PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1793688
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1793688
Global Passenger Car Thermal System Market to Reach US$62.0 Billion by 2030
The global market for Passenger Car Thermal System estimated at US$46.6 Billion in the year 2024, is expected to reach US$62.0 Billion by 2030, growing at a CAGR of 4.9% over the analysis period 2024-2030. SUV, one of the segments analyzed in the report, is expected to record a 6.6% CAGR and reach US$26.3 Billion by the end of the analysis period. Growth in the MUV segment is estimated at 3.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$12.7 Billion While China is Forecast to Grow at 8.1% CAGR
The Passenger Car Thermal System market in the U.S. is estimated at US$12.7 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$12.5 Billion by the year 2030 trailing a CAGR of 8.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.2% and 5.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR.
Global Passenger Car Thermal System Market - Key Trends & Drivers Summarized
Why Are Thermal Systems Essential for Vehicle Efficiency and Component Protection?
Thermal systems regulate temperature within various parts of a passenger car to ensure performance, efficiency, and safety. These systems include engine cooling modules, cabin HVAC units, battery thermal management systems in EVs, and components that regulate temperature across transmission and power electronics. By controlling heat generation and dissipation, thermal systems help maintain fuel economy, extend component life, and ensure occupant comfort.
In internal combustion engine vehicles, thermal systems focus on engine cooling, oil temperature control, and cabin climate regulation. For electric vehicles, managing battery temperature becomes the core challenge, as both performance and safety are sensitive to thermal fluctuations. Without proper cooling, batteries risk performance degradation, capacity loss, and overheating. Hence, efficient thermal system design has become a priority for all types of vehicle propulsion systems.
How Are Technologies Evolving to Meet Electrification and Comfort Demands?
Thermal systems are undergoing rapid innovation to align with electrification, energy efficiency, and emissions goals. In electric vehicles, liquid cooling circuits, heat pumps, and refrigerant-based systems are replacing traditional coolant loops to manage battery packs, inverters, and electric motors. Heat pumps are being increasingly adopted for cabin heating in EVs, as they reduce energy draw from the battery compared to resistive heaters.
Integrated thermal management systems that combine battery cooling, motor cooling, and cabin heating into a single circuit are becoming more common in modern EV platforms. In parallel, smart actuators, thermal sensors, and electronic control units are enhancing the responsiveness and efficiency of heat transfer mechanisms. Material innovation is also contributing, with use of thermally conductive polymers and lightweight heat exchangers supporting faster thermal regulation and reduced system weight.
Where Is Market Growth Occurring and Which Segments Are Driving Thermal System Demand?
Thermal system demand is increasing across all passenger car segments, with the sharpest growth observed in electric and hybrid vehicles. As automakers shift toward electrified powertrains, thermal systems are being re-engineered to accommodate higher heat loads and tighter packaging constraints. Asia-Pacific remains the dominant production region, while Europe and North America lead in deployment of advanced battery thermal systems and integrated HVAC modules.
Luxury and premium vehicles often adopt multi-zone climate control and active thermal management systems, driving higher value per unit. Entry-level cars are seeing improved thermal efficiency through downsized yet optimized modules. EV manufacturers, in particular, are focusing on thermal system innovation to improve range, battery safety, and charging efficiency. These vehicles require specialized heating and cooling mechanisms that respond dynamically to external and internal conditions.
Growth in the Passenger Car Thermal System market is driven by several factors…
Growth in the passenger car thermal system market is driven by factors such as the rise in electric and hybrid vehicle production, stringent emissions and efficiency regulations, and increasing demand for cabin comfort and system integration. The transition from ICE to electrified platforms is reshaping thermal architecture, prompting the development of advanced battery cooling, inverter heating, and multi-source HVAC solutions.
Improved energy management strategies, such as waste heat recovery and predictive thermal control, are gaining traction as OEMs seek to extend EV driving range. Regulatory pressure to improve air conditioning efficiency and reduce refrigerant emissions is also influencing system design. Additionally, consumer demand for year-round thermal comfort, rapid defogging, and personalized climate zones continues to expand the scope and complexity of thermal systems in passenger vehicles.
SCOPE OF STUDY:
The report analyzes the Passenger Car Thermal System market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Vehicle Type (SUV, MUV, Sedan, Hatchback); Application (HVAC Application, Powertrain Cooling Application, Fluid Transport Application, Other Applications); Propulsion (ICE Vehicles Propulsion, Electric / Hybrid Vehicles Propulsion)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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