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Stringent Emission Regulations Fuel Growth In The Automotive Thermal Systems Market Driving Market Acceleration in the Automotive Thermal System Industry, 2025

06-26-2025 09:01 AM CET | Logistics & Transport

Press release from: The Business Research Company

Automotive Thermal System

Automotive Thermal System

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How Large Will the Automotive Thermal System Market Size By 2025?
The market size of the automotive thermal system industry has seen robust growth in the past few years. There is a projected growth from $42.15 billion in 2024 to $44.29 billion in 2025, with a compound annual growth rate (CAGR) of 5.1%. The historical period's growth is largely due to the incorporation of self-driving features, the emphasis on vehicle safety, the globalization of the automotive industry, an increase in demand for high-end cooling systems, control over climate, and passenger comfort.

How Big Is the Automotive Thermal System Market Size Expected to Grow by 2029?
The market size of the automotive thermal system is set to witness significant expansion in the upcoming years, reaching a valuation of $56.28 billion by 2029 with a compound annual growth rate (CAGR) of 6.2%. This expected growth within the forecast period can be credited to more stringent emission standards, developments in electric vehicle technology, and an increase in climate control needs. Key trends projected to influence this period include the advent of electrification and hybridization, advancements in engine technologies, the incorporation of superior cooling solutions, material and insulation innovations, beside harmonization and uniformity at a global level.

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Which Key Market Drivers Powering Automotive Thermal System Market Expansion and Growth?
The rigorous emission rules set forth by regulatory bodies are anticipated to drive the automotive thermal system market's growth. The rising number of vehicles globally poses a severe concern in controlling GHG emissions. To mitigate the rampant effect of emissions, bodies like the European Commission (EC) and the United States Environmental Protection Agency (US EPA) have established fuel economy standards and fuel sulfur content restrictions. For example, the Environmental Protection Agency (EPA), a US-based autonomous organization responsible for environmental conservation, reported that the average exposure indicator (AEI) for automotive emissions of nitrogen oxides (NOx) was 0.04 g/km in 2022, in September 2023. By 2040, The Environmental Targets (Automotive Emissions) (England) Regulations (2023) have set a compulsory target of 0.03 g/km for average yearly NOx emissions, with preliminary targets to be achieved by January 2028. Hence, the rigorous emission rules established by governing bodies fuel the automotive thermal systems market's expansion.

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Which Fast-Growing Trends Are Poised to Disrupt the Automotive Thermal System Market?
Progress in vehicular thermal systems is an emerging trend in the automotive thermal system market. Efforts are being devoted to research and development to bring forth cutting-edge thermal systems in the automobile sector. Predominant companies in this market are bent on creating new tech solutions to beef up their market stance. For example, Mitsubishi Heavy Industries Thermal Systems, Ltd., a firm based in Japan, unveiled the TEJ35GAM electric-powered transport refrigeration units in September 2023. This is an addition to the existing TE20/30 series and the TEJ35AM range. The TEJ35GAM boasts of a plug-in hybrid system that merges a commercial plug-in power supply with a dedicated fridge power source, presenting a novel solution to transport refrigeration.

What Are the Emerging Segments in the Automotive Thermal System Market?
The automotive thermal system market covered in this report is segmented -

1) By Component: Compressor, HVAC, Powertrain Cooling, Fluid Transport
2) By Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Other Vehicle Types
3) By Application: Front And Rear A Or c, Engine and Transmission, Seat, Battery, Motor, Waste Heat Recovery, Power Electronics

Subsegments:
1) By Compressor: Electrically Driven Compressors, Belt-Driven Compressors, Variable Displacement Compressors
2) By HVAC (Heating, Ventilation, And Air Conditioning): Heating Systems, Air Conditioning Units, Ventilation Systems
3) By Powertrain Cooling: Engine Cooling Systems, Transmission Cooling Systems, Turbocharger Cooling Systems
4) By Fluid Transport: Coolant Hoses, Radiators, Expansion Tanks

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Who Are the Global Leaders in the Automotive Thermal System Market?
Major companies operating in the automotive thermal system market are Continental AG, Denso Corporation, Dana Incorporated, Grayson Thermal Systems, Gentherm Incorporated, Hanon Systems, Lennox International Inc., Modine Manufacturing Company Inc., Mahle Behr GmbH & Co. KG, Robert Bosch GmbH, Valeo SA, Visteon Corporation, Calsonic Kansei Corp., Schaeffler Technologies AG & Co. KG, Johnson Electric Holdings Limited, Diakin Industries Ltd., Sanden Corporation, United Technologies Corporation, BorgWarner Inc., Marelli Corporation, Behr GmbH & Co KG, Delphi Technologies, Eberspaecher Group, Hella GmbH & Co KGaA, Siemens AG, Webasto SE, ZF Friedrichshafen AG, Bergstrom Inc., Kongsberg Automotive

Which are the Top Profitable Regional Markets for the Automotive Thermal System Industry?
Asia-Pacific was the largest region in the automotive thermal systems market share in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive thermal system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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With over 15000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Armed with 1,500,000 datasets, the optimistic contribution of in-depth secondary research, and unique insights from industry leaders, you can get the information you need to stay ahead.
Our flagship product, the Global Market Model (GMM), is a premier market intelligence platform delivering comprehensive and updated forecasts to support informed decision-making.

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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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