Thermal management entails controlling heat flows within the vehicle. All elements in the vehicle must be operated within their respective ideal temperature ranges in order to offer appropriate temperatures for passengers. Battery thermal management systems are important in managing the thermal behavior of battery cells. The temperature of the environment has an impact on the life and performance of battery systems. As a result, the battery thermal management systems keep the battery at the optimal temperature for maximum output.
The automotive battery thermal management system market is expected to exhibit a CAGR of 38% from 2018 to 2026 (forecast period).
Vehicles that operate on gasoline are expected to run out of fuel in the near future. Many European nations, including the Netherlands, Norway, and the United Kingdom, have already proclaimed their intention to eliminate traditional automobiles. Due to the sharp spike in diesel and petrol costs, there has been an increase in demand for fuel-efficient automobiles. Businesses are also interested in operations to reduce the total weight of the electric car, which is heavier than ICE vehicles due to the battery. Moreover, North American nations like Canada and the United States are expected to vigorously promote EV vehicles in the coming years. Together with government assistance, such significant advancements generate a demand for the thermal battery management system within the EV, thereby boosting the automotive battery thermal management system market.
Furthermore, increased demand for hybrid vehicles and plug-in EVs will benefit EV manufacturers, battery technology businesses, OEMs, and automotive battery thermal management system producers. For example, Valeo Company has created smart thermal management solutions for EV batteries in order to extend battery lifecycle and enhance battery capacity. Additionally, the company provides electrically driven compressors (EDCs) for battery cooling and climate management. As a result, as EV sales increase, these improvements and innovations are projected to help promote automotive battery thermal management system market development in the years ahead.
Strong Usage of Lithium-Ion Batteries to Support Market Growth
The increasing preference for innovative technology-based automobiles, notably lightweight vehicles, is expected to boost the growth of the global automotive battery thermal management system market. Lithium-ion battery technology, which is utilized in cars for a variety of purposes, is widely preferred by industry leaders and customers. This is owing to its longer battery life cycle, higher energy density, and improved robustness. Similarly, businesses actively use these batteries in thermal battery management systems to assure proper operation and protection.
Automakers have begun to use these batteries in a variety of applications, including electric vehicles, industrial machinery, and electronic devices. Moreover, these batteries can detect a wide range of faults, including electric leaks, excessive temperature rise, and charge status at temperatures in the discharging/charging environment. The outbreak of COVID-19 has prompted many emerging economies, such as India, to promote the domestic production of automotive battery thermal management systems and lithium-ion batteries. Due to the increased demand for EVs, countries are shifting toward domestic manufacturing of all parts and components rather than relying on China for electronic components, li-ion batteries, and other necessities. These efforts, along with supporting government regulations and infrastructural development, are expected to drive the automotive battery thermal management system market in the future years.
Booming Automobile Sector in Asia Pacific to Provide Growth Prospects
The automotive battery thermal management system market in Asia Pacific is expected to witness substantial growth during the forecast period due to the booming automobile sector in the region. China and India are expected to contribute significantly to the automotive battery thermal management system market in Asia Pacific. China and India emerged as automotive part manufacturing hubs for western automobile giants, which strengthened the automobile sector in Asia Pacific.
Moreover, with rising sales of hybrid and electric vehicles in the region, demand for lightweight and high-performance thermal management systems is expected to rise alongside electric vehicle production throughout the forecast period. As a result, enterprises in the region have been developing and expanding their commercial operations in order to accommodate the increasing market demand. For example, in August 2019, Marelli Corporation made a strategic collaboration deal with Shanghai Highly (Group) Co., Ltd. in China. Such factors are projected to propel the automotive battery thermal management system market in Asia Pacific.