The Battery Thermal Management System (BTMS) market is projected to grow from $3.7 billion in 2024 to $8.5 billion by 2030, at a CAGR of 14.7%. According to a new report by MarketsandMarkets, the increasing demand for electric vehicles (EVs) and heightened focus on battery safety are primary drivers of this growth. Continuous innovation in BTMS components further boosts demand.
The Battery Electric Vehicle (BEV) segment is expected to lead the BTMS market in terms of value. Countries like China, Japan, and South Korea, which dominate BEV sales, are major contributors to this trend. Strong Government support and favourable policies in these regions significantly accelerate the adoption of BEVs and, consequently, the BTMS market.
Local players in these regions offer BEVs at lower costs compared to other regions, driving high demand for various low-cost BTMS solutions. For instance, XING Mobility's introduction of the Next-Gen Immersion Cooling Battery in January 2024 exemplifies technological advancements that will further propel the BTMS market within the BEV segment.
Growth in <100 kWh Battery Capacity Segment
The <100 kWh battery capacity segment is poised for significant growth in the BTMS market during the forecast period. This capacity range balances range and practicality, meeting consumer needs for EVs capable of longer distances without the additional cost or weight of extremely high-capacity batteries. Infrastructure developments supporting EVs with larger battery capacities and proper thermal management are crucial as consumers gain confidence in long-distance travel and quick charging options. For example, the 2024 Audi e-tron GT, with its 93-kWh battery pack providing a range of around 300 miles, uses liquid-cooled systems to ensure optimum performance. The launch of similar EVs with battery capacities under 100 kWh is expected to drive this segment's growth.
US Leads In North American BTMS Market
The US is predicted to lead the BTMS market in North America. Known for its innovation and technology adoption in the automotive industry, the US has a vast network of manufacturers, suppliers, and consumers. The diverse climate, ranging from Alaska's cold winters to Arizona's scorching summers, underscores the need for effective BTMS solutions. As EV adoption rises due to environmental concerns and Government incentives, efficient thermal management solutions become increasingly important. The varied climate presents unique challenges; for instance, frigid temperatures in northern States like Minnesota can severely impact battery performance, while extreme heat in southern states like Texas accelerates battery degradation. The growing EV demand in the US thus presents significant opportunities for BTMS specialists.
Recent Developments
In February 2024, Denso Corporation collaborated with Betterfrost and the Ontario Vehicle Innovation Network to address EV range limitations in extreme temperatures. Also in February 2024, Modine acquired Scott Springfield Manufacturing to diversify its product offerings by incorporating air-handling units. In addition, a partnership between GM and LG Chem, also announced in February 2024, underscores a commitment to advancing battery technology, particularly in addressing challenges like battery degradation, overheating, and safety concerns.
Conclusion
The BTMS market is set for substantial growth, driven by the rising demand for EVs and the need for advanced battery safety solutions. The BEV segment will dominate, with significant contributions from regions like China, Japan, and South Korea. The <100 kWh battery capacity segment offers promising growth opportunities, balancing range and practicality. In North America, the US will lead the BTMS market, presenting significant opportunities for specialists. Recent collaborations and innovations further highlight the dynamic nature of the BTMS market, paving the way for future advancements and growth.
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