Automotive Battery Thermal Management System Market [2031]

Report Description

The automotive battery thermal management system market size was around USD 2,337.0 million in 2021 and is expected to surpass USD 8,922.2 million by 2030, expanding at a CAGR of 16.1 % during the forecast period, 2022–2030. The market growth is attributed to the increasing adoption of advanced electric vehicles and government initiatives that supports the growth of electric vehicles.

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Automotive battery thermal management system (BTMS) is used to keep the battery pack at an ideal average temperature during the electrochemical activities taking place in the cells of a vehicle. All battery modules require a battery heat management system, as high battery temperatures can increase the risk of explosion, decrease performance, and shorten battery life. The main goal of a battery thermal management system is to regulate the temperature of battery cells in order to increase battery life. The automotive battery heat management system provides ventilation and enables the pack to operate in a wide variety of climatic conditions. The manufacturers and suppliers were using a battery thermal management system to manage battery temperature. However, the technological advancements along with the need to decrease vehicle weight have led to the integration of battery thermal management systems with other electric thermal management systems of the vehicle.

COVID-19 Impact

The research report finds that the global COVID-19 pandemic has highly hampered the manufacturing units and supply chain of the automotive industry. All production units were shut down due to the lockdown, as around 78% of companies did not have enough manpower to run production units during the COVID-19 pandemic. However, the current demand for automotive vehicles is growing compared to that in the pre-pandemic period. Furthermore, a global lockdown situation followed by a decline in demand for vehicles and supply chain disruptions is expected to hamper the market. Various governments are taking initiatives to boost the economy and improve the infrastructure, which is anticipated to propel market expansion during the forecast period.

Market Dynamics

The research report presents a complete overview by providing an in-depth analysis of the current market trends, existing drivers, growth opportunities and potentials, emerging challenges, and market estimates & forecasts. The automotive battery thermal management system market report has up-to-date information about factors that can shape the market outcome or overall performance during the forecast period, 2022 to 2030.

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Existing Driver

Incorporation of automotive battery thermal management system with other electric thermal management systems

The increasing incorporation of battery thermal management systems with other electric thermal management systems is expected to drive market growth during the forecast period. Advancements in the automotive industry since the last decade have increased the demand for electric and alternate fuel vehicles, owing to the implementation of stringent CO2 gas emission norms by the governments. Crude oil prices are increasing; thus, consumers are preferring options such as electric vehicles. The automotive battery thermal management system was extensively used to manage the temperature of batteries. The rise in battery temperature can be hazardous, minimizes shelf life, and increases the risk of explosion. The main purpose of an automotive battery thermal management system is to increase the shelf life of a battery, supply ventilation, and reduce the size of the electric engine. This battery management system has enabled OEMs and developers to deliver maximum efficiency at a low cost. The system developer and manufacturers now have started integrating the electronic components in modules, such as electric drive (generator, motor, inverter), belt starter generator (BSG), and inverter-converter modules. The integration of technologies with shared TMS for battery and other applications has enabled developers and OEMs to achieve high efficiency at low cost and vehicle weight reduction.

Existing Restraints

Design complexities in components used for battery thermal management systems

High operating costs, low efficiency, leakage problem, and complexity are some of the factors which are projected to hinder the market growth. Manufacturers face issues while designing models such as optimal flow channels, the complexity of the model and flow, and the selection of coolant. Reliability and performance can be compromised while reducing the weight of the thermal components. A sudden increase in temperature due to high power may be hazardous, as it could lead to fire or explosion, internal short circuits, and physical damage. Cells in a battery pack are close to one another, and hence overheating of one cell impacts the surrounding cells as well. This phenomenon is referred to as thermal runaway propagation, which causes fire or explosion. Power dissipation can be a critical factor for system design with increasing clock rate and transistor count of microprocessors. The increasing clock rate and transistor count lead to complexities in designing thermal components. Thus, systems must be designed in a way that electronic components can withstand thermal heat sinks in any temperature condition. The government of several countries have taken initiatives including subsidies and tax breaks, to encourage the use of electric vehicles and thus rising the demand for electric vehicle batteries.

Emerging Opportunities

Rising adoption of new technologies in lithium-ion batteries

The rising adoption of new technology in lithium-ion batteries and innovation in battery cooling systems are expected to create lucrative opportunities for the key market players during the forecast period. Nowadays, lithium-ion batteries are extensively used in electric vehicles, due to their high energy per unit per mass. It also offers a high power-to-weight ratio, low self-discharge, high energy efficiency, and high-temperature performance. In 2013, Kogakuin University in Japan has come up with a transparent lithium-ion battery that charges itself using sunlight, without using any solar cell. Manufacturers are planning to integrate this battery into a smart window. when exposed to sunlight, the battery becomes tinted and transmits 30% light. Currently, these batteries offer an output of nearly 3.6 volts and have been successfully tested to complete 20 charge/discharge cycles. Such type of advancements is likely to propel the automotive battery thermal management system market expansion.

Scope of the Report

The automotive battery thermal management system market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

<100 kWh segment to expand at a considerable CAGR

Based on battery capacity, the automotive battery thermal management system market is divided into <100 kWh, 100-200 kWh, 200-500 kWh, and >500 kWh. The <100 kWh segment is expected to expand at a considerable CAGR during the projected period, as it improves space utilization by 19.8%, offers superior thermal runaway management, and highly integrated design that reduces manufacturing cost by 40%. However, the 200-500kWh segment is anticipated to hold a key share of the market in the coming years, due to its longer shelf life.

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Passenger vehicle segment to hold significant market share

Based on vehicle type, the automotive battery thermal management system market is bifurcated into passenger vehicles and commercial vehicles. The commercial vehicle segment is expected to hold significant market share during the projected period, due to rising air pollution and increasing traffic. Governments across the globe are encouraging people to use public transport and reduce traffic. However, the passenger vehicles segment is anticipated to hold a key share of the market in the coming years, due to the increasing demand for electric vehicles and subsidies offered by the government.

Conventional segment to expand at a substantial CAGR

On the basis of battery type, the global market is segregated into conventional and solid-state. The solid-state segment is projected to expand at a substantial CAGR during the forecast period, due to its long lifespan, high energy density, and increased safety. On the other hand, the conventional segment is anticipated to account for a major market share in the coming years, as conventional batteries are less expensive than solid-state batteries.

Battery Electric Vehicle (BEV) segment to register a sizeable market share

On the basis of propulsion, the global market is segregated into battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCV). The battery electric vehicle (BEV) segment is projected to register a sizeable market share during the forecast period. Battery electric vehicles (BEV) are comparatively cheaper than other vehicles. The maintenance costs of BEVs are lesser than other vehicles. Governments across the world are offering subsidies to promote BEV, as it is a zero-emission vehicle. The increasing vehicle range and improving charging infrastructure have fueled the demand for BEV sales. Australia is highly dependent on other countries for petroleum imports. Therefore, the demand for BEV is expected to be high due to high crude oil prices and the lack of its availability. The growth of the BEV segment is expected to be high due to decreasing charging time, battery prices, and increasing consumer awareness regarding the environment.

On the other hand, the hybrid electric vehicle (HEV) segment is anticipated to account for a major market share in the coming years, as HEVs combine the advantages of the internal combustion engine or gasoline engines, and electric motors which use energy stored in batteries. Hybrid electric vehicles (HEV) are environment-friendly, less expensive, and have small engines.

Active segment to register a considerable CAGR

On the basis of technology, the global market is bifurcated into active and passive. The active segment is projected to register a considerable CAGR during the forecast period, as the active technology is more efficient at dissipating heat than the passive. An active system consumes extra energy for pumps and fans powering and is usually used in liquid and air-cooling methods. On the other hand, passive technology is anticipated to account for a major market share in the coming years, due to the less complex method. PCMs or HPs are needed to remove heat from the surface of batteries, for passive systems.

The Asia Pacific region to dominate the market

In terms of regions, the automotive battery thermal management system market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projected period, as India and China are emerging economies and major producers of automobiles in the region. Moreover, Japan and South Korea are establishing a large number of production units. The Government of India (GOI) is offering subsidies and tax exemptions to increase the use of electric vehicles to reduce CO2 gas emissions, which are leading to air pollution in the country. In India, crude oil prices are increasing, which is boosting the prices of fuel; therefore, people are increasingly adopting electric vehicles.

In 2013, GOI launched The National Electric Mobility Mission Plan (NEMMP) to provide a roadmap for the faster adoption of electric vehicles in the nation and their manufacturing in the country to achieve national fuel security. The plan was to save 9500 million liters of crude oil which is equal to INR 62,000 crores. The NEMMP cages invested around INR 14000 crores to foster R&D efforts and kick start nascent technologies, accelerate the uptake of electric vehicles, and develop necessary infrastructures through public-private co-investments. In the year 2019, The GOI, launched the Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles (FAME) flagship scheme for promoting electric mobility. Currently, in its 2nd phase of implementation, FAME-II is being implemented for a period of 3 years, eff. 1st April 2019 with a budget allocation of 10,000 Cr.

However, the market of Europe is anticipated to expand at a rapid pace during the forecast period, as a major number of vehicle manufacturers are from Europe such as BMW, Fiat, Daimler AG, Volkswagen, Mercedes, and Volvo. Major contributors in the European market include Norway, Germany, France, The Netherlands, and U.K. Norway has the highest penetration of EVs worldwide and ranks third, in terms of EV sales, globally. The government of Germany (GOG) announced that it will be extending its existing EV subsidies through 2025. In 2020, (GOG) doubled incentives for EVs, offering a €3,000 bonus for fully electric vehicles and €2,250 for hybrids, as well as a 10-year tax exemption and lower VAT rates. Some European manufacturers are offering an additional €3,000 stipend to buyers. In the year 2019, there was around 1.8 percent of new electric vehicle registration compared to 2018.

The government of France has also joined the list of European countries to provide EV incentives, offering national producers, such as Renault, a support package to encourage greater EV production. The French government is also offering consumers CO2-related tax exemptions, subsidies of up to €7,000, and a scrappage scheme for old traditionally-fueled cars. Spain has reduced taxes on EVs in major cities, also offering subsidies on EV purchases of between €4,000-5,000 when scrapping old vehicles. The government of Italy is providing bonuses for lower carbon-emitting cars while penalizing high carbon-emitting vehicles.

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Recent Developments:

• On 29 August 2022, LG Energy Solution and Honda Motor Co., Ltd came up with an agreement to establish a joint venture (JV) company to produce lithium-ion batteries in the U.S. to power Honda and Acura EV models for the North American market. With this agreement, LGES and Honda will invest a total of USD $4.4 billion and establish a new JV plant in the U.S. The plant aims to have an annual production capacity of approximately 40 GWh.
• In June 2021, Castrol and XING Mobility collaborated to develop XING’s innovative immersion cooling battery technology. The company used Castrol’s innovative thermal management fluid in electric vehicles to offer unmatched safety and power.
• In May 2019, Robert Bosch GmbH launched a new cloud-connected battery management software solution that allows customers to monitor and manage the status of electric batteries in electric vehicles remotely.
• In April 2019, Gentherm, launched its thermoelectric battery thermal management system. Gentherm’s BTM system was the industry’s first thermoelectric-based solution for 48-volt lithium-ion batteries and was first launched on the Mercedes S-Class EQ-Boost in 2018.
• On 4th May 2018, at the 15th Beijing International Automotive Exhibition, Auto China 2018, Valeo launched its thermal management solutions. Thermal management solutions are used to maintain battery life and increase the range of the electric vehicle by up to 30%.