conditioning systems to maintain the optimum temperature inside the cabin is boosting the growth of the market for the compressor.

Insight by Application

Based on application, the global automotive thermal system market is classified into, front & rear AC, engine & transmission, seat, battery, motor, waste heat recovery, and power electronics. The power electronics unit is primarily used to control and process electrical energy in plug-in and hybrid electric vehicles, and thus the thermal system is used to maintain the optimum temperature for efficient operation. In addition, the waste recovery unit in the automotive thermal system is used to convert the waste heat to electricity and thus reduce the consumption of fuel in the vehicle by limiting the load on the car alternator. Also, the waste heat recovery consists of the highest market share in the year 2020 and is anticipated to maintain its lead throughout the forecast period owing to factors such as the implementation of exhaust gas recirculation (EGR) owing to increasing government norms related to emission and growing sales of automobiles in commercial vehicle segment.

Insight by Vehicle Type

Based on vehicle type, the automotive thermal management system market is analyzed into segments such as passenger vehicles and commercial vehicles. In addition, the passenger vehicles segment is anticipated to account for a major market share and is anticipated to dominate the market during the forecast period. Also, increasing sales of automobiles in the Asia-Pacific region owing to increasing disposable income is anticipated to propel the growth of the automotive thermal management system market in the passenger vehicle segment.

Automotive Thermal System Market Report Coverage

Report Metric

Details

Historical Period

2015–2020

Base Year Considered

2021

Forecast Period

2021-2027

Market Size in 2021

$41.2 Billion

Revenue Forecast in 2027

$50.5 Billion

Growth Rate

CAGR 3.8%

Segments Covered in the Report

By Component ,By Application and By Vehicle Type

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

 

Industry Dynamics

Industry Trends

Growing demand for luxurious and comfortable vehicles and increasing demand for electric vehicles owing to government support for electrified vehicles are anticipated to propel the growth of the global automotive thermal management system market. 

The COVID-19 impact has been significant and thus resulted in low sales of passenger vehicles and a halt in the production of vehicles owing to disruption in the supply chain. In addition, the global automotive industry experienced an exponential decrease in demand for automobiles during the COVID-19 pandemic due to the government-imposed lockdown during the pandemic, which in turn restrained the growth of the global automotive thermal system market.

Growth Drivers

The stringent government regulations imposed by government agencies of various countries and the increasing necessity for the reduction of greenhouse emissions from vehicles are the major factors boosting the growth of the global automotive thermal system market.  In addition, increasing demand for luxury vehicles with features such as front and rear air conditioning, turbochargers in the commercial vehicle segment, and heated steering is expected to drive market growth over the forecast period. Furthermore, the market is also anticipated to exhibit a significant growth rate owing to factors such as the implementation of thermal sensors in passenger vehicles and the growing demand for smart thermal management systems in automobiles. Also, the companies operating in the global automotive industry are majorly focusing on the design and development of hybrid and electric vehicles across the world. Thus, the majority of companies involved in electric vehicle manufacturers have incorporated the development of thermal system components such as battery cooling systems and electric compressors, for electrified vehicles in order to manage and maintain optimum temperature to achieve maximum efficiency. For instance, in August 2021, Johnson Electric introduced a new high power electric compressor, which effectively reduces the excessive generated by the battery of electric vehicles during high rate fast charging.

Challenges

Lack of standardization in the thermal system due to the variation in emission regulations across various countries is one of the major reasons hindering the growth of the global automotive thermal system market. In addition, the high cost associated with the implementation of thermal systems is anticipated to restrict the growth of the market over the forecast period.

Opportunities

Government norms and regulations to support and boost the adoption of electric vehicles in the coming years are expected to provide lucrative growth opportunities to the players operating in the global automotive thermal management system market. Also, the introduction of advanced, lightweight HVAC solutions and the adoption of eco-friendly refrigerants are the factors anticipated to offer growth opportunities to the companies during the forecast period.

Geographic overview

The global automotive thermal system market is anticipated across regions such as North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific holds the major market share of the global thermal system market owing to increasing automobile sales in the region due to increasing disposable income among the population.  In addition, Latin America is expected to exhibit a significant growth rate during the forecast period due to factors such as rapid urbanization, the growing automobile industry, and government support to adopt electric vehicles in the region.

Recent Development by Key Players

Various suppliers of automotive components and energy management solutions are expanding the production of thermal management solutions in order to support the propelling electric vehicle market. For instance, in March 2022, Hanon Systems, an automotive thermal and energy management solution company announced the launch of a new plant in Hubei, China.  This new plant will be involved in the manufacturing of heating, ventilation, and air conditioning modules for electrified vehicles. In addition, the company continues to grow it business globally by investing in the design and innovation of eco-friendly automobiles solutions and supporting the automakers operating in the electric vehicle segment.

Leading automobile parts manufacturers are incorporating expansion in the thermal management portfolio. For instance, in March 2022, MAHLE, a German automotive parts manufacturer announced the expansion of its product portfolio in order to include indirect air conditioning condensers, which are becoming one of the important and standard components of air conditioning in modern automobiles. In addition, according to MAHLE, it is easier to generate new business because, they are not only offering a wide range of products, but also introducing service equipment, digital information solutions, and training.

Key Players Covered in the Report

Key players operating in the global automotive thermal system market are BorgWarner Inc., Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Incorporated, Hanon Systems, Mahle GmbH, Robert Bosch GmbH, and Valeo S.A.

Automotive Thermal System Market Size and Market AnalysisRegion Covered in the Report

•    North America

- U.S.
- Canada
- Mexico

•    Europe

- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe

•    Asia-Pacific (APAC)

- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific

•    Rest of the World (RoW)

- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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