Commercial Vehicle Automotive Thermal System Market Size, Share, and Growth Forecast for 2025 – 2032

The global commercial vehicle automotive thermal system market size is anticipated to rise from US$ 17.91 Bn in 2025 to US$ 25.45 Bn by 2032. It is projected to witness a CAGR of 5.2% from 2025 to 2032.

As per Persistence Market Research (PMR), the automotive temperature control system in commercial vehicles improves driver comfort and efficiency. The market is rising due to vehicle scrappage programs and infrastructure expansion. Leading manufacturers are envisioned to invest in next-generation cooling and heating technologies.

• In October 2023, Thermo King launched an advanced climate control system for long-haul trucks, enhancing fuel efficiency and emissions control.
• In November 2023, Valeo introduced a smart HVAC system for construction and mining vehicles, optimizing thermal management. 

Key Highlights of the Commercial Vehicle Automotive Thermal System Market

• Adoption of advanced thermal management solutions is being expedited due to strict emissions regulations.
• Growth of electric commercial vehicles necessitates the creation of specialized battery thermal control systems.
• Increasing demand for passenger comfort is leading to a rise in the installation of HVAC systems.
• In 2025, the HVAC system type segment is projected to hold the largest market share of 56%, with plans to maintain this position in the future.
• Technological innovations have improved engine efficiency by enhancing thermal management.
• Expansion of cold chain logistics necessitates the implementation of innovative temperature control solutions.

Decline in Trucking Sector Caused Job Losses and Reduced Demand for Automotive Thermal Systems from 2019 to 2024

The global commercial vehicle automotive thermal system industry witnessed a CAGR of 2.3% in the historical period between 2019 and 2024. The automotive sector, notably commercial vehicle automotive thermal systems, was hindered by the COVID-19 pandemic. Major delays and job losses resulted from the partial or complete closure of key factories. For example,

• In April 2020, the trucking sector in the U.S. had a 5.8% decline, resulting in the loss of roughly 88,000 jobs. Government regulations caused supply chains to break down, which stopped manufacturing and reduced demand for cars.

Automakers faced a twofold revenue crisis when the worldwide market opened in the middle of 2021 due to the construction of new BS 6 and Euro 5 models as well as prolonged client demand.

Manufacturers to Broaden Product Lines and Adopt New Technologies to Enhance Competitiveness through 2032

In the estimated timeframe from 2025 to 2032, the global market for commercial vehicle automotive thermal systems is likely to showcase a CAGR of 5.2%. Manufacturers of commercial vehicles are concentrating on expanding their product lines, implementing new technologies, and improving operating efficiency. Their goals include cost reduction, production process optimization, and better after-sales services.

Market players intend to introduce new models and penetrate new markets to lessen dependency on a particular product or market. Businesses prioritize sustainability by lowering emissions, improving fuel efficiency, and employing ecologically friendly industrial techniques. These tactics seek to satisfy customer needs without sacrificing competitiveness.

Growth Drivers

Industry Leaders to Introduce Innovative Thermal Control Systems to Optimize Energy Use in Commercial Vehicles

Smart thermal management solutions are transforming the commercial vehicle market, improving energy efficiency, reducing costs, and cutting CO? emissions. Companies are investing in next-generation cooling and heating technologies to enhance vehicle longevity and performance.

• In December 2023, Kendrion introduced a smart HVAC system for heavy-duty trucks, ensuring optimal temperature control.
• In November 2023, Delta Electronics launched a high-efficiency thermal control module for EV buses, optimizing power consumption.
• In October 2023, Mahindra Electric unveiled an advanced battery thermal management system (BTMS) for electric commercial vehicles, improving range and battery life.

As fleet electrification rises, thermal management innovations will be crucial for enhancing vehicle efficiency and meeting emission regulations.

Manufacturers to Leverage Government Incentives and Economies of Scale to Overcome Pricing Barriers

The market expansion for commercial vehicle automotive thermal systems is hampered by the high expense of sophisticated thermal management systems. High-performance materials, intricate engineering, and interaction with EV platforms are all part of these systems, which raises production costs. Widespread adoption may be slowed by small and mid-sized fleet owners' inability to buy premium thermal solutions.

• In November 2023, BorgWarner developed a low-cost high-efficiency heat exchanger for commercial EVs, improving cost-effectiveness.
• In October 2023, Denso announced cost-reduction strategies for EV cooling systems, focusing on affordable thermal solutions.

Manufacturers are utilizing government incentives and economies of scale to address pricing challenges in their efforts to find cost-effective solutions.

Precise Temperature Regulation in BEVs to Push Innovation in Thermal Solutions for Enhanced Performance

Growing adoption of Electric Vehicles (EVs) is driving the demand for advanced thermal management systems, which are critical for enhancing battery efficiency and longevity and reducing costs. Battery Electric Vehicles (BEVs) need accurate temperature regulation to optimize their range and performance, leading to innovations in thermal solutions. As EV sales continue to rise, these thermal systems are vital for ensuring efficiency, safety, and extended battery life.

• In December 2023, Valeo unveiled a compact EV cooling module, reducing battery overheating risks.
• In November 2023, Bosch launched a liquid-cooled battery thermal management system, improving charging speeds.
• In October 2023, Tesla introduced a next-gen heat pump system in its Model Y, enhancing winter efficiency by 20%.

Component Insights

Government Regulations and EV Adoption to Propel Commercial Vehicle Compressor Segment

The commercial vehicle automotive thermal system market is poised for substantial growth, with compressors estimated to hold a 32.5% share in 2025. This surge is driven by increased demand for fuel-efficient and electric vehicle thermal management systems. For example,

• In 2023, Denso Corporation launched advanced electric compressors for EVs, enhancing cooling efficiency.
• Mahle GmbH introduced a high-voltage electric AC compressor in September 2023, targeting heavy-duty trucks.
• BorgWarner Inc., in October 2023, secured a contract to supply electric compressors to a leading commercial EV manufacturer.

The market for zero-emission vehicles is expanding due to the increasing adoption of these vehicles and government regulations.

Vehicle Type Insights

Automakers to Introduce Novel Electric Vans to Enhance Fleet Efficiency and Urban Logistics

In 2025, Light Commercial Vehicles (LCVs) are projected to dominate the commercial vehicle market with a 74.85% share, driven by e-commerce expansion and last-mile delivery demand. For example,

• In December 2023, Ford Motor Company launched the E-Transit Custom, an all-electric van optimizing fleet efficiency.
• In November 2023, Mercedes-Benz Vans launched the eSprinter, improving battery range for urban logistics.
• Tata Motors announced in October 2023, an investment of US$ 1.2 Bn in LCV electrification.

The EU's 2035 ICE ban and government incentives, coupled with the adoption of zero-emission vehicles, are expected to accelerate the growth of the premium LCV segment.

Key Automakers to Invest Billions in EV Production and Battery Plants to Strengthen North America’s Position

In 2025, the commercial vehicle automotive thermal systems market in North America is projected to hold a 23.6% market share. The region is forecasted to report a CAGR of 6.8% from 2025 to 2032. Such growth is fueled by robust supply chain networks, government incentives, and infrastructure investments in North America. For instance,

• In January 2024, General Motors (GM) announced a US$ 7 Bn investment in EV production and battery plants in Michigan.
• Tesla, in December 2023, unveiled plans for a Gigafactory in Mexico, targeting regional demand.
• Ford Motor Company, in November 2023, secured US$ 9.2 Bn in loans from the U.S. Department of Energy to accelerate EV manufacturing.

The U.S. CHIPS Act is bolstering domestic semiconductor production, reducing reliance on Asia. Canada and Mexico’s favorable USMCA trade agreement strengthens North America’s automotive competitiveness.

• Infrastructure enhancements, such as the US$ 1.2 Tn U.S. Infrastructure Investment and Jobs Act, are improving road networks, ensuring seamless logistics, and driving sustained market expansion.

Leading Manufacturers to Innovate Battery Temperature Management Technologies for EVs in Europe

Commercial vehicle automotive thermal systems market in Europe is estimated to attain a market share of 25.6% in 2025. The region is projected to record a CAGR of 5.9% from 2025 to 2032.

Increased use of electric vehicles, stricter EU pollution standards, and improvements in thermal management technology are the main drivers of this rise. To improve efficiency and range, Valeo SA introduced cutting-edge battery temperature management technology for commercial EVs in October 2023.

• In November 2023, Bosch and Denso Corporation teamed together to provide cutting-edge heat pump systems for electric trucks.
• In December 2023, Webasto Group said that it would invest US$ 540 Mn to increase the manufacture of its heating systems in Germany.

Fleet operators are being forced to switch to electric commercial vehicles due to the EU's 2035 ban on internal combustion engine cars, which is raising demand for effective heating and cooling systems. The market will expand more quickly due to increased infrastructure expenditure on charging stations.

Automakers to Expand Regional Manufacturing to Strengthen Supply Chains and Meet Demand in Asia Pacific

In 2025, the Asia Pacific commercial vehicle automotive thermal systems market is projected to hold a 38.3% market share. The region is forecasted to record a CAGR of 7.2% from 2025 to 2032. Growth is fueled by rising freight trucking, CV rentals, and last-mile delivery services.

• In November 2023, Tata Motors reported a 23% YoY increase in CV sales, driven by e-commerce demand.
• In December 2023, BYD debuted the electric T5 light vehicle aimed at urban logistics in China.

In order to increase manufacturing, Isuzu Motors stated in October 2023 that it would expand its operations in Thailand for US$1 Bn. The need for thermal systems is increased by India's PLI policy, which encourages indigenous CV production.

Manufacturers must adhere to emission standards that are established by international governing bodies. These standards can differ based on the specific regulations enforced in various regions and countries.

For manufacturers of automotive thermal systems for commercial vehicles, particularly those operating in developing nations, there is a notable opportunity presented by the potential standardization of thermal system emissions and related manufacturing norms. Such standardization could foster a more cohesive and organized manufacturing environment, enhancing efficiency and compliance.

To improve product offerings, encourage innovation, and grow market share, businesses are putting strategic efforts into place to strengthen their commercial vehicle automotive thermal system market positions in a competitive climate. These initiatives include global expansion, mergers, partnerships, and joint ventures.

Key Industry Developments

• In November 2024, Tata Motors introduced its Prima 4440.S AMT truck in Saudi Arabia, offering reliable, efficient, and comfortable transportation for containers, car carriers, and heavy equipment.
• In September 2024, Euler Motors introduced the Storm EV LongRange 200 and T1250, electric cargo vehicles in the Indian LCV segment. These vehicles feature 11 new features, including dedicated thermal management and an Advanced Driver Assistance System.
• In July 2024, MAHLE, a leading automotive supplier, focused on developing components for battery electric drives, hydrogen engines, fuel cells, and renewable fuels to shape the global transportation sector, showcasing its systemic approach at the IAA Transportation trade fair.
• In July 2024, CATL introduced its first EV battery brand, CATL TIANXING, for commercial applications. The batteries, featuring advanced technologies like super safety, super-fast charging, long service life, and long-range, are mass-produced and have been used on 21 models from 13 automakers.
• In May 2024, GreenPower introduced the EV Star Utility Truck, a customizable, purpose-built vehicle for commercial fleets. This tenth truck body upfit solution, manufactured by GP Truck Body, is suitable for various vocational applications and has a 150-mile range.

By Component

• Compressors
• Heat Exchangers
• Thermal Sensors and Control Units
• Control Valves
• Pumps, Pipes and Fans
• Others

By Vehicle Type

• Light Commercial Vehicles (LCVs)
• Medium Commercial Vehicles (MCVs)
• Heavy Commercial Vehicles (HCVs)

By Powertrain

• ICE
• HEV/FEV

By System Type

• HVAC (Heating, Ventilation, and Air Conditioning)
• Powertrain Cooling System
• Fluid Transport System
• Waste Heat Recovery System
• Battery Thermal Management System
• Others

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa
• Latin America