- Summary
- Table Of Content
- Methodology
Thermal Management Market Size:
Thermal Management Market size is estimated to reach over USD 32,847.34 Million by 2031 from a value of USD 15,076.43 Million in 2023 and is projected to grow by USD 16,449.29 Million in 2024, growing at a CAGR of 10.2% from 2024 to 2031.
Thermal Management Market Scope & Overview:
Thermal management refers to the control and regulation of temperature and heat flow within systems, devices, or environments to maintain optimal performance, reliability, and safety. Effective thermal management offers numerous benefits including improved efficiency, reduced power consumption, increased lifespan of components, enhanced reliability, reduced risk of thermal failures, and others.
Thermal Management Market Dynamics - (DRO) :
Key Drivers:
Increasing Electronics and IT Infrastructure Propels the Market
The rising electronics usage and the expansion of IT infrastructure have driven a critical demand for efficient thermal management solutions. As electronic devices become more compact and powerful, heat generation increases, potentially impairing performance and reducing lifespan. In data centers, telecommunications, and consumer electronics, effective heat management is essential to maintain optimal operating temperatures. Hence, cooling technologies are required to manage energy efficiently and prevent system failures.
- According to Invest India, India’s electronics production capacity reached USD 101 Billion in FY23 from USD 49 Billion in FY17.
Thus, the analysis shows that the rising electronics production and IT infrastructure drive thermal management market growth.
Key Restraints :
Maintaining Optimal Operating Temperatures in Aerospace and Defense Obstructs the Thermal Management Industry
In the aerospace and defense sector, cooling efficiency and reliability are vital, as minor temperature fluctuation leads to serious damage to structures, systems, and technology. Additionally, devices used in aerospace and defense are becoming more powerful and compact due to space optimization which in turn increases heat density. Heat accumulation causes temperature spikes, leading to reduced lifespan, performance degradation, and even device failures. Moreover, effective heat management not only prevents malfunctions but also increases the longevity of components.
Hence, the high demand for reliability standards in the aerospace and defense sector restrains the thermal management market trends.
Future Opportunities :
Advance Cooling Solutions in Automotive Sector Drives Thermal Management Market Opportunities
The shift towards electric vehicles and advanced autonomous systems is creating several opportunities. Electric vehicles generate significant heat from their batteries, requiring effective heat management systems to maintain optimal performance, safety, and battery longevity. Rising advancements in cooling technologies such as liquid cooling and phase change are widely being used in electric vehicles for extending battery life and improving efficiency.
- In June 2024, Vibracoustic launched an advanced NVH (Noise, Vibration, and Hardness) solution for the effective management of heat in batteries of electric vehicles.
Thus, the rising adoption of cooling solutions in the automotive sector is driving the thermal management market opportunities.
Thermal Management Market Segmental Analysis :
By Materials:
Based on materials, the market is segmented into adhesive and non-adhesive.
Trends in the Materials:
- In electric vehicle batteries, 5G devices, and compact electronic devices, adhesive materials are used to improve heat dissipation.
- Thus, the rising demand for efficient heat management without permanent bonding is driving the adoption of high-performance thermal pads and fillers.
The adhesive material accounted for the largest revenue share of the total thermal management market share in 2023.
- Adhesive materials in heat management refer to specialized adhesives that help transfer heat away from electronic components while bonding surfaces.
- They provide strong adhesion, enhance heat dissipation, improve device reliability, and reduce hotspots in compact electronics.
- It is used in electronics assembly, automotive modules, LED lighting, and battery packs to ensure efficient heat management.
- In May 2023, Henkel launched Loctite TLB 9300 APSi, a new adhesive that is thermally conductive and injective as well, it is widely used in various applications such as bonding in battery cells of electric vehicles.
- Thus, as per the analysis, the rising advancements in adhesive materials for heat transfer are driving the thermal management market demand.
The non-adhesive material is anticipated to register the fastest CAGR during the forecast period.
- Non-adhesive materials refer to components like thermal pads, pastes, and films that conduct heat without bonding surfaces.
- They offer high thermal conductivity, easy repositioning, and effective heat dissipation without permanent attachment.
- It is commonly used in electronic devices, power modules, and LED systems to transfer heat between components and heat sinks.
- In July 2024, Thermal Grizzly launched PhaseSheet PTM, a new thermal pad that changes phase above 45 degrees Celsius from solid to liquid.
- Thus, the rising developments in non-adhesive materials are driving the growth of this segment in the market.
By Device:
Based on the device, the market is segmented into conduction cooling and advanced cooling.
Trends in the Device:
- There is a rising trend of using conduction cooling in compact electronics such as mobile and laptops for better heat management.
- Rising adoption of advanced cooling solutions such as liquid cooling and heat pipes in computers and electric vehicles.
The conduction cooling segment accounted for the largest revenue at % of the overall thermal management market share in 2023.
- Conduction cooling involves transferring heat directly through physical contact between materials, using thermal conductors like metals.
- It is widely used in electronic devices with different sizes, heat sinks, and power supplies to maintain continuous operation.
- In April 2023, TDK Corporation launched the TDK-Lambda RGC series with ruggedized 300W DC-DC converters which include features such as conduction cooling and improved efficiency.
- Therefore, the rising trend of conduction cooling for different applications is driving the thermal management market demand.
The advance cooling is anticipated to register the fastest CAGR during the forecast period.
- It includes liquid cooling, heat pipes, and phase change systems designed to handle high heat loads efficiently.
- These solutions offer enhanced heat transfer, support higher power densities, and can extend the life of high-performance systems.
- It is essential for a wide range of applications including electric vehicle batteries, aerospace systems, data centers, and others.
- In October 2024, Johnson Electric launched a charging cable pump and power module pump which offer liquid cooling solutions for efficient heat management.
- In conclusion, the growth in advanced cooling techniques and solutions is driving the thermal management market size.
By End-User:
Based on end-users, the market is segmented into automotive, consumer electronics, healthcare, aerospace and defense, telecom, and others.
Trends in the End-User:
- Increasing demand for compact, high-performance devices is driving the innovations in consumer electronics to maintain the temperature.
- In aerospace, there is a trend of advancement in lightweight heat management materials to handle extreme temperatures.
The consumer electronics segment accounted for the largest revenue share of 31.82% in 2023.
- Temperature management in consumer electronics involves techniques and materials to control heat in devices like smartphones, laptops, tablets, and others.
- It includes benefits like optimal performance and increased lifespan and it also prevents overheating of the components.
- It is widely used in various devices such as smartphones, laptops, tablets, gaming consoles, and wearables to improve heat dissipation and maintain efficient operation.
- For instance, in July 2022, Asus launched ROG Phone 6 with added features like a cooling system called GameCool 6, for managing heat and performance.
- Thus, the analysis states that the rising developments in consumer electronics are set to drive the growth of the thermal management market size.
The automotive sector is anticipated to register the fastest CAGR during the forecast period.
- Heat management in automotive refers to managing heat within vehicles, including engine systems, batteries, and electronic components.
- It improves fuel efficiency, enhances safety, extends the lifespan of batteries and components, and ensures optimal performance under varying environmental conditions.
- It is applied in electric vehicle batteries, internal combustion engines, HVAC systems, and automobile electronics for efficient heat dissipation.
- In October 2024, Prestone launched an electric vehicle thermal management fluid, a low-conductivity phosphate organic acid technology.
- Thus, as per the thermal management market analysis, the rising developments in the automotive industry are driving the thermal management market growth.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 4,578.08 Million in 2023. Moreover, it is projected to grow by USD 5,009.41 Million in 2024 and reach over USD 10,320.64 Million by 2031. Out of this, China accounted for the maximum revenue share of 29.4%. As per the thermal management market analysis, due to the increasing investments in manufacturing and data centers ensure to meet the growing economic needs, especially in countries like China, India, and Japan. The rapid digitalization and the rising requirement for efficient and inexpensive solutions for manufacturing vehicles, consumer electronics, and telecommunications, further accelerate the development.
- In January 2022, China Mobile and Huawei partnered up to complete a Thermal Management in six months. It deals with the influx caused by tourists using mobile data.
North America is estimated to reach over USD 11,233.79 Million by 2031 from a value of USD 5,102.24 Million in 2023 and is projected to grow by USD 5,571.75 Million in 2024. The growth is driven by the increasing adoption of advanced technologies in electric vehicles for the efficient functioning of batteries. The energy efficiency and fast-paced deployments in the automotive sector contribute to the thermal management market expansion.
- In January 2022, China Mobile and Huawei partnered up to complete a Thermal Management in six months. It deals with the influx caused by tourists using mobile data.
North America is estimated to reach over USD 11,233.79 Million by 2031 from a value of USD 5,102.24 Million in 2023 and is projected to grow by USD 5,571.75 Million in 2024. The growth is driven by the increasing adoption of advanced technologies in electric vehicles for the efficient functioning of batteries. The energy efficiency and fast-paced deployments in the automotive sector contribute to the thermal management market expansion.
Top Key Players & Market Share Insights:
The thermal management market is highly competitive with major players providing services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global thermal management market. Key players in the thermal management industry include -
- Henkel (Germany)
- Honeywell International Inc. (US)
- Boyd (US)
- European Thermodynamics Ltd. (UK)
- Laird Thermal Systems (US)
- Vertiv Co (US)
- Delta Electronics, Inc. (Taiwan)
- Parker Chomerics (US)
- TAT Technologies Ltd. (Israel)
- Autoneum Holding AG (Switzerland)
Recent Industry Developments :
Product Launches:
- In June 2023, Marelli launched an advanced thermal integrated module, enhancing efficiency and heat management solutions for electric vehicles.
- In June 2023, ZF launched a cutting-edge heat management system designed to optimize efficiency and extend range for electric vehicles, marking a significant advancement in EV technology.
Partnerships & Collaborations:
- For instance, in November 2024, ISRO and IIT Madras entered into a partnership to make a research center for the thermal management of launch vehicles.
Thermal Management Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 32,847.34 Million |
| CAGR (2024-2031) | 10.2% |
| By Material |
|
| By Device |
|
| By End-User |
|
| By Region |
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| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Thermal Management Market? +
Thermal Management Market size is estimated to reach over USD 32,847.34 Million by 2031 from a value of USD 15,076.43 Million in 2023 and is projected to grow by USD 16,449.29 Million in 2024, growing at a CAGR of 10.2% from 2024 to 2031.
What specific segmentation details are covered in the thermal management market report? +
The thermal management market report includes specific segmentation details for materials, devices, end-users, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the end-user segment, consumer electronics is the fastest-growing segment during the forecast period.
Who are the major players in the thermal management market? +
The key participants in the thermal management market are Henkel (Germany), Honeywell International Inc. (US), Vertiv Co (US), Delta Electronics, Inc. (Taiwan), Parker Chomerics (US), TAT Technologies Ltd. (Israel), Autoneum Holding AG (Switzerland), Boyd (US), European Thermodynamics Ltd. (UK), and Laird Thermal Systems (US).
