Battery Thermal Management System Market Size, Share & Analysis

[330 Pages Report] The global battery thermal management system market size is projected to grow from USD 3.7 billion in 2024 to USD 8.5 billion by 2030, at a CAGR of 14.7%. The BTMS market is witnessing robust growth driven by increasing demand for electric vehicles  and innovation around battery technologies may drive the market for BTMS systems.

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Driver: Innovation in EV battery system

Battery thermal management systems are integral to maximizing the performance and longevity of EV batteries, particularly in the context of significant advancements in battery technology. As innovations such as solid-state batteries and improvements in cathode chemistry reshape the landscape of EV batteries, thermal management becomes even more critical to ensure the efficient operation of these cutting-edge systems. Innovations in cathode chemistry, such as lithium nickel manganese cobalt oxide (NMC), lithium nickel cobalt aluminum oxide (NCA), and lithium iron phosphate (LFP), have led to higher energy densities and improved range in EV batteries. However, these advancements also bring challenges in terms of thermal management. For instance, the Tesla Model S uses LFP batteries. Tesla has developed a new battery design in which the cooling ribbons are now glued directly to the cooling ribbon, and the cooling ribbon spans a greater percentage of the cells' height. NMC batteries typically operate within a voltage range of 3.0–4.2 volts per cell. These have a nominal voltage of 3.6–3.7 volts per cell. NMC batteries use graphite anode and lithium compounds like Lithium Manganese Oxide (LiMn2O4) and Lithium Nickel Oxide (LiNiO2). Due to their current battery components, these batteries typically rely on air or liquid cooling.

Restraint: Complexities associated with design components

The design complexities in components used for a battery thermal management system involve a range of considerations to ensure optimal performance and safety. These complexities include selecting active, passive, or hybrid heat transfer solutions, such as forced air, liquid, or thermoelectric. Engineers must evaluate factors like heat dissipation, power consumption, flow rates, and thermal conductivity of coolants to regulate battery temperature effectively. Additionally, the design process involves modeling the detailed thermal behavior of the battery, selecting components, exploring different parameters, and optimizing the system's performance. Simulation tools like MATLAB and Simulink are utilized to analyze trade-offs, design controls, and assess the thermal impact of various design options. The system design also encompasses considerations like heat transfer paths, cooling plate connections, and thermal interface materials to represent the battery's thermal behavior accurately. Overall, the design of a battery thermal management system involves a comprehensive approach to ensure efficient operation and longevity of the battery under diverse operating conditions.

Opportunity: Growing potential of modular design

Modular design is a promising approach for developing next-generation battery thermal management systems (BTMS) that can improve performance, flexibility, and cost-effectiveness. There are some developments in this area, such as using mini-channel cooling plates with modular designs that can be easily integrated into battery packs. These plates allow for targeted cooling of individual battery cells or modules, improving temperature uniformity. The modular nature enables scalability to different pack sizes and configurations. Optimizing the structural layout of modular BTMS components can further improve performance. Studies have used topology optimization to design efficient liquid cooling plates. Incorporating modular vortex generators or perforated plates into air-cooled racks enhances airflow and heat transfer. Continued research in this area will further advance next-generation BTMS.

Challenge: Irregular operation of BTMS in extreme temperature

Battery thermal management systems (BTMS) face a tough challenge dealing with varied temperatures worldwide. In hot places like the Middle East or parts of Australia, batteries get even hotter, which can cause damage and reduce their lifespan. To fix this, BTMS needs robust cooling systems with larger radiators or multi-stage setups to keep temperatures consistent. Similarly, in cold climates such as Canada or Scandinavia, batteries don't work either, leading to less range and efficiency. To solve this, BTMS uses heating elements and waste heat to keep batteries working correctly. Finding the right balance between cooling and heating is challenging. BTMS must work well in climates, irrespective of the region, to keep batteries functioning smoothly

BTMS Market: Ecosystem

The battery thermal management system market ecosystem encompasses a diverse array of players, each contributing to developing and delivering cutting-edge solutions. The key participants include OEMs, Tier 1 suppliers, BTMS component suppliers, material suppliers, and software & control system providers. Within this ecosystem, tier 1 suppliers are central in designing and producing a wide range of BTMS solutions based on the battery type and its applications. BTMS component suppliers ensure the efficient supply of components needed for BTMS, connecting tier 1 suppliers with end-users across various industries. Additionally, material suppliers supply essential elements for the operation & maintenance of BTMS. Collaboration among these stakeholders is vital for driving innovation and meeting the evolving needs of BTMS end users. Through strategic partnerships and collaborations, the BTMS market ecosystem strives to deliver reliable, efficient, and cost-effective solutions to enhance productivity and the safety of EV batteries.

BTMS without Battery segment is estimated to exhibit the fastest growth in global thermal battery market

BTMS for batteries are procured separately by the OEMs. It depends on the characteristics and configuration that the OEMs want to use in their batteries. The integration of BTMS with batteries in the automotive industry is a critical aspect of ensuring the optimal performance and longevity of lithium-based batteries. OEMs, such as Tesla, BYD, Nissan, and VW (Audi), have taken ownership of the design elements of BTMS, even though components are often procured from external sources. While Tesla and BYD are notable for having their own battery pack integration facilities, other OEMs often rely on Tier 1 suppliers for integration. These OEMs integrate the BTMS into the battery pack at their facilities, reflecting a trend where OEMs are more involved in the design and control of these systems. Luxury car makers, such as Mercedes Benz, have also set up 8 battery factories with existing partners (CATL) across Europe, the US, and China and one with a new partner. Similarly, BMW also plans to build giga factories with partners such as CATL, Northvolt, and Samsung SDi. With such steps by key OEMs, they have full control over the design. This trend will continue in the future, and there is a chance that these OEMs might include BTMS components such as cooling plates and thermal sensors while developing their own battery pack. However, for legacy OEMs such as GM, Ford, and Tata, the integration of BTMS typically relies on Tier 1 suppliers. This shift towards OEMs taking more control over BTMS design highlights the importance of efficient thermal management in enhancing battery performance and safety in electric vehicles.

Hybrid technology segment is expected to have significant growth battery thermal management systems of electric vehicles during the forecast period

Hybrid systems in BTMS combine multiple thermal management techniques to achieve optimal temperature regulation within EV batteries. These techniques often include active liquid cooling, passive cooling, and phase-change materials (PCMs). The integration of these methods enables dynamic and adaptive thermal management, catering to various operational conditions and environmental factors. Hybrid BTMS can be designed as a closed-loop system with feedback control to maintain the battery pack within an optimal temperature range under varying operating conditions and loads. The selection of cooling methods depends on factors such as battery chemistry, pack size, operating environment, and cost constraints. A hybrid approach provides more flexibility to balance performance, complexity, and cost. For instance, BYD uses a hybrid system for its EV models, such as the Dolphine and Yuan Plus. They use direct heating and cooling systems to keep their battery performance at optimal range. Additionally, hybrid BTMS solutions are integral to stationary energy storage systems, grid-scale batteries, and renewable energy integration projects, where efficient thermal management is essential for maximizing performance and reliability. For instance, in November 2023, Stellantis NV (Netherlands) constructed the North America Battery Technology Centre at the Automotive Research and Development Centre (ARDC) in Ontario, Canada. This center represents a significant milestone in the advancement of battery technology within the automotive industry.

Commercial Vehicles segment is expected to see highest growth in battery thermal management system market during the forecast period

The commercial vehicle segment includes LCVs, buses, and trucks. The nature of these vehicles limits their production volumes and growth rates as they are used in specific applications such as logistics. On the other hand, LCVs have come a long way from having bare-essential features to full-blown utility vehicles that can be used for passengers as well as commercial purposes. In EVs, including commercial ones, batteries are susceptible to overheating during operation, especially under heavy loads or in extreme environmental conditions. A robust BTMS helps regulate the temperature of the battery pack, preventing it from getting too hot or too cold, which can degrade battery life and compromise vehicle performance. For instance, companies such as Volvo Group, BYD, Daimler AG, Traton Group, and others are developing or already have EV models for commercial use, integrating effective BTMS in their production lines. The BYD K8 60-foot electric bus utilizes an active liquid cooling system for its BTMS, in which a pump forces a coolant liquid (usually a water-glycol mixture) through a network of channels embedded within the battery pack.

“The Europe thermal battery market is projected to become second largest by 2030.”

The European thermal battery market is considered for France, Germany, the Netherlands, Norway, Sweden, the UK, and the Rest of Europe. Europe has stringent emission regulation standards. The European region's robust support for EVs, exemplified by significant government incentives, has led to a substantial increase in EV demand. This surge is particularly pronounced due to the ambitious emissions reduction goals set by Europe, aiming for an 80% decrease in CO2 emissions by 2030–2035. To achieve these targets, governments across Europe are actively subsidizing EV infrastructure and related components such as battery thermal systems, thermal sensors, and cooling plates, signaling a sustained focus on electric mobility in the foreseeable future. Within this landscape, the presence of prominent OEMs such as Continental AG (Germany), Robert Bosch GMBH (Germany), Valeo (France), and others offers fertile ground for the growth of the electric vehicle battery thermal management systems market in the region. In April 2024, the collaboration between BMW Group and Rimac Technology represents a significant step forward in the advancement of electric mobility. By leveraging Rimac's innovative BTMS technology, BMW aims to further solidify its position as a leader in providing its EVs with advanced BTMS solutions, offering customers unparalleled performance, range, and reliability in their EVs.

Key Market Players

The global BTMS market is dominated by major players such as Robert Bosch (Germany), Gentherm (US), Continental AG (Germany), Denso (Japan), BorgWarner Inc. (US), Webasto Group (Germany), among others.

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Scope of the Report

This research report categorizes the BTMS market based on Technology Type, Battery Type, Battery Capacity, Propulsion, offering, Vehicle Type, and region

BTMS Market, By Vehicle Type:

• Passeneger Vehicles
• Commercial Vehicles

BTMS Market, By Battery Type:

• Li-ion
• Solid state

BTMS Market, By Propulsion Type:

• BEV
• FCEV
• PHEV

BTMS Market, By Battery Capacity:

• <100 KWH
• 100-200 KWH
• 200-500 KWH
• >500 KWH

BTMS Market, By offering:

• BTMS with Battery
• BTMS without Battery

BTMS Market, By Region

• Asia Pacific
• Europe
• North America
• Rest Of The World

BTMS Market, By Technology

• Active technology
• Passive Technology
• Hybrid Technology

Recent Developments

• In February 2024, Denso Corporation's collaboration with Betterfrost and the Ontario Vehicle Innovation Network represents a significant advancement in addressing the range limitations of EVs in extreme heat and cold.
• In February 2024, The acquisition betwwen Modine and Scott Springfield Manufacturing  to diversify its product offerings by incorporating air-handling units into its portfolio.
• In February 2024, The partnership between GM and LG Chem underscores a commitment to advancing state-of-the-art battery technology. By prioritizing thermal management solutions, they aim to address key challenges such as battery degradation, overheating, and safety concerns.
• In January 2024, The partnership between Bosch’s Rexroth and Modine emphasizes the development of customized thermal management solutions tailored to the specific requirements and operating conditions of off-highway applications.
• In January 2024, The joint venture between BorWarner Inc. and Shaanxi Fast Auto Drive Group helps address key challenges faced by electric CVs, such as range limitations, charging times, and overall reliability.
• In January 2024, The partnership between ZutaCore and Valeo represents a significant step forward in advancing battery thermal management systems for EVs.
• In December 2023, The strategic partnership between Valeo and FUCHS represents a significant collaboration in the pursuit of excellence and innovation in automotive thermal management.
• In November 2023, The partnership between LG Chem and SNU aims to leverage their respective expertise to innovate new materials that will optimize the thermal management of batteries.
• In October 2023, Continental acquired KINEXON (Germany) to address key challenges regarding battery operation in dynamic and demanding environments.
• In July 2023, The partnership between MAHLE and ProLogium represents a strategic collaboration to advance the state-of-the-art in thermal management solutions for solid-state batteries.
• In June 2023, The agreements between Carrar, Gentherm, and Röchling represent a strategic alliance to advance battery thermal management systems for electric and hybrid vehicles.
• In May 2023, Carrar and Gentherm have entered into a strategic collaboration to deliver advanced two-phase immersion thermal management systems for electric vehicle battery modules.

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