Automotive Thermal System Market Forecasts to 2028 – Global Analysis By Vehicle Type (Off-road Vehicle, Passenger Vehicle and other Vehicle Type), Component (Fluid Transport, Powertrain Cooling, Compressor and Heating, ventilation, and air conditioning (H

Automotive Thermal System Market Forecasts to 2028 – Global Analysis By Vehicle Type (Off-road Vehicle, Passenger Vehicle and other Vehicle Type), Component (Fluid Transport, Powertrain Cooling, Compressor and Heating, ventilation, and air conditioning (HVAC)), Propulsion Type (Electric & Hybrid Vehicles, IC Engine Vehicles), Application and Geography

According to Stratistics MRC, the Global Automotive Thermal System Market is accounted for $38.96 billion in 2022 and is expected to reach $51.33 billion by 2028 growing at a CAGR of 4.7% during the forecast period. The automotive thermal system in a vehicle is used to manage the temperature of important vehicle components through alternative engine block monitoring temperatures and reduced temperature component variations. They give improved fuel economy and are also employed to provide many conveniences inside the cabin such as front and rear A/C, steering heating, seat heating, and so on. These systems reuse waste heat, lowering overall CO2 emissions from automobiles. Consequently, it is extensively utilized in the manufacturing of heavy vehicles used in the construction and transportation sectors.

According to an article published by International Energy Agency, a France-based international intergovernmental organization ensuring reliable, affordable, and clean energy, in 2021, sales of electric vehicles (including completely electric and plug-in hybrid vehicles) reached 6.6 million, a new high.

Market Dynamics:

Driver:

Surge in demand for electric vehicles

Due to rising demand for low-emission transportation and governments' encouragement of long-range, zero-emission vehicles through subsidies and tax breaks, leading market participants are now obligated to offer electric vehicles globally. As a result, demand for electric vehicles is increasing in the market. It was predicted that as demand for electric vehicles increased, battery prices would fall. As a result, sales of battery electric vehicles are expanding. Such automobile thermal management technologies meet the industry's concerns. They contribute to reducing the quantity of pollutants emitted by cars with internal combustion engines. They also protect the passengers' wellbeing and security. As a result, the market for automotive thermal systems is expanding due to the rising demand for electric vehicles.

Restraint:

The high cost of thermal system technology

In reaction to the introduction of rigorous pollution and fuel efficiency criteria, OEMs have deployed new technology to achieve desired results. Rising demand for in-vehicle comfort features has compelled manufacturers to focus on thermal systems for the powertrain, drivetrain, and in-cabin comfort. The efficiency of a thermal system can be determined by comparing the cost of installation to the overall CO2 reduction obtained using these approaches. OEMs have previously adopted and incorporated technologies with significant ROI and CO2 reductions into their premium models. Despite the fact that over 60 thermal system technologies exist, only a few are now in use due to their cost-benefit ratio. Using expensive technologies boosts the cost of the system, which raises the overall cost of the vehicle and has a detrimental influence on market demand, especially in emerging economies where customers are often price-sensitive.

Opportunity:

Increase in demand for luxury vehicles with advanced safety features, comfort systems

Luxury vehicles are outfitted with high-tech safety features. These vehicles are intended to provide comfort features such as heated and cooled seats, airbags, and heated steering. Increased disposable money and higher living standards have increased demand for luxury vehicles. Manufacturers are incorporating modern thermal systems in luxury automobiles to boost performance and fuel efficiency, which will raise demand for automotive thermal systems. As a result, a surge in demand for luxury automobiles with advanced features and comfort systems is expected to push the global automotive thermal systems market.

Threat:

Lack of standardization

Local or regional manufacturers are required to abide by the regulations set forth by the regulating body regarding emission requirements. The export of thermal systems, however, may be hampered by a lack of standardisation due to regional variations in emission Local or regional manufacturers are expected to follow the governing body's emission regulations. However, the export of thermal systems may be impeded by a lack of standardisation due to regional variances in emission limitations. Producers employ low-volume manufacturing, which drives up the cost of production. Engine technology must be improved to Euro III/IV/V and Tier 3/4 requirements, according to the European Commission and the US EPA. Therefore, the demand for after-treatment devices and enhanced thermal technologies that adhere to the upgraded technology has increased. As a result, the lack of standardised technical requirements and high manufacturing costs may hinder market expansion.

Covid-19 Impact

The COVID-19 pandemic has caused supply chain problems, resulting in a stop in vehicle production and poor passenger car sales around the world. Furthermore, during the COVID-19 pandemic period, the government-enforced lockdown resulted in a stop in manufacturing and a fall in demand for automobiles. A global component scarcity resulted in significant manufacturing delays and restricted vehicle supplies. However, an increase in electric car sales has been noticed, which is expected to fuel market expansion. Various programmes have been launched by governments throughout the world to encourage the adoption of electric vehicles, resulting in the rise of the automotive thermal system industry.

The Heating, ventilation, and air conditioning (HVAC) segment is expected to be the largest during the forecast period

The Heating, ventilation, and air conditioning (HVAC) segment is estimated to have a lucrative growth, due to the increasing demand for advanced HVACs that are environment-friendly and lightweight. The HVAC system in a vehicle regulates the temperature, ventilation, and air conditioning. Rising demand for cutting-edge HVACs that are lightweight and ecologically friendly is expected to drive the market for automotive thermal systems. In the near future, it is anticipated that the affordability and productivity of HVAC equipment will provide the market another boost.

The IC Engine Vehicles segment is expected to have the highest CAGR during the forecast period

The IC Engine Vehicles segment is anticipated to witness the fastest CAGR growth during the forecast period. Along with renewable or alternative fuels, the most prevalent fuels utilised by IC engine cars are gasoline or diesel. Fuel is ignited and consumed inside internal combustion engines in automobiles. As a result, the engine partially converts combustion energy into mechanical effort by moving the piston with the help of expanding combustion gases, which turns the crankshaft. As a result, the global automotive thermal systems market is expected to expand throughout the forecast period.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to a constant rise in demand for passenger automobiles brought on by the region's growing population, growing urbanisation, stable economic conditions, and low interest rates. APAC has become a centre for vehicle manufacturing in recent years. As a result of altering consumer tastes, rising middle-class per capita income, and cost savings, OEMs have boosted vehicle production in the region. The region's demand for automotive thermal systems has been driven up by rising demand for luxury vehicles with greater interior comfort.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to grow rapidly over the forecast period the factors such as the presence of major market players in the market and increased adoption of luxury passenger vehicles are expected to drive the market growth. Furthermore, Europe is expected to be a rising market, with increasing demand for automobiles from nations such as Germany, Italy, France, and the United Kingdom, as well as a shift in customer preferences toward climate control and small, modern HVAC systems. Moreover, strict government regulations necessitate the continuous upgrade of components used in the automotive thermal system, which is expected to drive demand in this sector.

Key players in the market

Some of the key players profiled in the Automotive Thermal System Market include Denso Corporation, Visteon Corporation, MAHLE GmbH, Lennox International Inc., Grayson Thermal Systems, Hanon Systems, Continental AG, Gentherm Inc., Modine Manufacturing Company Inc., Robert Bosch GmbH, Valeo SA., BorgWarner Inc., Hyundai Motor Company, Ford Motor Company, ZF Friedrichshafen AG and Magma International Inc.

Key Developments:

In March 2022, MAHLE Aftermarket is increasing its thermal management database that comprises indirect air conditioning condenser, which is being a typical compound in the air conditioning systems of modern automotive. By consistently increasing its thermal management product range, MAHLE Aftermarket is making it simpler for workshops to create new business.

In February 2021, MAHLE GmbH reached an agreement with Keihin Corporation (now known as Hitachi Astemo, Ltd.) to acquire its thermal management business activities in Japan, Thailand and the U.S.

In December 2019, Denso exhibited its latest full electrical rooftop HVAC system with two combined electrical compressors meant for electric buses in the 9 meters plus classification. When this item is made for the Asian markets, other variant with a huge effective heat pump system was exhibited for the European and North American markets.

Vehicle Types Covered:
• Off-road Vehicle
• Passenger Vehicle
• Trucks
• Buses & Coaches
• Light Commercial Vehicles
• Industrial Vehicles

Components Covered:
• Fluid Transport
• Powertrain Cooling
• Compressor
• Heating, ventilation, and air conditioning (HVAC)

Propulsion Types Covered:
• Electric & Hybrid Vehicles
• IC Engine Vehicles

Applications Covered:
• Motor
• Seat
• Battery
• Waste Heat Recovery
• Front & Rear A/C
• Power Electronics
• Engine and Transmission
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements