The automotive thermal system which comprises battery thermal management, heating ventilation and air conditioning, powertrain cooling, powertrain device cooling, and waste heat recovery, is a necessary system to control emissions. Factors such as stringent emission norms and increased use of eco-friendly refrigerants are fueling the global automotive thermal system market. The growing preference for lighter automotive is another reason behind the surge in the demand for automotive thermal system.
Increased demand for Automotive Heating and Ventilation Systems
Increase in demand for automotive heating systems propelling the global automotive thermal system market. Sensors that can detect engine and cabin temperatures are required by automotive heating and cooling systems. These sensors form a part of the thermal system, thus driving the market. Moreover, an increase in the demand for luxury cars in the Asia Pacific and Europe is also driving the global thermal system market.
Cost Cutting Measures by Manufacturers of Automotive to Pose a Challenge for Automotive Thermal System Market
Automotive thermal systems are expensive and thus, automotive manufacturing companies are cutting cost and avoiding the use of these systems. Global warming is another major challenge for the automotive thermal system market since they have to adhere to several emission norms. Various countries such as the U.S., Germany, India, and France have strict rules and environmental regulations, which is posing a major hindrance to automotive thermal system manufacturers. However, increasing demand for thermal systems that run on alternative fuels is expected to emerge as a growth opportunity for the global thermal system market in the coming years.