Electric Vehicle Heat Pump Systems Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

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.

Electric Vehicle Heat Pump Systems Market Analysis

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.

Electric Vehicle Heat Pump Systems Market Overview

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.

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Electric Vehicle Heat Pump Systems Market: Strategic Insights

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Electric Vehicle Heat Pump Systems Market Drivers and Opportunities

Increasing Demand for Energy-Efficient Heating Systems to Expand Driving Range

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.

Key Strategic Developments in EV Heat Pump Systems

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:

• In May 2023, Hanon Systems Corp., a South Korean thermal management system provider, announced its plan to invest US$ 40 million to establish a heat pump systems plant in Georgia, the US; the plant is expected to start production by 2024.
• In June 2023, the Rheinmetall, a German defense company & automotive supplier, presented or introduced a new modular heat pump system for plug-and-play EVs. Through this product development, Rheinmetall strengthened its heat pump system product offering in the electric vehicle industry.
• In April 2022, General Motors introduced its plan to add a heat pump system to its Ultium electric vehicle platform. This Ultium platform is the primary electric vehicle architecture for models such as the GMC Hummer EV and Chevy Silverado EV. This will strengthen the position of the company in the market.
• In October 2023, Rheinmetall won the order for its innovative plug-and-play heat pump solution from an electric tractor manufacturer from Europe. This new contract is expected to run for the next seven years, with the first heat pump expected to be delivered in 2024 for field trials.
• In March 2023, Mitsubishi Heavy Industries Thermal Systems, Ltd. developed a new electric-driven transport refrigeration unit exclusively for electric vehicles, the TEJ35AM, which is equipped with a heat-pump heating function. These units can operate with an electric vehicle’s power supply and provide high-efficiency operation with carbon emission reductions.
• In July 2023, ZF Friedrichshafen AG introduced a new concept passenger electric vehicle with a thermal management system for the electric drive motor and passenger compartment. It includes an 800V propane (R290)-based heat pump.

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.

Electric Vehicle Heat Pump System Market Report Segmentation Analysis

Key segments that contributed to the derivation of the electric vehicle heat pump system market analysis are propulsion type, component, and.

• Based on propulsion type, the electric vehicle heat pump system market is segmented into BEV, HEV, and PHEV. The BEV segment held the largest market share in 2023.
• In terms of component, the market is segmented into evaporator, condenser, compressors, and others. The compressors segment held the largest share of the market in 2023.
• Based on vehicle type, the market is divided into passenger vehicle and commercial vehicle. The commercial vehicle segment held a larger share of the market in 2023.

Electric Vehicle Heat Pump System Market Share Analysis by Geography

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.

Electric Vehicle Heat Pump Systems Market Regional Insights

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.

Electric Vehicle Heat Pump Systems Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Denso Corporation
2. Titanx Engine Cooling
3. Modine Manufacturing Company
4. Sanden Corporation
5. Hanon Systems
6. MAHLE GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

Electric Vehicle Heat Pump Systems Market News and Recent Developments

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)

Electric Vehicle Heat Pump Systems Market Report Coverage and Deliverables

The "Electric Vehicle Heat Pump Systems Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Electric vehicle heat pump system market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Electric vehicle heat pump system market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Electric vehicle heat pump system market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the electric vehicle heat pump system market
• Detailed company profiles