USD 33.43 billion
Report ID:
SQMIG25A2136 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|Tables:
122
|Figures:
77
Automotive Thermal Systems Market size was valued at USD 34.73 Billion in 2023 and is poised to grow from USD 36.08 Billion in 2024 to USD 49.14 Billion by 2032, growing at a CAGR of 3.9% during the forecast period (2025-2032).
The introduction of turbochargers in commercial vehicles, rising demand for front and rear A/C, heated steering, and strict emission regulations are expected to propel market expansion. The global automotive thermal systems market growth is to be driven by the rising demand for smart thermal management in automobiles and the integration of thermal sensors in passenger vehicles. Manufacturers of heavy vehicles or those used in the shipping, construction, and transportation sectors are among the major buyers in the automotive thermal systems market. However, the lack of standardization due to the high cost of thermal system technology and variations in emissions in various nations is projected to impede market expansion.
It is estimated that factors such as the rise in demand for electric vehicles, the development of lightweight HVAC systems and eco-friendly refrigerants, and technical improvements will create growth possibilities throughout the forecast period. Companies in the automotive thermal systems market are concentrating on the development of parts such as compressors, HVAC systems, cooling systems for powertrains, and fluid transport. The carbon dioxide emissions from automobiles are reduced by these systems that recycle waste heat.
Global Market Size
USD 33.43 billion
Largest Segment
Compressor
Fastest Growth
Compressor
Growth Rate
3.9% CAGR
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The global automotive thermal systems market is segmented based on components, vehicle type, propulsion type, application, and region. Based on the components, the automotive thermal systems market is segmented as compressor, HVAC, powertrain cooling, fluid transport. Based on vehicle type, the automotive thermal systems market is segmented into passenger vehicles and commercial vehicles. Based on the propulsion type, the automotive thermal systems market is segmented into IC engine vehicles, electric vehicles and hybrid vehicles. Based on the application, the automotive thermal systems market is segmented into front & rear a/c, engine and transmission, seat, battery, motor, waste heat recovery, power electronics. Based on region, the automotive thermal systems market is categorized into North America, Europe, Asia-Pacific, and MEA.
The compressor segment is expected to dominate the Automotive Thermal Systems Market
The compressor segment accounted for the largest market share in the year 2020, and it is expected to continue its dominance over the forecast period. One of the key drivers fuelling the market's expansion is the rising use of compressors in the A/C systems to remove the warm air from the car's interior.
In 2021, the HVAC industry had a 45% market share. The market segment is projected to hold its position and expand at a CAGR of more than 2.82% throughout the course of the forecast period. In a car, the HVAC system controls the temperature, ventilation, and air conditioning. The market for automotive thermal systems is projected to be driven by rising demand for cutting-edge HVACs that are lightweight and environmentally friendly. Furthermore, HVAC equipment is economical and can increase productivity, which is projected to give the market another boost in the near future. During the forecast period, all of these factors are likely to drive the automotive thermal systems market.
The passenger car segment is projected to lead the automotive thermal systems market
The greatest market for automotive thermal systems is the passenger car sector. The top 6 nations producing the most passenger cars are the US, China, Japan, Germany, India, and South Korea. In many nations, rising per capita income and rising standards of life are the primary drivers of passenger car sales. Additionally, the market is projected to be driven by consumers' increased preference for comfort and luxury as well as their need for cutting-edge features like heated and ventilated seats, heated steering, and rear air conditioning.
On the other hand, it is projected that during the projected period, the commercial vehicle segment would be the most opportune. Two important factors boosting the sales of commercial vehicles in many nations are a rise in per capita income and an improvement in living standards.
Vehicles with IC engines will be in high demand in the global automotive thermal systems market
In 2021, the IC engine cars segment had a sizable share of 56%. The market segment is projected to hold its position and expand at a CAGR of more than 2.76% over the course of the projected period. Along with renewable or alternative fuels, gasoline or diesel are the most common fuels used by IC engine vehicles. In automobiles with internal combustion engines, the fuel is ignited and burned inside the engine. As a result, the engine partially transforms the energy from combustion into mechanical effort by pushing the piston with the help of expanding combustion gases, which turns the crankshaft. The worldwide automotive thermal systems market is projected to grow as a result throughout the forecast period.
The waste heat recovery segment is estimated to be the fastest-growing segment during the forecasted period
The thermal system market for waste heat recovery is projected to experience the highest CAGR of 10.2% during the forecast period. The rise in commercial vehicle manufacturing that comes equipped with turbochargers and EGR is responsible for the market expansion for waste heat recovery systems. As a result of strict pollution standards, waste heat recovery systems have been employed in gasoline vehicles.
Additionally, it is predicted that the seat sector will be the most profitable segment during the projected period. The expansion of the seat category is being driven by the rising use of passenger vehicles in developing and emerging nations during the course of the projection period.
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APAC accounted for a significant portion of the global automotive thermal systems market in 2021 in terms of revenue share. Due to a constant rise in demand for passenger automobiles brought on by the region's growing population, growing urbanisation, stable economic conditions, and low interest rates, the trend is projected to continue during the projected period.
Over the past few years, APAC has been a centre for the manufacture of automobiles. OEMs have increased vehicle production in the area as a result of shifting consumer tastes, rising middle-class per capita income, and cost benefits. As a result, the manufacture of vehicles has significantly increased in China, India, and Japan. The region's notably high vehicle manufacturing presents the automotive thermal systems market with a sizable opportunity. Due to favourable investment regulations and the availability of inexpensive labour, Asia-Pacific has become a prime market for car OEMs. The region's demand for automotive thermal systems has been driven up by rising demand for luxury vehicles with greater interior comfort.
In terms of market volume and value share, this region was followed by North America and Europe. The automobile thermal system market was dominated by North America and Europe in 2021. In these regions, there is a trend toward auto customisation, which significantly impacts the market.
The South American market will grow slowly over the next five years due to stagnancy in automobile sales in the region as a whole, particularly in Brazil.
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Automotive Thermal Systems Market Driver
Leading market participants are now required to offer electric vehicles all over the world due to increasing demand for low-emission transportation and governments’ encouraging long-range, zero-emission vehicles through subsidies and tax breaks. The market is seeing an increase in demand for electric vehicles as a result. It was projected that with an increase in demand for electric vehicles, battery prices would decline. Battery electric vehicle sales are increasing as a result of this. An electric motor, a battery, and power electronics cooling are needed for battery electric cars. Automotive thermal management systems are in increasingly high demand as the number of electric and hybrid vehicles on the road rises. Such automotive thermal management systems address the challenges that the automotive industry faces. They help to lower the amount of pollution that cars with internal combustion engines emit. Additionally, in hybrid and electric vehicles, automotive temperature management systems maximise battery range and durability. They also safeguard the passengers' health and safety. Therefore, the increased demand for electric vehicles is fuelling the growth of the global automotive thermal systems market.
Controlling GHG emissions from vehicles has become a significant concern as the number of vehicles on the road worldwide has increased. Regulatory organisations like the European Commission (EC) and the United States Environmental Protection Agency (US EPA) have imposed fuel economy standards and controlled fuel sulphur content limits to combat the exponential effect of emissions. By recycling waste heat and carefully controlling the vehicle's heating and cooling systems, advancements in thermal system technology can maximise CO2 reduction and boost vehicle efficiency. Engine thermal mass reduction, predictive powertrain control, integrated liquid-cooled exhaust/EGR, transmission rapid warm-up, dynamic engine thermal control, and thermoelectric capture and generation are some of the thermal system technologies that are currently used in luxury vehicles to meet the reduced CO2 emission targets (TEG). Furthermore, Rankine cycle and thermal electric exhaust heat recovery systems are emerging thermal system technologies.
Thermal technologies improve the efficiency of the engine, transmission, and HVAC systems in conventional automobiles. These technologies allow for a reduction in the size, mass, and price of the powertrain subsystem in electric vehicles, as well as an increase in the electric powertrain's range (e.g., motor, power electronics, or battery).
Automotive Thermal Systems Market Challenges
OEMs have used innovative technology to accomplish desired outcomes in response to the imposition of strict pollution and fuel economy requirements. Rising demand for in-vehicle comfort amenities has forced manufacturers to concentrate on thermal systems for the powertrain, drivetrain, and in-cabin comfort. The performance of a thermal system can be measured by comparing the cost incurred to the overall CO2 reduction achieved with these methods. OEMs have previously embraced and incorporated technologies with substantial ROI and CO2 reductions into their premium models. Despite the fact that there are more than 60 thermal system technologies, only a few of them are now in use because of their cost-benefit ratio. Utilizing expensive technologies raises the system's cost, which raises the overall cost of the vehicle and negatively impacts market demand, especially in emerging economies where customers are typically price-sensitive.
Local or regional manufacturers are required to abide by the regulations set forth by the regulating body regarding emission requirements. The export of thermal systems, however, may be hampered by a lack of standardisation due to regional variations in emission restrictions. For instance, in Europe, it is required that the emissions should be reduced. However, poorer nations like South Africa do not have such regulations. As a result, the absence of uniformity makes it difficult for producers to find raw materials or inventory, which negatively impacts the export industry. Low-volume manufacturing is used by producers, which raises production costs. According to the European Commission and US EPA, engine technology must be upgraded to Euro III/IV/V and Tier 3/4 standards. Therefore, the demand for after-treatment devices and enhanced thermal technologies that adhere to the upgraded technology has increased. Thus, the absence of uniform technical standards and high manufacturing costs may limit the market's expansion.
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The global automotive thermal systems market is fragmented, with a growing number of manufacturers dominating the market share. Companies see an opportunity to accelerate expansion through the introduction of new products and sales through unconventional channels. Key players frequently use mergers and acquisitions and product portfolio expansion as important tactics. Leading automakers including BMW, Fiat Chrysler, Ford, GM, Honda, Hyundai, JLR, Kia, Mercedes, and Nissan have used technologies like active heat transfer, integrated liquid-cooled exhaust/EGR, variable engine oil pump, and engine thermal mass reduction.
Automotive Thermal Systems Market Top Players Company Profiles
Automotive Thermal Systems Market Recent Development
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our business information services team that collects, collates, co-relates, and analyses the data collected by means of primary exploratory research backed by the robust secondary desk research.
According to our analysis, the automotive thermal systems are being used more frequently as a result of the growing need for vehicle electrification in order to improve user comfort without reducing vehicle range and maintain appropriate battery temperature. The main driving forces behind the market expansion are the growing demand to reduce carbon emissions produced by internal combustion engines (ICEs) in cars, and the strict emission laws enforced by governing bodies of numerous nations. In addition, the market is growing as a result of the increased use of cutting-edge HVAC systems that are lightweight and environmentally friendly.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 33.43 billion |
Market size value in 2031 | USD 47.3 billion |
Growth Rate | 3.9% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Historical Year | 2019 |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Automotive Thermal Systems Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Thermal Systems Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Thermal Systems Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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Automotive Thermal Systems Market size was valued at USD 33.43 billion in 2019 and is poised to grow from USD 34.73 billion in 2023 to USD 47.3 billion by 2031, growing at a CAGR of 3.9% in the forecast period (2024-2031).
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Report ID: SQMIG25A2136
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