List of Contents
Electric Vehicle Thermal Management Market Size and Forecast 2025 to 2034
The global electric vehicle thermal management market size was estimated at USD 2.77 billion in 2024 and is predicted to increase from USD 2.95 billion in 2025 to approximately USD 5.19 billion by 2034, expanding at a CAGR of 6.48% from 2025 to 2034.
Electric Vehicle Thermal Management MarketKey Takeaways
- The global electric vehicle thermal management market was valued at USD 2.77 billion in 2024.
- It is projected to reach USD 5.19 billion by 2034.
- The electric vehicle thermal management market is expected to grow at a CAGR of 6.48% from 2025 to 2034.
- North America dominated the global electric vehicle thermal management market in 2024 with market share of 39%.
- Europe is expected to witness notable growth in the market over the forecast period.
- By system, the heating, ventilation, and air conditioning (HVAC) segment dominated the market in 2024.
- By system, the powertrain cooling segment is expected to grow at the highest CAGR in the market during the forecast period.
- By component, the motor segment has accounted market share of 47% in 2024.
- By component, the battery segment is expected to grow at a significant rate during the forecast period.
- By technology, the reduced HVAC system loading segment dominated the market in 2024.
- By technology, the active transmission warmup segment is expected to grow at the highest CAGR in the market during the forecast period.
- By application, the air condition segment dominated the market in 2024.
- By application, the engine cooling segment is expected to grow at the highest CAGR in the market during the forecast period.
- By vehicle type, the hybrid EV (HEV) segment dominated the market in 2024.
- By vehicle type, the plug-in hybrid EV (PHEV) segment is expected to grow at the highest CAGR in the market during the forecast period.
U.S.Electric Vehicle Thermal Management Market Size and Growth 2025 to 2034
The U.S. electric vehicle thermal management market size was estimated at USD 880 million in 2024 and is projected to be worth around USD 1,650 million by 2034 at a CAGR of 6.50% from 2025 to 2034.
North America dominated the electric vehicle thermal management market by region in 2024. This refers to management that is designed to maintain the temperature of various essential components, including batteries, motors, and all the mechanisms that are essential in electric vehicles. The appropriate management of cooling of battery, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
Europe is expected to grow at a notable rate in the electric vehicle thermal management market by region during the forecast period. European countries have been early adopters of electric vehicles due to government initiatives, environmental awareness, and stringent emission regulations. The strong demand for EVs naturally extends to the demand for high-quality electric vehicle thermal management systems. The electric vehicle manufacturing industries in Europe collaborate with leading technology companies to enhance the thermal management of electric vehicles.
Asia Pacific is expected to grow significantly in the electric vehicle thermal management market during the forecast period. Asia Pacific is experiencing a rise in the use of electric vehicles. This, in turn, is increasing the development, as well as the utilization of advanced thermal management solutions in vehicles. At the same time, the use of advanced technologies is supporting their manufacturing. Additionally, the government investments, as well as the policies, are also providing their support, encouraging their development and use. Thus, all these factors are promoting the market growth.
Market Overview
The electric vehicle thermal management market refers to industry that offers services and components designed to maintain the temperature of various essential components, including batteries, motors, and all the mechanisms that are essential in electric vehicles. The appropriate management of cooling of batteries, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles. The electric vehicles' thermal management includes cabin thermal management (CTM), battery thermal management (BTM), and motor thermal management (MTM).
The electric vehicle thermal management market is fragmented with multiple small-scale and large-scale players, such as Denso Corporation, Valeo, Dana Limited, BorgWarner Inc., MAHLE GmbH, Gentherm, Robert Bosch GmbH, LG Chem, VOSS Automotive GmbH, Modine Manufacturing Company, etc.
Market trends
- In April 2025, during the public debut of Garrett Motion Inc., its innovative technologies, which are the 3-in-1 E-Powertrain and E-Cooling Compressor, will be presented at Auto Shanghai 2025, in China. By supporting electrification efforts and cleaner internal combustion solutions, the zero-emission vehicle performance will be improved by this launch, and it will be its main goal. The E-Powertrain is merged with the compact package of a high-speed electric motor, reducer, and inverter, with reduced weight and size, and optimizing the resource use. Moreover, for efficient thermal management in electric vehicles, the high-speed centrifugal technology is employed in the E-Cooling Compressor.
(Source: https://www.nasdaq.com)
- In October 2024, to develop powertrain technology for advanced electric vehicles, as well as battery solutions for OEMs in the domestic and global markets, a strategic collaboration between the parent company of Musashi India, that is Japanese firm Musashi Seimitsu Industry, with Log9 Materials, which is an Indian battery technology company, was announced. Furthermore, to develop integrated powertrain solutions specifically customized for electric two and three-wheelers, by merging the e-Axle system of Musashi with the battery technology of Log9 Materials, which will be their main goal.
(Source: https://www.msn.com)
Electric Vehicle Thermal Management Market Growth Factors
- The enhancement of electric vehicle performance can boost the electric vehicle thermal management market. The appropriate management of cooling of batteries, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
- An increase in the adoption of electric vehicles can boost the electric vehicle thermal management market.
- The advancement in thermal management can be an opportunity for the electric vehicle thermal management market.
Market Scope
| Report Coverage | Details |
| Growth Rate from 2025 to 2034 | CAGR of 6.48% |
| Market Size in 2025 | USD 2.95 Billion |
| Market Size by 2034 | USD 5.19 Billion |
| Largest Market | North America |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | By System, By Motor, By Technology, By Application and By Vehicle Type |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Market Dynamics
Drivers
Enhance electric vehicle performance
The enhancement of electric vehicle performance can boost the electric vehicle thermal management market. The appropriate management of cooling of battery, motors, cabin area, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the electric vehicle thermal management market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles and boost the market.
Increase in adoption of electric vehicles
An increase in the adoption of electric vehicles can boost the electric vehicle thermal management market. As the adoption of electric vehicles continues to rise, the overall market for electric vehicle thermal management expands accordingly. With more electric vehicles on the road, there is a greater demand for important solutions, especially to the needs and preferences of electric vehicle drivers and passengers.
- In February 2024, based on the data published by the IEA on the number of electric cars sold globally, around 1-in-7 new cars sold were electric in 2022 (the preliminary estimate for 2023 is around 1-in-5). In Norway, the share was well over 4-in-5, and in China, it was around 1-in-3., and EV sales.
Restraint
High cost of maintenance
The high cost of maintenance for electric vehicle thermal management may restrict the market. The high cost of thermal management systems may limit access to advanced thermal management technologies. The cost barrier may hinder the overall growth of the electric vehicle market.
Opportunity
Advancement in thermal management
The advancement in thermal management can be an opportunity for the electric vehicle thermal management market. Advancements in thermal management, including liquid cooling, provide efficient heat dissipation and maintain optimal temperature ranges for electric vehicle components such as the batteries, motors, cabin areas, and all the mechanisms that are essential in electric vehicles.
Phase change materials (PCM) and heat pipes offer alternative cooling methods, which can provide advantages such as being lightweight and having high cooling efficiency. These can boost the electric vehicle thermal management market.
System Insights
The heating, ventilation, and air conditioning (HVAC) segment dominated the electric vehicle thermal management market by system in 2024. The heating, ventilation, and air conditioning (HVAC) system regulates the temperature inside electric vehicles. Heating, ventilation, and air conditioning (HVAC) also help maintain the climate in electric vehicles, including heating, cooling, and maintaining the quality of air.
The appropriate management of cooling of batteries, motors, and all the mechanisms that are essential in electric vehicles helps to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the electric vehicle thermal management market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.
The powertrain cooling segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by systems during the forecast period. The powertrain cooling system helps in appropriating the management of cooling of batteries, motors, and all the mechanisms that are essential in electric vehicles, which help to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
Component Insights
The motor segment dominated the electric vehicle thermal management market by component type in 2024. With the increasing demand for electric vehicles, motors exhibit high power density, torque density, and speed. The motor of electric vehicles' thermal management involves a cooling mechanism to dissipate heat generation during operation. Maintaining efficiency helps to improve the performance of electric vehicles, which plays an important role in the growth of the market. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.
The battery segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by component type during the forecast period. The battery in the market helps to regulate the temperature of battery packs. This component typically involves cooling and heating mechanisms to maintain the battery within an optimal operating temperature range, which enhances the performance, safety, and lifespan of electric vehicle thermal management.
Technology Insights
The reduced HVAC system loading segment dominated the electric vehicle thermal management market by technology in 2024. The reduced HVAC system loading technology aimed to minimize the energy consumption of the heating, ventilation, and air condition (HVAC) systems in electric vehicle thermal management. This technology helps to optimize and control the temperature of the battery, motors, and all the mechanisms that are essential in electric vehicles, which help to maintain efficiency and improve the performance of electric vehicles, which play an important role in the growth of the market.
The active transmission warm-up segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by technology during the forecast period. The active transmission warm-up technology is important in electric vehicle thermal management where transfer of power is important for maximizing the performance.
Application Insights
The air condition segment dominated the electric vehicle thermal management market by application in 2024. The air conditioning in electric vehicle thermal management plays a crucial role in regulating the temperature inside the electric vehicle cabin for passenger comfort. It exists to cool various components of electric vehicles, including battery packs, electric motors, and power electronics, which maintain optimal operating temperatures. The market refers to an industry that is involved in developing, manufacturing, and implementing systems and technologies that help to maintain the temperature of the market.
The engine cooling segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by application during the forecast period. Proper temperature management helps to prevent overheating, which can reduce the lifespan of electric vehicles.
Vehicle Type Insights
The hybrid EV (HEV) segment dominated the electric vehicle thermal management market by vehicle type in 2024. The HEV stands for a Hybrid Electric Vehicle that combines a conventional internal combustion engine system with an electric propulsion system. The conventional internal combustion engine team is a traditional method of powering a vehicle using an engine that burns fuel within the cylinder to generate power. The electric propulsion system relies on electricity stored in batteries or generated by full sale to power the electric motors.
The plug-in hybrid electric vehicles (PHEV) segment is expected to grow to the highest CAGR in the electric vehicle thermal management market by vehicle type during the forecast period. Plug-in hybrid electrical is a hybrid type vehicle that combines a conventional internal combustion engine with an electric propulsion system. Plug-in hybrid electric vehicles are flexible for using both electricity and gasoline. It also reduces emissions and improves fuel efficiency, where electric mode can be used predominantly.
Electric Vehicle Thermal Management Market Companies
- Denso Corporation
- Valeo
- Dana Limited
- BorgWarner Inc.
- MAHLE GmbH
- Gentherm
- Informa Markets
- Robert Bosch GmbH
- LG Chem
- VOSS Automotive GmbH
- Modine Manufacturing Company
Recent Developments
- In March 2024, Ford Motor Company launched an exploration of EVs with a wider range of varieties and refinements. The battery delivers up to 374 miles (600 km) range, topping the 311 miles Ford initially expected. Ford's single-motor extended range explorer starts at £45,875 ($58,000) with a 77 kWh battery. The dual-motor version is equipped with VW's 335 hp powertrain for its sporty GTX EVs.
- In February 2024, Nouveau Monde Graphite Inc. announced a parallel offtake agreement with Panasonic Energy, which, combined with GM's Supply Agreement, covers approximately 85% of NMG's planned active anode material production at its Phase-2 Bécancour Battery Material Plant.
- In January 2024, Melexis in Belgium launched its first MEMS pressure sensor using a new patented architecture called Triphibian. The triphibian MEMS pressure sensor, developed by Melexis, handles gas and liquid media measurements from 2 to 70 bar in a 16-pin SO16 package.
- In September 2023, Marelli launched new smart actuators for transmission and thermal management in EVs. These actuators are designed to simplify the actuation of complex vehicle functions. As future cars are expected to have over 100 actuators with different missions and purposes, this solution will help carmakers reduce complexity and ease the integration of vehicles' mechanic and electronic environments.
- In September 2023, Informa Markets announced The Battery Show India, which was scheduled from 4th October to 6th October 2023. The Battery Show India was estimated to attract over 200 brands, 8000 trade visitors, and 50 speakers, including an impressive array of policymakers, decision-makers, influencers, technical experts, and professionals.
Segment Covered in Reports
By System
- Heating, Ventilation, and Air Conditioning (HVAC)
- Powertrain Cooling
- Fluid Transport
- Others
By Component
- Motor
- Battery
- Cabin Area
By Technology
- Active Transmission Warm-up
- Exhaust Gas Recirculation (EGR)
- Reduced HVAC System Loading
- Others
By Application
- Engine Cooling
- Air Condition
- Heated Steering
- Waste Geat Recovery
- Transmission System
- Heated/Ventilated Seats
- Others
By Vehicle Type
- Battery EV
- Hybrid EV (HEV)
- Plug-in Hybrid EV (PHEV)
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
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