Electric Vehicle Battery Thermal Management System Market Size 2024-2028 

The electric vehicle battery thermal management system (EV BTMS) market size is forecast to increase by USD 46.88 billion at a CAGR of 47.99% between 2023 and 2028. The Electric Vehicle (EV) battery thermal management system (BTMS) market is experiencing significant growth due to the increasing demand for EVs and their expanded applications in both passenger cars and commercial vehicles. Lithium-ion batteries, the primary power source for EVs, are susceptible to overheating, leading to reduced battery life and efficiency. Advanced thermal management technologies, such as Phase Change Materials (PCMs) and Gel-type Phase Change Heat Pumps (GIHP), are being adopted to mitigate these issues. However, the high capital and maintenance costs associated with these technologies pose a challenge to market growth. The automakers are continuously investing in research and development to introduce more cost-effective and efficient solutions.

Moreover, the propulsion types, including Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs), are utilizing various battery types, such as conventional lithium-ion and emerging solid-state batteries, to reduce CO2 emissions and meet the evolving consumer demands.

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Electric Vehicle (EV) batteries, primarily using Lithium-ion technology, are a key component in reducing CO2 emissions from the automotive sector. The Electric Vehicle Battery Thermal Management System (BTMS) market is witnessing significant growth due to the increasing adoption of EVs, including BEVs, HEVs, PHEVs, and FCVs. The BTMS plays a crucial role in regulating the temperature of EV batteries, ensuring optimal performance and longevity under various climatic conditions. Components of the BTMS include Phase Change Materials (PCMs) and ventilation systems. The BTMS helps maintain battery life by preventing overcharging and overheating, which can impact battery prices and consumer awareness.

Moreover, raw materials for Lithium-ion batteries, such as lithium and cobalt, are subject to price volatility and availability concerns. The propulsion type of the vehicle and charging infrastructure also influence the BTMS market. Charging time and the availability of super-fast chargers impact consumer preference. The risk of battery explosion due to thermal runaway is a significant concern, making temperature regulation essential. Battery modules are assembled using cells, and the BTMS ensures their proper functioning by managing temperature. Regulations and standards for EVs and their batteries are evolving, further driving market growth. The BTMS market is expected to grow as automakers prioritize improving vehicle range and reducing charging time while ensuring battery safety and longevity.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Battery Type
  • Li-ion
  • Lead-acid
  • Others
• Vehicle Type
  • Passenger vehicle
  • Commercial vehicle
• Geography
  • APAC
    • China
    • Japan
    • South Korea
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Battery Type Insights

The li-ion segment is estimated to witness significant growth during the forecast period. The Electric Vehicle (EV) Battery Thermal Management System (BTMS) market is experiencing significant growth due to the increasing popularity of electric vehicles (EVs) from manufacturers like Tesla Motors. This growth can be attributed to the high demand for lithium-ion batteries, which are the primary power source for EVs. These batteries, which belong to the family of lithium-metal chemistries, are manufactured using various combinations of anode and cathode materials. NCA, NCM or NMC, LMO, LTO, and LFP are some of the most commonly used cathode combinations in transportation applications. Each of these combinations offers unique safety, cost, and performance characteristics.

Moreover, proper thermal management is crucial for these batteries to ensure their longevity and optimal performance. Gentherm, an industrial products company, has developed innovative solutions such as smart windows and phase change materials to effectively manage the temperature of lithium-ion batteries. This is essential for maintaining battery capacity and ensuring vehicle comfort. The price of battery technology is declining, making EVs increasingly accessible to consumers with varying living standards and spending capacity. The EV market consists of various segments, including BEVs (Battery Electric Vehicles), HEVs (Hybrid Electric Vehicles), FCVs (Fuel Cell Electric Vehicles), and PHEVs (Plug-in Hybrid Electric Vehicles).

Further, governments worldwide offer subsidies to encourage the adoption of EVs, and the development of charging infrastructure is improving vehicle range. Thermal management systems play a vital role in the success of these vehicles by ensuring the safe and efficient operation of their batteries.

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The li-ion segment was valued at USD 1.91 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Electric Vehicle (EV) battery thermal management system market in the Asia Pacific region is experiencing significant growth due to the increasing sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) in countries like China, Singapore, Japan, and South Korea. China is the largest contributor to this market growth, driven by the high volume of EV sales. The emphasis on reducing emissions and improving living standards in emerging markets is leading automakers to expand their offerings of BEVs and PHEVs, including Tesla Motors' Roadster and various industrial products from companies like Gentherm. The implementation of stricter emission norms is further pushing this trend.

Moreover, nanotechnology, such as smart windows, is being integrated into thermal management systems to optimize battery capacity and temperature control, enhancing vehicle range and seat comfort. Subsidies for electric vehicles and the development of charging infrastructure are also contributing factors to the growth of the electric vehicle battery thermal management system market in the Asia Pacific region.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Increasing demand for EVs and their expanded applications is the key driver of the market. The Electric Vehicle Battery Thermal Management System (BTMS) market is experiencing significant growth due to the increasing sales of Lithium-ion battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). In 2022, China led the market with the highest sales of BEVs, followed closely by Europe, particularly in countries like Norway, Iceland, and Sweden. The sales of all-electric passenger cars and commercial vehicles have seen a notable rise. Factors such as technological advancements in EVs, the expansion of charging infrastructure, and improving socio-economic conditions are driving the demand for BEVs and PHEVs. As a result, the market is generating substantial revenue.

Moreover, lithium-ion battery types, including those from manufacturers like Continental, LG Chem, and Chevrolet Bolt, are commonly used in propulsion systems for both BEVs and PHEVs. The market is expected to continue growing as the adoption of electric vehicles increases and new battery technologies, such as solid-state batteries, emerge. CO2 emissions reduction is a key focus for automakers, making the demand for efficient BTMS even more crucial.

Market Trends

Advances in thermal management technology PCM and GIHP is the upcoming trend in the market. The Electric Vehicle (EV) market's shift towards high-density Lithium-ion batteries and fast chargers has led to an increase in heat generation within battery packs. Due to their compact size and reduced surface area, high-density batteries generate heat rapidly. Fast chargers expedite the charging process by increasing the reaction rates in the battery cells, further intensifying the heat production. To address these challenges, Automakers have adopted DX EV Battery Thermal Management Systems (BTMS). However, ongoing research and development initiatives aim to introduce advanced BTMS technologies, such as Phase Change Materials (PCM), to improve battery life and reduce CO2 emissions. Leading Component suppliers, including Continental, LG Chem, and Chevrolet Bolt, are investing in these technologies.

Moreover, the propulsion types, including Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEV), are all subject to these advancements in battery thermal management. The evolution of battery type technology, from conventional to solid-state, is also driving the need for advanced BTMS.

Market Challenge

High capital and maintenance cost is a key challenge affecting the market growth. The market experiences significant investment due to the integration of Lithium-ion batteries in Electric Vehicles (EVs), including Passenger Cars (PCs) and Commercial Vehicles (CVs). Lithium-ion batteries require precise temperature control to optimize performance and extend battery life. EV BTMS uses Phase Change Materials (PCMs) to manage heat and maintain battery efficiency. Automakers invest heavily in this technology to reduce CO2 emissions and meet regulatory standards. The high initial cost of EV BTMS is attributed to the research and development of advanced technologies like Solid-state batteries and the integration of these components into various propulsion types, such as Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs).

However, the reliability of the system is crucial, as the failure of a single battery cell can impact the entire system. This necessitates the implementation of sophisticated sensors and software development for seamless integration into the vehicle's onboard units. Key players in the market include Continental, LG Chem, and Chevrolet Bolt. Despite the high capital expenditure, the EV BTMS market is expected to grow due to the increasing demand for cleaner transportation solutions.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Dana Inc - The company offers electric vehicle battery thermal management system (EV BTMS) such as battery cold plate, electronics cooler, e-motor oil cooler.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BMS Powersafe
• DuPont de Nemours Inc.
• Eberspacher Gruppe GmbH and Co.KG
• Ewert Energy Systems Inc.
• Exponential Power Inc.
• Gentherm Inc.
• Hanon Systems
• Infineon Technologies AG
• Leclanche SA
• Lithium Balance AS
• MAHLE GmbH
• Renesas Electronics Corp.
• Robert Bosch GmbH
• STMicroelectronics International N.V.
• Texas Instruments Inc.
• Turntide Technologies Inc.
• Valeo SA
• VOSS Automotive GmbH

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market is witnessing significant growth due to increasing consumer awareness and stringent CO2 emission norms. Automakers are focusing on developing advanced components for EVs, particularly in the area of battery thermal management systems (BTMS). Lithium-ion batteries are widely used in EVs, including BEVs, PHEVs, and HEVs. BTMS plays a crucial role in maintaining the battery's temperature, ensuring optimal performance, reliability, and longevity. BTMS uses passive components like Phase Change Materials (PCMs) and active cooling systems to manage battery temperature. The system's efficiency is critical as high temperatures can lead to internal short circuits, physical damage, fires, or explosions.

Moreover, advanced technologies like nanotechnology, smart windows, and solar cells are being explored to enhance BTMS's performance and reduce power consumption. The market for EV BTMS is expected to grow due to increasing sales of passenger cars and commercial vehicles, regulatory support through subsidies, and advancements in battery technology. The trend towards net-zero emissions and climate change mitigation is also driving demand for EVs and advanced BTMS. The BTMS market's growth is influenced by factors such as battery capacity, vehicle range, charging infrastructure, battery prices, and consumer awareness. The market's competitive landscape includes key players like Continental, LG Chem, and Gentherm, among others.

Further, the BTMS market's future growth is expected to be driven by advancements in battery technology, such as solid-state batteries, which offer high energy efficiency, high power-to-weight ratio, and low self-discharge. The market's growth is also influenced by regulatory initiatives, consumer preferences, and advancements in charging infrastructure. The BTMS market's growth is expected to be influenced by factors such as battery temperature regulation, climatic conditions, ventilation, and battery power. The market's quantitative analysis indicates a positive outlook for the future, with a supplier-buyer network playing a crucial role in its growth.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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