Automotive Thermal Management Market is Poised for Growth Driven by Increasing Vehicle Electrification
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| Automotive Thermal Management Market |
The automotive thermal management market plays a crucial role in maintaining optimal operating temperatures for various vehicle components and promoting energy efficiency. Automotive thermal management systems aid temperature regulation of different parts including the engine, transmission, HVAC unit, electric motors, batteries, and power electronics. Growing demand for electric and hybrid vehicles globally has stimulated extensive research and development towards advanced thermal management technologies.
Thermal management systems help improve the performance and reliability of different powertrain systems in automobiles. They prevent overheating of batteries and electric drivetrains in electric vehicles along with combustion engines in conventional gasoline vehicles. Effective thermal control enables higher power densities, extended component lifetimes, and enhanced safety.
The global automotive thermal management market is estimated to be valued at US$ 96.84 Bn in 2024 and is expected to reach US$ 143.62 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
Key Takeaways
Key players operating in the automotive thermal management market are Robert Bosch GmbH, Schaeffler Technologies AG & Co. KG., Hanon Systems, Dana Incorporated, Gentherm Incorporated, BorgWarner Inc., Valeo Group, MAHLE GmbH, Modine Manufacturing Company and Denso Corporation.
Growing Automotive Thermal Management Market Demand for electric vehicles globally is a major factor driving the need for advanced thermal management systems that can efficiently handle higher heat loads from electric powertrains. Stringent regulations towards lower vehicle emissions and rising environmental awareness are also propelling the electric vehicle market.
Leading automotive thermal management solution providers are focusing on expanding their global footprint through partnerships, new product development and mergers & acquisitions to tap the growing demand. Manufacturers are increasingly focusing on the Asia Pacific market in view of high vehicle production volumes in China and other emerging countries.
Market key trends
One of the key trends gaining significant traction in the automotive thermal management market is the increasing adoption of phase change materials (PCMs). PCMs can absorb and release large amounts of heat during their phase transition from solid to liquid and vice versa. They enable more effective thermal energy storage compared to traditional solutions. Several automakers are developing thermal management systems incorporating PCMs to boost electric vehicle ranges and component efficiency.
Porter's Analysis
Threat of new entrants: Low barrier to entry as technology is not highly complex but established players have advantage due to resources and economies of scale.
Bargaining power of buyers: Buyers have moderate to high bargaining power given presence of major established OEMs dominating the market. However, switching costs for buyers are also moderate.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative suppliers and integration across the value chain by major players backwardly.
Threat of new substitutes: Threat of substitutes is low as thermal management systems are crucial for automotive performance. New materials pose some threat but require high investment.
Competitive rivalry: High as industry comprises of large global players with regional presence and new local players. Continuous innovation and collaboration is key to gain competitive edge.
Geographical Regions
North America dominated Automotive Thermal Management Market Regional in 2020 accounting for over 35% share attributed to extensive adoption electric and hybrid vehicle technology. Stringent emission norms support product demand.
Asia Pacific expected to witness fastest CAGR during the forecast period with China and India emerging as high potential markets. Increasing vehicle production and sales coupled with growing focus towards fuel efficiency and durability will propel regional market.
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Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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