The global automotive thermal systems market size is expected to hit over US$ 64.29 billion by 2032 and expanding growth at a CAGR of 4.40% from 2023 to 2032.
The market for automotive thermal system is expected to increase significantly during the forecast period. Several factors, including strict pollution restrictions and emission norms, as well as rising global warming, have contributed to the increase in demand for automotive thermal system in the market.
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One of the primary drivers driving the automotive thermal system market expansion is the growing demand to reduce carbon emissions produced by internal combustion engines in automobiles, as well as rigorous emission regulatory frameworks enforced by government agencies in developing regions. Aside from that, the automotive thermal system industry is being boosted by the increasing use of innovative Heating Ventilation Air Conditioning (HVAC) systems that are less harmful to the environment.
Report Highlights
Regional Snapshot
Asia-Pacific is the largest segment for automotive thermal system market in terms of region. In recent years, the Asia-Pacific region has grown as a production hub for automobiles and automotive. The original equipment manufacturers (OEMs) have increased vehicle production in the region due to changing consumer demands, rising per capita income of the middle-class population, and cost benefits.
Europe region is the fastest growing region in the automotive thermal system market. The introduction of strict emission standards by various European Union countries is likely to boost the sales of automobiles, resulting in the growth of the automotive thermal system market in the Europe region.
| Report Coverage | Details |
| Market Size | US$ 64.29 Billion by 2032 |
| Growth Rate | CAGR of 4.40% from 2023 to 2032 |
| Largest Market | Asia Pacific |
| Fastest Growing Market | Europe |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Component, Vehicle, Application, Region |
Read Also: Automotive Interior Market Size to Worth Around US$ 184.97 Bn by 2032
Market Dynamics
Drivers
Surge in demand for electric vehicles
The major market players have been compelled to provide electric vehicles all over the world due to the factors such as rising demand for low-emission commuting and governments supporting long-range, zero emission vehicles through subsidies and tax rebates. As a result, there is an increasing demand for electric vehicles in the market. The cost of batteries is predicted to decrease as the demand for electric vehicles is expected to grow. This is driving the growth of the battery electric vehicles in the market. The battery electric vehicles require power electronics, battery cooling, and electric motor cooling. By successfully utilizing waste heat, thermal system plays a vital role in boosting driving time and performance. As a result, the surge in demand for electric vehicles is driving the growth of the global automotive thermal system market.
Restraints
Lack of standardization and high cost of manufacturing
The local or regional market players must adhere to the regulating body’s emission regulations. However, because emission regulations differ by region, a lack of standardization can make it difficult to export thermal systems. The manufacturers are unable to get raw materials or inventory due to lack of standardization, which hampered the export sector. This also leads to the high cost of manufacturing. As a result, the lack of standardization and high cost of manufacturing is restricting the growth of global automotive thermal system market during the forecast period.
Opportunities
Increasing government regulations
Controlling greenhouse gas emissions from automobiles has become a serious concern as the global vehicle fleet grows. The government regulatory frameworks have controlled gasoline Sulphur content limits and required fuel economy standards to combat the exponential consequence of emissions. By utilizing waste heat and controlling the vehicle’s heating and cooling systems properly, advancements in automotive thermal system technology can minimize carbon dioxide reduction and enhance automobile efficiency. Thus, the increasing government regulations against toxic gases emissions are creating lucrative opportunities for the growth of the automotive thermal system market during the forecast period.
Challenges
High cost of technology
The original equipment manufacturers (OEMs) have implemented innovative and advanced technology to attain to intended outcomes as a result of the establishment of rigorous pollution. In addition, the rising demand for in-vehicle comfort characteristics on interior comfort thermal systems. The cost of thermal system can be compared to overall amount of carbon dioxide reduction accomplished by these technologies to determine its performance. The cost for upgradation and modification of automotive thermal systems required high capital investments. Thus, the high cost of technology is a major challenge for the growth of the automotive thermal system market during the forecast period.
Segments Covered in the Report
By Component
By Vehicle Type
By Application
By Geography
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