The electric vehicle heat pump system market size is projected to reach US$ 1,924.69 million by 2031 from US$ 437.94 million in 2023. The market is expected to register a CAGR of 20.3% during 2023–2031. The rising role of electric vehicles in energy transition is likely to remain a key future trend in the market.
The increasing sales of battery EVs in the passenger cars segment is one of the prime driving factors for the global electric vehicle heat pump system market. New electric car registrations reached 14 million worldwide in 2023, accounting for their total number on the roads to ~40 million. Electric car sales in 2023 were ~3.5 million higher than in 2022, recording a ~35% year-on-year increase. The growing proliferation of electric commercial vehicles for logistics and transportation is also having a positive impact on the demand for EV heat pump systems worldwide. In addition, the increasing utilization of hybrid EVs for utility-scale applications is expected to create significant opportunities for the electric vehicle heat pump system market during the forecast period.
The growing number of electric vehicle (EV) sales and rising demand for sustainable and eco-friendly options in the transportation sector drive the electric vehicle heat pump system market. In addition, the increasing technological advancements in terms of heating and cooling facilities in EVs fuel the global application of EV heat pumps. The increased sales of the electric vehicle market, specifically growing demand for passenger electric vehicles, are boosting the procurement of heat pumps, which is anticipated to fuel the growth of the electric vehicle heat pump systems market worldwide.
North America, Europe, and Asia Pacific are prime regions for the electric vehicle heat pump system market, followed by the Middle East & Africa and South & Central America. China, the US, France, and the UK are among the major countries contributing to the electric vehicle heat pump system market growth. Light commercial EV sales are set to increase rapidly owing to the availability of more models, growing fleet commitments, and government environmental policies. The sales of light commercial EVs are expected to reach ~70% of global sales by 2040, led by China. The collective value of EV sales is anticipated to reach US$ 8.8 trillion by 2030 and US$ 57 trillion by 2050 worldwide. The expanding demand for EVs in the passenger and commercial vehicle sphere acts as a major driver for the electric vehicle heat pump system market worldwide.
Popular electric vehicles (EVs) largely use lithium-ion batteries to power their electric motors. These types of batteries have an ideal operating temperature range that appears to be anywhere between 50°F and 110°F, with a few publishers agreeing on an optimal temperature range of 70°F. At subzero temperatures, lithium-ion batteries do not store energy appropriately, resulting in poor performance. The range of a few electric vehicles drops from a manageable 10% to ~36% in freezing weather. This loss of range is not solely due to the lithium-ion batteries but also depends on the utilization of stored energy. Further, the amount of energy extracted from batteries to heat a resistor and then blow air through it to keep the interior of the vehicle warm resulted in the deterioration of the battery. Hence, the heat pumps are important in providing heating to the battery. Heat pumps warm the interior of the car more efficiently than simply drawing energy from the batteries. Heat pump systems are not range extenders in themselves but rather a tool that allows electric vehicles to be more efficient and not lose as many ranges in subzero temperatures.
The increasing adoption of heat pump systems in electric vehicles is owing to associated benefits, including high performance, great efficiency, wide battery range, and low charging time, among others. Such a rise in the adoption of heat pump systems paves the way for the key companies operating in the EV heat pump systems market to expand their product offerings and presence worldwide. As heat pumps become a crucial part of electric vehicles, their role in the HVAC industry will gain traction, creating an opportunity to improve the mileage of electric vehicles. The HVAC business value chain for electric vehicles is closely related to the automotive industry, thermal management components, and refrigerants, among others. In addition, the rise in research & development initiatives toward the development of effective thermal management systems through partnerships, collaboration, and joint ventures is expected to create opportunities for the key companies operating in the EV heat pump systems market during the forecast period. A few of the key strategic initiatives or developments in the electric vehicle heat pump systems market are mentioned below:
Such key strategic developments in the electric vehicle heat pump system market are expected to create opportunities for the key players operating in the market during the forecast period.
Key segments that contributed to the derivation of the electric vehicle heat pump system market analysis are propulsion type, component, and.
The geographic scope of the electric vehicle heat pump system market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The global electric vehicle heat pump system market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Europe held the largest electric vehicle heat pump systems market share in 2023 and is projected to maintain its dominance during the forecast period. This is owing to several factors such as the rise in demand for electric vehicles (EVs); government initiatives toward sustainable, energy efficient, and smart thermal management products in EVs; and a rise in awareness toward increasing the energy efficiency and extending the range of EVs. North America accounted for the second largest share of 33.7% of the electric vehicle heat pump systems market in 2023 and is expected to register a CAGR of 19.4% from 2023 to 2031. This is due to the rise in awareness toward energy efficiency and battery range extension in EVs. In addition, the government initiatives toward the promotion of EVs to reduce carbon emissions are anticipated to propel the demand for electric vehicle heat pump systems during the forecast period.
Asia Pacific, the Middle East & Africa, and South & Central America also contribute to the growth of the global electric vehicle heat pump systems market owing to the rise in sales of EVs in the regions. In addition, an increase in government initiatives toward financing or subsidizing the electrification of vehicles to fulfill the demand for carbon emission reduction across the regions propels the market growth. Moreover, the growth of the electric vehicle industry in Asia Pacific and the Middle East economies such as India, Indonesia, Thailand, Singapore, Saudi Arabia, the UAE, and others are projected to boost the demand for EV heat pump systems from 2023 to 2031.
The regional trends and factors influencing the Electric Vehicle Heat Pump Systems Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Electric Vehicle Heat Pump Systems Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 437.94 Million |
| Market Size by 2031 | US$ 1,924.69 Million |
| Global CAGR (2023 - 2031) | 20.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Propulsion Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Electric Vehicle Heat Pump Systems Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Electric Vehicle Heat Pump Systems Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The electric vehicle heat pump system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the electric vehicle heat pump system market are listed below:
Hanon Systems, a leading global automotive thermal management supplier for electrified mobility, reaffirms its commitment to building a clean energy future through innovative electric vehicle (EV) solutions, such as its industry-leading heat pump systems and components. EV driving range continues to be a concern among consumers and automakers alike, particularly in winter conditions. The amount of battery energy required to heat the cabin for occupant comfort and maintain the optimal temperature of the battery and power electronics in cold conditions poses a great challenge to the company. (Source: Hanon Systems, Press Release, February 2024)
The "Electric Vehicle Heat Pump Systems Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The List of Companies - Electric Vehicle Heat Pump Systems Market
Key strategic developments in EV heat pump system is one of the major factors likely to generate new opportunities for market vendors in the coming years.
Europe dominated the global electric vehicle heat pump systems market in 2023 and is likely to retain its dominance during the forecast period as well.
Role of electric vehicles in energy transition is one of the major trends in the aircraft bracket market.
Increasing demand for energy-efficient heating systems to expand driving range; government initiatives toward vehicle electrification are some of the major factors driving the market growth.
Denso Corporation, Titanx Engine Cooling, Modine Manufacturing Company, Sanden Corporation, Hanon Systems, MAHLE GmbH, Valeo, Highly Marelli Holdings Co Ltd, Mitsubishi Heavy Industries Ltd, Rheinmetall AG, and MAN Energy Solutions are the key market players operating in the global electric vehicle heat pump systems market.