Market Trends of Automotive Thermal Management Industry
This section covers the major market trends shaping the Automotive Thermal Management Market according to our research experts:
Battery Thermal Management to Witness Significant Growth
Vehicles that run on an all-electric powertrain or hybrid powertrain require a battery thermal management system. The battery is operated under a specific temperature for maximum charge storage and utilization efficiency. Hence, the increase in battery electric vehicles or plug-in hybrid vehicles is likely to drive the automotive thermal management market during the study period. For instance,
- In 2021, many European countries witnessed double-digit growth in EV sales, whereas the European region captured around 34% of global EV sales in 2021 compared to 43% in 2020. The overall plug-in vehicle sales reached about 2.27 million units in 2021 compared to 1.37 million in 2020.
This spike in sales is the result of an increase in regulatory norms by various organizations and governments to control emission levels and propagate zero-emissions vehicles.
Companies are investing in making more efficient battery solutions for the upcoming battery electric vehicles. For instance,
- In September 2022, Mahle launched its new thermal management systems for commercial electric vehicles at IAA Transportation in Hannover, Germany.
Thus, the above factors are estimated to significantly expand the market for automotive thermal systems during the forecast period.
Asia-Pacific Continues to Capture Major Market Share
The growing automobile sector in Asia-Pacific (with India and China emerging as automotive part manufacturing hubs for the western automobile giants) is expected to drive the market for thermal management systems in this region.
The growing government regulations improving electric vehicle adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate the rising demand from the automotive industry in China are expected to create a positive outlook for market growth during the forecast period. For instance,
- In August 2022, Schaeffler Group celebrated the production of five million thermal management modules in China.
The Indian automotive industry is the fourth-largest in the world, and in terms of commercial vehicle production, the country ranks seventh globally. The auto component business in the country has also increased significantly over the past five years. For instance,
- In March 2022, the development of a new high-speed mid-torque electric motor was revealed by Matter, an Ahmedabad-based technological innovation start-up focusing on delivering futuristic sustainable solutions. The company says that Matter Drive 1.0 Motor is a new intelligent drive train that includes a variety of significant breakthroughs, such as the Integrated Intelligent Thermal Management System.
In addition, rising sales of electric and hybrid vehicles in counties like China, India, Japan, and South Korea will further augment the market for automotive thermal systems in the Asia-Pacific region.
Thus, the Asia-Pacific region is predicted to remain the largest market for automotive thermal systems in the world during the forecast period.
