Electric Vehicle Thermal Management Market Size, Share, and Trends 2024 to 2033

Electric Vehicle Thermal Management Market Size to Reach USD 4.90 Bn by 2033

The global electric vehicle thermal management market size was valued at USD 2.60 billion in 2023 and is anticipated to reach around USD 4.90 billion by 2033, growing at a CAGR of 6.54% from 2024 to 2033.

Key Takeaways

• North America dominated the global electric vehicle thermal management market in 2023 with market share of 39%.
• Europe is expected to witness notable growth in the market over the forecast period.
• By system, the heating, ventilation, and air conditioning (HVAC) segment dominated the market in 2023.
• By system, the powertrain cooling segment is expected to grow at the highest CAGR in the market during the forecast period.
• By component, the motor segment has accounted market share of 47% in 2023.
• By component, the battery segment is expected to grow at a significant rate during the forecast period.
• By technology, the reduced HVAC system loading segment dominated the market in 2023.
• By technology, the active transmission warmup segment is expected to grow at the highest CAGR in the market during the forecast period.
• By application, the air condition segment dominated the market in 2023.
• By application, the engine cooling segment is expected to grow at the highest CAGR in the market during the forecast period.
• By vehicle type, the hybrid EV (HEV) segment dominated the market in 2023.
• By vehicle type, the plug-in hybrid EV (PHEV) segment is expected to grow at the highest CAGR in the market during the forecast period.

Electric Vehicle Thermal Management Market Size U.S. 2024 to 2033

The U.S. electric vehicle thermal management market size was estimated at USD 820 million in 2023 and is projected to be worth around USD 1,550 million by 2033 at a CAGR of 6.70% from 2024 to 2033.

North America dominated the electric vehicle thermal management market by region in 2023. This refers to management that is designed to maintain the temperature of various essential components, including batteries, motors, and all the mechanisms that are essential in electric vehicles. The appropriate management of cooling of battery, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.

Europe is expected to grow at a notable rate in the electric vehicle thermal management market by region during the forecast period. European countries have been early adopters of electric vehicles due to government initiatives, environmental awareness, and stringent emission regulations. The strong demand for EVs naturally extends to the demand for high-quality electric vehicle thermal management systems. The electric vehicle manufacturing industries in Europe collaborate with leading technology companies to enhance the thermal management of electric vehicles.

Electric Vehicle Thermal Management Market Overview

The electric vehicle thermal management market refers to industry that offers services and components designed to maintain the temperature of various essential components, including batteries, motors, and all the mechanisms that are essential in electric vehicles. The appropriate management of cooling of batteries, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.

Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles. The electric vehicles' thermal management includes cabin thermal management (CTM), battery thermal management (BTM), and motor thermal management (MTM).

The electric vehicle thermal management market is fragmented with multiple small-scale and large-scale players, such as Denso Corporation, Valeo, Dana Limited, BorgWarner Inc., MAHLE GmbH, Gentherm, Robert Bosch GmbH, LG Chem, VOSS Automotive GmbH, Modine Manufacturing Company, etc.

Growth Factors

• The enhancement of electric vehicle performance can boost the electric vehicle thermal management market. The appropriate management of cooling of batteries, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
• An increase in the adoption of electric vehicles can boost the electric vehicle thermal management market.
• The advancement in thermal management can be an opportunity for the electric vehicle thermal management market.

Electric Vehicle Thermal Management Market Scope

Electric Vehicle Thermal Management Market Dynamics

Drivers

Enhance electric vehicle performance

The enhancement of electric vehicle performance can boost the electric vehicle thermal management market. The appropriate management of cooling of battery, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the electric vehicle thermal management market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles and boost the market.

Increase in adoption of electric vehicles

An increase in the adoption of electric vehicles can boost the electric vehicle thermal management market. As the adoption of electric vehicles continues to rise, the overall market for electric vehicle thermal management expands accordingly. With more electric vehicles on the road, there is a greater demand for important solutions, especially to the needs and preferences of electric vehicle drivers and passengers.

• In February 2024, based on the data published by the IEA on the number of electric cars sold globally, around 1-in-7 new cars sold were electric in 2022 (the preliminary estimate for 2023 is around 1-in-5). In Norway, the share was well over 4-in-5, and in China, it was around 1-in-3., and EV sales.

Restraint

High cost of maintenance

The high cost of maintenance for electric vehicle thermal management may restrict the market. The high cost of thermal management systems may limit access to advanced thermal management technologies. The cost barrier may hinder the overall growth of the electric vehicle market.

Opportunity

Advancement in thermal management

The advancement in thermal management can be an opportunity for the electric vehicle thermal management market. Advancements in thermal management, including liquid cooling, provide efficient heat dissipation and maintain optimal temperature ranges for electric vehicle components such as the batteries, motors, cabin areas, and all the mechanisms that are essential in electric vehicles. 

Phase change materials (PCM) and heat pipes offer alternative cooling methods, which can provide advantages such as being lightweight and having high cooling efficiency. These can boost the electric vehicle thermal management market.

System Insights

The heating, ventilation, and air conditioning (HVAC) segment dominated the electric vehicle thermal management market by system in 2023. The heating, ventilation, and air conditioning (HVAC) system regulates the temperature inside electric vehicles. Heating, ventilation, and air conditioning (HVAC) also help maintain the climate in electric vehicles, including heating, cooling, and maintaining the quality of air.

The appropriate management of cooling of batteries, motors, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the electric vehicle thermal management market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.

The powertrain cooling segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by systems during the forecast period. The powertrain cooling system helps in appropriating the management of cooling of batteries, motors, and all the mechanisms that are essential in electric vehicles, which help to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market. 

Component Insights

The motor segment dominated the electric vehicle thermal management market by component type in 2023. With the increasing demand for electric vehicles, motors exhibit high power density, torque density, and speed. The motor of electric vehicles' thermal management involves a cooling mechanism to dissipate heat generation during operation. Maintaining efficiency helps to improve the performance of electric vehicles, which plays an important role in the growth of the market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.

The battery segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by component type during the forecast period. The battery in the market helps to regulate the temperature of battery packs. This component typically involves cooling and heating mechanisms to maintain the battery within an optimal operating temperature range, which enhances the performance, safety, and lifespan of electric vehicle thermal management.

Technology Insights

The reduced HVAC system loading segment dominated the electric vehicle thermal management market by technology in 2023. The reduced HVAC system loading technology aimed to minimize the energy consumption of the heating, ventilation, and air condition (HVAC) systems in electric vehicle thermal management. This technology helps to optimize and control the temperature of the battery, motors, and all the mechanisms that are essential in electric vehicles, which help to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.

The active transmission warm-up segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by technology during the forecast period. The active transmission warm-up technology is important in electric vehicle thermal management where transfer of power is important for maximizing the performance.

Application Insights

The air condition segment dominated the electric vehicle thermal management market by application in 2023. The air conditioning in electric vehicle thermal management plays a crucial role in regulating the temperature inside the electric vehicle cabin for passenger comfort. It exists to cool various components of electric vehicles, including battery packs, electric motors, and power electronics, which maintain optimal operating temperatures. The market refers to an industry that is involved in developing, manufacturing, and implementing systems and technologies that help to maintain the temperature of the market.

The engine cooling segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by application during the forecast period. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.

Vehicle Type Insights

The hybrid EV (HEV) segment dominated the electric vehicle thermal management market by vehicle type in 2023. The HEV stands for a Hybrid Electric Vehicle that combines a conventional internal combustion engine system with an electric propulsion system. The conventional internal combustion engine team is a traditional method of powering a vehicle using an engine that burns fuel within the cylinder to generate power. The electric propulsion system relies on electricity stored in batteries or generated by full sale to power the electric motors.

The plug-in hybrid EV (PHEV) segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by vehicle type during the forecast period. Plug-in hybrid electrical is a hybrid type vehicle that combines a conventional internal combustion engine with an electric propulsion system. Plug-in hybrid electric vehicles are flexible for using both electricity and gasoline. It also reduces emissions and improves fuel efficiency, where electric mode can be used predominantly.

Recent Developments

• In March 2024, Ford Motor Company launched an exploration of EVs with a wider range of varieties and refinements. The battery delivers up to 374 miles (600 km) range, topping the 311 miles Ford initially expected. Ford’s single-motor extended range explorer starts at £45,875 ($58,000) with a 77 kWh battery. The dual-motor version is equipped with VW’s 335 hp powertrain for its sporty GTX EVs. 
• In February 2024, Nouveau Monde Graphite Inc. announced a parallel offtake agreement with Panasonic Energy, which, combined with GM’s Supply Agreement, covers approximately 85% of NMG’s planned active anode material production at its Phase-2 Bécancour Battery Material Plant.
• In January 2024, Melexis in Belgium launched its first MEMS pressure sensor using a new patented architecture called Triphibian. The triphibian MEMS pressure sensor, developed by Melexis, handles gas and liquid media measurements from 2 to 70 bar in a 16-pin SO16 package. 
• In September 2023, Marelli launched new smart actuators for transmission and thermal management in EVs. These actuators are designed to simplify the actuation of complex vehicle functions. As future cars are expected to have over 100 actuators with different missions and purposes, this solution will help carmakers reduce complexity and ease the integration of vehicles’ mechanic and electronic environments.
• In September 2023, Informa Markets announced The Battery Show India, which was scheduled from 4th October to 6th October 2023. The Battery Show India was estimated to attract over 200 brands, 8000 trade visitors, and 50 speakers, including an impressive array of policymakers, decision-makers, influencers, technical experts, and professionals.

Electric Vehicle Thermal Management Market Companies

• Denso Corporation
• Valeo
• Dana Limited
• BorgWarner Inc.
• MAHLE GmbH
• Gentherm
• Informa Markets
• Robert Bosch GmbH
• LG Chem
• VOSS Automotive GmbH
• Modine Manufacturing Company

Segment Covered in Reports

By System

• Heating, Ventilation, and Air Conditioning (HVAC)
• Powertrain Cooling
• Fluid Transport
• Others

By Component

• Motor
• Battery
• Cabin Area

By Technology

• Active Transmission Warm-up
• Exhaust Gas Recirculation (EGR)
• Reduced HVAC System Loading
• Others

By Application

• Engine Cooling
• Air Condition
• Heated Steering
• Waste Geat Recovery
• Transmission System
• Heated/Ventilated Seats
• Others 

By Vehicle Type

• Battery EV
• Hybrid EV (HEV)
• Plug-in Hybrid EV (PHEV) 

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa