Automotive Battery Thermal Management System Market

Automotive Battery Thermal Management System Market Outlook

Automotive Battery Thermal Management System Market Picks up Pace with a Critical Functional Role of BTMS in EVs

The Automotive Battery Thermal Management System Market is valued at USD 4.8 Bn in 2026 and is projected to reach USD 12.2 Bn,  growing at a CAGR of 14% by 2033.There has been rapid increase in the adoption of electric vehicles (EVs) over the past decade. Batteries of EVs are designed to work efficiently but the operating performance of batteries might face some limitations such as efficiency, lifespan, and cost. Automotive battery thermal management system (BTMS) thus plays an important role in EVs. These systems manage batteries in multiple ways such as protecting the battery from external environmental factors and controlling the thermal nature of these batteries. Attributing to their critical function in EVs. Soaring demand for high-performance, fuel-efficient vehicles in line with favourable government initiatives such as the California Zero Emission Vehicle Program (ZEV) aims at achieving 1.5 million ZEV cars by the year 2025 will favour the growth of automotive battery thermal management system market.

Sales in Automotive Battery Thermal Management System Market Accelerate with Pro-EV Regulatory Frameworks

Governments of various countries have adopted rigorous strategies to increase EV adoption. For instance, in the year 2013, the Chinese government first started to provide a subsidy ranging from RMB 4,000 to RMB 35,000 for every plug-in hybrid electric vehicle (PHEV) purchased and a subsidy ranging from RMB 35,000 to RMB 60,000 for every battery electric vehicle (BEV) based on every vehicle’s driving range. The subsidies decreased by 5% in the year 2014 and by 10% in the year 2015. Such subsidies and supportive regulations in several other countries continue to encourage EV sales, thereby augmenting the global automotive battery thermal management system market.

Design Complications Dampen Demand in Automotive Battery Thermal Management System Market

The thermal components face issues such as verifying thermal designs of components, designing the optimal flow channels, lower power requirements, and reducing the overall vehicle weight and cost. Even an increase in temperature caused by high power is hazardous for it and may lead to short circuits or fires. Such complexities in fundamental designing of automotive battery thermal management systems continue to act as longstanding barriers to rapid growth of global automotive battery thermal management system market.

Phase-out of ICE Vehicles Creates Opportunity for Automotive Battery Thermal Management System Market Players

Nearly 13 countries in the world, including Norway, the UK, Canada, and the Netherlands, have officially declared a phase-out for conventional internal combustion engine (ICE) vehicles to come in effect within the next few years. California will be the first from the US to ban new ICE vehicle sales soon. Such strong developments are creating a lucrative revenue generation opportunity for multiple stakeholders in the electric vehicle space such as EV makers, OEMs, battery and battery technology companies, and automotive BTMS manufacturers. This will remain a major growth influencer for automotive battery thermal management system market.

Asia Pacific Leads Automotive Battery Thermal Management System Market with Favourable Government Initiatives

Asia Pacific houses the largest automotive thermal battery management system market as it accounted for more than 60% of the global market revenue in 2020. Some of the fast- developing economies, including China, Japan, India, and South Korea have become major hubs for automobile production companies. An increase in the demand for EVs in the Asia Pacific region over the recent past will play a positive role in determining the share of automotive battery thermal management system market. For instance, Japanese companies such as Mitsubishi and Chinese companies such as BAIC Motor Corp. have been investing huge amount of money in EVs. Asia Pacific’s automotive battery thermal management system market is followed by North America, and Europe owing to exponentially increasing demand for alternative fuel vehicles, which ultimately forms a fertile ground for the progress of automotive thermal battery management system market.

Passenger Vehicles Continue to Register Maximum Uptake in Automotive Battery Thermal Management System Market

Owing to an unprecedentedly expanding market for EVs, and alternative fuel vehicles, such as hydrogen vehicles, bio-diesel vehicles, and propane vehicles, passenger vehicles continue to represent the largest segment in automotive battery thermal management system market. Passenger vehicle manufacturers are particularly expected to enjoy flourishing sales in the immediate future as people are showing greater preference for private conveyance over public transport. Even those who currently do not own a car are also considering new purchase. Given this scenario, there are strong indications that EVs will gain preference among new buyers rather than conventional fuel vehicles. This, in turn, will mark another selling opportunity for companies in global automotive battery thermal management system market.

Contracts and Partnerships Drive Competition in Automotive Battery Thermal Management System Market

The automotive battery thermal management system market is dominated by companies such as 

• DENSO Corporation
• Robert Bosch GmbH
• Continental AG
• Mahle GmbH
• Valeo SA
• Hanon Systems
• Modine Manufacturing Company
• Keihin Corporation (Hitachi Astemo)
• Calsonic Kansei / Marelli
• MAHLE Behr Thermal Systems
• LS Mtron / LS Automotive
• Nexteer Automotive
• Delphi Technologies (BorgWarner)
• Cooltech Applications
• Thermo King

Recent Notable Developments

• In October 2015, LG Chem and Tesla Motors signed a contract for upgrading Roadster, the company car, with battery improvement and replacement. With the help of this contract, the former experienced boosted demand
  
  
• In November 2015, Gentherm Incorporated expanded its production by opening a new manufacturing plant in Mexico, wherein the production of seat comfort and industrial products was the focal area of the company
  
  
• In December 2015, LG Chem supplied EV batteries which powered Chevrolet Bolt. Thus, the companies entered a partnership to supply Chevrolet to supply products such as DX cool plate for the Bolt

The automotive battery thermal management system market faced a heavy setback due to the global COVID-19 pandemic that led to a temporary yet sharp sales decline in electric vehicles. With the industry recovering, the automotive thermal battery management system market will also pick up its pace in the near future.

The Global Automotive Battery Thermal Management System Market is Segmented as Below:

By Propulsion Type

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Technology

• Air Cooling and Heating
• Liquid Cooling and Heating
• Phase Change Material (PCM)

By Battery Type

• Conventional
• Solid State

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa