Electric Vehicle Battery Thermal Management Systems growing at a CAGR of 32.9% from 2025 to 2030

The global electric vehicle battery thermal management systems market size was estimated at USD 5.41 billion in 2024 and is projected to reach USD 29.09 billion by 2030, growing at a CAGR of 32.9% from 2025 to 2030. The substantial growth in popularity and adoption of electric vehicles (EVs) globally has driven the demand for thermal management solutions that can enhance the performance, safety, and lifespan of their batteries.

Key Market Trends & Insights

• In terms of region, Asia Pacific was the largest revenue generating market in 2024.
• Country-wise, Japan is expected to register the highest CAGR from 2025 to 2030.
• Based on system, the passive segment accounted for a dominant revenue share of 78.2% in 2024.
• Based on application, the passenger vehicle segment accounted for a dominant revenue share in 2024.

Market Size & Forecast

• 2024 Market Size: USD 5.41 Billion
• 2030 Projected Market Size: USD 29.09 Billion
• CAGR (2025-2030): 32.9%
• Asia Pacific: Largest market in 2024

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An increase in awareness regarding the environmental benefits of EVs has boosted their production, particularly in emerging economies such as India and China, leading to a corresponding growth in manufacturing advanced battery systems. This has led to significant progress in the EV battery thermal management systems industry.

Electric vehicle batteries, especially lithium-ion batteries, perform optimally within a specific temperature range, which is generally around 68-86°F. A battery thermal management system (BTMS) ensures that the battery temperature stays within this range by cooling or heating the battery as required. This helps maintain consistent energy output levels and charging/discharging efficiency, positively impacting the vehicle’s driving range and performance. With increasing sales of EVs, the need for efficient and reliable battery thermal management systems has risen significantly to ensure that these vehicles perform optimally in all conditions. According to BloombergNEF (BNEF), electric vehicle sales are expected to reach 16.7 million units in 2024, growing from 13.9 million in 2023. Automakers are moving toward increasing the driving range of EVs, resulting in the development of larger and higher-capacity batteries. Such batteries generate more heat during charging and discharging, creating greater thermal management challenges. This has resulted in a strong demand for active and passive BTM systems.

The growing popularity and implementation of fast-charging networks, which can charge EV batteries rapidly, leads to excessive heat generation in these components. Efficient BTMS solutions are crucial to handle such thermal loads, ensuring safe and quick charging without damaging the battery. Governments across developed economies are implementing fast-charging networks for consumer convenience. According to the Global EV Outlook 2024 report by the International Energy Agency (IEA), there was an increase of over 40% in the public charging stock worldwide in 2023, with the expansion rate of fast chargers outpacing that of slow chargers. Fast chargers accounted for more than 35% of the public charging stock in 2023 and are expected to maintain a positive growth trend in the coming years. However, their high power delivery generates substantial heat due to internal resistance and electrochemical reactions, which can lead to thermal runaway, reduced battery efficiency, and shortened battery lifespan in vehicles. Manufacturers in the electric vehicle battery thermal management systems industry are thus focused on developing solutions that can address this issue conveniently.

Electric Vehicle Battery Thermal Management Systems Market Report Scope