Market Overview
The Global Automotive Battery Thermal Management System Market is projected to reach
USD 3.5 billion in 2024 and grow at a compound annual growth rate of
21.7% from there until 2033 to reach a value of
USD 20.7 billion.
An automotive battery thermal management system is a device that controls the temperature of a vehicle’s battery to ensure the best performance,
safety, and longevity. Its applications like keeping the battery within a particular temperature range to avoid overheating or freezing, increasing energy efficiency, extended battery life, and assuring the safe operation of electric and hybrid cars in a variety of environments.
The US Automotive Battery Thermal Management System Market
The US Automotive Battery Thermal Management System Market is projected to reach
USD 0.9 billion in 2024 at a compound annual growth rate of
20.3% over its forecast period.
The automotive battery thermal management system market in the US has significant growth opportunities driven by the growth in the adoption of
electric vehicles, development in battery technology, and supportive government policies promoting clean energy. The rising focus on improving battery performance and safety, along with the growing consumer demand for high-efficiency and longer-range electric vehicles, provides significant opportunities for market expansion and innovation.
Further, the growth of the U.S. automotive battery thermal management system market is driven by growth in the electric vehicle adoption and development of battery technologies. However, major challenges like high development costs and technical challenges in optimizing thermal management solutions for various applications. Despite these challenges, government incentives and increasing demand for efficient, high-performance batteries helps in the ongoing market expansion and innovation.
Key Takeaways
- Market Growth: The Automotive Battery Thermal Management System Market size is expected to grow by 16.5 billion, at a CAGR of 21.7% during the forecasted period of 2025 to 2033.
- By Type: The conventional segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Technology: The air cooling & heating segment is expected to lead the Automotive Battery Thermal Management System market in 2024.
- By Vehicle Type: The passenger vehicle segment is expected to get the largest revenue share in 2024 in the Automotive Battery Thermal Management System market.
- Regional Insight: Asia Pacific is expected to hold a 47.9% share of revenue in the Global Automotive Battery Thermal Management System Market in 2024.
- Use Cases: Some of the use cases of Automotive Battery Thermal Management System include safety management, charging performance, and more.
Use Cases
- Temperature Regulation: Makes sure to provide optimal battery temperature to improve performance and lifespan by preventing overheating or excessive cooling.
- Safety Management: Minimizes the risk of thermal runaway & potential fire hazards by maintaining stable battery temperatures.
- Efficiency Optimization: Enhances energy efficiency & driving range by maintaining batteries within their ideal temperature range, mainly in extreme weather conditions.
- Charging Performance: Improves charging speed & efficiency by regulating battery temperatures during fast charging cycles to prevent overheating.
Market Dynamic
Driving Factors
Rise in Electric Vehicle Adoption
The growing demand for electric vehicles (EVs) is a major growth driver. As consumers & governments focus on cleaner and more sustainable transportation options, the demand for efficient battery thermal management systems becomes more important to ensure the reliability, safety, and performance of EV batteries.
Advancements in Battery Technologies
Constant development & innovations in battery technologies, like higher energy densities & faster charging capabilities, need advanced thermal management solutions. These systems are important to handle the higher thermal loads and maintain optimal battery performance and safety, driving market growth.
Restraints
High Costs
The development and integration of advanced battery thermal management systems can be expensive. These costs can be a major barrier for manufacturers, mainly for entry-level electric vehicles, potentially slowing down market growth as companies look to balance performance with affordability.
Technical Challenges
The complexity of designing & implementing effective thermal management solutions for various automotive applications can be a restraint. Ensuring compatibility with different battery chemistries & vehicle designs, while maintaining efficiency and reliability, creates significant technical challenges that can impact broad adoption.
Opportunities
Integration with Advanced Vehicle Technologies
The rise in the use of smart and connected vehicle technologies provides opportunities for advanced thermal management systems. By integrating with IoT and AI-based monitoring systems, battery thermal management can become more effective, predictive, and adaptive, enhancing overall vehicle performance & safety.
Expansion in Emerging Markets
Fast urbanization and the increase in demand for electric vehicles in emerging markets, like China and India, provide major growth opportunities. Governments in these regions are executing policies and incentives to promote EV adoption, creating a favorable environment for the expansion of battery thermal management solutions.
Trends
Solid-State Batteries
The development and adoption of solid-state batteries are gaining momentum. These batteries, which provide higher energy densities and better safety in comparison to traditional lithium-ion batteries, demands specialized thermal management systems to address their unique thermal characteristics and enhance performance.
Liquid Cooling Systems
There is a rising trend toward the use of liquid cooling systems in EVs. Liquid cooling is more efficient at managing the high thermal loads of modern high-capacity batteries, making sure optimal operating temperatures, faster charging, and extended battery life, which is driving innovation and adoption in battery thermal management.
Research Scope and Analysis
By Type
The conventional type of Automotive Battery Thermal Management System is expected to lead the global market with the largest revenue share in 2024, as it plays a crucial role in market growth by providing reliable & affordable solutions for managing battery temperatures. These systems are important for maintaining battery performance & safety, mainly in traditional and hybrid vehicles.
As the industry transitions towards more advanced electric vehicles, the conventional systems act as a foundation, ensuring constant performance and supporting the integration of new technologies. Their established presence & proven effectiveness help in the broader adoption and evolution of battery thermal management technologies across the automotive market.
Further, solid types are also expected to play a major in market growth by providing advanced thermal stability and higher efficiency. These systems are important for the latest electric vehicles, ensuring optimal battery performance and safety. Their ability to easily manage heat in high-capacity batteries drives innovation and adoption, improving the overall reliability and efficiency of electric vehicle battery management.
By Technology
The market for automotive battery thermal management systems is categorized into three main technology types, namely air cooling & heating, liquid cooling & heating, and phase change materials (PCM). Among these, the air cooling & heating segment holds the largest global market share in 2024 due to its simplicity and affordability, making it a popular choice for economically priced electric vehicles.
Further, the liquid cooling & heating segment is expected to grow significantly throughout the forecast period, as liquid coolants provide superior heat conductivity & capacity in comparison to air, making them highly effective in managing battery temperatures. Also, major automotive companies like BMW and Tesla have adopted liquid cooling systems to improve battery performance and safety, benefiting from their ability to maintain optimal temperature ranges.
Moreover, the phase change material (PCM) segment is expected to significant growth in the coming years. PCMs provide advanced thermal management by absorbing & releasing heat at specific temperatures, making them an appealing option for improving battery efficiency & safety in many vehicle types. As technology advances, PCMs are expected to play a larger role in the market.
By Propulsion
Based on propulsion type, the automotive battery thermal management system market is divided into battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), Fuel Cell Electric Vehicle (FCEV), and hybrid electric vehicles (HEV). Among these, the HEV segment is set to hold the largest global market share in 2024 due to its dual transmission system, which combines electric & conventional fuel-based driving, which is particularly valuable in regions with limited charging infrastructure.
Also, the BEV segment is anticipated to take the lead throughout the forecast period, driven by developments in technology, better demand for electric vehicles across many categories, and the demand for fuel-efficient and emission-compliant vehicles.
Further, the plug-in hybrid electric vehicle (PHEV) segment is also experiencing notable growth, which is supported by decreasing battery and overall vehicle costs, along with favorable government policies and incentives for electric vehicles. These factors are expected to drive increased demand for PHEVs and contribute to the expansion of the market for automotive battery thermal management systems in the coming years.
By Vehicle Type
By vehicle type, the automotive battery thermal management system market is segmented into passenger cars and commercial vehicles. Among these, the passenger car segment is expected to lead the global market in 2024 due to various factors, like the high number of vehicles on the road, easy availability of advanced technologies, and growth in disposable incomes. Further, the increasing concern about urbanization, better living standards, and greater spending capacity among higher-income individuals have driven the demand for advanced passenger vehicles, driving growth in this segment.
Further, the commercial vehicle segment has experienced major growth in recent times, although it is smaller in comparison to the passenger car segment, as it is mostly driven by light commercial vehicles, which play a major role in market expansion. In addition, despite the overall lower demand for commercial vehicles relative to passenger cars, the segment is expected to see substantial growth during the forecast period as the development and better adoption of battery thermal management technologies constantly improve performance & efficiency in commercial applications.
The Automotive Battery Thermal Management System Market Report is segmented on the basis of the following
By Battery Type
By Technology
- Air Cooling & Heating
- Liquid Cooling & Heating
- Phase Change Material (PCM)
By Propulsion
By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
Regional Analysis
Asia-Pacific is anticipated to dominate the automotive battery thermal management system market with the largest market share of 47.9% in 2024, driven by the growing adoption of advanced technologies using lithium-ion batteries, the presence of major companies, and growing R&D efforts. The region is anticipated to witness higher growth due to its expanding automotive industry & rising disposable income.
With developed nations like Japan & South Korea and emerging economies like India and China, Asia-Pacific boasts the world's largest automotive market & key players like Hanon Systems and LG Chem. The region has become a manufacturing hub for automobiles, and government initiatives focused on reducing carbon emissions through electrification have encouraged a high number of electric vehicles. Also, many governments have implemented tax breaks and subsidies to promote electric vehicle usage, boosting the demand for EV batteries.
Further, Europe is expected to hold the second-largest share of the global automotive battery thermal management system market, which is due to the presence of renowned automotive manufacturers like Robert Bosch, VOSS Automotive, and more, as they are focusing on developing advanced thermal management technologies. These companies' efforts in innovation &technology are driving market growth in the region, further enhancing Europe’s position as a major player in the global market.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The competitive landscape of the automotive battery thermal management system market is characterized by a dynamic mix of established players and emerging innovators. As companies are focusing on developing advanced thermal management technologies to meet the increase in demand for efficient and safe battery systems. Key strategies like investing in R&D, forming strategic partnerships, and improving product offerings to cater to numerous vehicle types and propulsion technologies, which drives constant improvement and innovation in thermal management solutions.
Some of the prominent players in the Global Automotive Battery Thermal Management System are
- Samsung
- Valeo
- Hanon Systems
- Robert Bosch GmbH
- LG Chem
- MAHLE GmbH
- DANA
- CapTherm Systems
- VOSS Automotive
- Continental AG
- Other Key Players
Recent Developments
- In June 2024, Marelli announced that the company has been awarded a major contract from a leading global carmaker to supply the Battery Thermal Plate (BTP) for future Battery Electric Vehicles (BEVs), as the solution, which is a key technology for thermal energy management in electric vehicles, has been developed and will be produced in-house by Marelli. Further, the supply will begin in 2024, reaching about 5 million units over the contract period. Also, the agreement involves various vehicle platforms and segments for the Chinese, North American, and European markets
- In April 2024, Mahle announced that the company secured two major orders for thermal management modules. One of the contracts is from an established, globally present vehicle manufacturer, while the other is an order from a newer car manufacturer in the Asian region, as the combined order volume across both projects is just under USD 1.6 billion. Further, the modules can significantly increase the cruising range of an electric car by up to 20% along with its charging speed.
- In April 2024, Carrar announced that the company will be closing its USD 5.3 million Series A funding round to deliver commercial automotive-grade battery modules for electric vehicles with new internal thermal management based on two-phase immersion technology. Also, the round included new investors Salida B.V., OurCrowd, NextGear, and current investors Gentherm, Next Leap Ventures, Dive Digital, and others.
- In January 2024, XING Mobility, announced its innovative Cell-to-Pack (CTP) immersion cooling battery system designed for automotive will be showcased at the 2024 Consumer Electronics Show (CES). The IMMERSIO XM25 product is already in commercial production and presents a real-sample from the world's first public demonstration of a three-nail penetration safety test conducted at 100% State of Charge.
- In October 2023, Modine unveiled that the company plans to expand production of its EVantage thermal management systems product family to Europe. Beginning in 2024, Modine's facility in Pontevico, Italy, would manufacture battery thermal management and electronics cooling systems for heavy-duty, commercial, and specialty vehicle manufacturers across the region.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 3.5 Bn |
| Forecast Value (2033) |
USD 20.7 Bn |
| CAGR (2024-2033) |
21.7% |
| Historical Data |
2018 – 2023 |
| The US Market Size (2024) |
USD 0.9 Bn |
| Forecast Data |
2025 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Battery Type (Conventional and Solid), By Technology (Air Cooling & Heating, Liquid Cooling & Heating, and Phase Change Material (PCM)), By Propulsion (HEVs, PHEVs, FCEVs, and BEVs), By Vehicle Type (Passenger Vehicles and Commercial Vehicles) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Samsung, Valeo, Hanon Systems, Robert Bosch GmbH, LG Chem, MAHLE GmbH, DANA, CapTherm Systems, VOSS Automotive, Continental AG, and Other Key Players |
| Purchase Options |
HVMN Inc., Thync Global Inc., Apple Inc., Fitbit Inc., TrackmyStack, OsteoStrong, The ODIN, Thriveport LLC, Muse, Moodmetric, and Other Key Players |
Frequently Asked Questions
The Global Automotive Battery Thermal Management System Market size is expected to reach a value of USD 3.5 billion in 2024 and is expected to reach USD 20.7 billion by the end of 2033.
Asia Pacific is expected to have the largest market share in the Global Automotive Battery Thermal Management System Market with a share of about 47.9% in 2024.
The Automotive Battery Thermal Management System Market in the US is expected to reach USD 0.9 billion in 2024.
Some of the major key players in the Global Automotive Battery Thermal Management System Market are Samsung, Valeo, Robert Bosch GmbH, and others.
The market is growing at a CAGR of 21.7 percent over the forecasted period.