The global electric vehicle battery thermal management systems market size is expected to reach USD 12.1 billion by 2027, registering a CAGR of 28.5% from 2020 to 2027. Increasing adoption of electric vehicles (EVs) across the globe is the primary factor driving the growth of this market. Countries, such as China, U.S., and Norway, have registered significant rise in the sales of EVs, which in turn, will contribute to the market growth.

Thermal management systems are required to maintain the adequate temperature range of the battery for effective functioning. Increasing penetration of battery-powered vehicles has pushed manufacturers to develop improved heat management systems for batteries. Reducing size of the batteries along with fast charging capabilities are hindering the market growth. However, technological advancements in the field of heat management for batteries are likely to support market expansion. Electric vehicles run on a battery and therefore offer limited operational range on a single charge.

This has motivated the battery manufacturers to develop products with fast charging capabilities. Fast charging of the battery generates more heat, which is required to be taken care of to prevent damage to the battery cells. Moreover, batteries are the single source to provide traction to the EVs, which results in high operating temperature of the batteries. Thus, automotive component manufacturers are focusing on developing advanced cooling methods to control the high temperatures of these batteries, which is expected to bolster the market growth in the coming years.

Various governments across the globe have established stringent carbon emission norms for vehicles. As a result, there has been a shift in the customer preference from Internal Combustion Engines (ICE) towards Battery Electric Vehicles (BEVs). In addition, Plug-in Hybrid EVs or PHEVs have also become popular globally as they run on both battery as well as IC engines.

On the other hand, the global coronavirus pandemic has highly impacted the manufacturing & production capabilities of organizations across industries, including automotive. As such, the current production rate of EVs has been largely deviated from the pre-Covid-19 forecasted figure for 2020. Furthermore, a global lockdown situation followed by falling demand for vehicles and supply chain disruptions is expected to hamper the market growth. However, various governments are taking initiatives to boost the economy and improve the infrastructure, which is anticipated to bolster the market growth over the forecast period.

The Asia Pacific was the dominant regional market in 2019 and accounted for over 44% of the global revenue share. It is expected to grow further at the fastest CAGR over the forecast period. Countries, such as China and Japan, are the major contributors to the regional market. Increasing the adoption of EVs in the region, especially in China, is the major growth-driving factor. Moreover, growing consumer preference for EVs due to rising awareness about the benefits of these vehicles is expected to propel the regional market growth.

Europe’s regional market is anticipated to witness significant growth over the forecast period owing to the presence of several key automobile and component manufactures, such as BMW, Fiat, Daimler AG, Volkswagen, Mercedes, and Volvo, in the region. Major contributors in the European market include Norway, Germany, France, The Netherlands, and U.K. Norway has the highest penetration of EVs worldwide and ranks third, in terms of EV sales, globally.

Some of the prominent players in the electric vehicle battery thermal management systems market include: Robert Bosch GmbH, GENTHERM Incorporated, Valeo, Dana Incorporated, Mahle GmbH, Hanon Systems, Voss Automotive GmbH, 3M, Grayson, Polymer Science, Inc., Lord Corporation.

-Report by Grand View Research