Automotive Thermal System Market Leads to USD 70.17 Bn by 2034

Automotive Thermal System Market Strategic Analysis and Growth Opportunities

Based on market forecasts, the automotive thermal system sector will expand from USD 45.79 billion in 2024 to USD 70.17 billion by 2034, experiencing a CAGR of 4.36%. Asia Pacific dominates the automotive thermal system market due to rising commercial vehicle demand, while Europe is set for strong growth with many thermal system companies. The compressor segment leads for its efficiency, and passenger vehicles, especially SUVs, drive industry demand.

Last Updated: 25 March 2025 Category: Automotive Components Insight Code: 1659 Format: PDF / PPT / Excel

Senior Research Analyst

Dr. Arjun Patel

Reviewed By

Aditi Shivarkar

The automotive thermal system market is forecast to grow from USD 47.79 billion in 2025 to USD 70.17 billion by 2034, driven by a CAGR of 4.36% from 2025 to 2034.

Automotive Thermal System Market Size 2023 - 2034

Introduction

The automotive thermal system market is an integral sector of the automotive component industry. This market deals in manufacturing and distribution of thermal systems for the automotive sector.  These systems are used for regulating the temperature of several automotive parts. There are several components of these systems comprising of compressor, heating ventilation air conditioning (HVAC), powertrain cooling, fluid transport and some others. It finds application in various automotive parts such as front and rear A/C, engine and transmission, seat, battery, motor, power electronics and some others. The growing application of thermal systems in commercial vehicles is driving the market expansion. This market is predicted to grow significantly with the rise of the electric vehicle industry around the globe.

France Commercial Vehicle Sales (2022-23)

  • According to the OICA, around 397519 commercial vehicles were sold in France during 2022 that increased to 434379 in 2023.

Highlights of the Automotive Thermal System Market

  • Asia Pacific held the largest share of the automotive thermal system market due to the growing demand for commercial vehicles in this region.
  • Europe is expected to grow with a significant CAGR due to the presence of numerous thermal system companies in this region.
  • The compressor segment held the highest share of the market due to its reliability and efficiency.
  • The passenger vehicles segment led the industry due to rising demand for SUVs across the world.

Key Metrics and Overview

Metric Details
Market Size in 2024 USD 45.79 Billion
Projected Market Size in 2034 USD 70.17 Billion
CAGR (2025 - 2034) 4.36%
Leading Region  Asia Pacific
Market Segmentation  By Component, By Vehicle Type, By Application and By Region
Top Key Players Borgwarner Inc., General Motors Company, Lennox International Inc., Modine Manufacturing Company Inc., Denso Corporation, Mahle GmbH
Key Growth Drivers
  •  Increasing demand for thermal management in   commercial vehicles
  •  Expansion of the electric vehicle (EV) industry
  •  Growing investment in advanced cooling systems

Automotive Thermal System: Figures and Stats

  • According to the International Energy Agency, around 3.4 million electric vehicles were sold in Europe during 2024.
  • According to the International Organization of Motor Vehicle Manufacturers, around 587,289 commercial vehicles were sold in Brazil during 2023.
  • According to the Malaysian Automotive Association, around 719,160 passenger vehicles were sold in Malaysia in 2023.
  • According to the Bureau of Transportation Statistics, around 1175597 hybrid vehicles were sold in the U.S. during 2023.

Industry Leader Announcement

In December 2024, David Redfearn, the Chief Sales Officer of Kongsberg made an announcement stating that,” KA is proud to announce this award for our strategically important TMS assemblies from a brand-new customer, As we transition towards E-mobility, it is very rewarding to see the market acceptance of our TMS assemblies. That coupled with our local engineering support ensured that we were selected for this contract.”

Geographical Insights

Asia Pacific held the largest share of the automotive thermal system market. The rising production of commercial vehicles in China and India has boosted the market growth. Also, the growing demand for advanced cooling systems in automotives along with technological advancements in automotive sector is crucial for the industrial expansion. Moreover, the rapid investment by market players in automotive components sector coupled with increasing adoption of EVs is driving the industrial growth in this region.

Competitive Landscape

Automotive Thermal System Market Companies

The automotive thermal system market is a highly fragmented industry with the presence of various dominating players. Some of the crucial players in this industry consists Borgwarner Inc., General Motors Company, Lennox International Inc., Modine Manufacturing Company Inc., Denso Corporation, Mahle GmbH, Gentherm Inc., Valeo, Grayson Thermal Systems and some others. These companies are constantly engaged in developing thermal systems for automotives and adopting different strategies to maintain their dominance in this industry.

Modine Revenue in USD Million (2023-24)

  • According to the annual report of Modine, the revenue of the company in 2023 was US$ 2346.20 million that increased to US$ 2507.50 million in 2024.

Market Segmentations

By Component

  • Compressor
  • Heating Ventilation Air Conditioning (HVAC)
  • Powertrain Cooling
  • Fluid Transport

By Vehicle Type

  • Passenger Vehicles
  • Commercial Vehicles

By Application

  • Front and Rear A/C
  • Engine and transmission
  • Seat
  • Battery
  • Motor
  • Waste Heat Recovery
  • Power Electronics

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa
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About The Author

Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.

FAQ's

The automotive thermal system market was valued at USD 47.79 billion in 2025.

Asia Pacific dominated this industry.

The growing demand for passenger cars along with the increasing need for smart thermal systems in automotive has driven the market growth.

Some of the prominent players of this industry consists of Denso Corporation, Mahle GmbH, Gentherm Inc., Valeo, Grayson Thermal Systems, Borgwarner Inc., General Motors Company, Lennox International Inc., Modine Manufacturing Company Inc. and some others.

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