Traditional Fuel and New Energy Vehicle Thermal Management System Product Introduction
Traditional Fuel and New Energy Vehicle Thermal Management System refers to a series of systems and technologies used to control the temperature of various vehicle components (such as the engine, battery, power electronics, passenger compartment, and transmission system) to ensure the performance, safety, and durability of the entire vehicle. With the accelerating electrification of automobiles and the increasing demands for energy conservation and safety, thermal management systems have become a key component of modern automotive design.
The main components of a Traditional Fuel and New Energy Vehicle Thermal Management System include various pumps (mechanical water pumps, electric water pumps, electric oil pumps, etc.), valves (thermal expansion valves, electronic expansion valves, solenoid valves, multi-way water valves, etc.), heat exchangers (front-end modules, air conditioning units, battery coolers, battery water-cooled plates), compressors (mechanical/electric), and piping systems, which are applied as needed to the engine, transmission, battery, motor control, and air conditioning systems..
Traditional Fuel and New Energy Vehicle Thermal Management System Market Summary
According to the new market research report “Traditional Fuel and New Energy Vehicle Thermal Management System – Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”, published by QYResearch, the global Traditional Fuel and New Energy Vehicle Thermal Management System market size is projected to reach USD 93.48 billion by 2031, at a CAGR of 6.65% during the forecast period.
Figure00001. Global Traditional Fuel and New Energy Vehicle Thermal Management System Market Size (US$ Million), 2020-2031
Source: QYResearch, “Traditional Fuel and New Energy Vehicle Thermal Management System – Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”
Figure00002. Global Traditional Fuel and New Energy Vehicle Thermal Management System Top 20 Players Ranking and Market Share (Ranking is based on the revenue of 2024, continually updated)
Source: QYResearch, “Traditional Fuel and New Energy Vehicle Thermal Management System – Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”
According to QYResearch Top Players Research Center, the global key manufacturers of Traditional Fuel and New Energy Vehicle Thermal Management System include DENSO, Hanon Systems, Valeo, MAHLE GmbH, Zhejiang Sanhua Intelligent Controls, etc. In 2024, the global top five players had a share approximately 50.39% in terms of revenue, the global top 10 players had a share approximately 57.98% in terms of revenue.
Main Development Trends
From “Single Component” to “Integrated Vehicle Thermal Management Platform”: Previously, Traditional Fuel and New Energy Vehicle Thermal Management System operated independently for components such as radiators, air conditioners, coolers, and cooling fans. Now, the trend is towards integrated thermal management across the entire vehicle architecture, encompassing the powertrain, battery, passenger compartment, and electronic components. Examples include integrated thermal management modules, integrated valve blocks, and centralized cooling circuits. Battery and Electric Drive Thermal Management: Shifting from engine cooling to battery and electric drive thermal management. Traditional gasoline vehicles primarily cool the engine, transmission, and turbocharger system; new energy vehicles focus on precise temperature control of the power battery, motor, and electronic control system. Technologically, this is reflected in the rapid development of battery liquid cooling plates, cooling chassis, direct refrigerant cooling, and integrated cooling housings for electric drives. Intelligent Control: With the integration of AI and big data, the intelligence of thermal management systems is continuously improving. Traditional thermal management is reactive, while intelligent systems can use cloud-based big data and intelligent algorithms to predict user driving habits and dynamically adjust thermal management strategies based on real-time traffic and weather information. This enables functions such as remote pre-cooling and pre-heating, and personalized comfort control. The application of new materials and processes is also significant: for example, heat exchangers have evolved from traditional copper to aluminum alloys, and then to high-strength aluminum alloys and composite materials, improving heat exchange efficiency and reducing weight. Furthermore, for battery cold plates and electronic cooling, processes such as extruded cavities, stamped plates, laser welding, vacuum brazing, and plastic-metal hybrid structures are widely used.
Industry Chain Analysis
The Traditional Fuel and New Energy Vehicle Thermal Management System includes various pumps (mechanical water pumps, electric water pumps, electric oil pumps, etc.), valves (thermal expansion valves, electronic expansion valves, solenoid valves, multi-way water valves, etc.), working fluid containers, heat exchangers (front-end modules, air conditioning boxes, battery coolers, battery water-cooled plates), compressors (mechanical/electric), and piping systems. Upstream suppliers mainly include basic raw material suppliers of steel, stainless steel, aluminum, copper, plastics, forgings, castings, bearings, semiconductor chips, and related rare earth materials. These suppliers can manufacture components such as compressors, motors, water pumps, fans, electronic expansion valves, various control valves, and pipe fittings, as well as components such as radiators, condensers, cooling plates, and heat exchangers. The upstream sector forms the foundation of the entire industry, characterized by numerous participants, intense competition, and limited bargaining power for individual companies, but is significantly affected by fluctuations in commodity prices and environmental policies. The midstream sector comprises thermal management system manufacturers, the core of the value chain. The downstream sector consists of vehicle manufacturers, whose demand structure includes both gasoline-powered passenger and commercial vehicles, as well as new energy vehicles such as pure electric, hybrid, and fuel cell vehicles. With increasingly stringent emission regulations and higher requirements for vehicle energy consumption and range, OEMs are demanding higher integration, efficiency, and lightweighting of thermal management systems, driving increased penetration rates for products such as heat pump air conditioning, battery liquid cooling, and integrated thermal management modules.
Industry Policies
Current policies are profoundly shaping the thermal management industry from three dimensions: safety bottom line, energy efficiency improvement, and technical standardization. Safety is the absolute red line. China’s latest mandatory national standard for power batteries mandates that thermal runaway “do not catch fire or explode,” forcing OEMs and suppliers to invest in more advanced thermal management system designs, particularly in areas such as thermal runaway early warning and insulation, bottom impact protection, and efficient heat dissipation. Energy efficiency is the core guiding principle. Whether it’s China’s “dual carbon” target or energy efficiency standards in Australia and the United States, the aim is to reduce vehicle energy consumption and carbon emissions. Technology is moving towards standardization: The National Automotive Standardization Committee is developing detailed industry standards for different technical paths in battery thermal management (air cooling, liquid cooling, direct cooling and direct heating). Specifically, China is advancing the review and approval of standards for power battery durability and thermal management systems. The strictest national standard for battery safety (GB38031-2025) mandates that batteries “do not catch fire or explode,” forcing upgrades in battery thermal management technology and strengthening heat diffusion control and bottom protection. In April 2025, public opinions were solicited on three industry standards for battery thermal management systems: air cooling, heaters, and direct cooling/heating. Six departments issued the “Action Plan for Promoting High-Quality Development of the Heat Pump Industry,” aiming to improve the energy efficiency of key products by more than 20% by 2030. Australia will implement the “New Vehicle Efficiency Standard” in 2025, using a credit trading system to encourage automakers to reduce carbon emissions. The United States plans to revise the CAFE standard, adjusting the annual improvement rate for fuel economy of light vehicles from 2022 to 2031, indicating that energy conservation and emission reduction are long-term global trends, continuously promoting the optimization of thermal management in both traditional and new energy vehicles.
Development Opportunities
The development of new energy vehicles has led to an increase in the value per vehicle: Numerous new configurations, such as battery liquid cooling, electric drive cooling, heat pump air conditioning, integrated valve blocks, and electric pumps, have significantly increased the value per vehicle for thermal management systems. Users’ dual requirements for comfort and range: In-vehicle comfort (warm in winter and cool in summer, quiet operation) and electric vehicle range (especially winter range) have become key indicators for car purchases, driving the widespread application of heat pumps, cabin local heating, and intelligent thermal management control. Technological dividends under energy conservation, emission reduction, and dual carbon targets: National fuel consumption, emission, and carbon neutrality targets necessitate that OEMs adopt high-efficiency thermal management (heat pumps, waste heat recovery, high-efficiency heat exchangers, etc.), placing the industry in a “policy-friendly period.” Opportunities for global industrial relocation and localization: The global automotive market is shifting its vehicle production capacity to China and other emerging markets, coupled with the localization requirements of multinational automakers, creating ample opportunities for new projects for local thermal management companies.
Challenges and Obstacles
Vehicle Sales Fluctuations and Cyclical Risks: Overall production and sales of traditional fuel and new energy vehicles are significantly affected by the macroeconomy, credit policies, and consumer confidence. Fluctuations in vehicle demand directly impact thermal management system orders and capacity utilization. Rapid Technological Iteration and Uncertain Return on R&D Investment: Rapid upgrades in batteries, semiconductors, and electric drive platforms require frequent iterations of thermal management systems, resulting in high R&D and verification costs, shortened single-project lifecycles, and significant amortization pressure. OEM Self-Development and Vertical Integration Risks: Some OEMs are strengthening their self-developed technologies, mastering system solutions and key controls, and positioning suppliers as contract manufacturers or parts manufacturers, weakening the bargaining power and profit margins of thermal management companies in the value chain. Price Wars and Profit Margin Decline Risks: With numerous players in the industry and products exhibiting significant homogenization in areas such as radiators, condensers, electric pumps, and cooling plates, fierce price competition will compress gross margins and weaken companies’ ability to continuously innovate and invest.
Industry Entry Barriers
Technological and Process Barriers: Passenger and Commercial Vehicle Thermal Management System integrates knowledge from multiple disciplines such as thermodynamics, fluid mechanics, aerodynamics, electrical engineering, and software. It also requires the integration of control algorithms and sensor technology to achieve intelligent and precise control. The production process involves multiple complex processes such as forging, stamping, precision machining, brazing, assembly, and helium testing, resulting in technological and process barriers. Financial Barriers: Facing rapid technological iteration, companies need to continuously invest in new technology pre-research, product development, and testing and verification. Building production lines that meet automotive-grade requirements requires significant investment in high-precision processing equipment, automated production lines, and stringent testing instruments. Simultaneously, to meet the system’s lightweight requirements, companies also need to continuously invest in materials and production processes, creating certain financial barriers. Talent and Experience Barriers: The thermal management industry requires multidisciplinary knowledge, and cross-disciplinary professionals are scarce. The industry urgently needs compound R&D talents who understand traditional thermal management and are also familiar with electronic and electrical engineering and intelligent control algorithms. Engineers with the ability to design complex system architectures are also crucial. Furthermore, accumulating system integration experience, from providing individual components to designing and delivering a stable and reliable complete thermal management system, requires extensive practical experience and data accumulation. For example, how to intelligently and collaboratively manage the thermal demands of different components such as batteries, cabin, and electric drives is a core challenge in the industry. Customer Barriers: New manufacturers entering the OEM system must pass stringent industry standards and rigorous certifications set by OEMs, involving lengthy testing cycles and high reliability requirements. OEMs also prefer long-term suppliers due to high replacement costs, leading to strong customer loyalty. Regulatory and Certification Barriers: Thermal management products involve refrigerant environmental regulations, vehicle emission regulations, functional safety, EMC, electrical safety, and compliance requirements of different countries/regions. New entrants need to establish a complete compliance and testing system.
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