Electric vehicle battery thermal management market projected to reach $8.4 billion by 2031
A report by Allied Market Research forecasts the battery thermal management system market to grow at a CAGR of 14.6% as electric vehicle adoption accelerates.
The global market for electric vehicle battery thermal management systems (BTMS) is projected to reach $8.4 billion by 2031, rising from a valuation of $2.3 billion in 2021. According to data from Allied Market Research, the sector is expected to expand at a compound annual growth rate (CAGR) of 14.6% during the forecast period.
Growth in this sector is driven by the global transition to electric mobility and the subsequent demand for sophisticated heat management to maintain battery efficiency and safety. While air-cooling technologies were dominant in 2021 due to lower costs, industry forecasts suggest a pivot toward liquid cooling and heating systems as high-performance requirements increase.
Geographically, the Asia-Pacific region currently holds the largest share of the market, fueled by manufacturing activity in China and growing demand in India. Europe is anticipated to experience the highest growth rate through 2031. Industry analysts note that while the COVID-19 pandemic hindered supply chains and automotive production in recent years, the market remains tied to the volume of electric vehicle output globally.