Global Automotive Thermal System Market: Global Industry Analysis and Forecast (2025-2032)

The Global Automotive Thermal System Market size was valued at USD 40.19 bn. in 2024, and the total Global Automotive Thermal System Market revenue is expected to grow by 4.1% from 2024 to 2032, reaching nearly USD 55.43 Bn.
Global Automotive Thermal System Market Overview
The Automotive Thermal System Market is growing rapidly, driven by electric vehicle (EV) growth, emissions differences, and higher interest in passenger comforts. Automakers are increasingly focused on energy efficiency and battery performance.
Advanced thermal management systems are necessary for battery cooling, cabin climate, and electronics temperature control.

The transition to EVs and autonomous driving has sparked enough efficiencies, such that there is increased adoption of better technologies like smart HVAC systems, phase-change materials (PCMs), and IoT-enabled thermal mechanizations. In terms of geography, the Automotive Thermal System Market is led by North America, with participants in the region adopting EVs and making heavy investments on R&D. The European market is in close pursuit, also beneficially affected by strict Euro 7 emissions norms and sustainability practice across vehicle manufacturers.

The Asia-Pacific market is emerging as the fastest-growing, with government incentives for green mobility to bolster EV vehicles and production in developing markets, specifically China, Japan, and South Korea. Notable market participants are BorgWarner, Denso, and Mahle, who are pivoting thermal systems markets to lightweight, small, and efficient products. A slow-growth curve for the market could result in severe development costs or complexity, and supply chain issues. Predictive/conversational artificial intelligence (AI) thermal management, enabling solid-state thermal mechanisms, will be altering market definitions sooner rather than later.To know about the Research Methodology :- Request Free Sample Report
Global Automotive Thermal System Market Dynamics
The Global Automotive Thermal System Market dynamics are thoroughly studied and explained, which helps the reader to understand emerging market trends, drivers, restraints, opportunities, and challenges at the global and regional level for the Global market.

The major factor driving the growth of the automotive thermal system market is the increase in the usage of advanced HVAC (Heating, ventilation, and air conditioning) systems in automobiles. In addition to the usage of HVAC, the rising popularity & demand for thermal systems that run on alternative fuels such as propane, bio-alcohols, ethanol, and P-Series fuels is anticipated to drive the growth of the automotive thermal system in the forecast period.

Adoption of Green Initiatives to Minimize Loss to Drive the Automotive Thermal System Market

On the other hand, the adoption of green initiatives to minimize loss and promote effective and clean distribution of energy by various countries is expected to further offer lucrative growth opportunities for the key players in the automotive thermal market over the upcoming years. In addition to this, major players in the clutch manufacturing industry across the globe are engaged in developing high-quality products modifying specific technical stipulations in automobile accelerating the global automotive clutch market. On the contrary, the high cost of thermal systems is expected to hamper the market growth.

Rising demand for smart thermal systems in automobiles around the globe to Drive the Automotive Thermal System Market

Automotive thermal system manages the working temperature of various automobile components, such as the battery, motor, and cabinet area, and others, by increasing their efficiency and avoiding breakdown. Furthermore, this system retains the desired temperature level in the automobile, thereby enhancing the user's comfort level. This system offers fuel economy along with enhanced vehicular comfort, which is anticipated to definitely impact market growth in a positive direction. The major buyers of the market include manufacturers of heavy vehicles that are used for various purposes, like construction and transportation. All these factors drive the market growth and the Automotive thermal system market is expected to reach at US$ xx.xx Bn with the CAGR of xx.xx% by the forecast period 2025-2032 The report study has analysed revenue impact of covid-19 pandemic on the sales revenue of market leaders, market followers and disrupters in the report and same is reflected in our analysis.
Global Automotive Thermal System Market Segment Analysis
Based on Component, the Automotive Thermal System Market consists of four primary segments, including compressors, HVAC systems, powertrain cooling, and fluid transport systems. Of these four segments, HVAC systems dominate overall.

HVAC systems have become the forefront of vehicle thermal management as consumer demands for modern comfort increased. HVAC systems moved beyond basic climate control and evolved into smart technologies that include multi-zone temperature control features, air filtration features (post-pandemic), and heat pumps (s) for electric vehicle (EV) applications that rely on creating heat energy in a more energy-efficient way. Integrated smart sensors and predictive algorithms allow systems to make automatic changes based on occupants, conditions outside, and operator preferences. HVAC systems play a key role in comfort for the occupants in the vehicle and energy efficiency for the vehicle as a whole. The acquisition of greater functionality by HVAC systems shows the inclination of the automotive industry to improve the in-cabin experience while addressing relatively strict energy consumption regulations in terms of energy consumption especially for electric vehicles where climate controls can significantly detract from the overall range.
Global Automotive Thermal System Market Regional Insights
Asia Pacific is expected to be the most dominant region with the market share of xx. xx% over the forecast period, with a CAGR of xx.xx%.

The Report focuses on the global market by five regions and their respective countries to understand the Global Automotive Thermal System Market. The region Asia Pacific is likely to emerge as the most dominant market with the share of xx.xx% over the forecast period across the globe. This growth can be attributed to the growing demand for the automotive thermal system in several countries from this region, like India, China & Japan. On the other hand, regions like North America and Europe are likely to provide several growth opportunities with the increasing demand for eco-friendly technology-based thermal management systems in the forecast period. Additionally, in North America, huge infrastructural developments are fuelling the construction equipment and heavy vehicles market, which in turn is driving market growth in this region. With the increasing attraction towards automobiles, consumer demand for efficient transmission modes and sophisticated automobiles. Day by day new discoveries in the automobile sector are more convenient, efficient & sophisticated. That is anticipated to increase the Automotive Thermal System Market significantly in the forecast period worldwide.



Government/Region
Initiative
Funding
Focus Area


U.S. (DOE & EPA)
EV Thermal Innovation Grant
USD 300 Mn.
Battery thermal management & heat pump systems for EVs.


EU (Horizon Europe)
Green Vehicle Thermal Project
EUR 220 Mn
Sustainable refrigerants (R1234yf) & energy-efficient HVAC for EVs


China (MIIT)
NEV Thermal Tech Development Fund
CNY 1.5 Bn.
Liquid cooling systems for EV batteries & smart thermal controls.


Japan (METI)
Next-Gen Automotive Cooling Program
USD 150 Mn.
Lightweight heat exchangers & AI-driven thermal optimization.



Global Automotive Thermal System Market Competitive Landscape

The global Automotive Thermal System Market is seeing consolidation with acquisitions and technology innovation strengthening the partnerships of global players like Denso, Mahle, BorgWarner, Valeo, Hanon Systems, and so on.

The previously established companies are continuing to retain market leadership, beginning with Denso, making strides into new areas and developing advanced heat pump systems within the thermal electronics. Denso is leveraging favourable relationships with automakers like Toyota, establishing their position at the top of the market. Mahle is expanding its electric thermal management by acquiring companies such as Behr Hella Service

BorgWarner is growing its electrification focus on thermal solutions via the acquisitions of Delphi Technologies and AKASOL, and growing their offerings with a focus of solutions on battery cooling. Valeo is currently the leader in HVAC technology with a new CO2 heat pump technology for electric vehicles, while Hanon Systems' growth has come from major OEM Volkswagen and OEM Hyundai-Kia partnerships. New entrants into the industry, such as Gentherm, are gaining traction for their climate seating solutions, while newer startups Modine and Sanden are enabling niche applications of commercial vehicle thermal management. Competitively speaking, the level of competition does exist, with next-generation technologies covering predictive thermal management with AI, phase-change materials for battery cooling, and ultra-lightweight heat exchangers. In addition, while North American and European companies are leading the high-tech products, companies such as Mitsubishi Heavy Industries Thermal Systems are continuing to look for market opportunities that are competing on price alternatives in other areas after the acquisition was made.

As the EV revolution accelerates, companies are keeping up with a quickly changing competitive environment and continually developing smaller, smarter thermal systems that are increasingly energy efficient and meeting BOTH performance and sustainability goals across all vehicle categories.

Global Automotive Thermal System Market Recent Development

• February 2025 - Denso Corporation (Japan) launched its Next-Gen Heat Pump 2.0, which includes artificial intelligence-based thermal optimization for electric vehicles. This system reduces the consumption of electrical energy by 20% while also increasing the range of the vehicle's battery in extreme climates.

• March 2025 - Valeo (France) launched its SmartClimate 360™, which is an IoT-enabled HVAC platform that utilizes cabin occupancy sensors and predictive weather information to autonomously adjust temperature zones within electric vehicles and reduce energy use.

• April 2025 - BorgWarner (U.S.) expanded its Battery Thermal Jet™ product line with a state-of-the-art compact liquid cooling module designed for ultra-fast charging electric vehicles, which can prevent battery degradation during extreme high-power charge cycles.

• May 2025 - Gentherm (U.S.) launched its ClimateSense AI, a self-learning seat climate system that personalizes heating/cooling based on passenger biometrics (e.g., body temperature, heart rate).

Global Automotive Thermal System Market Trends



Category
Key Trend
Example
Market Impact


AI & IoT Integration
Smart thermal management with real-time optimization
Denso’s AI-Driven Heat Pump 2.0 (Feb 2025)
Boosts EV range by 15%; reduces energy waste in extreme climates.


EV-Centric Cooling
Advanced battery thermal systems for fast charging
BorgWarner’s Battery Thermal Jet™ liquid cooling (Apr 2025)
Enables ultra-fast charging (10–80% in 12 mins) while preventing battery degradation.


Lightweight Materials
High-efficiency, compact thermal components
Hanon Systems’ Graphene-Enhanced EcoThermo™ heat exchanger (Jun 2025)
Cuts vehicle weight by 20%; improves thermal conductivity for EVs.



Automotive Thermal System Market Scope: Inquire before buying



Automotive Thermal System Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 40.19 Bn.


Forecast Period 2025 to 2032 CAGR:
4.1%
Market Size in 2032:
USD 55.43 Bn.


 Segments Covered:
by Component
Compressor
HVAC (Heating, ventilation, and air conditioning)
Powertrain Cooling
Fluid Transport



Global Automotive Thermal System Market by Region
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, ASEAN, Indonesia, Philippines, Malaysia, Vietnam, Thailand, ASEAN, Rest of Asia Pacific)
Middle East & Africa (South Africa, GCC, Nigeria, Rest of ME&A)
South America (Brazil, Argentina, Rest of South America)
Global Automotive Thermal System Market Key Players
North America

1. Gentherm Inc. (U.S.)
2. BorgWarner Inc. (U.S.)
3. Modine Manufacturing Co (U.S.)
4. Dana Limited (U.S.)
5. General Motors Company (U.S.) (OEM with in-house thermal solutions)

Europe

6. Valeo (France)
7. Mahle GmbH (Germany)
8. Continental Aktiengesellschaft (Germany)
9. Schaeffler Group (Germany)

Asia-Pacific

10. Denso Corporation (Japan)
11. Sanden Corp (Japan)
12. Hanon Systems (South Korea)
13. Calsonic Kansei Corp (Japan)
Frequently Asked Questions:
1. What is the growth rate of the Global Automotive Thermal System Market?
Ans: The Global market is growing at a CAGR of 4.1% during the forecasting period 2025-2032.

2. What is the scope of the Global Automotive Thermal System market report?
Ans: Global market report helps with the PESTEL, Porter's, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

3. Who are the key players in the Global Automotive Thermal System market?
Ans: The important key players in the Global market are –
1. Gentherm Inc. (U.S.)
2. BorgWarner Inc. (U.S.)
3. Valeo (France)
4. Mahle GmbH (Germany)
5. Continental Aktiengesellschaft (Germany)
6. Denso Corporation (Japan)
7. Sanden Corp (Japan)

4. What is the study period of this market?
Ans: The Global market is studied from 2024 to 2032.