Global Automotive Battery Thermal Management System Market - 2023-2030

Overview

Global Automotive Battery Thermal Management System Market reached US$ 2.7 billion in 2022 and is expected to reach US$ 12.8 billion by 2030, growing with a CAGR of 23.3% during the forecast period 2023-2030.

The global automotive battery thermal management system market has witnessed significant growth and transformations over the years, with various factors influencing its dynamics. The automotive landscape is evolving at an extraordinary pace, driven by the need to reduce carbon emissions, dependence on fossil fuels and mitigate the impact of climate change.Electric vehicles, powered by lithium-ion batteries, have emerged as a promising solution to these challenges.

However, the lithium-ion batteries that power electric vehicles are sensitive to temperature fluctuations. Automotive battery thermal management system is designed to maintain the battery's temperature within an optimal range, ensuring its safety and efficiency while extending its operational life. As automakers globally ramp up their electric vehicle production, the demand for high-performance battery thermal management systems has soared.

The battery electric vehicle (BEV) battery thermal management system, accounts for over 2/5th of the market share. Similarly, the Asia-Pacific dominates the automotive battery thermal management system market, capturing the largest market share of over 1/3rd. Government incentives, environmental concerns and advancements in battery technology all act as major reasons behind the region's growth.

Dynamics

Stringent Emission Regulations

Adoption of stringent emission regulations globally have propelled the adoption of electric vehicles. Governments are implementing policies to curb emissions and promote sustainable transportation. For instance, the European Union introduced stringent CO2 emission standards, pushing automakers to transition towards electric and hybrid vehicles.

To meet these regulations, automakers are investing in electric vehicle technology and advanced automotive battery thermal management systems. Products such as Ford's Mustang Mach-E, launched in 2021, are equipped with sophisticated automotive battery thermal management systems to ensure compliance with emission standards while providing superior performance.

Advancements in Battery Technology

Battery technology has made significant strides in recent years, resulting in more powerful and energy-dense batteries. Such advancements have a direct impact on the automotive battery thermal management systems market as batteries become more capable of storing energy and it becomes even more critical to manage their temperature to ensure safety and longevity.

For example, the 2022 Chevrolet Bolt EUV features an innovative automotive battery thermal management systems that enhances battery life and range. General Motors invested heavily in battery technology to develop this advanced system, highlighting the growing importance of efficient thermal management.

Limited Charging Infrastructure

A robust charging infrastructure is vital for the widespread adoption of electric vehicles, including those with advanced battery thermal management systems. However, in many regions, the charging infrastructure is still in its nascent stages. Statistics from U.S. Department of Energy (DOE) indicates that the availability of charging stations is not yet sufficient to cater to the growing number of EVs on the road.

The respective lack of infrastructure can be a major restraint, as it affects the convenience and practicality of owning an electric vehicle. Without a reliable and accessible charging network, consumers may hesitate to switch from conventional vehicles to EVs. The aforementioned restraint not only impacts the adoption of EVs but also the need for sophisticated automotive battery thermal management systems, which are more essential in long-range EVs.

Cost Considerations and Additional Cost Imposed on EV Manufacturers

One of the primary restraints in the adoption of battery thermal management systems in the automotive industry is the additional cost they impose on EV manufacturers. According to the International Energy Agency (IEA), the cost of electric vehicles, including batteries and associated systems, remains higher than that of traditional internal combustion engine (ICE) vehicles. The cost differential presents a challenge among cost-conscious consumers.

However, the automotive industry is working towards cost reduction strategies. For instance, in 2020, Tesla unveiled its new Model Y electric crossover, which featured an innovative heat pump system for its battery thermal management system. The development aimed to improve the overall efficiency of the vehicle's heating and cooling, thereby extending battery life and reducing the cost of ownership.

Environmental Regulations and Emission Control

Segment Analysis

The global automotive battery thermal management system market is segmented based on type, battery capacity, vehicle, propulsion, technology and region.

Environmental Concerns, Government Regulations and Advancements in Battery Technology

The shift towards BEVs is driven by multiple factors, including environmental concerns, government regulations and advancements in battery technology. Governments globally have been promoting clean energy and reducing greenhouse gas emissions, with several offering incentives for BEVs, such as tax credits and rebates.

One of the standout examples comes from U.S., where the federal government, as of 2021, provides a tax credit of up to US$ 7,500 for BEV buyers. Additionally, many states offer further incentives, resulting in significant savings for consumers. Consequently, BEV adoption in U.S. has been on a steep incline.

According to U.S. Department of Energy, the number of BEVs sold in the country increased from around 49,000 in 2017 to nearly 325,000 in 2020, reflecting an impressive growth rate. In Europe, countries such as Norway and the Netherlands have been at the forefront of BEV adoption. Norway, in particular, stands out as a global leader in EV market penetration. The success of BEVs is intrinsically tied to the performance and longevity of their batteries.

Automotive battery thermal management systems play a vital role in maintaining the optimal operating temperature of a BEV's battery pack. Such systems ensure that the battery neither overheats nor gets too cold, as extreme temperatures can negatively impact a battery's efficiency, lifespan and safety. As BEVs continue to grow in popularity, the demand for advanced BTMS has skyrocketed.

Further, automotive battery thermal management systems are designed to efficiently manage the temperature of the battery pack, optimizing its performance and ensuring the safety of the vehicle and passengers. Government regulations and safety standards have been a driving force in the development and implementation of sophisticated automotive battery thermal management systems.

Geographical Penetration

Growing Adoption of EVs, Government Incentives, Environmental Concerns and Advancements In Battery Technology

The global automotive industry is undergoing a remarkable transformation, with a strong focus on electric vehicles (EVs) to reduce carbon emissions and mitigate the impact of climate change. One of the critical components in electric vehicles is the battery system and efficient thermal management is essential to ensure their optimal performance and longevity.

In recent years, Asia-Pacific has emerged as a key player in the global automotive battery thermal management system market. Asia-Pacific has witnessed a significant increase in the adoption of electric vehicles in recent years. Several factors contribute to this trend, including government incentives, environmental concerns and advancements in battery technology.

Government incentives, such as subsidies, tax breaks and rebates, have played a crucial role in making electric vehicles more accessible and attractive to consumers. For instance, in China, the world's largest automotive market, the government has implemented various policies to promote the adoption of EVs. Such policies include purchase incentives, exemptions from vehicle taxes and support for charging infrastructure development.

Competitive Landscape

major global players in the market include: LG Chem, Continental, Gentherm, Robert Bosch, Valeo, Danam, Hanon System, Samsung SDI, MAHLE and VOSS Automotive.

COVID-19 Impact Analysis

The automotive industry, like many others, was significantly impacted by the COVID-19 pandemic that swept globally in 2020. One of the crucial aspects within this industry affected by the pandemic was the automotive battery thermal management system market. Prior to COVID-19, the global push towards greener transportation options, driven by environmental concerns and government regulations bolstered the electric vehicle (EV) market.

As EVs became more popular, the demand for efficient battery systems, including battery thermal management systems, grew substantially. In 2019, the global electric vehicle market was valued at approximately US$ 162.34 billion and it was projected to grow at a compound annual growth rate (CAGR) of 22.6% from 2020 to 2027, according to United Nations.

However, the onset of the COVID-19 pandemic in early 2020 brought the global automotive industry to a grinding halt. Lockdowns, restrictions and disruptions in supply chains caused a significant decline in vehicle production. The respective fact directly affected the demand for automotive battery thermal management systems, as they are primarily used in electric and hybrid vehicles.

Despite the initial setbacks, the automotive battery thermal management system market demonstrated resilience in the face of the pandemic. Many governments recognized the importance of the EV market in reducing carbon emissions and invested in incentives and subsidies for electric vehicle adoption. Further, in response to disruptions in supply chains, manufacturers began to diversify their sourcing, reducing their dependence on a single region or supplier.

As the world continues to transition towards electric mobility to combat climate change, the demand for efficient battery thermal management systems is set to rise. Innovations and product launches in this sector are expected to accelerate, driving improvements in EV performance, range and affordability.

Russia-Ukraine War Impact Analysis

The global automotive industry has been facing numerous challenges and transformations in recent years and one significant factor contributing to these changes is the Russia-Ukraine war. Beyond geopolitical implications, this conflict has reverberated through global supply chains, affecting the automotive battery thermal management system market.

According to the International Monetary Fund (IMF), the war has caused a slowdown in global economic growth, with many countries facing decreased trade prospects. The war has created logistical challenges and uncertainties regarding the supply of critical automotive components, including batteries and battery thermal management systems. Several automakers source these components from Eastern Europe.

Further, with supply disruptions and uncertainty about future supplies, the prices of certain automotive components, including battery thermal management systems, have become volatile. The, in turn, affects the pricing of automobiles. However, the automotive industry has shown resilience and adaptability.

By Type

• Conventional
• Soldi-State

By Battery Capacity

• <100kWh
• 100-200kWh
• 200-500kWh
• >500kWh

By Vehicle

• Passenger Vehicle
• Commercial Vehicle

By Propulsion

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Vehicle (FCV)

By Technology

• Active
• Passive

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In 2021, Denso unveiled a new battery cooling system designed explicitly for electric vehicles. Denso's system incorporates advanced cooling technology to enhance the performance and extend the lifespan of EV batteries. It addresses the challenge of maintaining battery temperature during rapid charging and high-demand driving conditions.
• In 2020, Continental, a prominent automotive technology company, launched an advanced battery thermal management system. The respective system focuses on improving the efficiency of electric vehicle batteries by maintaining them at optimal temperatures. It contributes to more predictable battery performance, especially in extreme climates.
• On May 4, 2023, Mahle, a leading automotive supplier, introduced a liquid-cooled battery housing system for electric vehicles. The respective system utilizes liquid cooling to regulate the temperature of EV batteries, ensuring they operate efficiently in various environmental conditions. It also contributes to the overall performance and longevity of the battery.

Why Purchase the Report?

• To visualize the global automotive battery thermal management system market segmentation based on type, battery capacity, vehicle, propulsion, technology and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of automotive battery thermal management system market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global automotive battery thermal management system market report would provide approximately 83 tables, 78 figures and 227 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies