According to FMI's market analysis report, the demand for thermal control systems for electric vehicles would grow at an annual rate of 21.4% from 2023 to 2033. During this period, the report further predicts the overall valuation is likely to reach USD 15,600.9 million by 2033, growing from an expected value of USD 2,243.7 million in 2023.
Based on traction power, heating can severely deplete the batteries in cold conditions, making the thermal systems a very crucial component for EVs. Additionally, the thermal system for electric vehicles has played a significant role in reducing the expense and complexities of operation. According to a study of BEV designs, coupling certain technologies, like heat pumping & collecting, cabin pre-conditioning, refrigerant-cooled batteries, and air coolants, can boost the EV's efficiency.
The participation of significant automakers, including BMW, Fiat, Volkswagen, and Mercedes, is expected to lead to a substantial increase in EV thermal system business. Though Norway, Germany, France, The Netherlands, and the United Kingdom are the biggest contributors to the European market, Germany leads in sales of EV thermal systems.
Key innovations and developments in the recent past by commercial vehicle thermal system manufacturers have fueled the emerging trends in the market. For instance, the Dutch Kendrion Company presented a new thermal control solution on some kind of glass board in the year 2018.
To help EV batteries work better and longer, businesses are further investing in the preparation of enhanced battery cooling systems. Additionally, there has been a fresh requirement of tracking the performance of EV batteries in real time due to the need of managing their average temperature. For illustration, in the year 2019 Robert Bosch GmbH unveiled a brand-new battery management software solution that enables users to remotely control over cloud connection.
| Attributes | Details |
|---|---|
| EV Thermal System Market Share (2022) | USD 1,840.6 million |
| EV Thermal System Market Size Value (2023) | USD 2,243.7 million |
| EV Thermal System Market Size Value (2033) | USD 15,600.9 million |
| EV Thermal System Market Growth Rate (2023 to 2033) | 21.4% |
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Based on the earlier reports released by FMI, EV thermal management system market size was nearly USD 1,840.6 million in 2022. In the following years, the overall market is expected to show a growth trajectory of 14.8% increase every year with the growing popularity of EVs.
The EV thermal system market was significantly impacted during the pandemic years, as practically all nations chose to shut down all manufacturing facilities.
The rise in the demand for EV thermal systems during the pandemic is a result of federal initiatives to promote electric vehicle growth. The sales of EVs also skyrocketed, as fossil fuel prices, as well as environmental and sustainability concerns, grew after the pandemic years.
Unfortunately, the development of the market is being constrained by elements like the high price of EVs and the difficulty of designing its thermal management components. Government restrictions and rewards would probably play a key role in the success of electric vehicle thermal system component manufacturers' market expansion. Government initiatives to promote the use of EVs have contributed to the market's expansion positively.
Batteries should become less expensive due to the growing sales of EVs, which would further strengthen the EV thermal system market. Even so, it is also crucial that additional loads like cabin cooling and heating controlling parts do not reduce the car's range. Battery-operated EVs have insufficient waste heat energy, hence their supplementary systems must be more effective and precise in their operations.
Principal Consultant
The main vehicle type category in the global market for global EV thermal systems is the battery-operated vehicles (BEVs) segment. Almost 78.4% of the revenue generated by the global market comes through passenger electric cars or vehicles.
However, the rising sales of commercial electric vehicles in recent years have provided sufficient impetus for the other market segment. During the forecast years, the commercial vehicle segment is expected to grow at a faster rate and overtake the former segment.
The optimal ADAS equipment for commercial ICE as well as EV is HVAC since it is crucial for engine temperature regulation. These factors contribute to the CAGR of nearly 25% that is predicted for this market segment based on system type.
As per the global EV thermal system market analysis report, the United States contributed around USD 200 million in the year 2022. With over 10.8% on average of the worldwide revenue share, it dominated the global market during the years before 2022.
The EV vehicle thermal system market is expected to be driven by strict pollution laws, as well as rising demand for thermal and interior air conditioning systems in EVs. The progress of the market in the United States can be ascribed to the expansion of the last-mile retail delivery business, and freight transportation.
Based on the survey reports, the net demand for EV thermal systems in Germany in the year 2022 was around USD 147.25 million. During the upcoming years, it is projected to acquire some positive growth trends and reach USD 1,240 million by the end of 2033. Under the presence of many key players in the EV thermal system industry, the country is anticipated to lead the market in Europe in the coming years as well.
Contrarily, the United Kingdom has emerged as a better-performing region in Europe for electric vehicle thermal systems in the last few years. The United Kingdom market is projected to grow at a faster rate of 19.6% between the years 2023 and 2033. Favorable government regulations to encourage the sales of electric vehicles are poised to render the country lucrative for electric vehicle OEMs.
The top-tier contributors to the Asia Pacific market are nations like China and Japan. The overall sales of EV thermal systems by Chinese companies together are estimated to grow at a rate of 18.7% through 2033.
A reliable and predictable industrial ecosystem in the country has favored such advancement of the China commercial vehicle thermal system market. Owing to the rising need for commercial trucks in Middle Eastern nations, China would have the quickest growth throughout the projection period.
On the other hand, Japan is well known to be a significant competitor to the Chinese EV thermal system market players. In the year 2022, the Japanese EV thermal system manufacturers together generated a revenue of around USD 55.2 million. According to market experts, this regional market would witness a positive growth trend and cross USD 460 million by the year 2033.
Over the last few years, the sales of electric vehicles have increased manifold with government support as well as the effort of private businesses. Also, during the projection period, it is anticipated to register an above-average CAGR of 22.8% over the forecast years. Increased knowledge of thermal management system advantages for electric vehicles in the country is anticipated to fuel regional market expansion.
The primary growth-driving element in the country is the rise in EV adoption, particularly by middle-class families. Additionally, rising sales of EVs as a result of government subsidies and improving infrastructures have also boosted the demand for EV thermal systems.
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Many electric vehicle thermal system businesses are expanding and improving their products for both conventional and electric vehicles in the present market. For example, Mahindra Electric Company in India was able to provide an entirely new heat transfer system for electric vehicles in May 2020. The corporation says that using electric vehicle thermal systems that are liquid-cooled would lower the cost of its automobiles.
Due to the emergence of several new businesses, the overall market is fairly fragmented these days. New market participants in particular are pursuing methods including investments, collaborations, and mergers to gain a competitive advantage. As a result, the standardization of emission regulations and thermal system parameters may present profitable prospects for many regional market players or producers, particularly in emerging nations.
To advance the use of the automotive thermal system for electric vehicles, the key players are engaged in several research and development initiatives. Furthermore, the EV thermal system businesses are willing to advertise these sophisticated and precise controls as a key strategy to penetrate new markets.
As an illustration, Bosch created and improved its intelligent thermal system for battery-operated electric vehicles (BEVs) very early. In 2015, the GaTE project published one of the first businesses to get introduced to the core principle at the Frankfurt Auto Show.
The market was valued at USD 1,840.6 million in 2022.
EV thermal system demand is expected to rise at 21.4% CAGR through 2033.
The global market is predicted to be worth USD 15,600.9 million by 2033.
The United States contributed for almost 10.8% of the global market share in 2022.
India is currently the key market in Asia and could progress at 22.8% CAGR through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System Type 5.1. Heating Ventilation and Air Conditioning (HVAC) 5.2. Powertrain Cooling 5.3. Fluid Transport 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Battery Electric Vehicle 6.2. Hybrid Electric Vehicle 6.3. Plug-in Hybrid Electric Vehicle 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Engine Cooling 7.2. Air Conditioning 7.3. Heated Steering 7.4. Waste Heat Recovery 7.5. Transmission System 7.6. Heated/Ventilated Seats 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 8.1. OEM 8.2. Aftermarket 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Robert Bosch GmbH 17.2. BorgWarner Inc. 17.3. Dana Limited 17.4. VOSS Automotive GmbH 17.5. Modine Manufacturing Company 17.6. Denso Corporation 17.7. MAHLE GmbH 17.8. Valeo 17.9. Gentherm 17.10. Hanon Systems 17.11. CapTherm Systems 17.12. LG Chem Ltd. 17.13. Visteon Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
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EV Thermal System Market
