Automotive Thermal System Components Market

Automotive Thermal System Components Market Overview

Automotive Thermal System Components Market Size Was Valued At USD 40.89 Billion In 2024. The Global Automotive Thermal System Components Industry Is Projected To Grow From USD 45.75 Billion In 2025 To USD 111.33 Billion By 2035, Exhibiting A Compound Annual Growth Rate (CAGR) Of 9.3%During The Forecast Period (2025 - 2035).

Increasing Demand For Electric Vehicles (Evs), Regulatory Pressure For Emission Control, Advancements In Thermal Management Technologies, Rising Consumer Focus On Fuel Efficiency, Growth In The Automotive Sector In Emerging Markets Is Driving The Automotive Thermal System Components Market.

As per Analyst at MRFR,” The global automotive thermal systems components market is experiencing significant growth, driven by an increasing demand for electric vehicles (EVS), advancements in thermal management technologies and rising consumer focus on fuel efficiency. However, high initial costs of advanced thermal components, complexity in integration with existing systems, limited awareness of thermal management benefits, fluctuations in raw material prices and competition from alternative technologies”.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Automotive Thermal System Components Market Trends

INTEGRATION OF SMART TECHNOLOGIES IN THERMAL SYSTEMS

Thermal management system maintains the operating temperature of key components to reduce the risk of damage to components in vehicles. Manufacturers are integrating smart thermal solutions into new energy vehicles. Moreover, several manufacturers offer smart thermal solutions for automobiles. For instance, Johnson Electric offers thermal management solutions for battery, cabin heating, and power electronics. This integration of thermal management solutions into vehicles is expected to create demand for automotive thermal systems.

The integration of smart technologies into thermal management systems is transforming how vehicles regulate temperature. Smart systems utilize sensors, algorithms, and machine learning to monitor and adjust thermal performance in real-time. This allows for more precise temperature control, improving efficiency and extending the lifespan of components. For example, intelligent thermal management can optimize battery cooling in EVs based on driving conditions and ambient temperatures, ensuring optimal performance.

Automotive Thermal System Components Market Segment Insights

Global Automotive Thermal System Components By Caliber Type Insights

Based on Caliber Type, the Automotive Thermal System Components Market has been segmented into Cooling Compressor, Refrigerant, Condenser, Water Pump, Oil Cooler, HVAC Systems, Battery Thermal Management Systems, Heat Exchangers, Others. The HVAC Systems segment dominated the global market in 2024, while the Battery Thermal Management Systems is projected to be the fastest–growing segment during the forecast period. The HVAC system provides heat, ventilation, and air-conditioning in a vehicle. In the automotive thermal system, the Heating, Ventilation, and Air Conditioning (HVAC) system plays a critical role in maintaining passenger comfort by regulating temperature, humidity, and air quality. It ensures a comfortable cabin environment for drivers and passengers, regardless of external weather conditions. Additionally, the HVAC system contributes to the overall health and longevity of the vehicle by preventing damage from extreme temperatures and humidity.

In addition, the increasing demand for advanced HVACs that are environment-friendly and lightweight are expected to drive the automotive thermal system market. Moreover, HVAC equipment is cost-effective and can optimize productivity, which is expected to further boost the segment in the near future. All these factors are expected to propel the automotive thermal system market during the forecast period.

Global Automotive Thermal System Components By Vehicle Type Insights

Based on product type, the Automotive Thermal System Components Market has been segmented into Passenger Vehicle, Commercial Vehicle. The Passenger Vehicle segment dominated the global market in 2024, while the Passenger Vehicle is projected to be the fastest–growing segment during the forecast period. The passenger car segment dominates the automotive thermal management market, commanding approximately 70.8% of the total market share in 2024. This significant market position is primarily driven by the increasing adoption of electric and hybrid vehicles in the passenger car segment, which require sophisticated thermal management systems for battery temperature control and cabin comfort. 

The segment's growth is further bolstered by the rising consumer demand for luxury vehicles equipped with advanced automotive HVAC systems and the implementation of stringent emission norms that necessitate efficient thermal management solutions. Additionally, the continuous technological advancements in passenger car thermal management systems, including the development of smart thermal management solutions and integrated cooling systems, have contributed to maintaining this segment's dominant position in the market.

Figure 1: Automotive Thermal System Components Market, By Vehicle Type, 2024 & 2035 (USD BILLION)               

Global Automotive Thermal System Components By Propulsion Type Insights

Based on Payload Type, the Automotive Thermal System Components Market has been segmented into ICE, Electric, and Hybrid. The ICE segment dominated the global market in 2024, while the Electric is projected to be the fastest–growing segment during the forecast period. IC engine vehicles primarily utilize gasoline or diesel as a fuel, along with renewable or alternative fuels. In IC engine vehicles, the ignition and combustion of the fuel occurs within the engine itself. Subsequently, the engine partially converts the energy from the combustion to mechanical work, as the expanding combustion gases push the piston, which rotates the crankshaft. This, in turn, is estimated to boost the global automotive thermal system market during the forecast period.

Global Automotive Thermal System Components By Region

Based on region, the global automotive thermal systems components market is segmented into North America, Europe, Asia Pacific, South America, and Middle East and Africa. The Asia-Pacific dominated the global market in 2024, while the Asia-Pacific is projected to be the fastest–growing Region during the forecast period.

The Asia-Pacific region represents a dynamic market for automotive thermal management systems, driven by rapid industrialization and increasing vehicle production. China leads the regional market with its massive automotive manufacturing capabilities and growing electric vehicle sector. Japan, India, and South Korea contribute significantly to the market with their technological innovations and strong automotive manufacturing base. In December 2024, Valeo unveiled its latest thermal management system at the Automotive Engineering Exposition in Japan. This system combines intelligent sensors and sophisticated control algorithms for optimizing the heating and cooling procedures of electric cars to greatly enhance energy efficiency.  The region's rapid urbanization and increasing consumer preference for comfortable driving experiences continue to drive market growth. China maintains its position as the largest market for automotive thermal management systems in the Asia-Pacific region. The country's dominance is supported by its extensive automotive manufacturing infrastructure and rapid adoption of electric vehicles.

Chinese manufacturers are increasingly focusing on developing advanced thermal management solutions for both conventional and electric vehicles. The country's automotive sector benefits from strong government support for electric vehicle development and manufacturing. Chinese automotive companies are actively investing in research and development of innovative thermal management technologies. India emerges as the fastest-growing market in the Asia-Pacific region for automotive thermal management systems. The country's growth is driven by increasing vehicle production and rising demand for passenger comfort features. Indian automotive manufacturers are rapidly adopting advanced thermal management technologies to meet evolving consumer preferences and regulatory requirements. The country's focus on electric vehicle manufacturing creates new opportunities for thermal management system suppliers. India's automotive sector is witnessing significant investments in research and development of cost-effective thermal management solutions.

Figure 2: Automotive Thermal System Components Market, by region, 2024 & 2035 (USD BILLION)

Further, the major countries studied in the market report are the U.S., Canada, Germany, The UK, France, Russia, Italy, Spain, Rest of Europe, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Brazil , Mexico, Argentina, Rest of South America , GCC, South Africa, Rest of MEA.

Global Automotive Thermal System Components Key Market Players & Competitive Insight

Many global, regional, and local vendors characterize the Automotive Thermal System Components Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major players in the market include Mahle GMBH, BorgWarner, Valeo Sa, Denso Corporation, Hanon Systems, Zhejiang SANHUA Intelligent Control Co., Ltd, Zhejiang YINLUN Machinery Co., Ltd, Robert Bosch GMBH, Marelli Corporation, Modine Manufacturing Company, and among others. The Automotive Thermal System Components Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Automotive Thermal System Components Market include.

• Mahle GMBH
• BorgWarner
• Valeo Sa
• Denso Corporation
• Hanon Systems
• Zhejiang SANHUA Intelligent Control Co., Ltd
• Zhejiang YINLUN Machinery Co., Ltd
• Robert Bosch GMBH
• Marelli Corporation
• Modine Manufacturing Company

Automotive Thermal System Components Market Segmentation

Automotive Thermal System Components Market By Components Outlook (USD Billion, 2019-2035)

• Cooling Compressor
• Refrigerant
• Condenser
• Water Pump
• Oil Cooler
• HVAC Systems
• Battery Thermal Management Systems
• Heat Exchangers
• Others

Automotive Thermal System Components Market By Vehicle Type Outlook (USD Billion ,2019-2035)

• Passenger Vehicle
• Commercial Vehicle

Automotive Thermal System Components Market By Propulsion Type Outlook (USD Billion ,2019-2035)

• ICE
• Electric
• Hybrid

Global Automotive Thermal System Components Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • The UK
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Thailand
  • Indonesia
  • Rest of APAC
• South America
  • Brazil
  • Mexico
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA