The thermal management market worldwide is expanding rapidly. It is currently approximately USD 12.8 billion in 2024. It may reach USD 27.9 billion by 2034. That’s more than double within a period of just ten years, concluding that the market will grow at a consistent rate of 8.1% per annum. A huge chunk of this change is due to the shift towards electric vehicles. More individuals and businesses are utilizing EVs these days. These cars require intelligent systems to manage the heat generated by motors and batteries. Additionally, novel materials such as graphene and phase-change materials are being utilized. These are more efficient at managing heat.
In addition to that, organizations are employing intelligent tools such as machine learning and AI. These find and repair heat problems before they do any damage. This applies in vehicles, computers, smartphones, and aircraft. The more people use technology, the larger the task of controlling heat becomes. Therefore, the demand for thermal management systems continues to increase.
Key Reasons for Growth
- Electric Vehicles (EVs): EVs require robust systems to manage heat. Batteries, motors, and wires all get heated when used. They are destroyed if they are not cooled properly. Therefore, auto manufacturers are investing more in these systems.
- New Materials: Graphene and phase-change materials are changing the game. They help cool systems faster and better. They also last longer.
- Smart Tech Use: AI and machine learning help predict when systems might overheat. These tools allow early fixes. As a result, devices work better and last longer.
- Liquid Cooling Systems: These are getting more popular. Liquid cools better than air. That’s why industries are switching to liquid systems for faster cooling.
- Adhesive Materials on the Rise: Glue-like materials are now used to move heat away from hot spots. They also help parts stay strong. These materials are expected to grow at 7.8% yearly till 2034.
- Automotive Sector Leads: Cars, especially electric ones, have many parts that need heat control. This is why the auto sector will likely grow at 7.6% per year till 2034.
- Aerospace Demands: Planes need systems that work in very hot and very cold places. The industry wants lighter parts that don’t break down under stress. This need boosts demand for new cooling systems.
 What’s Holding the Market Back?
There are some challenges as well. One significant challenge is sustainability. Most cooling systems incorporate electronic components. It is detrimental to the earth when disposed of. Companies, therefore, require environmentally friendly options.
Also, some of the newer systems are still plagued by problems with performance. They are great on paper, but don’t necessarily perform so well in actual life.
What the Past Tells Us
Between 2019 and 2023, the market grew 11% every year. By 2023, it hit USD 11.7 billion. That growth was driven by tech, telecom, and consumer gadgets. People started realizing how overheating damages performance.
In the future, between 2024 and 2034, the market will expand slightly less but continue to be robust. At 8.1% annually, that’s still strong. The EV push will continue as one of the leading causes of this growth.
Who’s Leading the Race?
Here’s how some countries are doing:
- South Korea: Set to grow by 9.6% each year. By 2034, the market may reach USD 1.7 billion. Its electronics sector is giving it a big push.
- United Kingdom: With 9.1% yearly growth, it could touch USD 1.1 billion. Clean energy projects are helping here.
- Japan: Expected to grow at 8.7% yearly and reach USD 2.9 billion. The government is pushing energy efficiency.
- China: A major player. Could hit USD 4.4 billion by 2034, growing at 8.5%. The country’s factories and devices need smart cooling.
- United States: Still the biggest. By 2034, it may top USD 5 billion. Its strong EV market is the reason.
Big Moves by Companies
Here are some key recent events:
- In July 2020, European Thermodynamics Ltd. launched a new silicone-free gap filler. It helps move heat away more easily.
- In July 2021, DuPont bought Laird PLC to become stronger in the market.
- In March 2023, Honeywell teamed up with Watershed Organisation Trust. They aimed to follow eco-friendly practices.
The following decade is expected to transform this industry significantly. Thermal systems will be a major contributor to making devices and automobiles safer and more efficient. EVs will be the largest consumers. The world is moving faster toward digital and electric tech. That means the need to keep things cool is not going anywhere. In fact, it’s only going to grow.
What This Means for India
In India, the EV shift is real from e-rickshaws to electric scooters to buses. With high temperatures and traffic jams, smart cooling systems are vital. Companies here need to invest in strong and affordable thermal systems. Plus, local innovation in adhesive materials and AI tools could set Indian firms apart in the global race.
About Future Market Insights (FMI)
Future Market Insights, Inc. is renowned worldwide for its in-depth research in the market. It is ESOMAR certified, holds a Stevie Award, and is an honoured member of the Greater New York Chamber of Commerce. FMI provides expert guidance, analytics, and reports within several industries. Supported by a world team of more than 400 analysts, they provide insights. Specifically, for more than 110 countries, assisting companies to foresee market trends and remain one step ahead.