Electric Vehicle Thermal Management System (EV TMS) Market Size

Electric Vehicle Thermal Management System Market Size

The global electric vehicle thermal management system (EV TMS) market size 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 rising adoption of EV globally is a significant driver for the market. Governments worldwide are promoting EV adoption through subsidies, tax benefits, and stricter emissions regulations. As EVs rely on batteries and power electronics that are sensitive to temperature fluctuations, efficient thermal management systems become essential for safety, performance, and durability.

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Moreover, growing consumer awareness of EVs’ environmental benefits and advancements in battery technologies have accelerated their demand. This directly fuels the need for advanced thermal management solutions to enhance EV range and energy efficiency. The trend toward high-performance EVs further emphasizes the importance of innovative cooling and heating technologies.

For instance, in July 2023, Marelli introduced its integrated Thermal Management Module (iTMM) for electric vehicles, combining multiple thermal circuits into a single, efficient system. The iTMM optimizes energy management across the e-powertrain, battery, and cabin, improving vehicle efficiency, safety, and thermal comfort. It features a modular design with water-cooled heat exchangers and smart valves that reduce system complexity and enable ultra-fast battery charging.
 

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 innovation supports durability and performance for EV and internal combustion vehicles alike.
 

The development of high-performance batteries, such as solid-state and lithium-ion variants, has increased the need for advanced thermal management systems. These batteries require precise temperature regulation to optimize performance, prevent overheating, and ensure safety. Efficient thermal management enhances battery lifespan, supports faster charging, and improves EV range, driving the demand for innovative thermal solutions. This trend is further fueled by investments in R&D for next-generation battery technologies.