Economic Outlook: Insights from the EV Battery Pack Cooling System Market

02 Feb 2024

The cooling system for an electric vehicle (EV) battery pack is a comprehensive arrangement of components and mechanisms strategically crafted to control and maintain the temperature within the battery pack. Its main goal is to uphold ideal operating temperatures for the batteries, guaranteeing effective performance, durability, and safety.   

The cooling system for EV battery packs is essential in addressing temperature-related concerns, such as overheating, that could impact battery performance, lifespan, and safety. Through efficient temperature management, this system safeguards the optimal operation and longevity of electric vehicle batteries.  

The EV battery pack cooling system market was valued at $2.93 billion in 2023, and it is expected to grow at a CAGR of 15.39% and reach $12.28 billion by 2033.  

The market for EV battery pack cooling systems is flourishing, propelled by the increasing demand for electric vehicles. This surge has led to innovations in liquid cooling, adaptive controls, fast-charging technology, and environmentally friendly solutions.   

EV Battery Pack Cooling Market Analysis: Drivers and Challenges

The industrial influence of the EV battery pack cooling system market spans automotive manufacturing, technology development, and sustainable mobility. Progress in thermal management within this market stimulates innovation, resulting in safer and more efficient electric vehicles. This, in turn, fosters collaborations between automakers and cooling system suppliers, elevating manufacturing standards and pushing the boundaries of research and development.  

Market Demand Drivers: Enhancing the Driving Range of Electric Vehicles

Range anxiety remains a major obstacle to electric car adoption, impacting both individual drivers and commercial fleets. Despite advancements in EV driving range, concerns persist about potential battery depletion. To address this, manufacturers are investing in technologies like improved cooling systems to enhance battery capacity and longevity, anticipating increased EV adoption by 2033.  

Market Challenges: Higher Cost of EV Battery Pack Cooling System

The high cost of electric vehicles (EVs) has hindered their sales, prompting comparisons between regular gasoline and eGallon costs to highlight EV savings. As of June 2022, eGallon is $3.26 cheaper than gasoline, coupled with lower maintenance expenses due to fewer moving parts, making EVs attractive long-term investments. However, developing intricate and compatible cooling systems for diverse battery designs adds complexity and raises production costs.  

Incorporating advanced cooling technology, like liquid cooling, involves higher material and R&D expenses, impacting system costs and potentially deterring consumers. To address this, industry efforts focus on innovation, standardization, and economies of scale to make EV battery pack cooling systems more affordable and facilitate widespread adoption. 

EV Battery Pack Cooling System Market Segments: Overview

BIS Research report on the EV battery pack cooling system market covers several segments such as vehicle type, propulsion type, system type, and region.  

In the vehicle type, passenger vehicles constitute a significantly larger segment of the overall automotive market compared to commercial vehicles. This substantial volume results in a higher demand for EV battery pack cooling systems within the passenger vehicle category. By 2033, the passenger vehicles segment is expected to reach $11.20 billion from $2.53 billion in 2022.  

 In the propulsion segment, battery electric vehicle (BEV) is expected to continue dominating the EV battery pack cooling system market. BEVs have been at the forefront of the electric vehicle revolution. This segment is expected to reach $10.13 billion by 2033.   

Based on region, the Asia-Pacific region is a dominant force in the EV battery pack cooling system market.  

Key Trends in the EV Battery Pack Cooling System Market  

Key players in the EV Battery pack cooling system market are Boyd Corporation, Dana Limited, E-MERSIV, Hanon Systems, Webasto Group, etc.  

Some recent developments in the EV Battery Pack Cooling System market are:  

  • In August 2023, Boyd Corporation partnered with E-valucon to create a liquid-to-air cooling system customized for DC Fast Charging (DCFC) cables and connectors, enabling rapid and secure charging. The adoption of eco-friendly coolants highlights the environmentally conscious aspect of liquid-cooled technology. 

  • In October 2022, TotalEnergies and Valeo unveiled their collaborative effort to pioneer an advanced method for cooling electric vehicle batteries. This groundbreaking approach involves the utilization of an exceptionally high-performance dielectric fluid. 

  • In September 2021, MAHLE GmbH introduced an innovative cooling system tailored specifically for batteries. Cooling presents a significant challenge, particularly in rapidly charging battery-powered electric vehicles. To tackle this, the Stuttgart-based automotive supplier has embraced immersion cooling as a pivotal technology. 

Analyst Take on EV Battery Pack Cooling System Market

The EV battery pack cooling system market is poised for substantial growth in the foreseeable future, driven by the surging demand for electric vehicles. Additionally, substantial investments, in the form of subsidies and infrastructure development by government and federal agencies to encourage electric vehicle adoption for reducing carbon dioxide emissions, are anticipated to bolster the expansion of EV battery pack cooling systems. The market is projected to experience noteworthy growth, with key players emphasizing strategic partnerships, collaborations, mergers, and acquisitions to amplify their market presence and enrich their product offerings.