The Worldwide Automotive Thermal Systems Industry is Expected to Reach $49.1 Billion by 2026 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Automotive Thermal Systems Market by Application (Front & rear A/C, Engine & Transmission, Seat, Steering, Battery, Motor, Power Electronics, Waste Heat Recovery), Technology, Components, Vehicle Type and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global automotive thermal system market is projected to grow from USD 40.9 billion in 2021 to USD 49.1 billion in 2026, at a CAGR of 3.7%.

The impact of COVID-19 can be witnessed on vehicle production, causing a downfall of 17% in 2020 compared to 2019. Asia Pacific is expected to be the largest market for automotive thermal systems market during the forecast period, and the passenger car segment is expected to be the leading segment of the market. Waste heat recovery segment, by application in ICE vehicles, is expected to grow at the fastest rate during the forecast period. Battery thermal management segment, by application in electric and hybrid vehicle, is the largest market for automotive thermal systems in electric and hybrid vehicles. As the demand for electric vehicles is increasing, the requirement for effective battery thermal management systems that provide better performance and high range is also going to increase.

Globally, the passenger car segment is expected to be the fastest-growing segment during the forecast period.

The passenger car segment is estimated to be the largest market for automotive thermal systems. The top 6 countries with the highest passenger car production are China, Japan, Germany, India, South Korea, and the US. The key factors that drive the sales of passenger cars in various countries are increasing per capita income and improved standard of living. Also, the growing inclination toward comfort and luxury and demand for advanced features such as heated/ventilated seats, heated steering, and rear air conditioning are expected to drive the market. Consumers in Europe and North America prefer premium and luxury vehicles, and the demand for these vehicles in key Asian countries such as India and China has witnessed an upward trend in recent years. This has boosted the global demand for advanced thermal systems in these vehicles.

Asia Pacific is projected to be the largest regional market

Asia Pacific is estimated to be the largest market for automotive thermal systems and is expected to grow at a CAGR of 4.0% during the forecast period. The Asia Pacific region has emerged as a hub for automotive production in recent years. Changing consumer preferences, increasing per capita income of the middle-class population, and cost advantages have led OEMs to increase vehicle production in the region. Thus, China, India, and Japan have seen a significant increase in vehicle production. The huge vehicle production in the region offers a tremendous growth opportunity for the automotive thermal system market. Favorable investment policies and availability of cheap labor have also made Asia Pacific an ideal market for automotive OEMs. Increased demand for luxury cars with superior cabin comfort has spurred the demand for automotive thermal systems in this region.

Market Dynamics

Drivers

• Increasing Stringency of Emission Regulations
• Increasing Demand for Luxury and Comfort Features

Restraints

• High Cost of Thermal System Technology

Opportunities

• Advancements in Mobility Solutions
• Increase in Demand for Electric Vehicles

Challenges

• Lack of Standardization
• Low Adoption of Advanced Thermal Systems in Developing Countries

Companies Mentioned

• Borgwarner Inc.
• Boyd Corporation
• Captherm Systems
• Continental Ag
• Dana Limited
• Denso Corporation
• Dupont
• Eberspacher
• Gentherm
• Grayson Thermal Systems
• Hanon Systems
• Johnson Electric Holdings Ltd.
• Mahle Gmbh
• Modine Manufacturing Company
• Robert Bosch Gmbh
• Sanden Holdings Corporation
• Sanhua Automotive
• Schaeffler Ag
• Shandong Houfeng Group
• Valeo
• Voss Automotive Inc.

For more information about this report visit https://www.researchandmarkets.com/r/3vs2o7