Thermal Systems Market

Thermal Systems: An Overview

Thermal systems refer to the systems that generate, transfer, and utilize thermal energy. Thermal energy is the energy that is transferred between objects due to the difference in temperature. Thermal systems are used in various fields such as engineering, physics, chemistry, and biology.

Thermal systems can be classified into two main categories: closed systems and open systems. Closed systems are those in which no matter is exchanged with the surroundings, whereas open systems are those in which matter is exchanged with the surroundings.

Thermal systems can also be classified according to the type of energy conversion they perform. Some examples of thermal systems include power plants, refrigerators, air conditioning systems, and engines.

One of the most important applications of thermal systems is in power generation. Power plants use thermal energy to generate electricity. The most common type of power plant is a steam power plant, which uses thermal energy to convert water into steam, which is then used to power turbines that generate electricity.

Thermal systems are also used in refrigeration and air conditioning. Refrigeration systems use thermal energy to transfer heat from a low-temperature environment to a high-temperature environment. Air conditioning systems use thermal energy to transfer heat from the inside of a building to the outside.

Thermal systems are also used in engines. Engines convert thermal energy into mechanical energy. The most common type of engine is the internal combustion engine, which uses thermal energy from the combustion of fuel to generate mechanical energy.

Thermal systems are also used in chemical reactions. Chemical reactions that require heat are called exothermic reactions, whereas chemical reactions that release heat are called endothermic reactions.

In conclusion, thermal systems play a crucial role in various fields such as engineering, physics, chemistry, and biology. They are used in power generation, refrigeration, air conditioning, engines, and chemical reactions. Understanding thermal systems is essential for the development of new technologies and for the efficient utilization of energy resources.

Thermal Systems Market Dynamics

DRIVERS in Thermal Systems Market

The thermal systems market is driven by the need to comply with vehicular emission regulations and the increasing demand for fuel-efficient vehicles. Governments across the globe are implementing regulations to control greenhouse gas (GHG) emissions, resulting in a rise in the stringency of emission norms. For instance, the European Union and China have implemented Euro VI and China VI, respectively, to encourage zero emissions. This has led automotive OEMs to focus on developing advanced engines and exhaust technologies that require advanced thermal systems to reduce emissions and improve vehicle efficiency by reusing waste heat for other functions.

Premium vehicles are equipped with various thermal system technologies such as engine thermal mass reduction, predictive powertrain control, integrated liquid-cooled exhaust/EGR, transmission rapid warm-up, dynamic engine thermal control, and Thermoelectric Capture and Generation (TEG). Moreover, the demand for cleaner emissions necessitates sophisticated exhaust systems with efficient thermal management. The exhaust thermal management systems can be either active or passive, depending on the application. Active systems include catalytic heaters, burners, and electric heaters, while passive systems comprise low thermal mass catalyst substrates, double-walled pipes insulation, air dilution, and after-treatment technologies such as SCR and EGR.

As emission regulations become more stringent, the demand for these thermal system technologies is expected to increase globally, particularly in European countries, China, and India, for all types of vehicles. This rising demand for advanced thermal systems in the automotive industry is expected to boost the growth of the thermal systems market.

RESTRAINTS in Thermal Systems Market

The adoption of new technologies by OEMs is a result of the need to meet strict emission and fuel economy standards. Manufacturers are also focusing on improving engine performance and in-vehicle comfort features, which requires the development of powertrain, drivetrain, and thermal systems. To evaluate the performance of thermal systems, their cost-effectiveness and CO2 reduction potential are crucial. OEMs have already introduced technologies that offer high ROI and CO2 reduction, which are commonly found in their premium models. Top manufacturers such as BMW, Fiat Chrysler, Ford, GM, Honda, Hyundai, JLR, Kia, Mercedes, and Nissan have incorporated various technologies, including predictive powertrain control, variable engine oil pump, integrated liquid-cooled exhaust/EGR, polymer material heat exchangers, active grille shutters, and multizone climate control systems. While there are many thermal system technologies available, they are mostly present in luxury vehicles due to their cost-benefit ratio. As a result, it is likely that advanced thermal systems will continue to be limited to luxury vehicles in the future due to their high cost.

OPPORTUNITY: Increasing Demand for Electric Vehicles and Advancements in Mobility Solutions

In the last 4-5 years, electric vehicles have been gaining exponential acceptance in China, the US, and European countries. Automotive Original Equipment Manufacturers (OEMs) are consistently working on developing efficient, affordable, and long-range battery-powered passenger vehicles. Critical factors that can enhance the performance, driving range, and vehicle lifetime include thermal systems for batteries, traction motors, power electronic modules, and auxiliary loads such as cabin heating and cooling, and other electric components.

The automotive industry has made significant progress in semi-autonomous and fully autonomous vehicles, and the thermal systems for these vehicles not only regulate internal heating and ventilation but also aid in engine cooling and efficient vehicle functioning. With differential heating at start-up and TEG technologies, the vehicle start-stop mechanism can be centralized to optimize fuel utilization with minimal wastage. Moreover, advanced technologies such as multizone climate control, autonomous collision avoidance systems, infotainment systems, head-up displays, heating and ventilated seating systems, several sensors, and other electronic components require thermal protection for superior performance. Thus, the growing developments in autonomous vehicles would subsequently require better thermal management to handle the heat generated by sensors and other components in these vehicles.

CHALLENGES in Thermal Systems Market

The lack of standardization is a significant challenge faced by local or regional manufacturers in the automotive thermal systems market. As emission regulations vary by region, it can be challenging to export thermal-related systems such as catalytic converters, SCR, and EGR due to the absence of standardization. For example, stringent CO2 regulations in Europe require emission reduction, whereas such mandates do not exist in developing countries like South Africa. This makes it difficult for manufacturers to source raw materials or inventory, hampering their export business. Manufacturers resort to low-volume production, resulting in high manufacturing costs.

In addition, engine technology must be upgraded to comply with Euro III/IV/V and Tier 3/4, according to the European Commission and the US Environmental Protection Agency. This has increased the need for after-treatment devices and enhanced thermal technologies that comply with upgraded technology. Thus, the lack of standardized technical norms and high manufacturing costs can hinder the growth of the automotive thermal systems market.

However, the rise in disposable income and improvements in living standards have led to an increase in demand for luxury vehicles with advanced features and comfort, such as heated and cooled comfortable seats, airbags, and heated steering. Manufacturers are integrating advanced thermal systems into luxury vehicles to improve their performance and fuel efficiency, which is expected to increase demand for automotive thermal systems. Therefore, the growth of the global automotive thermal systems market is anticipated to be propelled by the increasing demand for luxury vehicles with advanced features and comfort during the forecast period.

Thermal Systems Market Ecosystem

During the forecast period, front air conditioning is projected to be the largest application segment in the thermal systems market. The growth of the front A/C market is mainly attributed to its standardization in all passenger cars and in most light commercial vehicles. Thus, the demand for front A/C is expected to increase in line with the growing production of passenger and light commercial vehicles. Moreover, the rising demand for high-end full-size SUVs would boost the demand for automatic climate control and rear air conditioning to provide sufficient cooling to third-row passengers. The increasing demand for luxury vehicles would drive the market for multi-zone climate control systems. Simultaneously, government mandates for cabin AC for commercial vehicles would drive the front air conditioning market. For instance, the European Commission mandated the use of cabin AC in all commercial trucks. The Indian government mandated the fitment of air conditioning in HCVs, although it is yet to be fully realized. Similar mandates are expected to come in the commercial vehicles segment, which is expected to boost the market share of the front air conditioning system.

The heat exchanger is projected to be the largest component segment for thermal systems. Engine and transmission cooling are one of the major focus areas among global OEMs due to stringent norms for harmful gases with increased demand for fuel-efficient vehicles. Also, the focus on reducing energy consumption and the growing automatic gearboxes in passenger cars and LCVs requires heat exchangers for the transmission system. Furthermore, air conditioning is responsible for major heat loss in vehicles, and the rising adoption of automatic and multizone climate control in mid to top segment vehicles is set to drive heat exchangers for air conditioning systems. Additionally, the increasing focus on heat recovery using thermoelectric generators is estimated to offer growth potential to the heat exchanger market for waste heat recovery technology.

The off-highway vehicle thermal systems market is led by farm tractors, with the largest share in the segment. In Asia Pacific, farm tractors also dominate the thermal systems market. Emission regulations related to tractors are being introduced globally, such as the Indian government's implementation of BS Term IV regulation in October 2020 for diesel engine equipment, including agricultural tractors and construction equipment. Similarly, the European Commission proposed emission standards for non-road mobile machinery (NRMM), which were adopted by the EU Parliament in 2016 and rolled out in 2018. This has fueled the demand for thermal system components such as radiators, charge air cooler, hydraulic oil cooler, and EGR systems.

Asia Pacific is expected to be the dominant regional market for thermal systems due to factors such as changing consumer preferences, increasing per capita income of the middle-class population, and cost advantages to global OEMs. The demand for passenger cars is increasing in the region, with front A/C becoming standard in all vehicles. Moreover, the rising demand for mid and full-size SUVs, luxury cars, and government initiatives towards electric vehicles are driving the need for thermal systems for engines and transmissions, batteries and electric motors, as well as superior cabin comfort technologies such as heated/ventilated seats and rear air conditioning. China, with its growing vehicle production and sales, is projected to be the largest market for thermal systems in the region.

Key Players in Thermal Systems Market

• DENSO CORPORATION
• MAHLE GMBH
• VALEO SA
• HANON SYSTEMS
• BORGWARNER INC
• GENTHERM INC
• SCHAEFFLER AG
• JOHNSON ELECTRIC HOLDINGS LTD
• DANA LIMITED
• ROBERT BOSCH GMBH
• EBERSPACHER
• CONTINENTAL AG
• VOSS AUTOMOTIVE GMBH
• GRAYSON THERMAL SYSTEMS
• CAPTHERM SYSTEMS
• DUPONT
• BHTC
• BOYD CORP.
• SANDEN HOLDINGS CORP.
• SANHUA AUTOMOTIVE
• SHANDONG HOUFENG GROUP
• MAGNA INT.
• LEAR COPR.
• STANT COPR.
• AIR INTERNATIONAL THERMAL SYATEMS
• MICHIGAN AUTOMOTIVE COMPRESSOR, INC.
• MODINE MANUFACTURING COMPANY
• WELLS VEHICLE ELECTROICS
• T.RAD NORTH AMERICA INC.
• THERMAL SOLUTION MANUFACTUURING, INC.
• AKG THERMAL SYSTEMS INC.

Recent Developments in Thermal Systems Market

The thermal systems market has been witnessing significant developments in recent years, driven by advancements in technology, increasing demand for energy-efficient systems, and growing concerns about climate change. Here are some non-plagiarized updates on recent developments in the thermal systems market:

The Thermal Systems Market has seen various developments in recent years. In March 2022, MAHLE Aftermarket expanded its portfolio to include indirect air conditioning condensers for modern vehicles. The same month, Hanon Systems opened a new plant in China to manufacture HVAC modules for electrified vehicles. In November 2021, MAHLE developed an innovative internal coating for fuel cell coolers to improve operational safety and fuel cell service life. In May 2021, Hanon Systems completed the acquisition of the condenser business from Keihin Corporation in Europe and North America. In March 2021, Hanon Systems began construction on its fifth plant in Korea to produce heat pump modules and coolant valve assemblies for electric vehicles. In February 2021, MAHLE acquired Keihin Corporation's thermal management business activities in Japan, Thailand, and the US. Finally, in February 2021, Schaeffler invested EUR 80 million in a new central laboratory complex in Herzogenaurach as part of their Roadmap 2025 strategy to strengthen their position as a center of technological excellence.

Increasing Adoption of Renewable Energy Sources: The growing need to reduce carbon emissions has led to the increasing adoption of renewable energy sources such as solar and wind power. The use of thermal energy storage systems has also become more prevalent in recent years to help integrate renewable energy into the grid.

Advancements in HVAC Systems: The HVAC industry has seen significant advancements in recent years, including the development of smart thermostats and the integration of IoT technology. These systems can monitor and adjust temperature and humidity levels in real-time, providing greater comfort and energy efficiency.

Growing Demand for Electric Vehicles: With the rise of electric vehicles, there has been an increasing demand for thermal management systems that can help regulate the temperature of batteries and other components. This has led to the development of innovative solutions such as liquid cooling and heat pumps.

Emergence of Energy Storage Systems: Energy storage systems are becoming increasingly important as the use of renewable energy sources grows. Thermal energy storage systems, in particular, are gaining traction due to their ability to store energy for long periods of time and release it when needed.

Shift Towards District Heating and Cooling: District heating and cooling systems are becoming more popular as a way to reduce energy consumption and emissions. These systems use centralized thermal plants to provide heating and cooling to multiple buildings, reducing the need for individual heating and cooling systems.

Overall, the thermal systems market is experiencing significant growth and innovation, driven by the need for energy-efficient solutions and the shift towards renewable energy sources. As technology continues to advance, we can expect to see even more developments in this space in the coming years.