Thermoelectric Module Market Size, Share, Growth Analysis, By Component, By Model, By Type, By Functionality, By Application, By Region - Industry Forecast 2024-2031

Thermoelectric Module Market size was valued at USD 666.48 million in 2022 and is poised to grow from USD 721.80 million in 2023 to USD 1365.98 million by 2031, growing at a CAGR of 8.30% during the forecast period (2024-2031).

A Thermoelectric Module, also referred to as a Peltier cooler or thermoelectric cooler, is a compact electronic component that functions akin to a mini-fridge or heat pump, transferring heat from one side of the module to the other. Thermoelectric modules offer several advantages, including their compact size compared to traditional setups and their capability to both heat and cool simultaneously, making them versatile for various everyday applications. The market for thermoelectric modules is expanding due to several significant factors. These include the increasing adoption of electric vehicles, the global shift towards renewable energy sources, and the rising demand for energy-efficient solutions. Thermoelectric coolers find applications in diverse sectors such as IT and telecommunications, defense for space applications, and in healthcare equipment where precise temperature control is crucial. Peltier coolers utilize the temperature difference between two sides of the module to generate electricity. For instance, in March 2021, Yamaha Corporation developed a power generation system that harnesses heat from vehicle exhaust to generate electricity. Technological advancements and innovations in automation, precision engineering, and electronics are driving the development of new thermoelectric module products. Moreover, the growing trend of integrating coolers into smart wearable devices is further fueling market expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Thermoelectric Module market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Thermoelectric Module Market Segmental Analysis

The global thermoelectric module market is segmented by component, model, type, functionality, application, and region. Based on components, the market is segmented into hardware and services. Based on the model, the market is segmented into Single Stage, and Multistage. Based on type, the market is segmented into Bulk thermoelectric module, Micro thermoelectric module, and Thin flim thermoelectric module. Based on functionality, the market is segmented into General Purpose, and Deep cooling. Based on application, the market is segmented into Consumer Electronics, Industrial, Telecommunication, Automotive, Medical & Labotories, Aerospace & Defense, and Oil Mining. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, & Middle East & Africa.

Drivers of the Thermoelectric Module Market

Thermoelectric Modules (TEMs) utilize the Peltier effect to transfer heat between two electrical junctions, allowing them to function as both cooling and heating devices. While primarily employed in cooling applications, they are also utilized for heating purposes. These electric coolers can adjust temperatures by reversing the direction of electrical current flow. This dual capability enables TEMs to produce hot water for bathing and simultaneously provide cold water for air cooling applications. This versatility makes TEMs invaluable in applications such as charged devices, light sensors, laser cooling systems, and thermal weapon sights. They are also employed in cooling computer components to prevent overheating and protect them from thermal damage. Emerging uses include the cooling of high-heat generating computer chips, ensuring optimal operational temperatures for electronic devices. TEMs are also crucial in scientific and laboratory settings for cooling laser diodes and computer chips, effectively mitigating heat-induced noise and leakage currents that conventional cooling methods may struggle to address adequately.

Restraints in the Thermoelectric Module Market

Manufacturing thermoelectric systems involves significant material and labor costs compared to conventional cooling or refrigeration systems. The high cost of materials like tellurium and germanium contributes to the expense of Thermoelectric Modules (TEMs). Additionally, calculating the production cost of TEMs is challenging due to the complexity involved in using different materials and manufacturing processes. For instance, research conducted by the Fraunhofer Institute in Germany showed that mass production at their semi-automatic facility in 2016 significantly reduced the material costs per TEM. However, initial setup costs were higher. Therefore, companies benefit from economies of scale when producing TEMs in large quantities, resulting in reduced overall manufacturing costs over time.

Market Trends of the Thermoelectric Module Market

The electric car market is rapidly expanding and has demonstrated resilience even during periods of global health challenges. In this market, there is a growing demand for enhanced battery capacity, faster charging capabilities, and increased driving range. Additionally, there is a critical need for improved components such as wide bandgap semiconductors and robust motors. Concerns over electric vehicle fires and related recalls have underscored the importance of detecting, protecting against, and mitigating heat buildup for fire prevention. Thermoelectric coolers (TECs) play a crucial role in maintaining effective battery thermal management systems due to their high coefficient of performance (COP). Consequently, companies are increasingly investing in scaling up their production capabilities, particularly for electric vehicles. For instance, Ferrotec has expanded its operations to manufacture thermoelectric modules for electric and hybrid cars. Thus, the electric vehicle market presents a promising opportunity for thermoelectric cooler modules.