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Thermal Systems Market Revenue Projected To Rise To $62.51 Billion By 2030
The thermal systems market has shown consistent growth recently. It is anticipated to expand from $50.61 billion in 2025 to $52.78 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 4.3%. The market’s historical growth can be attributed to the early adoption of traditional cooling systems, the development of heat exchangers for industrial applications, increasing demand for HVAC components, the expansion of automotive thermal systems, and a reliance on manual temperature control technologies.
The thermal systems market is projected to experience consistent expansion over the upcoming years, with its size anticipated to reach $62.51 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 4.3%. This projected growth is driven by several factors, including the increasing use of thermal systems in electric vehicles, the growing demand for cooling solutions for batteries and power electronics, advancements in automated industrial thermal regulation, the wider availability of high-efficiency thermal components, and the rising need for waste heat recovery technologies. Key trends for this period encompass the development of intelligent thermal management solutions, the incorporation of IoT-enabled systems for thermal monitoring, the proliferation of thermal regulation technologies specifically for electric vehicles, the creation of AI-based platforms for heat optimization, and the embrace of sustainable, energy-efficient thermal components.
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Primary Growth Driver Shaping The Thermal Systems Market Outlook
The increasing demand for electric vehicles is anticipated to fuel the expansion of the thermal systems market in the coming years. These vehicles, known as battery electric vehicles (BEVs), operate using an electric motor instead of an internal combustion engine. Thermal systems are essential for maintaining optimal temperatures in battery packs, power electronics drives, and electric motors, as well as managing both external and internal temperatures within electric vehicles. For example, in December 2024, the U.S. Energy Information Administration (EIA), a US-based federal statistical agency under the Department of Energy, reported that the share of electric and hybrid vehicle sales in the United States reached an all-time high in the third quarter of 2024. The combined sales of hybrid, plug-in hybrid electric, and battery electric vehicles constituted 21.2% of total new light-duty vehicle sales, an increase from 19.1% in the preceding quarter. This growth was primarily propelled by battery electric vehicles, whose market share rose from 7.4% to 8.9%, while hybrid vehicles also achieved a record 10.6% share of total sales. Thus, the escalating demand for electric vehicles is driving the growth of the thermal systems market.
Thermal Systems Market Structure: A Detailed Look At Segments And Subsegments
The thermal systems market covered in this report is segmented –
1) By Component: Air Filter, Condenser, Compressor, Water Pump, Motor, Heat Exchanger, Heater Control, Thermoelectric Generator, Other Components
2) By Vehicle: Internal Combustion Engines (ICE), Electric, Off-Vehicle And ATV
3) By Application: Front And Rear A Or C, Powertrain, Seat, Steering, Battery, Motor, Power Electronics, Waste Heat Recovery, Sensor
Subsegments:
1) By Air Filter: HEPA Filters, Electrostatic Filters, Activated Carbon Filters
2) By Condenser: Air-Cooled Condensers, Water-Cooled Condensers, Shell And Tube Condensers
3) By Compressor: Reciprocating Compressors, Rotary Compressors, Scroll Compressors
4) By Water Pump: Centrifugal Pumps, Positive Displacement Pumps, Submersible Pumps
5) By Motor: AC Motors, DC Motors, Servo Motors
6) By Heat Exchanger: Shell And Tube Heat Exchangers, Plate Heat Exchangers, Air-Cooled Heat Exchangers
7) By Heater Control: Thermostats, Control Valves, Electronic Controllers
8) By Thermoelectric Generator: Module-Based Generators, System-Based Generators
9) By Other Components: Expansion Valves, Sensors And Thermocouples, Ducts And Fittings
Thermal Systems Market Innovation And Strategy Trends Among Leading Companies
Companies operating within the thermal systems market are prioritizing advanced innovations like air-to-water (ATW) heat pumps that utilize natural refrigerants. This focus aims to enhance energy efficiency, reduce carbon emissions, meet regulatory requirements, and support global decarbonization efforts. Air-to-water heat pumps, particularly those employing natural refrigerants such as R290 (propane), extract heat from the ambient air to supply heating, cooling, and domestic hot water while significantly lessening environmental impact. For instance, in October 2025, Mitsubishi Heavy Industries Thermal Systems, Ltd., a Japan-based manufacturer of HVAC and refrigeration solutions, introduced two new models to its “Hydrolution EZY” series of air-to-water heat pumps for the European market, both featuring R290 refrigerant. These new units offer high-temperature water heating capabilities, quiet operation, and ease of installation, aligning with Europe’s stricter environmental regulations and supporting carbon neutrality under MHI Group’s MISSION NET ZERO initiative.
Top Companies Competing In The Thermal Systems Market
Major companies operating in the thermal systems market are Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Inc., Hanon Systems, Lennox International Inc., Modine Manufacturing Company Inc., MAHLE GmbH, Robert Bosch GmbH, Valeo SA, Visteon Corporation, Schaeffler Technologies AG & Co. KG, Johnson Electric Holding Ltd., Sanden Corp., Diakin Industries Ltd., Calsonic Kansei Corp., BorgWarner Inc., ZF Friedrichshafen AG, Honeywell International Inc., Parker Hannifin Corporation, Siemens AG, Aavid Thermalloy LLC, Advanced Cooling Technologies Inc., Boyd Corporation, Delta Electronics Inc., Laird Technologies Inc., Lytron Inc., Nortek Air Solutions LLC, Thermacore Inc., Thermotek Inc., Vertiv Co., Wakefield-Vette Inc.
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Thermal Systems Market Regional Outlook Across Major Geographies
North America was the largest region in the thermal systems market in 2025. The regions covered in the thermal systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
