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Automotive Thermal System Market Forecast: What Market Value Is Expected By 2030?
The automotive thermal system market has experienced substantial growth in recent years. It is forecast to expand from $43.71 billion in 2025 to $46.11 billion in 2026, with a compound annual growth rate (CAGR) of 5.5%. The historical development of this market is attributable to various elements, including the demand for engine cooling, the wider adoption of HVAC systems, the prevalence of internal combustion engines, the increase in passenger vehicle numbers, and the essential requirements for thermal comfort.
The automotive thermal system market size is projected to experience substantial expansion over the upcoming years. It is anticipated to reach $57.57 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 5.7%. This expansion during the forecast period is primarily driven by factors such as electric vehicle penetration, battery safety regulations, smart thermal analytics, energy-efficient hvac demand, and autonomous vehicle electronics cooling. Key developments expected in this period encompass a shift toward battery thermal management, the adoption of electrically driven compressors, enhanced integration of smart thermal controls, the growth of waste heat recovery systems, and a growing demand for lightweight cooling components.
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Automotive Thermal System Market Growth Momentum: Which Factors Are Influencing Demand?
The expanding electric vehicle market is anticipated to drive the advancement of automotive thermal systems in the future. An electric vehicle (EV) is an automobile that operates using electricity, generally via one or multiple electric motors, contrasting with internal combustion engines that consume gasoline or diesel. Within electric vehicles, automotive thermal systems are crucial for regulating battery temperature, guaranteeing ideal operational states for electric motors, and improving the total efficiency of EVs. As an illustration, in April 2024, the International Energy Agency (IEA), an intergovernmental body based in France, indicated that in 2024, new electric car registrations in China attained 8.1 million during 2023, marking a 35% rise from 2022. Consequently, the expansion of the electric vehicle market is fostering the development of the automotive thermal systems market.
Automotive Thermal System Market Segment Breakdown: Which Categories Generate The Most Revenue?
The automotive thermal system market covered in this report is segmented –
1) By Component: Compressor, HVAC, Powertrain Cooling, Fluid Transport
2) By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Other Vehicle Types
3) By Application: Front And Rear A Or c, Engine and Transmission, Seat, Battery, Motor, Waste Heat Recovery, Power Electronics
Subsegments:
1) By Compressor: Electrically Driven Compressors, Belt-Driven Compressors, Variable Displacement Compressors
2) By HVAC (Heating, Ventilation, And Air Conditioning): Heating Systems, Air Conditioning Units, Ventilation Systems
3) By Powertrain Cooling: Engine Cooling Systems, Transmission Cooling Systems, Turbocharger Cooling Systems
4) By Fluid Transport: Coolant Hoses, Radiators, Expansion Tanks
Automotive Thermal System Market Trends Reshaping Industry Growth
Leading companies in the automotive thermal systems market are intensifying their efforts to develop innovative offerings, such as advanced thermal management systems, to gain a competitive advantage. Advanced Thermal Management Systems (ATMS) are sophisticated cooling solutions crafted to manage the increasingly intricate heat dissipation requirements of contemporary electronic devices and systems. For instance, in September 2023, Modine Manufacturing, a Japan-based thermal management company, unveiled EVantage, a new line of thermal management systems specifically for commercial electric vehicles. These systems are designed to control the temperature of electric vehicles, ensuring optimal performance for batteries, traction motors, and power electronics across all operating conditions. The EVantage systems can be tailored to fit any vehicle size for land, marine, aviation, and stationary applications. Modine’s thermal management products are ideal for zero-emission transit, coach, and school buses, various specialty vehicles, and trucks, encompassing vans utilized in last-mile delivery.
Automotive Thermal System Market Key Players And Strategic Industry Positioning
Major companies operating in the automotive thermal system market report include Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Incorporated, Hanon Systems, Modine Manufacturing Company Inc., Mahle Behr GmbH & Co. KG, Robert Bosch GmbH, Valeo SA, Visteon Corporation, Calsonic Kansei Corp., Sanden Corporation, BorgWarner Inc., Marelli Corporation, Behr GmbH & Co KG, Delphi Technologies, Eberspaecher Group, Hella GmbH & Co KGaA, Webasto SE, ZF Friedrichshafen AG, Bergstrom Inc., Kongsberg Automotive
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Automotive Thermal System Market Geographic Landscape: Which Region Dominates Industry Growth?
Asia-Pacific was the largest region in the automotive thermal systems market share in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive thermal system market report include 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.