Thermal Management System Market Size, Share & Industry Analysis, By End User (Agriculture Equipment, Automobiles, Aviation, Construction Equipment, Consumer Electronics, Industrial Machineries, Naval & Marine, Medical Equipment, and Others), By Equipment (Heat Exchangers, Compressors, Heat Pipes and Hoses, Evaporators, Pumps & Control Valves, Accumulators & Reservoirs, Purge / Fill Systems, Filters and Motor Controllers, and Others), By Technology (Active Cooling and Passive Cooling), and Regional Forecast, 2024-2032

The global thermal management system market size was valued at USD 56.72 billion in 2023 and is projected to grow from USD 59.73 billion in 2024 to USD 95.64 billion by 2032, exhibiting a CAGR of 6.1% during the forecast period. Asia Pacific dominated the thermal management system market with a market share of 57.49% in 2023.

Thermal management refers to the tools and techniques used to keep a system within its operating temperature. In electronic devices, thermal management usually dissipates excess heat to prevent overheating. Most electronic systems generate heat due to which sensitive internal components can be damaged in case excess thermal energy builds up inside the electronic device. Similarly, electronics can be damaged by excessive exposure to high temperatures in the outdoor environment.

Engineers use thermal management solutions in various industries, including automotive, aerospace, batteries, data centers, and others. Temperature control can be a complex and critical aspect of any design. Engineers carefully consider the unique characteristics of each system to optimize the efficiency, durability, and longevity of its application. Rising demand of thermal systems across vehicles, aircraft, consumer electronics, and medical equipment will catalyze the market growth during forecast period.

Global markets experienced little impact from the COVID-19 pandemic. Due to total or partial lockdowns in many countries around the world, aviation and defense services were classified as non-essential and closed. This caused production disruptions and reduced sales in the defense and aerospace sectors. This had a negative impact on the growth of the global thermos systems market during the COVID-19 pandemic period.

Thermal Management System Market Trends

Hybrid Electromagnetic Interference (EMI) Shielding and Thermal Management to Drive Market Development

Several industries are shifting towards higher frequency applications for navigation. Two main examples of this are 5G telecommunications for higher datax` rates and automotive radar for higher resolution detection. At higher frequencies, electromagnetic interference (EMI) shielding with traditional methods becomes more difficult. Combining EMI shielding and thermal management effectiveness in a material becomes an attractive proposition.

5G deployment is well underway, but infrastructure for the highest frequency wave (>24 GHz) is still in its infancy. Most of the 5G infrastructure in 2022 is still in lower frequency bands; below 6 GHz. Moreover, car radar is also one of the main components of Advanced Driver Assistance Systems (ADAS) and a necessary technology for future autonomous vehicles. Early automotive radar units mostly used the 24 GHz frequency. Since then, the market has mostly moved beyond 77 GHz.

The compact nature of the higher signal device presents challenges for both thermal management and EMI shielding. Several companies have come up with new thermal interference solutions that also have EMI protection. Many players, such as Henkel, Kitagawa, and Schlegel have released thermal interference pads that also act as EMI shields. Such developments will guide the market’s growth during the forecast period.

Thermal Management System Market Growth Factors

Growing Demand of Electric Vehicles in Commercial Sector Boost the Growth of the Market

Electric vehicle (EV) demand has been on the rise due to the need to lower greenhouse gas (GHG) emissions and support sustainable transportation solutions. As EV sales have increased, so has the demand for EV Thermal Systems. The Thermal system maintains the operating temperatures of the battery, the motor, and various sensitive electronic components.

Good thermal management is important to improve vehicle performance, extend battery life, and ensure the safety and reliability of an electric vehicle. Battery technology has advanced significantly in recent years, and batteries have higher densities and faster charging speeds. This has increased the demand for advanced heating systems.

For instance, in February 2022, Borgwarner Inc. has been awarded a contract to supply a high-voltage coolant heater (HVCH) for use in BMW Group's all-electric iX and i4 architectures. The solution controls the heating of the thermal system and battery cabin, which significantly increases the range and reliability of the battery.

Growing Demand of Consumer Electronics Boost the Market Growth

All electronic components, from microprocessors to advanced power converters, generate heat, and dissipating that heat is essential for their optimal and reliable operation. As electronic design enables higher efficiency in smaller packages, thermal load distribution becomes a critical design factor. Many of today's electronic devices require more cooling than conventional metal heatsinks. A heat pipe is a compact and efficient heat management tool for such applications. For smaller devices where space is a major constraint, passive heat removal methods through heat pipes are essential for operational efficiency of the system.

According to UNCTAD, sale of consumer electronics and technology products will grow in coming years especially in the Asia Pacific market backed by reduction in inflation, value seeking consumers and markets across India, Indonesia, Vietnam, Malaysia, and other Southeast Asian countries.

• In June 2023, DuPont and JetCool Technologies Inc. (JetCool) has announced a collaboration to increase adoption of advanced liquid cooling technologsy that enables thermal management of semiconductors, data centers and other high-performance computing applications. DuPont and JetCool jointly introduced a new sales channel bringing JetCool's advanced cooling solutions to semiconductor companies in Taiwan and Singapore.

RESTRAINING FACTORS

High Development and Power Cost of Thermal Management System to Hamper Market Growth

The use of copper increases the cost of the system, which hikes the total cost of the product and negatively affects the growth of the market. The increasing complexity of electronics and other devices makes it difficult to integrate a thermal management system into such devices, which increases costs.

The need for efficient data centers has increased as the world continues to have a more prominent virtual presence. As the energy density increases, enhanced infrastructure is needed to keep everything running smoothly and efficiently. The cooling system is one of the most expensive parts of a data center. These components increase cooling costs in data centers. According to our research, 30-55% of a data center's energy consumption goes to power cooling and ventilation systems. Hence, data centers require high initial cost and face high operational cost during its work life. Such factors hamper the growth of the market.

Thermal Management System Market Segmentation Analysis

By End User Analysis

Rising Demand of Commercial and Passenger Vehicle led to Fastest Growth Rate of Automobile Segment

Based on end user, the market is classified into consumer electronics, naval & marine, industrial machineries, aviation, automobiles, medical equipment, agriculture equipment, construction equipment, and others. The automobiles segment has the largest share and fastest growing segment for 2024-2032 owing to increasing deliveries of EVs and other vehicles.

• In July 2023, U.S. government announced to buy nearly 9,500 electric cars, according to Government Accountability Office (GAO). As per this order, all light vehicles (sedans, light commercial vehicles and small pickups) must be zero-emission vehicles (ZEV) by the end of 2027.

The naval & marine segment will show moderate growth during the forecast period. This growth can be attributed due to rising demand of naval fleet by defense sector of different nations.

• In August 2023, Indian Ministry of Defense has awarded a contract to Hindustan Shipyard Limited (HSL) for the procurement of five Fleet Support Ships (FSS) for Indian Navy.

By Equipment Analysis

Heat Exchangers Segment Held Highest Share Owing to its Major Application across Various Industries

Based on the equipment, the market is segmented into heat exchangers, compressors, heat pipes and hoses, evaporators, pumps & control valves, accumulators & reservoirs, purge / fill systems, filters and motor controllers, and others. The heat exchangers segment dominated the market in 2023. The growth is attributed to the growing adoption of heat exchanger components in thermal management system.

• For instance, in January 2022, L&T Heavy Engineering receives an order from Israel that includes waste boiler packages for an Israeli ammonia plant and high-pressure heat exchangers for the IOCL Baraun refinery.

Compressor segment holds significant share and will grow at moderate rate owing to rising demand across Heating, Ventilation, and Cooling (HVAC) systems for vehicle, aircraft and others.

By Technology Analysis

Active Cooling Segment Dominated the market due to its Key Features and Compactness

By technology type, the market is classified into active cooling and passive cooling. The active cooling segment dominated the market in 2023 and is expected to grow at fastest rate during the forecast period owing to its advantages such as compactness and better cooling efficiency. Moreover, technological advancements in key components of liquid-cooled engines will create lucrative opportunities for market growth in the coming years.

The passive cooling segment is projected to show significant growth owing to rising demand across automotive, marine, and industrial sectors.

• For Instance, in January 2023, Austal Limited presented a solid financial future with an early-stage contract that could exceed USD 108 million, including work on an autonomous patrol vessel for the Royal Australian Navy (RAN).

REGIONAL INSIGHTS

The market is studied across North America, Europe, Asia Pacific, Middle East and the Rest of the World.

Asia Pacific dominated the market share in 2023. The growth of the market is attributed to the rapid economic development in the region and growing consumer electronics & automobiles trade. Asia Pacific is expected to be the largest market due to presence of major automotive thermal system OEMs and demand of automobiles across China, India, Japan, and South Korea.

North America is observing significant growth due to increasing investments in developing advanced naval commercial and defense vessels. Growing shipping activities in the U.S. and presence of major companies including Parker Hannifin, Honeywell International Inc., and others drives the market growth.

Europe is expected to grow significantly between 2024 and 2032. Behind the growth are increased investments in developing advanced ship projects from various European countries.

• In January 2020, the European research program Horizon 2020 awarded USD 22 million to the Autonomous Marines project developed by the Norwegian maritime cluster. Major players such as ABB, Fugro, Kongsberg Maritime, Rolls-Royce Plc. and others contributes to the regional market growth. 

Middle East is expected to be have impressive growth market due to presence of major automotive thermal system OEMs and due to major automotive markets such as UAE, and Saudi Arabia, and a well-developed automotive industry.

• In June 2023, Saudi Arabia's Ministry of Investment has signed a USD 5.6 billion deal with Chinese electric car maker Human Horizons to cooperate in the development, production, and sale of vehicles. The deal includes more than half of the USD 10 billion in investments in technology, renewable energy, agriculture, real estate, metals, tourism, and healthcare sectors. The deal was signed on the first day of the Arab-China Business Conference in Riyadh on June 11^th 2023.

The rest of the world will show moderate growth between 2024 and 2032. The growth is due to the increase in spending by the navy of the Latin American countries.

• In June 2022, the Argentine Navy received the patrol vessels to control illegal fishing. The ship, ARA Contraalmirante Cordero will join monitoring and surveillance missions of the South Atlantic sea.

List of Key Companies in Thermal Management System Market

Key Players Are Focusing on Business Expansion Strategies to Brighten their Market Prospects

Players operating in the thermal management system industry focus on business expansion by developing next-generation thermal systems. The market is highly fragmented by nature as there are many manufacturing companies in the market. The leading companies have a strong product range and an extensive distribution network in developed and developing countries. Currently, the market is led by Advanced Cooling Technologies, AMETEK, Boyd, Henkel , Honeywell International, Larid Thermal Systems, Parker Hannifin Corp, and Raytheon Technology.

LIST OF KEY COMPANIES PROFILED

• Advanced Cooling Technologies (U.S.)


• AMETEK (U.S.)


• Boyd (U.S.)


• Henkel (Germany)


• Honeywell International (U.S.)


• Larid Thermal Systems (U.S.)


• Parker Hannifin Corp (U.S.)


• Raytheon Technology (Collins Aerospace) (U.S.)


• Sumitomo Precision Products (Japan)


• TAT Technologies (Israel)

KEY INDUSTRY DEVELOPMENTS

• August 2023 – BorgWarner has signed an agreement with a global provider of thermal and energy management solutions for the automotive industry to supply high-voltage coolant expanders (HVCH) for use in three electric vehicle (EV) end-user series for a major OEM. The heater is integrated into the supplier's heating and cooling module and is used to heat the battery pack and cabin in battery electric vehicles (BEVs).


• June 2023 - Triumph Group, Inc. announced that its Systems Electronics and Controls business in West Hartford, Connecticut, has been awarded a multi-year contract by The Boeing Company for the AH-64 Apache Environmental Cooling System.


• February 2023 – U.S. Naval Air Systems awarded Lockheed Martin a USD 172 million contract to support F-35 aircraft production. The contract supplies material handling and testing and tooling equipment. It provides support for defect correction, aircraft modernization, elimination of life limits related to power and thermal management system.


• August 2022 - Cooper Standard announced a joint development agreement with Industrie Saleri Italo S.p.A (Saleri) to create a new family of high-performance cooling controls for the battery electric vehicle (EV) market. These new products combine pump functionality with advanced fluid management, routing and connectivity technologies into a single device, enabling simplified EV architectures and increased performance and range.


• July 2022 - Archer Aviation Inc has signed a contract with Honeywell to provide flight control and thermal management technologies. Honeywell drive technology is a key component of the Archer 12 Tilt 6 configuration, and Honeywell thermal management technology helps Archer deliver the best cabin experience for its passengers.

REPORT COVERAGE

The thermal management system market report provides detailed market analysis and focuses on critical aspects such as significant companies, system types, solutions, and major applications. In addition, the report delivers insights into market trends and highlights key industry developments. Apart from the above mentioned factors, the market report covers several direct and indirect issues that have influenced the market growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 6.1% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By End User Agriculture Equipment Automobiles Aviation Construction Equipment Consumer Electronics Industrial Machineries Medical Equipment Naval & Marine Others
By Equipment Heat Exchangers Compressors Heat Pipes and Hoses Evaporators Pumps & Control Valves Accumulators & Reservoirs Purge / Fill Systems Filters and Motor Controllers Others
By Technology Active Cooling Passive Cooling
By Region North America (By End User, Equipment, Technology, and Country) U.S. (By End User) Canada (By End User) Europe (By End User, Equipment, Technology, and Country) U.K. (By End User) Germany (By End User) France (By End User) Russia (By End User) Nordic Countries (End User) Rest of Europe (By End User) Asia Pacific (By End User, Equipment, Technology, and Country) China (By End User) Japan (By End User) India (By End User) South Korea (By End User) Australia (By End User) Rest of Asia Pacific (By End User) Middle East (By End User, Equipment, Technology, and Country) UAE (By End User) Saudi Arabia (By End User) Israel (By End User) Rest of the Middle East (By End User) Rest of the World (By End User, Equipment, Technology, and Sub Region) Latin America (By End User) Africa (By End User)