EV Thermal Management Market

The global EV thermal management market size was USD 8.20 Billion in 2025 and is expected to register a revenue CAGR of 17.5% during the forecast period. This report, consistent with Faradex Partners' battery market intelligence mandate, covers the battery and power electronics thermal management systems relevant to cell safety and fast-charging performance, rather than the full automotive cabin climate control market. Market revenue growth is supported by Hanon Systems, a leading global automotive thermal management supplier that became a subsidiary of Hankook & Company Group in January 2025, which continued expanding its integrated thermal management module portfolio in 2025, strengthening its position serving electric vehicle manufacturers requiring combined battery, cabin and power electronics cooling solutions. Hanon Systems operates 50 manufacturing sites and three regional innovation centers, employing more than 20,000 people across 21 countries. These are some of the key factors driving revenue growth of the market.

Liquid cooling system manufacturers, immersion cooling technology developers, and refrigerant-based heat pump manufacturers are the commercial categories that constitute the EV thermal management market, with higher battery energy densities, the spread of fast-charge networks capable of 350 kilowatts and above, and stricter battery-safety rules converting thermal subsystems from auxiliary vehicle components into core value drivers. For instance, in March 2026, Hanon Systems, South Korea, announced it was supplying a Highly Integrated Cooling Entity for electric vehicles, first deployed in BMW's fully electric iX3 SUV, which manages the thermal needs of multiple vehicle subsystems through a single 16-kilogram intelligent thermal management module that integrates an electric compressor, electronic expansion valve, combined water-cooled condenser and internal heat exchanger, and chiller into one compact, high-performance unit. The company was subsequently named a finalist for the 2026 Automotive News PACE Awards for this technology in August 2026, its ninth PACE Award finalist recognition.

However, commercial-vehicle electrification is adding further cooling demand complexity, as heavier battery packs and continuous duty cycles amplify thermal loads beyond what passenger vehicle thermal architectures were originally designed to manage, requiring suppliers to develop separate product lines rather than simply scaling passenger vehicle solutions. Immersion cooling and other emerging high-performance thermal technologies also remain constrained by higher production costs and packaging integration difficulties relative to established liquid cooling loop architectures, limiting their near-term adoption to premium and performance-oriented vehicle segments even where their thermal performance advantages are well demonstrated. These factors substantially limit EV thermal management market growth over the forecast period.

Based on technology, the global EV thermal management market is segmented into liquid cooling, immersion cooling, air cooling, and refrigerant-based heat pump systems. The liquid cooling segment commands the largest revenue share because cold-plate liquid cooling loops remain the industry-standard architecture for battery pack thermal management across the large majority of electric vehicles currently in production, offering a proven balance of cooling performance, packaging efficiency and manufacturing cost that has made it the default specification for automakers ranging from mass-market to premium segments, with cooling plate suppliers including Mahle, Dana, Valeo, Hanon Systems and Modine, alongside a growing base of Chinese manufacturers, continuing to expand production capacity to meet rising liquid cooling plate demand.

The immersion cooling segment is expected to register the fastest revenue growth rate in the global EV thermal management market over the forecast period, from a small 2025 base, as fast-charge networks capable of 350 kilowatts and above push battery pack heat loads beyond what conventional liquid cooling loops can efficiently manage during high-power charging events. Automakers and battery pack integrators developing next-generation high-performance and commercial vehicle platforms are increasingly evaluating immersion cooling and other advanced thermal architectures specifically to support sustained high-power fast-charging without compromising cell longevity or safety margins.

• 01What is the global EV thermal management market size in 2025 and what CAGR is expected during 2026-2035?
• 02What is Hanon Systems' Highly Integrated Cooling Entity, and which vehicle was it first deployed in?
• 03When did Hanon Systems become a subsidiary of Hankook & Company Group?
• 04What PACE Award recognition did Hanon Systems receive in August 2026?
• 05Why does the liquid cooling segment account for the largest technology revenue share in the global EV thermal management market?
• 06Why does the immersion cooling segment register the fastest revenue growth rate in the global EV thermal management market over the forecast period?
• 07How does 350-kilowatt-class fast charging affect battery thermal management system design requirements?
• 08How is commercial vehicle electrification changing thermal management system requirements relative to passenger vehicles?
• 09Why does Asia Pacific lead the global EV thermal management market by 2025 revenue share?
• 10Which Chinese cooling plate manufacturers are expanding capacity to serve EV and energy storage system applications?

This report covers the global EV thermal management market across all major segments and geographic regions, scoped to battery and power electronics thermal management systems rather than full automotive cabin climate control. Primary research combines panel conversations with industry experts and is cross-referenced against company annual reports and government agency data. All market size figures use 2025 as the base year with a 2026-2035 forecast period.