Battery thermal management system market is anticipated to grow at a significant CAGR of 15.7% during the forecast period (2024-2031). The market growth is attributed to increasing advancement in battery thermal management systems such as liquid-based, phase-change material-based, refrigerant-based, and ML-based methods globally. According to the International Energy Agency (IEA), in 2024, Electric car sales neared 14.0 million in 2023, 95.0% of which were in China, Europe and the US. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35.0% year-on-year increase.

Market Dynamics

Liquid Cooling Solutions for Enhanced Efficiency in Electric Vehicles

EV batteries are frequently kept within their ideal operating temperature range by using liquid cooling systems. As the specific heat of air is lower on these power components, traditional heat sinks frequently will never function. Furthermore, the pursuit of lightweight, highly efficient heat transfer technologies with a small environmental impact is fueled by vehicle efficiency. Typically, fully optimized liquid systems come with cold plates that are made to meet the needs of the heat source for either maximum surface area contact or hot spot cooling. It is crucial to make sure that these cold plates are made with extreme durability, dependability, and leak resistance after undergoing extensive testing. 

Active Thermal Management Systems for Precise Control

Active thermal management systems actively control the battery's temperature using sensors and actuators to maximize efficiency and extend battery life. To maintain passenger comfort in the cabin, the thermal management system must maintain the proper temperature for the electric motor, power electronics, and battery. Electric vehicle thermal management adjusts to both internal and exterior temperature variations to maintain the ideal temperature in battery packs, power electronics drives, and electric motors. As it affects the safety and drivability of electric vehicles, thermal control is essential. The drivability, fuel efficiency, and battery life of electric vehicles all deteriorate with rising temperatures. Battery thermal management is essential when considering the battery's overall thermal impact on electric cars.

Market Segmentation

• Based on the type, the market is segmented into liquid cooling & heating and air cooling & heating.

• Based on the battery type, the market is segmented into solid-state batteries and conventional batteries.

• Based on the application, the market is segmented into battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV).

Air Cooling & Heating is Projected to Hold the Largest Segment

The air cooling & heating segment is expected to hold the largest share of the market. The primary factors supporting the growth include the increasing number of radiators utilized in the cooling loop of electric vehicles to release heat into the surrounding air. The battery pack temperature, the motor temperature, and the power electronic-based drive temperature are all controlled by the cooling system. An electric pump is used in the cooling loop to circulate coolant, which cools the batteries, electronics, motor, and other systems. Radiators are utilized in the cooling loop of electric vehicles to release heat into the surrounding air. In electric vehicles, the cooling loop's systems are cooled by the air conditioning system, and the cooling loop's heat is expelled via evaporators. For instance, in September 2021, MAHLE developed a new battery cooling system for faster charging of electric cars. Batteries can be more compact, making electric cars cheaper and more resource efficient. 

Battery Electric Vehicle (BEV) Segment to Hold a Considerable Market Share

The battery-electric vehicle (BEV) segment is expected to hold a considerable share of the market. The factors supporting segment growth include increasing adoption of systems for managing the temperature of EV batteries (BTMS) through temperature optimization and decreased danger of thermal runaway, the battery management system (BTMS) of an electric vehicle (EV) contributes significantly to the longevity of the Li-ion battery pack. For instance, in January 2023, Grayson Thermal Systems’ revolutionary VTMS combines battery thermal management and heat pump and air conditioning technology into one single system that helps the end-user save costs and space. A vehicle thermal management system (VTMS) that saves weight and optimizes driving range for electric buses, commercial vehicles, and off-highway applications is marking its first year in production in style.

Regional Outlook

Global battery thermal management system market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Growing Adoption of Battery Thermal Management Systems in Europe

• The regional growth is attributed to significant support from the government, a vast charging network, and a growing European customer preference for zero-emission cars. For instance, According to the International Energy Agency (IEA), in 2024, in Europe, new electric car registrations reached nearly 3.2 million in 2023, increasing by almost 20.0% relative to 2022. In the EU, sales amounted to 2.4 million, with similar growth rates.

• The market players in the region offer customers-engineered energy storage solutions including intelligent battery management systems, cooling, telematics, and all other relevant elements. For instance, in September 2023, Freudenberg e-Power Systems (FEPS) introduced the new XRANGETM battery pack for buses and trucks. XRANGETM combines these lithium-ion battery cells with FEPS’ widely proven battery management system, thermal management, and enhanced safety features, making it a state-of-the-art battery solution for heavy-duty.

Global Battery Thermal Management System Market Growth by Region 2024-2031

Asia-Pacific Holds Major Market Share

Asia-Pacific holds a significant share owing to numerous prominent battery thermal management System companies and providers such as Asahi Kasei Corp., Hitachi, Ltd., and LG Corp., in the region. The expansion of the market in the region is driven by increasing demand for battery electric vehicles in countries such as China, India Japan, and South Korea. According to the International Energy Agency (IEA), in 2024, in China, PHEVs accounted for about one-third of total electric car sales in 2023 and 18.0% of battery demand, up from one-quarter of total sales in 2022 and 17.0% of sales in 2021. Plug-in hybrid electric vehicle (PHEV) batteries are smaller than those used in battery electric vehicles (BEVs), thereby contributing less to increasing battery demand. The market players in the region offer highly effective thermal management systems for battery electric vehicles.  For instance, Asahi Kasei Corp. offers SunForce™ materials for EV batteries for thermal management systems in battery electric vehicles. SunForce™beads reduce the power used to cool batteries while driving by reducing the influx of external heat through the vehicle chassis. This improves heat-exchange efficiency and maximizes battery performance.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the battery thermal management system market include Asahi Kasei Corp., DENSO Corp., Hitachi, Ltd., Infineon Technologies AG, and LG Corp., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. 

Recent Developments

• In November 2023, an Electric Vehicle development and testing facility to be established at Fujisawa Plant. The newly established electric vehicle development and testing facility employs testing and evaluation equipment for components such as batteries, motors, EV systems, and thermal management. Furthermore, it is possible to optimize the functionality of combined EV components such as batteries and motors, as well as optimize the thermal management of the entire system.

• In May 2022, Modine introduced a new EVantage line of thermal management systems for commercial electric vehicles. To improve commercial electric vehicle (EV) performance, range, battery life, and safety, Modine manufacturing company, in thermal management technology and solutions, announced the general availability of its suite of EVantage™ Thermal Management Systems for commercial EV chassis.

• In January 2022, Visteon complements the industry-first smart wireless battery management system with additional electrification technology. The integrated hardware architecture and system software can extend across multiple vehicle platforms with minimal module configuration changes, this flexible wireless solution reduces engineering costs significantly and can more easily be integrated with thermal management systems and other vehicle controls.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the battery thermal management system market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.