Aerospace Defense Thermal Management Systems Market

Aerospace & Defense Thermal Management Systems Market Size

The global aerospace & defense thermal management systems market was valued at USD 23.8 billion in 2024, with a volume of 146 million units and is estimated to grow at a CAGR of 6.6% to reach USD 44.6 billion by 2034. The growth of the aerospace & defense thermal management systems industry is attributed to factors such as the rise in advanced military aircraft production coupled with the rising military spending globally.

During the Trump administration's term the imposed tariffs on aluminum steel and aerospace parts directly influenced the aerospace and defense thermal management systems market. Additional expenses from these tariffs affected the production of exchangers heat sinks and enclosures that comprise thermal systems. The situation resulted in supply chain disruptions for U.S. manufacturers who faced increasing production expenses and needed to modify their procurement approaches. The policy introduced domestic investment incentives for metals production, yet it caused defense contractor procurement cycles to become highly unpredictable.

The rising military spending globally serves as a primary factor behind the growth of the aerospace & defense thermal management systems industry. As defense forces modernize and enhance their capabilities, there is an increased demand for advanced platforms ranging from next-generation fighter aircraft to unmanned aerial systems and directed energy weapons. These sophisticated systems generate higher thermal loads, necessitating robust, efficient, and integrated thermal management solutions. Governments across regions, notably in the United States, China, and NATO member states, are significantly increasing defense budgets, thereby fostering procurement and R&D investments in high-performance thermal technologies to support operational effectiveness and reliability. For instance, the defence budget of India is set to increase by 9.5%, rising from USD 71.4 billion to USD 78.3 billion in the year 2025, as stated by the IBEF.

Aerospace & defense thermal management system manufacturers should develop high-performance, integrated thermal solutions for next-generation defense platforms, including UAVs and directed energy weapons, to satisfy growing thermal loads driven by global defense modernization and higher military expenditures.

The surge in production of advanced military aircraft is another major growth driver for the growth of aerospace & defense thermal management systems market. Modern fighter jets, such as the F-35, Rafale, and upcoming sixth-generation platforms, incorporate dense electronic systems, advanced radar technologies, and high-thrust engines, all of which generate substantial heat during operation. Efficient thermal management is essential to ensure system reliability, mission readiness, and operational safety. As global defense programs accelerate aircraft modernization and fleet expansion, the demand for integrated, lightweight, and high-capacity TMS solutions rises correspondingly, positioning thermal technologies as critical components within next-generation military aviation platforms.

Aerospace & defense thermal management system producers need to concentrate on creating lightweight, high-capacity, and integrated thermal solutions specifically designed for next-generation military aircraft, meeting the increasing heat loads from advanced avionics, radar, and propulsion systems in the context of global fleet modernization.

Aerospace & Defense Thermal Management Systems Market Trends

• The rise of electric propulsion systems in aerospace, which often require thermal management system is a significant trend in the market. These advanced propulsion systems generate heat, which requires efficient cooling technology to maintain performance and safety. This trend focuses on integrating thermal management systems with electric propulsion to ensure optimal operation.
  
• The rapid adoption of structural health monitoring (SMH) among manufacturer for thermal systems to ensure monitoring of the structural integrity of thermal management systems is another significant trend in the market. This involves the implementation of sensors and advanced data analysis method such as machine learning (ML) to detect the potential failure early. This trend of integrating SMH technology with thermal management system ensures reliability and longevity of system among aerospace companies.
  
• Another significant trend in the market is the rapid adoption of advanced cooling fluids with nanofluids, which further enhances the thermal conductivity. For instance, NASA is increasingly incorporating aluminium oxide and copper oxide nanoparticles into the cooling fluids, which further ensures enhanced efficiency of thermal management systems. This trend is particularly beneficial for high temperature applications in aerospace industry.
  

Aerospace & Defense Thermal Management Systems Market Analysis

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Based on the platform, the aerospace & defense thermal management systems industry is segmented into aircraft, land systems, and naval systems.

• The aircraft platform was the largest market and was valued at USD 15.1 billion in 2024. Several military aircrafts rely on high density avionics, sensors, and electronic welfare systems, all of which heavily generates heat, where TMS are gaining rapid traction to ensure optimal functionality under extreme flight conditions. Also, the shift towards electric aircraft and hybrid electric propulsion in both fixed and rotary platform further pushes the demand for high efficiency cooling technologies. Furthermore, the growth in UAV and drone fleets has led to development of lightweight, compact, and power efficient thermal systems to cater ensure management of heat from onboard surveillance and communication payloads.
  
• The land systems platform is the fastest growing market and is projected to grow with a CAGR of 7.9% during the forecast period. The increasing adoption of hybrid and electric propulsion technologies in armoured vehicles is driving the demand for advanced thermal management systems to cater the thermal challenges in managing battery, power electronics, and motor cooling. Additionally, Modern land systems are increasingly incorporating powerful computing and real time data processing systems, which further require modular and efficient thermal management systems. Moreover, Directed energy weapons such as laser and microwave systems in land systems increases thermal stress, which further propels the demand for advanced active cooling systems, which supports the expansion of this segment in the market.

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Based on the system type, the aerospace & defense thermal management systems market is divided into active thermal management system and passive thermal management systems.

• The active thermal managements system was the largest market and was valued at USD 16.4 billion in 2024. Advanced radar, surveillance, and jamming systems used in aircraft, land vehicles, and naval platforms generate intense heat loads that necessitate dynamic and continuous cooling, which pushes the demand for active TMS like vapor compression, liquid cooling, and thermoelectric modules. Additionally, the emergence of intelligent systems capable of adjusting thermal profiles dynamically based on operational demands accelerates the deployment of active thermal solutions with embedded sensors and controllers.
  
• The passive thermal management system is projected to grow with a CAGR of 4.8% during the forecast period. Passive systems are critical in vacuum environments, where mechanical systems are limited. Growth in satellite constellations and defense-related space missions boosts demand for passive TMS to stabilize sensitive instruments. Also, In space systems, drones, and compact C4ISR equipment, passive systems like heat pipes, phase-change materials, and advanced thermal coatings are favored for their low weight and energy independence. Moreover, Passive systems offer high reliability with no moving parts, making them ideal for unmanned systems, remote sensors, and long-endurance platforms.
  

Based on the components, the aerospace & defense thermal management systems market is categorized into cold plates, heat exchangers, fans & blowers, pumps & compressors, valves & sensors, thermal insulation materials, and others.

• The cold plate components is the fastest growing market and is projected to grow with a CAGR of 9.2% during the forecast period. The increasing adoption of cold platers in electric and hybrid propulsion system for cooling batteries, inverter, and power control units in electric aircrafts and land systems, which is major growth driver for this segment. Also, as avionics, power electronics, and radar systems become more compact and high-powered, cold plates offer localized, high-efficiency cooling directly integrated with heat-generating components. Furthermore, the rise of modular open systems architecture is further pushing the rapid adoption of cold plates among manufacturers for plug and play thermal control, while ensuring design flexibility and thermal efficiency.
  
• The heat exchanger components was the largest market and was valued at USD 6.8 billion in 2024. Aircraft environmental control systems heavily relies on heat exchangers to manage cabin temperatures, electronic bays, and avionics cooling, which fuels the demand for high performance and lightweight exchangers systems. Moreover, the rapid expansion of hypersonic and high speed platforms has led to increase in demand for heat exchangers to manage aerodynamics cooling and engine cooling. Also, several ground based advanced combat vehicles and mobile power units require heat exchangers for cooling engine, generators, and power systems during prolonged mission and extreme climates conditions.
  

Based on the application, the aerospace & defense thermal management systems market is bifurcated into avionics & electronics cooling, engine cooling, energy storage cooling, weapons systems cooling, cabin comfort, and others.

• The avionics and electronics cooling market was the largest market and was valued at USD 8.3 billion in 2024. Modern military platforms are increasingly equipped with high-performance avionics, radar systems such as flight computers and communication systems, which generate considerable heat, necessitating efficient thermal regulation. Moreover, harsh altitude, temperature, and vibration conditions in combat zones require ruggedized TMS to ensure continuous function of avionics and mission-critical electronics, which further contribute to the growth of this segment.
  
• The weapon systems cooling market is the fastest growing market and is projected to grow with a CAGR of 8.5% during the forecast period. The emergence of directed energy weapons such as high energy laser and microwave weapons require high capacity and real time cooling system to cool the intense localized heat generated when tested and fielded. Moreover, several land vehicles, naval ships, and aircraft are increasingly mounting advanced weapon systems, which requires integrated cooling modules that can adapt to dynamic battlefield conditions. Furthermore, the thermal demand in advanced missile system such as hypersonic missile, high speed interceptors, and long ranged precision guided munitions has led to increasing demand for compact and robust thermal systems to ensure protection of internal electronics and maintaining trajectory stability under extreme heating loads.

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• The U.S. dominated the aerospace & defense thermal management systems market, accounting for USD 7.4 billion in the year 2024. The demand of this market is significantly propelled by the deployment of technologically sophisticated aircraft (such as F-35 and B-21) and their accompanying naval systems, all of which depend on advanced thermal management system for optimal mission-critical functionality. In addition, continuous development in directed energy weapons (DEWs) such as HELIOS, Iron Beam, and hypersonic missiles increase the need for thermal systems that can withstand extreme heat, rapid-heat accumulation. For instance, the department of air force was allocated USD 262.6 billion in the year 2025, which represent a significant increase of USD 3.4 billion from previous year, as stated by defense budget FY2025.
  
• The Germany aerospace & defense thermal management system market accounted for USD 1.3 billion in the year 2024. Germany is upgrading the Eurofighter Typhoon fleets, and their collaboration with France and Spain on the Future Combat Air System (FCAS) driving growth for next-generation thermal management system in avionics and mission systems. Also, Programs like the Boxer IFV and Puma AIFV include electrified subsystems that require advanced cold plates and heat exchangers for thermal regulation, further contribute to the market growth in the region.  
  
• The aerospace & defense thermal management systems market in China is projected to reach USD 6.1 billion by the year 2034.  The market growth is driven by the deployment of advanced aircrafts, such as the J-20 stealth fighter and GJ-11 stealth UAVs, that relies on domestic thermal management technologies. This stimulates growth in the thermal management system manufacturing in China. Additionally, the increasing expansion in the digital battlefield capabilities further increases the thermal load across platforms, which pushes the demand both active and passive cooling components.
  
• The Japan aerospace & defense thermal management system market accounted for USD 1.1 billion in 2024. The growing satellite and space defense assets market, such as surveillance and communication satellites, is further accelerating the need for passive thermal management systems. Moreover, the mid-term defense program and national defense strategy (NDS) pushes the development of high performance radar, space assets, and autonomous systems, all of which require both passive and active thermal management systems.
  
• The India aerospace & defense thermal management system market is anticipated to grow at a CAGR of over 9.3% during the forecast period.  The country’s push for local production of combat vehicles and aircrafts such as Tejas, LCH, and Arjun MBT, stimulates demand for domestically developed TMS integrated into their indigenous systems. Additionally, the growing defense spending of the country on electronic warfare, air defence systems, and advanced high altitude drones, fuels the need for both passive and active thermal solutions. For instance, IBEF states that India’s defense budget is planned to have an increase of 9.5 percent, reaching USD 78.3 billion by the year 2025-26, up from USD 71.4 billion.
  

Aerospace & Defense Thermal Management Systems Market Share

The aerospace & defense thermal management systems industry is highly competitive and fragmented with the presence of established global players as well as local players and startups. The top 3 companies in the market are Collins Aerospace, Honeywell International Inc., and BAE Systems plc, collectively accounting for over 15.4% market share. Leading companies in the market are investing in the next-generation integrated thermal management solution which prioritizes weight reduction, energy efficiency, and compliances with military regulations and aerospace standards. The innovation in the market such as integrated power and thermal management systems (IPTMS), graphene enhanced heat spreaders, and phase change materials (PCM) are gaining rapid popularity among manufacturers due to their ability to manage higher thermal loads in compact defense platforms. 

Additionally, the rapidly evolving demand for scalable and adaptable solutions is being addressed by developing modular and smart thermal systems designed to support multi-domain operations, high altitude aircraft, as well as to autonomous ground systems. Increased deployment of thermal management systems is a major trend observed across various platforms such as next generation fighter jets, directed energy weapon systems, unmanned aerial vehicles (UAVs), armored ground vehicles, and space-based assets.

Honeywell distinguishes itself through its deep aerospace expertise combined with its complete range of thermal management systems. Honeywell provides a diverse selection of offerings including air cycle machines together with liquid cooling systems and heat exchangers and thermal control systems. Honeywell delivers defense-specific integrated solutions which match individual aircraft platforms.

BAE Systems differentiates itself through its expertise in defense-specific thermal management applications. The company creates solutions which fulfill the rigorous specifications of military aircraft and naval vessels and land vehicles. The thermal management systems at BAE Systems utilize advanced technologies including two-phase cooling and microchannel heat exchangers to achieve high-performance cooling in demanding conditions.

Aerospace & Defense Thermal Management Systems Market Company

The aerospace & defense thermal management system market features several prominent players, including:

• Advanced Cooling Technologies
• AMETEK
• BAE Systems
• Bascom Hunter
• Boyd Corporation
• Collins Aerospace
• Crane Aerospace and Electronics
• Honeywell International
• Laird Thermal Systems
• Liebherr Aerospace
• Marotta Controls
• Meggitt
• Signia Aerospace
• TAT Technologies
  

Aerospace & Defense Thermal Management Systems Industry News

• In February 2025, RTX business Collins Aerospace completed a successful test of its next-generation power and thermal management system (PTMS) demonstrator. The F-35's future upgrades will receive support from Collins Aerospace's Enhanced Power and Cooling System (EPACS) which provides cooling capabilities exceeding twice the current platform capacity.
  
• In June 2023, Intergalactic released GS1-EV Eagle5 as a fully integrated thermal management system, which provides cooling for eVTOL aircraft cabins and batteries while being the first standardized thermal solution made for electric aviation. Eagle5 employs a pumped two-phase system that provides adjustable cooling through a compact design to regulate the shifting temperatures affecting aircraft electronics and compartments and cabins and electric batteries.
  

The aerospace & defense thermal management system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) and volume (Million Units) from 2021 to 2034, for the following segments:

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By Platform

• Aircraft
• Land systems
• Naval systems

By System Type

• Active thermal management systems
• Passive thermal management systems

By Component

• Cold plates
• Heat exchangers
• Fans & blowers
• Pumps & compressors
• Valves & sensors
• Thermal insulation materials
• Others

By Application

• Avionics & electronics cooling
• Engine cooling
• Energy storage cooling
• Weapons systems cooling
• Cabin comfort
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE