Shifting Mobility Preferences Unlock New Window of Opportunity in Automotive Battery Thermal Management System Market: New Study

April 2021

In line with soaring electric vehicle (EV) sales, demand for automotive battery thermal management system (BTMS) is also experiencing an upsurge as thermal management of battery packs is an extremely important factor decisive in shaping performance of EVs. Over the five-year forecast period 2021 – 2026, global automotive battery thermal management system market is expected to progress at a robust double-digit rate. A recent market intelligence report by Fairfield Market Research suggests that while EV sales are ramping up supported by favourable government initiatives, demand for automotive BTMS will unlikely decelerate over the near future.

Key Insights into Automotive Battery Thermal Management System Market:

• Automotive battery thermal management system market set to exhibit a staggering CAGR of approximately 36% through 2026
• Heightening popularity of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) is accelerating automotive BTMS
• Ban on new ICE vehicle sales in a sizeable number of countries to largely benefit automotive BTMS market
• Passenger vehicles continue to be the most lucrative segment
• Asia Pacific accounted for nearly 60% of the global market revenue in 2019
• DANA, VOSS Automotive, Continental, LG Chem, Robert Bosch, and Mahle capture a dominating revenue share in global market

Amidst the global COVID-19 pandemic, automotive industry as a whole and EV space are yet to recover from an abrupt, sharp decline. Sales of battery thermal management systems are also having a setback. However, the market recovery will take place as the pandemic subsides in the near future, says Fairfield Market Research in this report.

Automotive Battery Thermal Management Systems Get a Leg-up from EV-supportive Government Programs

Governments from across the globe are under pressure of fuel emission regulations and many of them have targeted sustainability with respect to same by the year 2050. Many countries have set rigorous carbon emission regulations for vehicles, which has been working to the advantage of electric vehicle manufacturers. Government initiatives such as the latest California Zero Emission Vehicle Program (ZEV) have also been driving a paradigm shift away from conventional internal combustion engine (ICE) vehicles.

Around 13 countries, under similar zero emission targets, have so far imposed a ban on new ICE vehicle sales and rather boost EVs. Moreover, developing Asian economies are inclined towards announcing easy financing schemes, subsidies, and incentives on every EV purchase. Automotive battery thermal management systems are thus receiving a strong thrust in global market. In 2019, Asia Pacific registered a share of 60% in global market valuation, led by China, Japan, India, and South Korea. The role of governments here has been pivotal in market build-up. Leaders in automaking such as BAIC Motor Corporation., Ltd (China), and Mitsubishi Motors (Japan) are making massive investments in electric vehicles, which is benefiting the BTMS market in the region.

Passenger Vehicles Reign Supreme with Noteworthy Opportunity for BTMS Manufacturers

While EV market gathers momentum, sales of electric cars also experience an upward trend. Passenger cars have been representing the most lucrative vehicle segment for electric vehicle companies, OEMs, and battery thermal management system manufacturers. More recently, passenger vehicles are enjoying prospering demand as more people are considering a mobility shift from public transit to personal conveyance.

With growing affordability, electric cars are coming up as a viable mobility alternative, which also indicates a remarkable boost to uptake of battery thermal management systems by this segment. Shared mobility has also been a popular and economical trend over the recent past and continues to be the choice of a sizeable commuting population. Automotive BTMS companies are expected to capture the selling opportunity in this segment as well.

Partnerships and Contractual Deals Steering Competition for Big Six

The global automotive battery thermal management system market is spearheaded by VOSS Automotive GmbH, Dana Incorporated, LG Chem, Continental AG, MAHLE GmbH, and Robert Bosch GmbH. The companies such as LG Chem, Chevrolet, and Tesla Motors continue to rely on contractual agreements on battery supply and enhancements to stay ahead in the curve. Whereas, other prominent players such as GenThem have been prioritising investments in new production plants. Strategic partnerships will also remain a preferred move among major competitors. Besides the big six, some of the key market players that have been profiled in the report include Valeo, BYD Company Ltd, Contemporary Amperex Technology Co., Limited (CATL), Valeo, Calsonic Kansei Corporation, Samsung SDI Co., LTD., Hanon Systems, and Grayson.