Automotive Thermal Systems Market Size, Share, and Trends 2024 to 2034

Automotive Thermal Systems Market Size and Forecast 2024 to 2034

The global automotive thermal systems market size accounted for USD 45.78 billion in 2024 and is predicted to reach around USD 45.78 billion by 2034, growing at a CAGR of 4.33% from 2024 to 2034.

Automotive Thermal Systems Market Market Key Takeaways

• Asia Pacific dominated the moisture curing adhesive market in 2023.
• By component, the compressor segment dominated the market in 2023.
• By component, the  heating ventilation air conditioning segment is expected to grow rapidly in the market during the forecast period.
• By vehicle type, the passenger vehicles segment dominated the market in 2023.
• By vehicle type, the commercial vehicles simulation segment is anticipated to grow significantly in the market during the forecast period.
• By application, the waste heat recovery segment led the global market in 2023.
• By application, the seat segment is estimated to grow rapidly in the market during the fastest period.

Automotive Thermal Systems Market  Size in the Asia Pacific 2023 To 2032

The Asia Pacific automotive thermal systems market size was valued at USD 18.42 billion in 2023 and is expected to be worth over USD 29.38 billion by 2034, at a CAGR of 5% between 2024 to 2034.

Based on the region, in terms of revenue, the Asia-Pacific segment dominated the global automotive thermal systems market in 2023. The construction equipment and heavy trucks are being driven by huge infrastructure improvements, which are fueling the growth of the automotive thermal systems market. Furthermore, the manufacturing of a large number of automobiles in Japan, South Korea, China, and India is fueling the demand in the Asia-Pacific region.

The Europe is estimated to be the most opportunistic segment during the forecast period. With the rising demand for automobiles in nations such as the UK, France, Italy, and Germany, the Europe is expected to emerge as a new market, with consumers shifting their preferences toward climate control and compact, modern Heating Ventilation Air Conditioning (HVAC) systems. Furthermore, stringent government regulations are necessitating the modification and upgradation of the automotive thermal system components, which is expected to drive the demand in this sector.

Automotive Thermal Systems Market Growth Factors

The automotive thermal system regulates the temperature of the vehicle’s primary components by using alternate engine block monitoring temperatures and reducing block monitoring temperatures and reducing temperature component variations. They improve fuel efficiency and are also utilized to give a variety of interior conveniences like as front and back air conditioning, and steering and seat warmth. These devices recycle waste heat, lowering carbon dioxide emissions in automobiles. The manufacturers of heavy automobiles or vehicles used in transportation, construction, and shipbuilding industries are among the automotive thermal system market’s top purchasers.

With the advancement of automobile electronics and systems such as navigation, Heating Ventilation Air Conditioning (HVAC) systems, entertainment, and transmission, the demand for thermal systems in the automotive sector has grown dramatically during the projected period.

The automotive thermal systems market is predicted to develop due to severe emission regulations, growing demand for front and rear air conditioning, the use of turbo engines in commercial vehicles, and heated steering. In addition, the automotive thermal systems market is also predicted to rise due to the rising need for smart thermal systems in automotive and automobiles and the integration of thermal sensors in passenger cars.

On the other hand, the high cost of thermal system technology, as well as discrepancies in emission levels across nations, result in a lack of standardization, which is projected to stifle the automotive thermal system market expansion during the forecast period.

In the North America and Europe regions, where disposable income is higher, the automotive thermal systems are more often used. The Asia-Pacific region is expected to grow at a rapid pace during the forecast period. The second and third largest markets for automotive thermal systems, respectively, are the Europe and North America regions.

Scope of the Automotive Thermal Systems Market

Component Insights

Based on the component, the compressor segment dominated the global automotive thermal systems market in 2023, in terms of revenue and is estimated to sustain its dominance during the forecast period. One of the primary factors driving the automotive thermal systems market expansion is the rising use of compressors in A/C systems to absorb the warm air inside the automobile’s cabin.

The Heating Ventilation Air Conditioning (HVAC) segment is estimated to be the most opportunistic segment during the forecast period. The need for Heating Ventilation Air Conditioning (HVAC) systems has risen as customer’s preferences for comfort have grown. The key market players are developing products that provide various additional benefits in addition to meeting the comfort needs of customers.

Vehicle Type Insights

Based on the vehicle type, the passenger vehicles segment accounted largest revenue share in 2023. The automotive thermal systems market is predicted to rise because to factors such as growing demand for ventilated seats, rear, and front A/C, and heated steering in passenger vehicles, as well as rising passenger vehicle sales in the Asia-Pacific region.

On the other hand, the commercial vehicles segment is estimated to be the most opportunistic segment during the forecast period. The increased per capita income and a higher standard of living are two significant factors driving the commercial vehicle sales in many countries.

Application Insights

Based on the application, the waste heat recovery segment leads the global automotive thermal systems market in 2023, in terms of revenue. The rising sales of commercial vehicles, as well as the standardization of exhaust gas recirculation and turbochargers, and the application of waste heat recovery technology in gasoline vehicles as a result of increased emission regulations, are some of the primary reasons driving the automotive thermal systems market expansion.

Moreover, the seat segment is estimated to be the most opportunistic segment during the forecast period. The increased use of passenger vehicles in the underdeveloped and developing economies is driving the growth of the seat segment during the forecast period.

Key Companies & Market Share Insights

The various developmental strategies such as new product launches, acquisition, partnerships, business expansion, investments, joint venture, and mergers fosters market growth and offers lucrative growth opportunities to the market players. The key market players have been investing in more complex thermal systems to increase vehicle efficiency and fulfil the growing demand for vehicle electrification systems in the global automotive sector, due to the growing trend of light weight and fuel-efficient automobiles.

Automotive Thermal Systems Market Companies

• Denso Corporation
• Mahle GmbH
• Gentherm Inc.
• Valeo
• Grayson Thermal Systems
• Borgwarner Inc.
• General Motors Company
• Lennox International Inc.
• Modine Manufacturing Company Inc.
• Visteon Corporation

Segments Covered in the Report

By Component

• Compressor
• Heating Ventilation Air Conditioning (HVAC)
• Powertrain Cooling
• Fluid Transport

By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

By Application

• Front and Rear A/C
• Engine and transmission
• Seat
• Battery
• Motor
• Waste Heat Recovery
• Power Electronics

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Philippines
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa