The global automotive battery thermal management system (BTMS) market is poised for robust growth, projected to surge from $4.6 billion in 2022 to $18.7 billion by 2032, expanding at a CAGR of 15.6% from 2023 to 2032, according to a new report by Allied Market Research.
The rapid shift toward electric mobility, combined with rising demand for advanced thermal management in modern vehicles, is fueling this expansion. As electric vehicle (EV) adoption accelerates worldwide, the need to manage battery heat and improve performance has never been more critical.
Key Growth Drivers
- EV adoption: In 2021 alone, Europe captured around 34% of global EV sales, with plug-in vehicle sales jumping to 2.27 million units from 1.37 million the previous year.
- Rise of high-capacity batteries and electronics: The increase in electronic and heavy-duty components in vehicles, from passenger cars to commercial trucks, drives the need for efficient thermal management systems.
- Sustainability focus: Automakers and suppliers are investing heavily in eco-friendly thermal management solutions to align with global sustainability targets.
- Technological advancements: Companies like Valeo are developing sophisticated thermal management systems that can extend battery range by up to 30%. In April 2023, Valeo also expanded its manufacturing footprint in Japan to produce active grille shutters and HVAC systems.
Market Segmentation Highlights
- By type: The conventional segment led the market in 2022, though solid-state solutions are emerging.
- By vehicle type: Commercial vehicles held the largest share in 2022 and are expected to continue leading growth.
- By technology: Active thermal management systems dominated the market in 2022 and are projected to grow significantly through 2032.
- By propulsion: Battery electric vehicles (BEVs) generated the highest revenue in 2022 and are forecasted to remain dominant.
Regional Trends
Asia-Pacific remains the largest and fastest-growing region in the automotive BTMS market. This growth is fueled by strong demand from automotive, manufacturing, and oil & gas sectors, combined with the presence of major manufacturers and suppliers.
Competitive Landscape
The market is fiercely competitive, with major players like MAHLE GmbH, LG Chem, Valeo, Hanon Systems, Samsung SDI, Dana Limited, Continental AG, Gentherm Inc., Marelli Corporation, and Robert Bosch GmbH leading innovation and expansion efforts. Strategies include product launches, collaborations, acquisitions, and investments in R&D to gain market share.
Key Findings from the Report:
- Demand for eco-friendly and sustainable thermal management systems is rising.
- Technological innovation is critical to market leadership, particularly in improving battery life and efficiency.
- The shift toward EVs and hybrid vehicles is the primary catalyst for long-term growth.
- Asia-Pacific dominates due to its strong industrial base and growing EV ecosystem.
As EV sales accelerate globally and automakers strive to improve battery performance and vehicle safety, the automotive BTMS market is set to become an essential pillar of the next generation of mobility.
