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Battery Thermal Management System Market Size - By Offering, By Battery, By Vehicle, By Propulsion, Growth Forecast, 2025 – 2034

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Battery Thermal Management System Market Size

The battery thermal management system market was valued at USD 3.7 billion in 2024 and is estimated to register a CAGR of 12.6% between 2025 and 2034. The combined factors of increased automobile manufacturing and advanced sales channels create an escalating market need for battery thermal management system.

 

Battery Thermal Management System Market

The Internation Energy Agency research shows that in electric cars registration reached 14 million in 2023. Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022. As the electric vehicle market keeps growing, particularly in developing countries, the demand for effective battery thermal management systems to manage advanced battery technologies and enhance performance will continue to drive this growth.

 

Government investments in electric vehicles are certainly propelling the battery thermal management systems market forward.  The example of the USD 1.7 billion investments made in July 2024 by the US government on electrical vehicle manufacturing plants serves this purpose well. Such retrofitting activities are expected to modify infrastructure at 11 vehicle manufacturing plants in the region. This initiative will create thousands of job opportunities for auto workers. It will also support wider government efforts to reduce emissions, encourage electric mobility, and meet climate objectives.
 

Furthermore, this program is in line with a rising trend of government-backed incentives aimed at reducing the costs of producing EVs, enhancing the market competitiveness of electric vehicles, and promoting the widespread use of electric cars. The demand for battery thermal management systems is expected to increase steadily as manufacturing plants are upgraded and new production lines for electric vehicles are launched.
 

Battery Thermal Management System Market Trends

  • Recent developments in electric vehicle technologies are active cooling systems, smart thermal management systems, improved battery enclosures, and AI-driven thermal modeling. The industry will definitely benefit from such advancements.
     
  • Active cooling systems rely on coolant liquids along with heat exchangers or liquid cooling loops to improve heat dissipation.  Peltier coolers or thermoelectric modules are currently being used to actively cool the battery pack. Its implementation is very efficient in high-performance EVs, especially where rapid cooling is needed to ensure battery health for intensive driving.
     
  • The latest generation of battery management systems combines with smart thermal management. It is able to dynamically cool or heat based on real-time data from the battery through sensors and intelligent algorithms.
     
  • The global market for battery management systems is projected to reach over USD 4 billion by 2024, and it is expected to grow at a compound annual growth rate of 17.4%, from 2025 to 2034.
     
  • AI develops together with its machine learning algorithm to improve thermal management performance in a battery system. AI may forecast how it would act if the conditions continued to change, meaning it can optimize the thermal design by adjusting right away its thermal control mechanisms. This therefore helps in foretelling some temperature hotspots and optimizing processes for cooling within driving patterns or external conditions.
     
  • Advancements in battery enclosures are helping improve thermal management. New enclosures are designed with better air flow and heat distribution within the actual battery pack, which helps to reduce hot spots. Inside, metallic and composite materials are used to dissipate heat from the outside. Many have integrated cooling channels or fins to enhance heat transfer.
     

Battery Thermal Management System Market Analysis

Battery Thermal Management System Market, By Offering, 2022 – 2034, (USD Billion)
  • The market is segmented into three categories based on offering: active, passive, and hybrid systems. The active system segment accounted for more than 45% of the battery thermal management system market share in 2024, whereas the passive system segment is expected to grow at a 14% CAGR during the forecast period.
     
  • Thermal management systems with active characteristics maintain battery temperature zones optimally to stop overheating and support both safety aspects and battery lifespan. The system modifies itself at the current time to adapt to changes in temperature distribution inside the battery pack.
     
  • EV charging infrastructure investments are expected to drive rising active thermal management demand because they ensure the efficient and safe operation of high-performance EV batteries.
     
  • The US government allocated USD 521 million during September 2024 for charging infrastructure development efforts covering 29 states.  As part of fiscal policy, the Biden-Harris administration aims toward broadening the electric vehicle charging network.
     
Battery Thermal Management System Market Share, By Vehicle, 2024
  • On the basis of vehicles, battery thermal management system market is segmented as passenger vehicle and commercial vehicles. Passenger vehicles contributed to around 74% in 2024, while commercial vehicles are supposed to grow in the forecasted period with the CAGR of around 13%.
     
  • Increased demand emerges as the next-generation electric passenger cars receive larger battery cell networks and faster charging protocols and extended travel ranges.
     
  • The current generation of battery cells generates increased heat so active cooling systems together with passive methods became essential for extending battery lifespan and maintaining performance and safety standards.
     
  • The Hyundai EV manufacturer introduced the off-road ready IONIQ 5 XRT to the market during September 2023. The AWD only configuration of this model comes with a 84 kWh battery as well as +23mm suspension lift and 235 / 60 R 18 all-terrain tires. The longer driving distance in vehicles improves total performance along with safety features.
     
  • With the governments demanding pollution-free transport and strict emission norms, there will be an increase in the demand for efficient thermal management systems in electric passenger vehicles.
     

The different forms of battery take into account the Lithium-ion battery, Nickel-Metal Hydride (NiMH) battery, lead-acid battery, and solid-state battery. The lithium-ion category is expected to gain the lead in the battery thermal management system market as they possess several advantages, for example, high energy density, fast charging capabilities, and longer lifespan.
 

  • Lithium-ion batteries are the preferred choice for EVs because of their high energy density, long lifespan, and fast charging capabilities. The market requirement for efficient thermal management systems keeps increasing.
     
  • The temperature output from lithium-ion batteries while charging or discharging influences operational performance and leads to shorter lifespan and potential safety hazards when temperature management is inadequate. To protect both safety and battery performance proper battery thermal management systems need implementation.
     
  • Rising market demand causes companies to operate constantly throughout days and nights to manufacture additional battery products. Stellantis together with Zeta Energy initiated research on EV lithium-sulfur EV batteries during December 2024. The project focuses on waste material-powered sulfur battery development incorporating methane.
     
Asia Pacific Battery Thermal Management System Market, 2022 -2034, (USD Billion)

Asia Pacific dominated the global battery thermal management system market with a major share of around 35% in 2024 and China leads the market in the region.
 

  • The Asia Pacific region serves as the main view for both battery thermal management system production and client use value due to its well-structured procurement supply chains that purchase from market such as Chinese, Taiwanese as well as Indian suppliers.
     
  • China stands out as a key center for vehicles due to its high vehicle ownership rates and swift urbanization. As reported by OICA, the total number of vehicles sold in China reached 3o million in 2023.
     
  • As countries in the region move toward electric mobility, the need for efficient thermal management systems grows. A battery safety system combined with performance optimization ensures long-lasting batteries as high-performance EVs along with renewable energy storage solutions start to dominate these markets.
     

The U.S battery thermal management system market will experience profitable development throughout 2025 – 2034.
 

  • Thermal management systems for batteries across North America are dominated by US-based market shares, which amount to about 75% in 2024. The growth of the electric vehicle market across the region is the primary cause of this market growth.
     
  • The U.S. focuses on cutting carbon emissions by promoting clean energy through more production of EVs charging infrastructure, which requires the development of more advanced thermal management systems to maintain battery safety while increasing efficiency and extending the lifespan of the batteries.
     
  • For example, the Joint Office of Energy and Transportation opened the first electric vehicle charging station in Texas in December 2024. More vehicles will be supported by the located charging station which provides CCS and J3400 connectors. Such initiatives propel the adoption of electric vehicles there by propelling market growth of battery thermal management system.
     

The battery thermal management system market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

  • The more favorable regulations and policies related to vehicle safety support market growth in Germany. The government bodies are launching new policies to reduce accidents which encourage consumers to replace their vehicles components on time.
     
  • A combination of generous household income and strong customer interest in vehicle modifications drives robust sales of battery thermal management system throughout the country. Market dominance benefits from established automotive brands together with a mature distribution system.
     

The battery thermal management system market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
 

  • The Brazilian government promotes electric mobility shift by offering policy-based benefits to both develop EV infrastructure and provide incentives for EV advancement. The government policies have stimulated advanced BTMS solution requirements across Brazil.
     
  • The Brazilian automotive manufacturing sector plans to transition into electric vehicle manufacturing that demands customized battery cooling technologies. The growing number of EVs in Brazil will fuel increased BTMS technology demand for battery temperature control which will expand the market.
     

Battery Thermal Management System Market Share

  • Top 7 major market participants including Continental, Bosch, Valeo, Infineon, MAHLE GmbH, Hanon Systems, and Dana Limited and Gentherm dictate about 30% of the market share in 2024.
     
  • Continental is focused on strengthening its electric vehicle leadership with the top automobile manufacturers and suppliers while simultaneously advancing its in-house development of a thermal management system. Continental invested considerable resources into developing novel solutions for thermal management, utilizing such advanced materials as phase-change materials and liquid cooling systems to optimize energy efficiency and extend the lifetime of the batteries in EVs.
     
  • Bosch continues to invest in research and development to enhance the efficiency of its thermal management systems, with a focus on liquid cooling systems and intelligent algorithms for precise temperature control.
     
  • Valeo is dedicated to sustainable solutions and energy-efficient products, offering innovative cooling systems to handle the rising heat produced by high-performance EV batteries.
     
  • Infineon applies its semiconductor expertise to create smart power management solutions for thermal management systems, facilitating more effective cooling and battery regulation in EVs.
     
  • MAHLE provides a wide array of products, including liquid cooling systems and thermal management software, tailored for both passenger EVs and commercial vehicles, thereby optimizing performance across various battery applications.
     

Battery Thermal Management System Market Companies

Major players operating in the battery thermal management system industry include:

  • Bosch
  • Continental
  • Dana Limited
  • Gentherm
  • Hanon Systems
  • Infineon
  • MAHLE
  • Marelli
  • Schaeffler
  • Valeo
     

Market leaders are continuously capitalizing on different market opportunities such as formations of partnerships and collaboratives, mergers and acquisitions, new launches and innovations, investment in research and development and so much more. This is useful as it allows the integration of new features and technologies relevant to the battery thermal management system. With the help of such relationships with other key players in the market, manufacturers get better access to markets, more resources, and new products.
 

Besides, companies introduce new products for line extension and diversification of the product range. This is a means by which companies respond to the distinctive needs of various groups of customers from passenger vehicle to commercial vehicle. Companies have a broader mix of products as this helps the company to expand the customer base and to move in tandem with changing consumer needs and regulatory expectations. In a competitive environment, the bigger house has to make research and development investments. Through investment in research and development activities, companies come up with innovations that spur industrial development.
 

Battery Thermal Management System Industry News

  • In April 2024, Vitesco Technologies partnered with Sanden Europe to develop a holistic thermal management system for electric vehicles. This collaboration aims at packaging all functions of thermal management into one indirect system. Said collaboration is touted to present flexible adaptation, simplified processes, reduced efforts in manufacturing efforts, lower system costs for OEMs, and regulatory compliance.
     
  • In July 2023, Marelli introduced an integrated Thermal Management Module (iTMM) designed for electric vehicles. The valve can connect multiple system combinations through six channels to consolidate the systems into energy management solutions.  This simplifies the overall system complexity while ensuring optimal cooling for the electric powertrain, high safety standards, ultra-fast battery charging, and comfortable thermal conditions inside the cabin.
     
  • In May 2023, Carrar and Gentherm partnered to develop innovative thermal management solutions for electric vehicle (EV) batteries. The joint venture targets production of EV battery modules with a two-phase immersion thermal management system designed for constant control of liquid vapor and pressure.
     
  • Modine released its EVantage Line of Thermal Management Systems for electric vehicles during May 2022. The EVantage BTMS provides Modine's commercial and specialty and purpose-built EV customers with a complete thermal solution that allows them to use their engineering talents for more profitable initiatives.
     

The battery thermal management system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and Shipment (Units) from 2021 to 2034, for the following segments:

Market, By Offering

  • Active system
  • Passive system
  • Hybrid system

Market, By Battery

  • Lithium-ion battery
  • Nickel-Metal Hydride (NiMH) Battery
  • Lead-acid battery
  • Solid-state battery

Market, By Vehicle

  • Passenger vehicles      
    • Hatchback
    • Sedan
    • SUV
  • Commercial vehicles  
    • Light Commercial Vehicles (LCV)
    • Heavy Commercial Vehicles (HCV)

Market, By Propulsion

  • Battery Electric Vehicles (BEV)
  • Plug-in Hybrid Electric Vehicles (PHEV)
  • Hybrid Electric Vehicles (HEV)

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani, Aishwarya Ambekar
Frequently Asked Question(FAQ) :
Who are the key players in battery thermal management system industry?
Some of the major players in the industry include Bosch, Continental, Dana Limited, Gentherm, Hanon Systems, Infineon, MAHLE, Marelli, Schaeffler, and Valeo.
How much battery thermal management system market share captured by Asia Pacific in 2024?
What is the growth rate of the passive system segment in the battery thermal management system industry?
How big is the battery thermal management system market?
Battery Thermal Management System Market Scope
  • Battery Thermal Management System Market Size
  • Battery Thermal Management System Market Trends
  • Battery Thermal Management System Market Analysis
  • Battery Thermal Management System Market Share
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    Base Year: 2024

    Companies covered: 20

    Tables & Figures: 200

    Countries covered: 22

    Pages: 180

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