Automotive Thermal Management Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Automotive Thermal Management System Market is segmented by Application (Engine Cooling, Cabin Thermal Management, Transmission Thermal Management, Waste Heat Recovery/Exhaust Gas Recirculation (EGR) Thermal Management, Battery Thermal Management, and Motor and Power Electronics Thermal Management), Vehicle Type (Passenger Car and Commercial Vehicle), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market size in value (USD Billion) and forecasts for all the above segments.

Automotive Thermal Management Market Size

Compare market size and growth of Automotive Thermal Management Market with other markets in Automotive Industry

Automotive Thermal Management Market Analysis

The Automotive Thermal Management Market size is estimated at USD 105.84 billion in 2025, and is expected to reach USD 140.77 billion by 2030, at a CAGR of 5.87% during the forecast period (2025-2030).

The automotive thermal management industry is undergoing a significant transformation driven by the accelerating shift toward vehicle electrification and an increasing focus on sustainable transportation solutions. Major automotive manufacturers are rapidly expanding their electric vehicle portfolios, with battery-electric vehicle sales reaching 3.5 million units in 2021, representing a substantial growth of 59.09% compared to the previous year. This transition is reshaping the electric vehicle thermal management landscape as manufacturers adapt their technologies to meet the unique cooling and heating requirements of electric powertrains while maintaining optimal performance and efficiency.


Technological advancement in automotive thermal management systems has become a critical differentiator for automotive manufacturers, particularly in the electric vehicle segment. Companies are investing heavily in research and development to create innovative solutions that can effectively manage heat distribution across various vehicle components. For instance, in February 2022, BorgWarner secured an agreement with BMW Group to supply High-Voltage Coolant Heaters for their iX and i4 electric vehicles, demonstrating the industry's commitment to advancing thermal management capabilities. These developments are particularly crucial for improving battery thermal management, extending vehicle range, and enhancing overall system efficiency.


The industry is witnessing a notable shift in manufacturing strategies and supply chain optimization to meet evolving market demands. Auto parts suppliers are strengthening their global competitiveness in the thermal energy management market through strategic partnerships and facility expansions. The German automotive industry's expenditure on innovation has shown remarkable growth, reaching EUR 50.9 billion in 2021, highlighting the sector's commitment to technological advancement and sustainable solutions. This investment trend is particularly evident in the development of integrated vehicle thermal management systems that can handle multiple vehicle subsystems simultaneously.


The market is experiencing significant changes in product development approaches, with an increasing focus on intelligent and integrated thermal management solutions. Manufacturers are developing systems that can pre-condition vehicle components, optimize energy usage, and maintain ideal operating temperatures across various weather conditions. For example, recent developments include thermal systems that pre-heat truck batteries using electrical components and electronic control units, ensuring maintained temperature under extreme weather conditions. These advancements are crucial for improving vehicle efficiency, reducing energy consumption, and enhancing overall performance across different operating conditions.

Segment Analysis: By Application

Cabin Thermal Management Segment in Automotive Thermal Management Market

The Cabin Thermal Management segment continues to dominate the global automotive thermal management market, holding approximately 61% of the total market share in 2024. This segment's prominence is driven by the increasing emphasis on passenger comfort and safety across all vehicle categories. The growing demand for advanced automotive HVAC systems, particularly in luxury vehicles and electric cars, has further strengthened this segment's position. Manufacturers are focusing on developing more efficient and intelligent cabin thermal management solutions that can automatically adjust temperature settings based on occupant preferences while optimizing energy consumption. The integration of smart sensors and AI-powered climate control systems has become a standard feature in modern vehicles, contributing to this segment's substantial market share.

Motor and Power Electronics Thermal Management Segment in Automotive Thermal Management Market

The Motor and Power Electronics Thermal Management segment is emerging as the fastest-growing segment in the automotive thermal management market, with an expected growth rate of approximately 19% during 2024-2029. This remarkable growth is primarily attributed to the rapid electrification of vehicles globally and the increasing complexity of automotive electronic systems. The segment is witnessing significant technological advancements in cooling solutions for electric motors and power electronics components, which are crucial for maintaining optimal performance and extending the lifespan of electric vehicles. Manufacturers are investing heavily in developing innovative thermal management solutions that can effectively handle the high heat generation in electric powertrains while maintaining system efficiency and reliability.

Remaining Segments in Automotive Thermal Management Market

The automotive thermal management market encompasses several other crucial segments, including engine cooling systems, Transmission Thermal Management, battery thermal management, and Waste Heat Recovery/Exhaust Gas Recirculation (EGR) Thermal Management. Engine cooling systems remain fundamental for conventional vehicles, while transmission cooling systems play a vital role in maintaining optimal operating temperatures for both traditional and electric powertrains. Battery thermal management is becoming increasingly important with the rise of electric vehicles, focusing on maintaining optimal battery temperature for enhanced performance and longevity. The waste heat recovery and EGR thermal management segment contributes to improving overall vehicle efficiency and reducing emissions, particularly in conventional internal combustion engine vehicles.

Segment Analysis: By Vehicle Type

Passenger Car Segment in Automotive Thermal Management Market

The passenger car segment dominates the automotive thermal management market, commanding approximately 71% of the total market share in 2024. This significant market position is primarily driven by the increasing adoption of electric and hybrid vehicles in the passenger car segment, which require sophisticated thermal management systems for battery temperature control and cabin comfort. The segment's growth is further bolstered by the rising consumer demand for luxury vehicles equipped with advanced automotive HVAC systems and the implementation of stringent emission norms that necessitate efficient thermal management solutions. Additionally, the continuous technological advancements in passenger car thermal management systems, including the development of smart thermal management solutions and integrated cooling systems, have contributed to maintaining this segment's dominant position in the market. The segment is also witnessing substantial growth at a rate of around 6% from 2024 to 2029, driven by the increasing electrification of passenger vehicles and the growing emphasis on improving vehicle efficiency and reducing emissions.

Commercial Vehicle Segment in Automotive Thermal Management Market

The commercial vehicle segment represents a crucial component of the automotive thermal management market, with its unique requirements for heavy-duty cooling systems and robust thermal management solutions. This segment's growth is primarily driven by the increasing adoption of electric commercial vehicles, particularly in the logistics and transportation sectors, which require specialized thermal management systems for maintaining optimal battery and powertrain temperatures. The segment has also witnessed significant technological advancements in thermal management solutions specifically designed for commercial vehicles, including advanced HVAC systems for driver comfort and sophisticated cooling systems for engine and transmission components. Furthermore, the growing focus on reducing fuel consumption and emissions in commercial vehicles has led to increased investment in efficient thermal management systems, making this segment an important contributor to the overall market growth.

Automotive Thermal Management Market Geography Segment Analysis

Automotive Thermal Management Market in North America

The North American automotive thermal management market is experiencing robust growth driven by technological advancements in vehicle thermal systems and the increasing adoption of electric vehicles. The United States leads the regional market with its strong automotive manufacturing base and growing demand for luxury vehicles equipped with advanced thermal management systems. Canada follows with significant investments in automotive R&D and an increasing focus on electric vehicle thermal solutions. The region benefits from the presence of major automotive manufacturers and suppliers who continuously innovate in thermal management technologies for both conventional and electric vehicles.

Market Analysis of Automotive Thermal Management Market: Forecasted Growth Rate by Region

Automotive Thermal Management Market in United States

The United States dominates the North American automotive thermal management market, holding approximately 85% market share in 2024. The country's market leadership is supported by its extensive automotive manufacturing infrastructure and the strong presence of major thermal management system suppliers. The U.S. market is characterized by increasing demand for advanced thermal management solutions in electric vehicles and luxury cars. The country's automotive sector continues to invest heavily in R&D for innovative thermal management technologies, particularly focusing on battery thermal management systems for electric vehicles. The presence of stringent emission norms and safety regulations further drives the adoption of sophisticated thermal management solutions in the automotive sector.

Automotive Thermal Management Market in Canada

Canada emerges as the fastest-growing market in North America, with a projected growth rate of approximately 5% during 2024-2029. The country's automotive thermal management market is driven by increasing investments in electric vehicle manufacturing and the growing adoption of advanced thermal management technologies. Canada's automotive industry focuses on developing innovative thermal management solutions for extreme weather conditions, making it a unique market for specialized thermal management systems. The country's strong focus on reducing vehicle emissions and improving fuel efficiency continues to drive the demand for advanced thermal management solutions. Canadian automotive manufacturers are increasingly incorporating sophisticated thermal management systems in their vehicle designs to meet stringent environmental regulations.

Automotive Thermal Management Market in Europe

The European automotive thermal management market showcases significant growth potential driven by stringent emission norms and increasing electric vehicle adoption. Germany leads the market with its robust automotive manufacturing sector and technological innovations in thermal management systems. France, the United Kingdom, and Italy follow with their respective strengths in automotive technology development and manufacturing capabilities. The region's focus on sustainable transportation and vehicle electrification creates substantial opportunities for thermal management system manufacturers.

Automotive Thermal Management Market in Germany

Germany maintains its position as the largest market for automotive thermal management systems in Europe, commanding approximately 20% of the regional market share in 2024. The country's leadership is attributed to its strong automotive manufacturing base and the presence of major thermal management system manufacturers. German automotive companies are at the forefront of developing innovative thermal management solutions, particularly for electric and hybrid vehicles. The country's automotive sector continues to invest significantly in research and development of advanced thermal management technologies. German manufacturers are particularly focused on developing integrated thermal management systems that optimize both powertrain efficiency and passenger comfort.

Automotive Thermal Management Market in Germany - Growth Perspective

Germany also leads the European market in terms of growth rate, with an expected growth of approximately 6% during 2024-2029. The country's rapid growth is driven by increasing investments in electric vehicle technology and advanced thermal management solutions. German automotive manufacturers are actively developing new thermal management technologies for next-generation vehicles. The country's strong focus on sustainable mobility solutions and technological innovation continues to drive market growth. The presence of major research institutions and automotive technology centers further supports the development of advanced thermal management systems.

Automotive Thermal Management Market in Asia-Pacific

The Asia-Pacific region represents a dynamic market for automotive thermal management systems, driven by rapid industrialization and increasing vehicle production. China leads the regional market with its massive automotive manufacturing capabilities and growing electric vehicle sector. Japan, India, and South Korea contribute significantly to the market with their technological innovations and strong automotive manufacturing base. The region's rapid urbanization and increasing consumer preference for comfortable driving experiences continue to drive market growth.

Automotive Thermal Management Market in China

China maintains its position as the largest market for automotive thermal management systems in the Asia-Pacific region. The country's dominance is supported by its extensive automotive manufacturing infrastructure and rapid adoption of electric vehicles. Chinese manufacturers are increasingly focusing on developing advanced thermal management solutions for both conventional and electric vehicles. The country's automotive sector benefits from strong government support for electric vehicle development and manufacturing. Chinese automotive companies are actively investing in research and development of innovative thermal management technologies.

Automotive Thermal Management Market in India

India emerges as the fastest-growing market in the Asia-Pacific region for automotive thermal management systems. The country's growth is driven by increasing vehicle production and rising demand for passenger comfort features. Indian automotive manufacturers are rapidly adopting advanced thermal management technologies to meet evolving consumer preferences and regulatory requirements. The country's focus on electric vehicle manufacturing creates new opportunities for thermal management system suppliers. India's automotive sector is witnessing significant investments in research and development of cost-effective thermal management solutions.

Automotive Thermal Management Market in Rest of the World

The Rest of the World region, comprising South America and the Middle East & Africa, presents unique opportunities in the automotive thermal management market. South America emerges as the largest market in this region, driven by its established automotive manufacturing base and increasing adoption of advanced vehicle technologies. The Middle East & Africa region, while smaller in market size, shows the fastest growth potential due to increasing vehicle sales and growing demand for luxury vehicles with advanced thermal management systems. Both regions are witnessing significant investments in automotive manufacturing capabilities and an increasing focus on vehicle comfort features. The market in these regions is characterized by growing demand for efficient thermal management solutions adapted to local climate conditions and driving requirements.

Automotive Thermal Management Industry Overview

Top Companies in Automotive Thermal Management Market

The automotive thermal management market features prominent players like Denso Corporation, Valeo Group, MAHLE GmbH, Hanon Systems, and BorgWarner Inc. leading the industry through continuous innovation and strategic initiatives. These companies are heavily investing in research and development to develop advanced thermal solutions for both conventional and electric vehicles, with a particular focus on battery thermal management systems and integrated HVAC solutions. The industry witnesses frequent collaborations and partnerships aimed at developing next-generation thermal technologies, especially for electric vehicles. Companies are expanding their manufacturing footprint across strategic locations globally to strengthen their supply chain capabilities and cater to regional demands effectively. There is an increasing emphasis on developing eco-friendly and energy-efficient thermal management solutions, with companies incorporating smart control algorithms and advanced microclimate solutions in their product offerings.

Market Structure Shows Strong Global Integration

The automotive thermal management market exhibits a fragmented structure with a mix of global conglomerates and specialized thermal management solution providers competing for market share. Large-scale automotive parts manufacturers dominate the market through their established relationships with OEMs, extensive distribution networks, and significant manufacturing capabilities across multiple regions. These major players have built strong barriers to entry through their technological expertise, patent portfolios, and long-term contracts with automotive manufacturers, making it challenging for new entrants to establish themselves in the market. The industry also features relatively smaller manufacturers who have carved out niches by focusing on specific thermal management components or regional markets.


The market demonstrates ongoing consolidation through strategic acquisitions and partnerships, particularly as companies seek to enhance their capabilities in electric vehicle thermal management solutions. Major players are actively pursuing vertical integration strategies to strengthen their control over the supply chain and reduce dependence on external suppliers. The industry's competitive dynamics are further shaped by the increasing need for localized production to meet regional content requirements and reduce logistics costs, leading to strategic partnerships and joint ventures in key automotive markets.

Innovation and Adaptability Drive Future Success

Success in the automotive thermal management market increasingly depends on companies' ability to innovate and adapt to evolving technological requirements, particularly in the electric vehicle segment. Companies must maintain substantial R&D investments to develop integrated thermal management solutions that address both traditional internal combustion engines and emerging electric vehicle platforms. The ability to offer customized solutions while maintaining cost competitiveness has become crucial, as automotive manufacturers seek partners who can provide complete thermal management systems rather than individual components. Market players must also focus on building strong relationships with electric vehicle manufacturers, as this segment presents significant growth opportunities.


Companies looking to gain market share need to develop differentiated value propositions through technological innovation and superior customer service. This includes investing in advanced manufacturing capabilities, developing smart thermal management solutions, and establishing strong aftermarket service networks. The increasing focus on environmental regulations and sustainability requirements necessitates the development of more efficient and environmentally friendly thermal management solutions. Additionally, companies must maintain operational flexibility to address the varying needs of different vehicle segments and regional markets, while also preparing for potential regulatory changes that may impact vehicle thermal management requirements in vehicles.

Automotive Thermal Management Market Leaders

  1. BorgWarner Inc.

  2. Mahle GmbH

  3. Hanon Systems

  4. Valeo

  5. Denso Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Automotive Thermal Management Market Concentration
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Automotive Thermal Management Market News

  • Oct 2022: French energy giant TotalEnergies and Valeo partnered to develop a novel method for thermal management systems for electric vehicle batteries by utilizing cooling fluid developed by TotalEnergies.
  • Aug 2022: Mahle received a loan of EUR 300 million (USD 312 million) from the European Investment bank to develop technologies, including electric motors, battery components, power electronics, thermal management, and hydrogen fuel cell components for electric, hybrid, and fuel cell vehicles.
  • Aug 2022: BorgWarner Inc. announced that it had won two contracts, one from a global automaker and one Chinese automaker, to provide its advanced High-Voltage Coolant Heater (HVCH) technology for their new electric vehicle models.
  • Apr 2022: Denso Corp. won contracts to supply Toyota and Subaru's all-new, all-electric bZ4X and SOLTERRA with key electrification components, including thermal management systems like heat pump systems and radiant heating systems. Toyota electric bZ4X will be launched in May 2022, while Subaru SOLTERRA was expected to debut in mid-2022.
  • Apr 2022: Hanon Systems announced to relocate its manufacturing facility in Turkey from Gebze to Dilovasi.

Automotive Thermal Management Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
  • 4.2 Market Restraints
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Application
    • 5.1.1 Engine Cooling
    • 5.1.2 Cabin Thermal Management
    • 5.1.3 Transmission Thermal Management
    • 5.1.4 Waste Heat Recovery/ Exhaust Gas Recirculation (EGR) Thermal Management
    • 5.1.5 Battery Thermal Management
    • 5.1.6 Motor and Power Electronics Thermal Management
  • 5.2 Vehicle Type
    • 5.2.1 Passenger Car
    • 5.2.2 Commercial Vehicle
  • 5.3 Geography
    • 5.3.1 North America
    • 5.3.1.1 United States
    • 5.3.1.2 Canada
    • 5.3.1.3 Rest of North America
    • 5.3.2 Europe
    • 5.3.2.1 Germany
    • 5.3.2.2 France
    • 5.3.2.3 United Kingdom
    • 5.3.2.4 Italy
    • 5.3.2.5 Rest of Europe
    • 5.3.3 Asia-Pacific
    • 5.3.3.1 China
    • 5.3.3.2 India
    • 5.3.3.3 Japan
    • 5.3.3.4 South Korea
    • 5.3.3.5 Rest of Asia-Pacific
    • 5.3.4 Rest of the World
    • 5.3.4.1 South America
    • 5.3.4.2 Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles*
    • 6.2.1 Robert Bosch GmbH
    • 6.2.2 Dana Incorporated
    • 6.2.3 MAHLE GmbH
    • 6.2.4 Gentherm Incorporated
    • 6.2.5 Hanon Systems
    • 6.2.6 Denso Corporation
    • 6.2.7 BorgWarner Inc.
    • 6.2.8 Valeo Group
    • 6.2.9 Modine Manufacturing Company
    • 6.2.10 Schaeffler Technologies AG & Co. KG
    • 6.2.11 Kendrion NV
    • 6.2.12 ZF Friedrichshafen
    • 6.2.13 Aptiv Inc.

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Automotive Thermal Management Industry Segmentation

An automotive thermal management system (TMS) monitors and controls the operating temperature of various automotive systems, such as power electronics, transmission, battery, electric drive units, engine, and passenger cabin areas, to improve efficiency and prevent damage to the components.

The automotive thermal management market has been segmented by application type, vehicle type, and geography. By application, the market has been segmented into engine cooling, cabin thermal management, thermal transmission management, waste heat recovery/exhaust gas recirculation (EGR) thermal management, battery thermal management, and motor and power electronics thermal management. By vehicle type, the market has been segmented into passenger cars and commercial vehicles. By geography, the market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The report offers the market size in value (USD Billion) and forecasts for all the above segments. The report also provides market sizing and forecast for all the above-mentioned segments.

Application Engine Cooling
Cabin Thermal Management
Transmission Thermal Management
Waste Heat Recovery/ Exhaust Gas Recirculation (EGR) Thermal Management
Battery Thermal Management
Motor and Power Electronics Thermal Management
Vehicle Type Passenger Car
Commercial Vehicle
Geography North America United States
Canada
Rest of North America
Europe Germany
France
United Kingdom
Italy
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Rest of Asia-Pacific
Rest of the World South America
Middle East and Africa
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Automotive Thermal Management Market Research FAQs

How big is the Automotive Thermal Management Market?

The Automotive Thermal Management Market size is expected to reach USD 105.84 billion in 2025 and grow at a CAGR of 5.87% to reach USD 140.77 billion by 2030.

What is the current Automotive Thermal Management Market size?

In 2025, the Automotive Thermal Management Market size is expected to reach USD 105.84 billion.

Who are the key players in Automotive Thermal Management Market?

BorgWarner Inc., Mahle GmbH, Hanon Systems, Valeo and Denso Corporation are the major companies operating in the Automotive Thermal Management Market.

Which is the fastest growing region in Automotive Thermal Management Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Automotive Thermal Management Market?

In 2025, the Asia-Pacific accounts for the largest market share in Automotive Thermal Management Market.

What years does this Automotive Thermal Management Market cover, and what was the market size in 2024?

In 2024, the Automotive Thermal Management Market size was estimated at USD 99.63 billion. The report covers the Automotive Thermal Management Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive Thermal Management Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Automotive Thermal Management Market Research

Mordor Intelligence offers a comprehensive analysis of the automotive thermal management industry. We leverage decades of expertise in automotive HVAC and cooling systems research. Our latest report provides detailed insights into vehicle thermal management technologies. It includes developments in automotive radiator technology, innovations in engine cooling system solutions, and advanced vehicle heat exchanger solutions. The analysis covers critical components such as automotive cooling system technologies, transmission cooling system developments, and powertrain cooling solutions. These are available in an easy-to-read report PDF format for immediate download.

Our research addresses emerging trends in electric vehicle thermal management and battery thermal management. It offers stakeholders crucial insights into the evolving automotive climate control landscape. The report examines developments in automotive heating system technologies and the broader automotive HVAC industry. This provides valuable intelligence for decision-makers. Comprehensive coverage of the automotive climate control market and automotive radiator market ensures stakeholders gain actionable insights across the entire thermal management value chain. This is supported by detailed analysis of market dynamics and technological innovations in the automotive thermal management market.

Automotive Thermal Management Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)