Thermal Management Market

Global Thermal Management Market Size (2024 to 2032)

The size of the global thermal management market was worth USD 4.91 billion in 2023. The global market is anticipated to grow at a CAGR of 6.8% from 2024 to 2032 and be worth USD 8.89 billion by 2032 from USD 5.25 billion in 2024.

Current Scenario of the Thermal Management Market

Thermal management comprises the tools and technologies used to maintain the system within the operating temperature range. Thermal management typically plays a crucial role in preventing overheating in electronic devices. The thermal management system involves the control of temperature through technology, which covers various forms of heat transfers such as conduction, convection, and radiation. The thermal management solutions address the heat issues and remove or dissipate the excess heat from the device, ensuring maximum performance and longer shelf-life. The global thermal management market has accounted for significant growth in the past years and is anticipated to have notable growth during the forecast period. The expansion of various industries, majorly electronics and automotive, contributes to the expanded market growth rate. According to the International Energy Agency (IEA), electric car sales are projected to reach the milestone of over 1 million units in 2024, which is a significant increase of over 40% compared to 2023.

MARKET DRIVERS

The expanding electronics and automotive industries worldwide enhance the demand for thermal management solutions, contributing to global thermal management growth.

The growing prevalence of electronic devices, increased incorporation of the Internet of Things (IoT), and the rise in data centers are rising demand for thermal management, leading to market growth. The increasing shift towards electronic vehicles is another primary factor for the market expansion. The growing demand for extended battery life in electric vehicles is escalating the requirement for efficient cooling systems, which fuels the market growth rate. The rising technological advancements worldwide enhance the comprehensive utilization of Artificial Intelligence to increase cloud services, search engines, and others. The integration of artificial intelligence requires more power and bandwidth, accelerating the demand for efficient cooling solutions by ensuring sustainability and reliability and propelling the market with growth opportunities.

The continuous research of the manufacturers on the development of advanced cooling solutions depends on the multi-phase heat transfer technologies, which accelerates the market growth.

The increasing adoption of renewable energy sources in most of the major developed countries and the rapid industrialization across emerging nations are estimated to positively influence the market growth rate. The enlarging consumer electronics industry is the primary application of thermal management owing to its necessity in the devices, which augments the market revenue growth. The rising adoption of tablets and smartphones plays a crucial role due to sensitivity regarding weight and cost, which enhances its dependency on advanced cooling solutions, leading to global thermal management market growth.

MARKET RESTRAINTS

The primary factor hampering the thermal management market's growth is the complexity of designing cooling system components.

During the thermal process, various complications arise, such as solid property variations, conjugate mechanisms, chemical interactions, and reactions, which challenge manufacturers during market expansion. The optimization of cooling systems to limit power consumption, weight, and cost hinders market growth due to complex challenges. The high development costs due to customization for consumer electronics and computers are restricted to small and middle-income organizations due to limited budgets, leading to restricted market growth. The requirement for more power processes means more significant investments by the company in energy consumption, which inhibits market revenue growth.

The stringent regulations for approval of the products and their efficiency will be complex and time-consuming and will be challenging for the market growth rate.

The cases of limited or inadequate cooling efficiency and reliability concerns act as primary challenges in the market growth, as minor disruptions in the data center industry due to overheating may lead to a substantial negative impact.     

REPORT COVERAGE

SEGMENT ANALYSIS

Global Thermal Management Market Analysis By Product Type

The hardware segment accounted for the most significant share and is expected to maintain the revenue during the forecast period. The hardware involves various physical components and devices for controlling and regulating heat, including heat pipes, heat sinks, thermal interface materials, and liquid cooling systems, propelling the segment growth rate. Hardware solutions are essential for efficiently transferring heat from electronic components and industrial machinery, which enhances the hardware solutions and leads to segment growth. The management and prevention of overheating issues are achieved by maintaining the operational reliability of the electronic devices, which is the primary factor driving the segment revenue growth.

The software segment is projected to grow significantly during the forecast period owing to its role in developing and implementing algorithms and control systems that optimize thermal performance.

Global Thermal Management Market Analysis By Application

The computer segment held the most significant share of the global thermal management market revenue and is expected to maintain the highest CAGR during the forecast period. Computers comprise desktops, laptops, servers, and data centers, which require efficient thermal management. These devices generate significant heat during operational procedures, which needs effective thermal management to maintain device performance and extend the lifespan of the devices, which is boosting the segment's growth opportunities.

The consumer electronics segment is estimated to have notable growth during the forecast period. Consumer electronics comprises a wide range of devices, including smartphones, tablets, gaming consoles, and home appliances. These devices highly need the management of heat generation, leading to segment growth.

REGIONAL ANALYSIS

The North American region accounts for the majority share in the global thermal management market owing to its advanced technological ecosystem.

The presence of major advanced tech companies, data centers in the United States, and critical automotive manufacturers is propelling the regional market growth rate. The growing innovations and sustainability in the United States and Canada for thermal management contribute to market growth. Government regulations regarding energy efficiency and emissions are enhancing the adoption of thermal management solutions, accelerating the market revenue.

The Asia Pacific region is considered aa significant player in the thermal management market owing to its rapid industrialization and enhanced electronic sector.

The changing shift towards renewable energy sources in countries like China, Japan, South Korea, and India, as well as the expanding automotive manufacturing, are creating growth opportunities for market growth.

The European region is estimated to grow considerably during the forecast period due to a strong emphasis on environmental sustainability and energy efficiency.

The enlarging telecommunications and automotive industry across European countries drives the regional market growth. The increased demand for green technologies and stringent regulations for energy-efficient practices boost market revenue.  

KEY PLAYERS IN THE GLOBAL THERMAL MANAGEMENT MARKET

Companies playing a prominent role in the global thermal management market include Parker Hannifin Corporation, Siemens AG, Boyd Corporation, Henkel AG & Co. KGaA, Honeywell International Inc., Laird Thermal Systems, Robert Bosch GmbH, Gentherm Incorporated, Autoneum Holding AG, Advanced Cooling Technologies Inc., and Others.

RECENT HAPPENINGS IN THE GLOBAL THERMAL MANAGEMENT MARKET

• In July 2023, Mahle, an automotive industry supplier, announced its collaboration with ProLogium, a producer of solid-state battery cells in Taiwan. The collaboration is to create and assess thermal management solutions for next-generation solid-state batteries.
• In June 2023, the technology giant ZF announced its in-house thermal management system for electric vehicles (EVs) during its annual Global Technology Day Event.
• In September 2022, Henkel acquired Nanoramic Laboratories' thermal management materials business, which is marketed under the brand name Thermexit. The primary aim of the acquisition was to strengthen Henkel's market position.  

DETAILED SEGMENTATION OF THE GLOBAL THERMAL MANAGEMENT MARKET INCLUDED IN THIS REPORT

This research report on the global thermal management market has been segmented and sub-segmented based on product type, application, and region.

By Product Type

• Software
• Hardware
• Substrate
• Interface

By Application

• Computers
• Consumer Electronics
• Automotive Electronics
• Telecommunication
• Renewable Energy
• Others

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa