Automotive Battery Thermal Management System Market Size, Share & Industry Analysis, By Propulsion Type (Battery Electric Vehicles (BEV), Plug-In Electric Vehicles (PHEV) and Hybrid Electric Vehicles (HEV)), By Technology (Air Cooling & Heating, Liquid Cooling & Heating, and Phase Change Material (PCM)), By Battery Type (Conventional and Solid State), By Vehicle Type (Passenger Cars, and Commercial Vehicles), and Regional Forecast, 2024-2032

The global automotive battery thermal management system market size was USD 2.75 billion in 2023. The market is projected to grow from USD 3.20 billion in 2024 to USD 14.66 billion in 2032 at a CAGR of 20.9% during the 2024-2032 period.

The automotive battery thermal management system involves several digital electronic hardware devices to prevent battery failure and mitigate potential hazardous situations. Moreover, this system ensures that the battery in vehicles operates/functions properly in the final applications. Electric vehicle batteries work precisely at temperature ranges between 20°C and 40°C. Further, this is achieved using battery thermal management systems that keep batteries function properly despite environmental changes.

The original equipment manufacturers are steadily focusing on development & innovation in lithium battery type to increase the adoption of these systems. The leading companies use a liquid, air, and PCM type of technology for cooling & heating the battery in vehicles. Further, the components used by the companies include hybrid and electric vehicle battery cooling chiller, electronic cooling plate, stator cooler, sub-cooled loop radiator, Engine Control Unit (ECU) Cooler, and ADAS cooling. The companies operating in the industry are also taking an active step by offering new products, developments and adopting new strategies to expand their product portfolio and business growth. Therefore, the system market is expected to gain popularity in the forthcoming years.

The COVID-19 pandemic impacted the global automotive battery thermal management system market, causing disruptions in supply chains, manufacturing operations, and consumer demand. While initial setbacks were observed due to production halts and economic uncertainties, the market has seen a resurgence with the growing demand for electric vehicles and increasing investments in battery technologies. Additionally, a heightened focus on sustainability and government incentives for electric vehicle adoption has further propelled market growth.

Automotive Battery Thermal Management System Market Trends

Increasing Penetration of Electric Vehicles to Set a Positive Trend for Market Growth

Gasoline fuel-type vehicles are likely to be exhausted in the future. Some European countries such as Norway, the UK, and the Netherlands have already declared to phase out conventional vehicles. The demand for fuel-efficient vehicles has increased recently due to the rise in petrol and diesel prices. The companies are also involved in the activities to lower the overall weight of the electric vehicle as it possesses a higher weight compared to ICE vehicles because of their battery. Moreover, the North American countries such as the U.S and Canada are also actively enforcing the EV vehicle compulsion in effect within the next few years. Such strong developments, coupled with government support, create a demand for the thermal battery management system inside the EV.

Furthermore, the rising demand for plug-in EVs and hybrid vehicles will aid in the growth of EV makers, OEMs, battery and battery technology companies, and automotive BTMS manufacturers. For instance, Valeo Company has developed smart thermal management solutions of batteries for EVs that help maintain better battery life and further increases the battery range by up to 30% in both seasons. In addition, the company also offers electrically driven compressors (EDCs) for cooling batteries and climate control. Therefore, these developments & innovations will help to boost the market growth in the future as EV sales rise.

Automotive Battery Thermal Management System Market Growth Factors

Increasing Preference for Utilization of Lithium-ion Batteries to Aid Growth

The growing inclination towards advanced technology-based vehicles, including lightweight, is projected to drive the global automotive battery thermal management system market growth. Industry leaders and customers majorly prefer the lithium-ion battery technology used in vehicles for various applications. This is due to its higher energy density, longer life cycle of batteries, and better resilience. Similarly, companies actively use such batteries in thermal battery management systems to ensure proper working and safety.

Automakers have started using such batteries in several applications such as electronic devices, EVs, and industrial machinery, among others. Furthermore, these batteries are prone to hazards and detect all kinds of malfunctions, such as the excessive rise of temperature and electric leak and the state of charge at temperatures in the charging/discharging environment. The COVID-19 situation has alerted many developing countries, including India, to encourage local production of li-ion batteries and automotive battery thermal management systems. The countries are moving towards local production of all the components and raw materials owing to the rising demand for the EV instead of depending on China for Li-ion batteries, electronic components, and other requirements. These steps, along with supportive government policies and infrastructure development, will create a demand for the thermal battery management system market in the coming few years.

RESTRAINING FACTORS

Market Growth is Hindered by the Rising Design Complexity and the Significant Cost Associated with the System

Automotive battery thermal management systems are essential for maintaining optimal battery performance and prolonging battery life; their integration adds significant expenses to the overall manufacturing cost of electric vehicles (EVs). This can act as a deterrent for both manufacturers and consumers, particularly in price-sensitive markets where affordability is a key concern. Additionally, the complexity of these systems and the need for specialized components and materials can further escalate costs.

Variations in vehicle design and battery capacity contribute to the differing requirements for thermal battery management systems. Consequently, introducing and producing new units for vehicles entails elevated expenses. Additionally, thermal components encounter challenges, such as validating their designs, optimizing flow channels, minimizing power needs, decreasing vehicle weight and costs, implementing battery-specific coolant systems, and managing model and flow complexities. The presence of numerous components and heightened temperatures generated by high power pose risks of short circuits or fires. Furthermore, integrating a thermal battery management system can significantly escalate the final product or application cost, leading to diminished demand among price-conscious consumers. Consequently, the intricate nature of designing automotive battery thermal management systems at their core may impede the global market's growth.

Despite the increasing demand for electric vehicles and the growing emphasis on battery performance and safety, cost considerations remain a significant barrier to the widespread adoption of automotive battery thermal management systems. Manufacturers are continually striving to develop more cost-effective solutions without compromising on performance or safety standards. However, once these technologies become more economically viable and scalable, their widespread adoption may be improved, slowing down the growth of the global automotive battery thermal management system market.

Automotive Battery Thermal Management System Market Segmentation Analysis

By Propulsion Type Analysis

HEV Segment Dominates the Market

Based on propulsion type, the key market is segmented into battery electric vehicles (BEV), plug-in hybrid electric vehicles, and hybrid electric vehicles (HEV).

The HEV segment holds the largest share globally, and the BEV segment is expected to lead throughout the forecast period. This HEV offers dual transmission, i.e., electric and conventional fuel-based driving range, especially in the region where charging infrastructure is insufficient.

Adoption of advanced and efficient technology for vehicles, rising demand for the electrical, passenger as well as heavy commercial vehicles across the globe, and increasing need for fuel-efficient & emission standard vehicles are some of the factors that will likely enhance the growth of the BEV automotive battery thermal management system market.

The plug-in hybrid EV segment is comparatively growing significantly. The decreasing battery & overall price of such vehicles and government initiatives support the favorable policy related to EV will demand the market in the future.

By Technology Analysis

Air Cooling & Heating Segment Dominates the Market

Based on technology type, the market is segmented into air cooling & heating, liquid cooling & heating, and phase change material (PCM).

The air cooling & heating segment holds the largest share globally, and the liquid cooling & heating segment is expected to lead throughout the forecast period. This air cooling & heating is simple & easy and mostly adopted by the economically sold EV. Moreover, liquid coolants have higher heat conductivity and heat capacity than air and perform very effectively. BMW, Tesla, and others started using liquid coolants due to its high performance for maintaining a battery pack in the temperature range and advancing electric vehicle safety. The phase change material segment also will grow significantly over the coming years.

By Battery Type Analysis

Conventional Segment Dominates the Market

Based on battery type, the market is segmented into the conventional and solid-state.

The conventional segment holds the largest share globally, and the solid-state segment is expected to lead throughout the forecast period. These conventional batteries, such as lithium-ion-based, lead-acid-based, nickel-based, and others, are majorly used in multiple automotive applications. Most of the thermal battery management components such as chiller, compressor, heating & cooling units, etc., are major uses of such battery types across the globe.

Solid-state batteries do not include any liquid electrolyte, which makes them safer, and it also increases the battery range with quick charging. Thus it also improves the energy density, all such factors altogether responsible for the anticipated growth of the solid-state battery market during the forecast period.

By Vehicle Type Analysis

Passenger Car Segment is expected to hold the Largest Market Share

Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles.

The passenger car segment accounts for the largest share in the global market. The dominance can be attributed to the various factors, including a large number of vehicle presence, easy availability and rising disposable incomes, and changing preference of consumers towards adopting newly advanced cars. Further, rapid urbanization, improved living standards, increasing disposable income of individuals, and rising number of higher class sections of the population have increased the spending capacity of individuals on luxuries are the factors responsible for the growth of the passenger car segment.

The commercial vehicle segment has seen significant growth rate due to limited demand for such vehicles compared to the passenger car segment. However, light commercial vehicles contribute majorly to the market growth. And the same segment is expected to grow at a substantial rate during the forecast period.

REGIONAL INSIGHTS

Asia Pacific stood at USD 1.28 billion in 2023. The region is likely to dominate the global market for automotive battery thermal management systems owing to the presence of an automotive hub, coupled with the increasing number of vehicle production per year. This growth is attributed to the rapid increase in urbanization, improvement in the standard of living, and rising disposable income leading to evolving preferences of the individuals. Leading automotive players and government are actively working on the reduction of carbon emissions by electrifying transportation. The rising disposable income, favorable government regulations related to the CO2 emission, and the consumer's inclination toward the purchase of electric vehicles with lightweight solutions are the factors responsible for boosting the region's development during the forecast period.

Europe holds the second-largest position in the market owing to the increasing demand for electric vehicles in countries such as Norway and Netherlands. Germany ranks first in this regional market as major sales of all typed vehicles and higher adoption rate of technologically advanced vehicles in the country. Moreover, the European government is strictly following & updating the emission standards norms and plans to impose them across countries.

North America holds the third-largest position in the market. This is due to the highest technology adoption rate and gradually increasing electric vehicle sales across countries. Along with the significant presence of automotive battery thermal management system players in the U.S and Canada are responsible for growth in the market.

The growth of the market in Rest of the World is comparatively lower than in other regions. This is due to the low adoption of technology and less presence of advanced vehicles.

List of Key Companies in Automotive Battery Thermal Management System Market

Business Expansion Strategies by Key Players to Brighten Their Market Prospects

Hanon system is the world’s leading automotive supplier and expertise in automotive battery thermal management system solution supplier company. The company has pioneered in providing a wide product portfolio specializing in thermal and energy management. The company started offering its wide range of products, including thermal battery management, to support vehicle manufacturers supplying electric, fuel cell, hybrid, and autonomous vehicles to the global market.

Similarly, in China, Continental AG, the leading player in the auto industry, continued its product expansion regarding the e-mobility components in the Chinese market. The company is planning to begin volume production of the intelligent thermal management system for the electric vehicle.

LIST OF KEY COMPANIES PROFILED:

• Valeo (France)


• Hanon Systems (South Korea)


• SAMSUNG SDI CO., LTD (South Korea)


• VOSS Automotive GmbH (Germany)


• MAHLE GmbH (Germany)


• Dana Limited (U.S)


• GENTHERM (U.S)


• Robert Bosch GmbH (Germany)


• Continental AG (Germany)


• LG chem (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: BorgWarner secured a contract with a global automotive thermal and energy management solutions supplier to deliver High Voltage Coolant Heaters (HVCH) for use on a series of three electric vehicle platforms for a major OEM. The heater will be added to the supplier’s heating and cooling module and will be used to provide heat to the battery pack and cabin in battery electric vehicles. The business win with the supplier marks the first collaboration between the companies on a complete vehicle thermal management system.


• July 2023: MAHLE and ProLogium signed a Memorandum of Understanding for developing and evaluating thermal management solutions for next-generation solid-state batteries.  Both parties will cooperate, focusing on tailored thermal management solutions, which account for the specific properties of ProLogium’s technology.


• June 2023: ZF, a technology company, unveiled its self-developed thermal management system for electric vehicles (EVs) at its annual Global Technology event. The system has the potential to increase the range of EVs in the winter by up to one-third. It features an optimized electric drivetrain, including power electronics, a motor, and a reduction gearbox based on 800-volt silicon carbide.


• May 2023: Carrar and Gentherm collaborated on the Delivery of Robust Two-Phase Immersion Thermal Management for Electric Vehicle (EV) Battery Modules. This partnership marked a step forward in delivering two-phase thermal management for electric vehicles


• April 2021: Valeo Company planned in 2020 to supply the battery cooling systems for a high-volume electric vehicle platform from a leading German automaker. Additionally, the company will soon be offering thermal modules for retrofitting. In addition, in 2021, European automakers will be the first to integrate Valeo company’s HVAC solutions into their EVs based on a heat pump and a natural refrigerant.

REPORT COVERAGE

The automotive battery thermal management system market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation