Electric Vehicle Thermal Management System EV TMS Market

Electric Vehicle Thermal Management System Market Size

The global electric vehicle thermal management system (EV TMS) market was valued at USD 3.4 billion in 2024 and is projected to grow at a CAGR of 16.1% between 2025 and 2034. The emergent increased use of electric vehicles around the world is one of the key factors for growth in the TMS market. Governments from different countries are offering subsidies, tax benefits, and enforcing stringent emission limits to promote electric vehicle use.

Mechanical and electronic components reliant on batteries are sensitive to overheating and extreme cold; therefore, EVs require efficient thermal management systems to maintain safety, performance, and longevity. Additionally, the rising popularity of EVs can be attributed to increased consumer awareness of environmental sustainability and the advancement of battery technologies.

These elements have resulted in the higher requirement of thermal management solutions aimed at improving the range and energy efficiency of EVs. More emphasis is placed on effective heating and cooling technologies as the industry shifts towards better performing electric vehicles.

For instance, Marelli introduced its iTMM (integrated Thermal Management Module) for electric vehicles in July 2023. The system combines multiple thermal circuits into one efficient system. The iTMM improves the efficiency, safety, and thermal comfort of vehicles by optimizing energy management across the e-powertrain, battery, and cabin. The system boasts a modular design with water-cooled heat exchangers and smart valves that enable ultra-fast battery charging while decreasing system complexity.

The system enhances performance in extreme weather, extending driving range by up to 20% in winter with a heat pump. Its compact, lightweight design simplifies assembly and meets industry standards like OBD compliance. Marelli’s progress is in line with maintaining durability and performance for both electric and internal combustion engine vehicles.

Competitive batteries, such as solid-state and lithium-ion variants, increase demand for batteries' advanced thermal management systems. All batteries are sensitive to temperature and require tight temperature control for the best performance, safety measures, and to undergo rigorous charging cycles without damage. Proper THM improves battery life, allows EVs to be charged quickly, and extends the range of the vehicles, thus increasing the requirements for improved thermal system designs. Such investments will increase as more money is allocated for R&D for the next-generation battery technologies.

Electric Vehicle Thermal Management System Market Trends

The market participants in the market are gradually placing more emphasis on innovation in regard to next-generation heat pumps construction methods for an increase in energy efficiency and vehicle range. These new heat pumps provide performance in very low temperatures to solve the problems associated with electric vehicle heating.

Business is adopting smart valve integration with modular designs to maximize performance and minimize weight and system intricacy. Some innovations are based on the employment of refrigerating substances with a lower potential global warming (GWP) in order to satisfy some environmental requirements. New modernized versions of heat pumps are being designed for the fast heath preconditioning of ultra-fast battery chargers. There are also plans to create cheap miniature designs that will make car assembly easier, and the funds are there for R&D.

Consider, for example, the launch by Hanon Systems of the world's first 4th generation heat pumps systems for EVs in August 2024, that harvested waste heat from the air, motor, and battery. This modular design increases energy efficiency and driving range while allowing for faster charging. These systems greatly enhance the performance of EVs in extreme weather conditions. Along with this, Hanon Systems was able to cut the bus size of HVAC systems for Thin Cutting by 30%, therefore increasing passenger space. Hanon Systems made yet another major step forward in EV thermal management systems.

One significant bottleneck in the EV thermal management market is the cost of modern heat pump systems. It requires a lot of investment in research, development, and quality materials to effectively design powerful next-generation technologies that can work in plenty of different weather situations. These technologies need to be economically designed to meet the demands of the market as well as comply with the regulation on the environment. Such system integration into small-bodied and lightweight EV structures without adding too much weight and intricate systems is an engineering problem as well.

Electric Vehicle Thermal Management System Market Analysis

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Based on the vehicle, the market is segmented into passenger and commercial vehicles. In 2024, the passenger segment accounted for over 65% of the electric vehicle thermal management system market share and is expected to exceed USD 12 billion by 2034.

• The passenger segment has dominated the market as a result of increasing electric vehicle production and the emphasis on increasing the driving range, energy efficiency, and performance capabilities.
  
• Considering passenger EVs are the most widely used cars in the world, manufacturers focus on enhanced thermal solutions that will make the environment comfortable for the passengers while improving the lifespan of the battery. Additionally, there are very strict new government controls on emissions, which force car manufacturers to use new technology that consumes less power.
  
• This segment also benefits from the consumer desire for low carbon emission vehicles with more performance capabilities. The expansion of the supply of EV models is facilitating the growth of the market.
  

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Based on the sales channel, the market is divided into OEM and aftermarket. The OEM segment held above 85% of the market share in 2024.

• The EV thermal management market is dominated by the OEM segment owing to their importance in adding value to the vehicle's life. OEMs are the most important actors who put advanced thermal management systems in electric vehicles.
  
• In response to the growing consumer interest in EVs, OEMs are pouring their efforts into R&D to develop effective, affordable thermal solutions. Moreover, they work together with suppliers to satisfy regulatory needs, prolong battery life, and improve vehicle performance to strengthen their competitive position further.
  

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In 2024, the China accounted for a market share of above 60% in Asia Pacific and is expected to exceed USD 3 billion by 2034.

• The EV thermal management market in China is the largest in the world, and this can be attributed to the aggressive growth of electric vehicles, which is encouraged through government policies and incentives.
  
• China has become a focused destination for investment in EVs as well as for the research and development of EVs by major automakers and suppliers. China has a significant manufacturing base, which allows for cheap production of EV parts, including thermal management systems. Furthermore, the environmental regulations, along with the focus on cutting carbon emissions, drive demand for effective thermal management systems, which establishes China’s leadership position in the electric vehicle thermal management system market.
  
• In line with the increasing focus on sustainability, EV thermal management has also developed as a significant market in Europe owing to the strong regulations. The emission ceilings established by the European Union as well as the subsidies offered for electric vehicles, raise the baseline for effective thermal management solutions, which in turn increases demand.
  
• Electric vehicles are produced mainly in Germany, France, and the UK, where the integration of the thermal management solutions has become commonplace. The focus in this region has shifted to developing systems to increase EV range, safety, and performance, along with the charging infrastructure, which further fuels the demand for advanced thermal systems. Also, the popularity of environmentally friendly and clean mobility options among European consumers is accelerating the growth of the market.
  
• The EV thermal management market in North America is growing due to swift adoption of EVs by US and Canadian markets due to government intervention. The business landscape and competition are compounding thanks to environmental legislation and consumer orientation towards energy-saving vehicles availing from more strategies by automotive companies towards advanced thermal management systems. Companies focus on improvement in batteries, energy density, driving distance, and safety. US is ahead in building the EV infrastructure while additional Canadian markets are switching to EVs.
  

Electric Vehicle Thermal Management System Market Share

Denso Corporation, Valeo SA and Gentherm collectively held a substantial market share of over 29% in the electric vehicle thermal management system (EV TMS) industry in 2024.

• Their access to the most automobile customers and their broad knowledge in this field is what gives them a competitive advantage in the market.
  
• They take the lead with new ideas, such as spending a lot on research and development for innovative new thermal management systems for vehicles that are essential to vehicle performance, safety, and energy efficiency.
  
• Apart from this, these companies have a wide range of products such as heat pumps, thermal modules, and battery management systems for the leading automakers. Furthermore, their market leadership position has also been sustained due to their adaptation to changing needs for these types of EVs and conventional stringent environmental regulations.
  

Electric Vehicle Thermal Management System Market Companies

Major players operating in the electric vehicle thermal management system (EV TMS) industry are:

• BorgWarner
• Continental
• Denso
• Gentherm
• Grayson Thermal Systems
• Hanon Systems
• LG Chem
• Mahle
• Robert Bosch
• Valeo SA
  

The major players have begun the adoption of new technologies like AI, prediction systems, and IoT based technologies which will enable monitoring and adjusting the thermal state in real time. With these advances, the entire components’ temperature for an EV, including batteries, power electronics, and motors, will be individually controlled and regulated which leads to highly dependable and efficient vehicles. Moreover, these techniques can assist in improving the thermal management designs at the initial stages of development which will shorten the time needed to introduce the new solution to the electric vehicle thermal management system market.

It has witnessed intensive competition, spearheaded by significant international rivals due to their greater investment in R&D, increased production efficiency, and collaboration with leading manufacturers of EVs. This is the reason why these companies are able to offer custom-made integrated systems and components for specialized and standard EVs as they have specialization in materials, electronics and system engineering. They are also forming alliances to create advanced thermal management systems that will be compliant with the new requirements for EVs.

Electric Vehicle Thermal Management System Industry News

• In August 2024, Hanon Systems revealed their initial heat pump models for EV which is the 4th generation of their product line. This global innovation captures waste heat from the motor, battery, and air outside to improve overall energy efficiency and range, meaning it is the world’s first multi-functional, high car trend system. This modular heat pump improves EV performance and supports rapid charging by enhancing cooling performance. It also boosts EV’s performance during harsh weather conditions. Hanon Systems has additionally rolled out their Thin HVAC designs aimed at shrinking the passenger system size by 30%, marking a major improvement in managing the temperature within EVs.
  
• In July 2023, Marelli developed its Integrated Thermal Management Module (ITMM) which functions by using various thermal circuits to power EV. Marelli’s innovation enhances safety, efficiency, and comfort. ITMM can also be used cooperatively with heat pumps which improves effectiveness when strength is needed at high temperature and improves the range of the car by 20% in winter. Its modular design utilizes smart valves and water-cooled heat exchangers, increasing charge speed while decreasing system complexity. ITMM manages consumption in the e-powertrain, batteries, and cabin. Marelli innovations enable rapid compliance with ODB demands without sacrificing construction quality. Marelli optimizes the performance and quality of Electric Vehicles and Internal Combustion Engines.
  

The electric vehicle thermal management system (EV TMS) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Type

• Active cooling
• Passive cooling
• Hybrid cooling

Market, By Component

• Heat pumps
• Electric pumps
• Fans
• Thermoelectric modules

Market, By Vehicle

• Passenger vehicles
  • Hatchback
  • Sedan
  • SUV
• Commercial vehicles
  • Light Commercial Vehicles (LCV)
  • Heavy Commercial Vehicles (HCV)

Market, By Propulsion

• Battery Electric Vehicles (BEV)
• Plug-in Hybrid Electric Vehicles (PHEV)
• Hybrid Electric Vehicles (HEV)

Market, By Sales Channel

• OEM
• Aftermarket

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa