Global Thermal Systems Market Size, Share & Trends [2026-2033]

The thermal systems market for ICE vehicles is projected to reach USD 50.28 billion by 2033 from USD 44.85 billion in 2026 at a CAGR of 1.6% during the forecast period. The market is supported by increasing vehicle production, rising thermal loads, and the need to improve energy efficiency across ICE and EVs. While vehicle electrification is creating new thermal-management requirements for batteries, motors, and power electronics, ICE and hybrid vehicles continue to represent a significant revenue base for engine cooling, charge-air cooling, HVAC, and exhaust thermal-management systems. According to ACEA in Europe, hybrid-electric vehicles accounted for 37.3% of new passenger car registrations in H1 2026, while battery-electric vehicles accounted for 20.7% of new passenger car registrations in H1 2026, highlighting the continued coexistence of multiple powertrain technologies.

Increasing focus on engine efficiency and emissions control is creating new opportunities for engine thermal-management systems. Engine downsizing, engines with turbochargers, higher power density, and tighter operating-temperature requirements are increasing the need for efficient heat rejection and temperature control, supporting demand for radiators, charge-air coolers, EGR coolers, oil coolers, electric water pumps, cooling fans, thermostats, and thermal valves. The opportunity is particularly relevant in gasoline and diesel vehicles. At the same time, regulatory requirements such as Euro 7 are encouraging further optimization of engine and exhaust thermal management in Europe.

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=228170865

Reducing HVAC energy consumption is another revenue pocket as automakers focus on improving overall vehicle efficiency. HVAC systems are increasingly being designed to deliver cabin comfort with lower energy consumption, particularly in hybrid and electric vehicles where auxiliary loads directly affect fuel economy or driving range, creating demand for electric compressors, heat pumps, efficient heat exchangers, thermal valves, and compact HVAC modules. Suppliers are also integrating HVAC with the wider vehicle thermal system to manage cabin, battery, power electronics, and drivetrain temperatures through a common architecture.

Hybridization is creating additional demand for integrated thermal-management systems, such as increasing use of electric coolant pumps, multi-way valves, chillers, heat exchangers, and multiple cooling circuits. The strong penetration of hybrids in major markets provides a sizeable opportunity for suppliers, particularly as automakers continue to use hybrid powertrains as a transition technology alongside both conventional ICE and fully electric vehicles. In the EU, hybrid-electric vehicles held the largest powertrain share at 37.3% in H1 2026.

The increasing adoption of electric vehicles is creating new revenue opportunities in battery and power-electronics thermal management. According to the IEA, global electric car sales exceeded 20 million units in 2025, representing one-quarter of global new car sales. The increase in battery capacity, fast-charging capability, and power density is raising the importance of maintaining optimal operating temperatures for batteries, electric motors, and power electronics, driving demand for battery cooling systems, chillers, coolant pumps, heat exchangers, e-compressors, heat pumps, and integrated thermal modules. As thermal efficiency becomes increasingly linked to vehicle range and charging performance, thermal management is moving from a supporting system to a key component of EV performance.

Commercial vehicles represent a distinct thermal opportunity because their higher cooling requirements and continuous operating cycles require more robust thermal architecture. Electric trucks and buses require high-capacity battery cooling, e-motor and inverter cooling, high-voltage heating, and thermal management during high-power charging, while ICE trucks continue to require engine cooling, charge-air cooling, transmission cooling, exhaust thermal management, and heavy-duty HVAC. For instance, MAHLE identifies battery cooling plates, 800V electric compressors, electronics cooling plates, and coolant pumps as key technologies for electrified commercial vehicles, while its conventional CV portfolio includes cooling modules, charge-air coolers, and low-temperature radiators. This creates a two-track opportunity for thermal suppliers: higher-value electrified systems as electric CV penetration increases, alongside continued demand for high-capacity ICE thermal systems across the existing truck and bus fleet.

Asia Pacific is expected to remain a major revenue pocket due to its large vehicle production base and simultaneous adoption of ICE, hybrid, and electric powertrains. According to the IEA, China remains the largest center for electric-vehicle manufacturing, accounting for nearly 75% of global electric-car production in 2025, while nearly 22 million electric cars were produced globally. At the same time, India, Japan, South Korea, and Southeast Asian markets continue to support demand for conventional and hybrid vehicles, creating opportunities for suppliers across engine cooling, HVAC, battery thermal management, heat pumps, e-compressors, and integrated thermal modules. As a result, the region's revenue opportunity is being driven not only by EV penetration but also by the increasing thermal content per vehicle across ICE, hybrid, and electric platforms.

Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=228170865

About MarketsandMarkets™

MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report.

MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe.

Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem.

The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts.

To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter , LinkedIn and Facebook .

Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com
Visit Our Website: https://www.marketsandmarkets.com