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Automotive Thermal System Market, By Propulsion Type, By Application, By Vehicle Type, By Country, and By Region - Industry Analysis, Market Size, Market Share & Forecast from 2025-2032
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REPORT HIGHLIGHT

Automotive Thermal System Market size was valued at USD 52,435.14 Million in 2024, expanding to a CAGR of 5.6% from 2025 to 2032.

An automotive thermal system is a crucial component in vehicles that manage heat to ensure optimal performance, efficiency, and passenger comfort. It includes systems for heating, cooling, ventilation, and temperature regulation of various vehicle components, such as the engine, battery, cabin, and exhaust.

Automotive Thermal System Market- Market Dynamics

Increasing emphasis on fuel efficiency and rising demand for electric & hybrid vehicles is expected to propel market demand

The automotive thermal system market is experiencing significant growth due to increasing demand for energy-efficient vehicles, and technological advancements like ADAS. One of the primary drivers of the automotive thermal system market is the increasing global focus on fuel efficiency and emission reduction. Governments across the world have implemented stringent regulations to reduce greenhouse gas (GHG) emissions from automobiles. These regulations require manufacturers to improve fuel efficiency, reduce carbon emissions, and enhance vehicle performance through innovative thermal management solutions. Automotive thermal systems help improve engine efficiency by optimizing heat dissipation and maintaining proper operating temperatures, which contributes to lower fuel consumption and reduced emissions.

The rising adoption of electric and hybrid vehicles is another key factor driving the demand for advanced automotive thermal systems. Unlike internal combustion engine (ICE) vehicles, EVs and HEVs require sophisticated thermal management solutions to regulate battery temperature, improve efficiency, and enhance vehicle range. Lithium-ion batteries, which power EVs, operate optimally within a specific temperature range. Overheating can lead to reduced battery life and safety risks, necessitating effective cooling solutions. The development of ADAS and autonomous vehicles requires advanced thermal management solutions to maintain the optimal performance of sensors, cameras, radar systems, and LiDAR technology. These components generate heat, which must be managed efficiently to ensure accurate data processing and safety. Thermal management systems help regulate temperatures in electronic control units (ECUs), ensuring the reliable operation of ADAS features such as lane departure warning, adaptive cruise control, and collision avoidance systems.

Automotive Thermal System Market- Key Insights

As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.6% over the forecast period (2025-2032)

Based on Propulsion Type segmentation, the ICE segment was predicted to show maximum market share in the year 2024, due to high demand from large or heavy-duty vehicles.

Based on Application segmentation, the HVAC segment was the leading Application segment in 2024, as it offers improved energy efficiency.

Based on Vehicle Type segmentation, the passenger cars segment was the leading Vehicle Type segment in 2024, owing to the high demand for comfort featured luxury vehicles.

Based on the region, North America was the leading revenue generator in 2024, owing to the high presence of top market players.

Automotive Thermal System Market- Segmentation Analysis:

The Global Automotive Thermal System Market is segmented based on Propulsion Type, Application, Vehicle Type, and Region.

The market is divided into two categories based on Propulsion Type: ICE and Electric. The ICE segment dominates the market. The high adoption of ICE engines across medium & heavy-duty vehicles is contributing to segment demand.

The market is divided into four categories based on the Application: HVAC, powertrain cooling, fluid transport, and others. The HVAC segment is expected to hold the largest share due to the product innovations & investments by automotive companies in improving the energy efficiency of thermal systems.

The market is divided into three categories based on Vehicle Type: passenger cars, light commercial vehicles, and large commercial vehicles. The passenger cars segment holds the highest share of the vehicle type segment. The growing demand for luxury cars with heated & cooled features is amplifying the demand for passenger vehicles.

Automotive Thermal System Market- Geographical Insights

Across the world, the Automotive Thermal System market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American automotive thermal system market is experiencing steady growth, largely driven by increasing sales of hybrid and electric vehicles (EVs) in the U.S. and Canada. The U.S. EV market is growing rapidly, supported by government incentives and stringent Corporate Average Fuel Economy (CAFE) standards, which promote advanced thermal management solutions. Europe has one of the most stringent emission regulations under the Euro 7 norms, which is driving automakers to adopt advanced cooling solutions to improve fuel efficiency. European automotive companies such as Volkswagen, BMW, Mercedes-Benz, and Renault are heavily investing in battery thermal management for electric mobility.

Automotive Thermal System Market- Competitive Landscape:

The Automotive Thermal System market is characterized by intense competition among key players. Several factors like the rapid growth of electric vehicles and the need for efficient battery cooling. New smart climate control technologies that improve passenger comfort and reduce energy consumption are supporting market growth. With automakers shifting towards electric and hybrid vehicles, competition in the automotive thermal system market will continue to intensify with new technological innovations. Market players are also investing significant revenue into new product developments and systems.

Recent Developments:

In 2024, Mahle GmbH partnered with Bosch to develop liquid-cooled power electronics for electric and hybrid vehicles.

In 2024, Hanon Systems secured a USD 1.2 billion contract with Hyundai & Kia to supply battery thermal management systems for EVs.

In 2023, BorgWarner acquired Drivetek AG, expanding its expertise in electric vehicle cooling technologies.

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL AUTOMOTIVE THERMAL SYSTEM MARKET KEY PLAYERS

GLOBAL AUTOMOTIVE THERMAL SYSTEM MARKET, BY PROPULSION TYPE- MARKET ANALYSIS, 2019-2032

GLOBAL AUTOMOTIVE THERMAL SYSTEM MARKET, BY APPLICATION- MARKET ANALYSIS, 2019-2032

GLOBAL AUTOMOTIVE THERMAL SYSTEM MARKET, BY VEHICLE TYPE- MARKET ANALYSIS, 2019-2032

GLOBAL AUTOMOTIVE THERMAL SYSTEM MARKET, BY REGION- MARKET ANALYSIS, 2019-2032

Table of Contents

1. Automotive Thermal System Market Overview

2. Executive Summary

3. Automotive Thermal System Key Market Trends

4. Automotive Thermal System Industry Study

5. Automotive Thermal System Market: Impact of Escalating Geopolitical Tensions

6. Automotive Thermal System Market Landscape

7. Automotive Thermal System Market - By Propulsion Type

8. Automotive Thermal System Market - By Application

9. Automotive Thermal System Market - By Vehicle Type

10. Automotive Thermal System Market- By Geography

11. Key Vendor Analysis- Automotive Thermal System Industry

12. 360 Degree AnalystView

13. Appendix

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