Press release
United States Automotive Thermal Systems Market to grow at 3.7% CAGR | Major Companies 2026 - BorgWarner, Bosch, Denso
Leander, Texas and Tokyo, Japan - Jan.13.2026As per DataM intelligence research report "The Global Automotive Thermal Systems Market is expected to grow at a CAGR of 3.7% during the forecasting period (2024-2031)."
The automotive thermal systems market is accelerating as electric and hybrid vehicles require efficient cooling and heating solutions. Innovative heat exchangers, advanced thermal management materials, and AI-driven temperature controls boost performance and reliability. Growing EV adoption and stringent emission norms are propelling global market expansion.
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Automotive Thermal Systems Market: Competitive Intelligence
BorgWarner, Bosch, Denso, Hanon Systems, Kendrion, MAHLE, Modine, Schaeffler, Valeo, ZF
In the Automotive Thermal System Market, the combined capabilities of BorgWarner, Bosch, Denso, Hanon Systems, Kendrion, MAHLE, Modine, Schaeffler, Valeo, and ZF exemplify a broad commitment to thermal efficiency, electrification readiness, and integrated climate control solutions that address evolving vehicle architectures and regulatory pressures. These companies collectively drive advances in HVAC systems, heat exchangers, battery thermal management, and powertrain cooling, strengthening market capacity to serve both traditional internal combustion engine vehicles and emerging electric and hybrid platforms. By investing in energy‐efficient designs and smart thermal controls, they help automotive OEMs enhance comfort, performance, and emissions outcomes while responding to consumer expectations for reliability and sustainability. Their global footprints and collaborative engagements with tier‐1 and tier‐2 suppliers support resilient supply chains that underpin market stability and regional growth. As the market shifts toward electrified mobility, this cohort's innovations contribute to a more adaptable, future‐ready Automotive Thermal System Market that can meet diverse application demands.
Individually and in combination, these firms' complementary strengths fuel competitive momentum within the Automotive Thermal System Market by blending deep domain expertise with scalable engineering and commercial reach. BorgWarner's proficiency in thermal management for electrified powertrains aligns with Bosch's broad portfolio of sensors, controls, and HVAC technologies that optimize system integration and operational efficiency. Denso and Valeo enhance this dynamic with robust thermal subsystem platforms and intelligent climate control solutions that cater to global OEM requirements across vehicle segments. Hanon Systems and MAHLE bring specialized know‐how in heat exchangers and battery cooling essentials that are critical for electric vehicle performance and durability. Schaeffler, ZF, and Kendrion add value through precision components and motion‐control elements that improve overall thermal system responsiveness and reliability. Together, these companies reinforce the Automotive Thermal System Market as a hub of technological synergy where innovation, quality, and scalability converge to support next‐generation mobility solutions.
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United States: Recent Industry Developments
✅ In January 2026, BorgWarner introduced next-generation electric vehicle thermal systems with automated coolant flow regulation, enhancing battery efficiency, improving vehicle safety, and integrating AI control to optimize temperature management across various operating conditions.
✅ In November 2025, Denso invested $120 million in advanced thermal management technologies for EVs, including automated climate and battery control systems, enabling manufacturers to improve energy efficiency, reduce maintenance, and enhance passenger comfort.
✅ In August 2025, U.S. OEMs deployed AI-driven thermal system diagnostics in assembly lines to predict component failures, automate quality inspections, and optimize production processes, reducing downtime and ensuring consistent system performance.
✅ In June 2025, suppliers rolled out modular thermal system units with automated integration into EV platforms, reducing assembly time, enhancing heat exchange performance, and enabling real-time monitoring for preventive maintenance.
Japan: Recent Industry Developments
✅ In January 2026, Toyota Motor Corporation implemented AI-controlled EV thermal management systems in pilot vehicles, supported by $80 million investment, to improve battery life, reduce energy consumption, and automate climate and cooling adjustments for consistent performance.
✅ In October 2025, Denso Japan launched automated climate control modules for hybrid and EV models, integrating AI sensors and feedback systems to optimize thermal efficiency and passenger comfort while reducing energy waste.
✅ In July 2025, Honda implemented automated testing rigs for thermal systems, enabling precise performance validation, predictive maintenance, and real-time adjustments to ensure high reliability and compliance with global automotive standards.
✅ In April 2025, Nissan integrated smart coolant circulation systems with AI monitoring into EVs to automate temperature control, enhance energy efficiency, reduce maintenance requirements, and support scalable electric mobility solutions.
Segment Covered in the Automotive Thermal Systems Market:
By Component
The market is segmented into HVAC systems 35%, powertrain cooling 30%, compressors 20%, and fluid transport systems 15%. HVAC systems dominate due to increasing demand for cabin comfort, climate control, and advanced air-conditioning systems in passenger vehicles. Powertrain cooling is expanding with rising engine efficiency requirements and thermal management needs in hybrid and electric vehicles. Compressors are essential for HVAC and battery thermal management, while fluid transport systems support efficient heat transfer across vehicle subsystems.
By Vehicle Type
Vehicle types include passenger cars 70% and commercial vehicles 30%. Passenger cars dominate due to high global production volumes and growing consumer demand for comfort, fuel efficiency, and emission compliance. Commercial vehicles are adopting advanced thermal systems to improve engine durability, cabin comfort, and operational efficiency in logistics and transport fleets.
Regional Analysis
Asia Pacific - 40% Share
Asia Pacific leads with 40% share due to large-scale automotive manufacturing, high passenger car production, and increasing adoption of advanced thermal systems in China, Japan, India, and South Korea.
Europe - 25% Share
Europe accounts for 25% share driven by stringent emission regulations, electrification trends, and demand for advanced HVAC and powertrain cooling systems in Germany, France, and the U.K.
North America - 20% Share
North America holds 20% share supported by strong automotive production, high adoption of comfort features, and growth in electric and hybrid vehicles in the U.S. and Canada.
Latin America - 8% Share
Latin America represents 8% share with steady automotive production and growing demand for thermal systems in Brazil and Mexico.
Middle East & Africa - 7% Share
Middle East & Africa accounts for 7% share driven by rising vehicle ownership, demand for robust HVAC systems in hot climates, and increasing commercial vehicle adoption.
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