Thermal Systems Market Analysis

Global Thermal Systems Market Overview

Global Thermal Systems' market size was valued at USD 38.1 billion in 2022. The Thermal Systems market industry is projected to grow from USD 39.05 Billion in 2023 to USD 47.58 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.50% during the forecast period (2024 - 2032). Increased demand for energy-efficient solutions across various industries and focus on sustainable and energy-efficient solutions are the key market drivers enhancing market growth.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Thermal Systems Market Trends

Growing demand for energy-efficient solutions across various industries is driving the market growth

Market CAGR for thermal systems is being driven by the rising demand for energy-efficient solutions across various industries. Increasing awareness of environmental issues and stringent regulations related to energy efficiency push industries to adopt sustainable practices. Thermal systems, such as energy-efficient HVAC solutions and optimized industrial processes, help organizations comply with regulations and reduce their carbon footprint.

Energy-efficient thermal systems often lead to cost savings for industries. Reduced energy consumption translates to the lower utility bills, making energy-efficient solutions financially attractive. Many businesses see investments in thermal systems as a strategic approach to long-term operational cost reduction. As countries and industries commit to global sustainability goals, there is a growing emphasis on adopting technologies that contribute to environmental conservation. Energy-efficient thermal systems align with these goals by minimizing resource consumption and greenhouse gas emissions, making them a preferred choice for forward-thinking organizations. Companies are increasingly integrating CSR into their business strategies, aiming to demonstrate a commitment to sustainable practices. Adopting energy-efficient thermal systems aligns with CSR initiatives, enhancing a company's reputation and attractiveness to environmentally conscious consumers and investors.

Ongoing advancements in thermal system technologies, such as more efficient heat exchangers, advanced insulation materials, and smart control systems, enable industries to achieve better energy efficiency without compromising performance. These innovations drive the adoption of energy-efficient thermal solutions. Some regions and industries are motivated by the desire for energy independence. By optimizing thermal systems to reduce reliance on traditional energy sources, organizations can enhance their resilience to energy supply disruptions and volatile energy prices. Energy efficiency has become a competitive advantage. Companies that invest in energy-efficient thermal systems position themselves as industry leaders, attracting environmentally conscious consumers and a competitive edge in the market.

Various governments offer incentives, subsidies, and tax breaks to businesses adopting energy-efficient practices. This can serve as a strong motivator for industries to invest in thermal systems that contribute to overall energy conservation. Thus, driving the Thermal Systems market revenue.

Thermal Systems Market Segment Insights

Thermal Systems Component Insights

The Thermal Systems Market segmentation, based on components, includes Compressors, HVAC, powertrain cooling, and fluid transport. The HVAC segment dominates the market, accounting for the largest market revenue due to its widespread application in both residential and commercial buildings, addressing the fundamental need for climate control. As urbanization and infrastructure development continue globally, the demand for efficient HVAC systems rises, contributing significantly to the overall growth of the thermal systems market. HVAC system plays a crucial role in maintaining comfortable indoor environments, enhancing energy efficiency, and meeting regulatory standards, making them a central and indispensable element in the broader thermal systems landscape.

Thermal Systems Vehicle Type Insights

The Thermal Systems Market segmentation, based on vehicle type, includes the Passenger Vehicles and Commercial Vehicles. The passenger vehicles category dominates the market due to their sheer abundance and widespread use globally. The thermal systems in passenger vehicles are essential for maintaining optimal operating temperatures in engines, transmissions, and HVAC systems, ensuring reliable performance and passenger comfort. The continuous development of the global population and increasing urbanization is surging demand for personal transportation, amplifying the need for thermal systems in various vehicle segments. The automotive industry's focus on innovation and stringent emission standards has further propelled the development and adoption of advanced thermal management technologies in passenger vehicles.

Thermal Systems Propulsion Insights

The Thermal Systems Market segmentation, based on propulsion, includes IC Engine Vehicles, Electric Vehicles, and Hybrid Vehicles. The IC engine vehicles category dominates the market due to their widespread use in the automotive industry. The thermal systems in IC engine vehicles play a crucial role in managing engine temperatures, optimizing combustion efficiency, and ensuring the overall performance and durability of the vehicle. With the large existing fleet of IC engine vehicles globally, the demand for thermal systems remains robust, while advancements in these systems continue to enhance fuel efficiency and reduce emissions, contributing to their continued dominance in the market.

Figure 1: Thermal Systems Market, by Propulsion, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Thermal Systems Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Thermal Systems market area dominates this market due to a combination of factors, including a mature industrial sector, substantial investments in research and development, and a strong emphasis on adopting advanced technologies for energy efficiency.

Further, the prime countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

 Figure 2: THERMAL SYSTEMS MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Thermal Systems market accounts for the second-largest market share due to the region's commitment to stringent environmental regulations, sustainable practices, and energy efficiency, compelling industries to adopt advanced thermal solutions. Further, the German Thermal Systems market held the largest market share, and the UK Thermal Systems market was the fastest-growing market in European region.

The Asia-Pacific Thermal Systems Market is foreseen to grow at the rapid CAGR from 2023 to 2032. This is due to rapid industrialization, urbanization, and a surge in infrastructure development, leading to increased demand for efficient heating, ventilation, and air conditioning (HVAC) systems across various sectors. Moreover, China’s Thermal Systems market held the largest market share, and the Indian Thermal Systems market was the fastest-growing market in Asia-Pacific region.

Thermal Systems Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Thermal Systems market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Thermal Systems industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the global Thermal Systems industry to benefit the clients and increase the market sector. In recent years, the Thermal Systems industry has offered some of the most significant advantages to several industries. Major players in the Thermal Systems market, including 3M, Intel Corporation, Parker Hannifin Corporation, Honeywell International Inc., Siemens AG, Johnson Controls International Plc, Emerson Electric Co., Schneider Electric SE, Daikin Industries, Ltd, Mitsubishi Electric Corporation, and others, are attempting to increase market demand by investing in the research and development operations.

3M, officially known as the Minnesota Mining and Manufacturing Company, is a multinational conglomerate with a diverse portfolio of products and technologies. 3M has evolved into a global innovation powerhouse. The company is renowned for its commitment to research and development, producing a wide array of solutions that span multiple industries, including healthcare, transportation, consumer goods, and electronics. In January 2023, 3M Company announced that it had acquired C&H Technologies for US$9.3 billion. C&H Technologies is a leading provider of critical environment solutions, including thermal management solutions. The acquisition is expected to close in the second half of 2023. These are just a few examples of the recent acquisitions and partnerships in the thermal systems market. The market is expected to continue to consolidate in the coming years as companies look to spread their product offerings and gain access to new technologies.

Intel Corporation is a global technology company that holds a prominent position in the semiconductor industry. Founded in 1968, Intel has become one of the world's largest and most influential semiconductor chip manufacturers. Intel's contributions to the technology landscape go beyond microprocessors; the company is involved in various areas, including memory products, networking solutions, and other semiconductor-based technologies. Intel's x86 architecture has been a standard in the computing industry for several decades. The company has played a crucial role in driving advancements in computing and technology, fostering the development of faster, more efficient, and powerful processors. Intel Corporation announced on December 21, 2022, that it had acquired Tower Semiconductor Ltd. for US$5.4 billion. Tower Semiconductor is a leading foundry that manufactures semiconductors for a variety of applications, including automotive, industrial, and consumer electronics. The acquisition is expected to close in the second half of 2023.

Key Companies in the Thermal Systems market include

• 3M


• Intel Corporation


• Parker Hannifin Corporation


• Honeywell International Inc.


• Siemens AG


• Johnson Controls International Plc


• Emerson Electric Co.


• Schneider Electric SE


• Daikin Industries, Ltd


• Mitsubishi Electric Corporation

Thermal Systems Industry Developments

June 2023: Parker Hannifin Corporation announced that it has acquired Lord Corporation for US$4.4 billion. Lord is a leading provider of vibration and motion control products, including thermal management solutions. The acquisition is expected to close in the fourth quarter of 2023.

April 2023: Eaton Corporation announced that it has acquired Cooper Standard Automotive for US$2.9 billion. Cooper Standard is a leading provider of fluid handling systems, including thermal management solutions. The acquisition is expected to close in the second half of 2023.

February 2023: Honeywell International Inc. announced that it has acquired United Technologies Corporation for US$90 billion. United Technologies is a leading provider of aerospace and building technologies, including thermal management solutions. The acquisition is expected to close in the second half of 2023.

Thermal Systems Market Segmentation

Thermal Systems Component Outlook

• Compressor


• HVAC


• Powertrain Cooling


• Fluid Transport

Thermal Systems Vehicle Type Outlook

• Passenger Vehicles


• Commercial Vehicles

Thermal Systems Propulsion Outlook

• IC Engine Vehicles


• Electric Vehicles


• Hybrid Vehicles

Thermal Systems Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America