Thermal Systems: An Overview
Thermal systems refer to the systems that generate,
transfer, and utilize thermal energy. Thermal energy is the energy that is
transferred between objects due to the difference in temperature. Thermal
systems are used in various fields such as engineering, physics, chemistry, and
biology.
Thermal systems can be classified into two main categories:
closed systems and open systems. Closed systems are those in which no matter is
exchanged with the surroundings, whereas open systems are those in which matter
is exchanged with the surroundings.
Thermal systems can also be classified according to the type
of energy conversion they perform. Some examples of thermal systems include
power plants, refrigerators, air conditioning systems, and engines.
One of the most important applications of thermal systems is
in power generation. Power plants use thermal energy to generate electricity.
The most common type of power plant is a steam power plant, which uses thermal
energy to convert water into steam, which is then used to power turbines that
generate electricity.
Thermal systems are also used in refrigeration and air
conditioning. Refrigeration systems use thermal energy to transfer heat from a
low-temperature environment to a high-temperature environment. Air conditioning
systems use thermal energy to transfer heat from the inside of a building to
the outside.
Thermal systems are also used in engines. Engines convert
thermal energy into mechanical energy. The most common type of engine is the
internal combustion engine, which uses thermal energy from the combustion of
fuel to generate mechanical energy.
Thermal systems are also used in chemical reactions.
Chemical reactions that require heat are called exothermic reactions, whereas
chemical reactions that release heat are called endothermic reactions.
In conclusion, thermal systems play a crucial role in
various fields such as engineering, physics, chemistry, and biology. They are
used in power generation, refrigeration, air conditioning, engines, and
chemical reactions. Understanding thermal systems is essential for the
development of new technologies and for the efficient utilization of energy
resources.
Thermal Systems Market Dynamics
DRIVERS in Thermal
Systems Market
The thermal systems market is driven by the need to comply
with vehicular emission regulations and the increasing demand for
fuel-efficient vehicles. Governments across the globe are implementing
regulations to control greenhouse gas (GHG) emissions, resulting in a rise in
the stringency of emission norms. For instance, the European Union and China
have implemented Euro VI and China VI, respectively, to encourage zero
emissions. This has led automotive OEMs to focus on developing advanced engines
and exhaust technologies that require advanced thermal systems to reduce
emissions and improve vehicle efficiency by reusing waste heat for other
functions.
Premium vehicles are equipped with various thermal system
technologies such as engine thermal mass reduction, predictive powertrain
control, integrated liquid-cooled exhaust/EGR, transmission rapid warm-up,
dynamic engine thermal control, and Thermoelectric Capture and Generation
(TEG). Moreover, the demand for cleaner emissions necessitates sophisticated
exhaust systems with efficient thermal management. The exhaust thermal
management systems can be either active or passive, depending on the
application. Active systems include catalytic heaters, burners, and electric
heaters, while passive systems comprise low thermal mass catalyst substrates,
double-walled pipes insulation, air dilution, and after-treatment technologies
such as SCR and EGR.
As emission regulations become more stringent, the demand
for these thermal system technologies is expected to increase globally,
particularly in European countries, China, and India, for all types of
vehicles. This rising demand for advanced thermal systems in the automotive
industry is expected to boost the growth of the thermal systems market.
RESTRAINTS in Thermal
Systems Market
The adoption of new technologies by OEMs is a result of the
need to meet strict emission and fuel economy standards. Manufacturers are also
focusing on improving engine performance and in-vehicle comfort features, which
requires the development of powertrain, drivetrain, and thermal systems. To
evaluate the performance of thermal systems, their cost-effectiveness and CO2
reduction potential are crucial. OEMs have already introduced technologies that
offer high ROI and CO2 reduction, which are commonly found in their premium
models. Top manufacturers such as BMW, Fiat Chrysler, Ford, GM, Honda, Hyundai,
JLR, Kia, Mercedes, and Nissan have incorporated various technologies,
including predictive powertrain control, variable engine oil pump, integrated
liquid-cooled exhaust/EGR, polymer material heat exchangers, active grille
shutters, and multizone climate control systems. While there are many thermal
system technologies available, they are mostly present in luxury vehicles due
to their cost-benefit ratio. As a result, it is likely that advanced thermal
systems will continue to be limited to luxury vehicles in the future due to
their high cost.
OPPORTUNITY:
Increasing Demand for Electric Vehicles and Advancements in Mobility Solutions
In the last 4-5 years, electric vehicles have been gaining
exponential acceptance in China, the US, and European countries. Automotive
Original Equipment Manufacturers (OEMs) are consistently working on developing
efficient, affordable, and long-range battery-powered passenger vehicles.
Critical factors that can enhance the performance, driving range, and vehicle
lifetime include thermal systems for batteries, traction motors, power
electronic modules, and auxiliary loads such as cabin heating and cooling, and
other electric components.
The automotive industry has made significant progress in
semi-autonomous and fully autonomous vehicles, and the thermal systems for
these vehicles not only regulate internal heating and ventilation but also aid
in engine cooling and efficient vehicle functioning. With differential heating
at start-up and TEG technologies, the vehicle start-stop mechanism can be
centralized to optimize fuel utilization with minimal wastage. Moreover,
advanced technologies such as multizone climate control, autonomous collision
avoidance systems, infotainment systems, head-up displays, heating and
ventilated seating systems, several sensors, and other electronic components
require thermal protection for superior performance. Thus, the growing
developments in autonomous vehicles would subsequently require better thermal
management to handle the heat generated by sensors and other components in
these vehicles.
CHALLENGES in Thermal
Systems Market
The lack of standardization is a significant challenge faced
by local or regional manufacturers in the automotive thermal systems market. As
emission regulations vary by region, it can be challenging to export
thermal-related systems such as catalytic converters, SCR, and EGR due to the
absence of standardization. For example, stringent CO2 regulations in Europe
require emission reduction, whereas such mandates do not exist in developing
countries like South Africa. This makes it difficult for manufacturers to
source raw materials or inventory, hampering their export business. Manufacturers
resort to low-volume production, resulting in high manufacturing costs.
In addition, engine technology must be upgraded to comply
with Euro III/IV/V and Tier 3/4, according to the European Commission and the
US Environmental Protection Agency. This has increased the need for
after-treatment devices and enhanced thermal technologies that comply with
upgraded technology. Thus, the lack of standardized technical norms and high
manufacturing costs can hinder the growth of the automotive thermal systems market.
However, the rise in disposable income and improvements in
living standards have led to an increase in demand for luxury vehicles with
advanced features and comfort, such as heated and cooled comfortable seats,
airbags, and heated steering. Manufacturers are integrating advanced thermal
systems into luxury vehicles to improve their performance and fuel efficiency,
which is expected to increase demand for automotive thermal systems. Therefore,
the growth of the global automotive thermal systems market is anticipated to be
propelled by the increasing demand for luxury vehicles with advanced features
and comfort during the forecast period.
Thermal Systems Market Ecosystem
During the forecast period, front air conditioning is
projected to be the largest application segment in the thermal systems market.
The growth of the front A/C market is mainly attributed to its standardization
in all passenger cars and in most light commercial vehicles. Thus, the demand
for front A/C is expected to increase in line with the growing production of
passenger and light commercial vehicles. Moreover, the rising demand for
high-end full-size SUVs would boost the demand for automatic climate control
and rear air conditioning to provide sufficient cooling to third-row passengers.
The increasing demand for luxury vehicles would drive the market for multi-zone
climate control systems. Simultaneously, government mandates for cabin AC for
commercial vehicles would drive the front air conditioning market. For
instance, the European Commission mandated the use of cabin AC in all
commercial trucks. The Indian government mandated the fitment of air
conditioning in HCVs, although it is yet to be fully realized. Similar mandates
are expected to come in the commercial vehicles segment, which is expected to
boost the market share of the front air conditioning system.
The heat exchanger is projected to be the largest component
segment for thermal systems. Engine and transmission cooling are one of the
major focus areas among global OEMs due to stringent norms for harmful gases
with increased demand for fuel-efficient vehicles. Also, the focus on reducing
energy consumption and the growing automatic gearboxes in passenger cars and
LCVs requires heat exchangers for the transmission system. Furthermore, air
conditioning is responsible for major heat loss in vehicles, and the rising
adoption of automatic and multizone climate control in mid to top segment
vehicles is set to drive heat exchangers for air conditioning systems.
Additionally, the increasing focus on heat recovery using thermoelectric
generators is estimated to offer growth potential to the heat exchanger market
for waste heat recovery technology.
The off-highway vehicle thermal systems market is led by
farm tractors, with the largest share in the segment. In Asia Pacific, farm
tractors also dominate the thermal systems market. Emission regulations related
to tractors are being introduced globally, such as the Indian government's
implementation of BS Term IV regulation in October 2020 for diesel engine
equipment, including agricultural tractors and construction equipment.
Similarly, the European Commission proposed emission standards for non-road
mobile machinery (NRMM), which were adopted by the EU Parliament in 2016 and
rolled out in 2018. This has fueled the demand for thermal system components
such as radiators, charge air cooler, hydraulic oil cooler, and EGR systems.
Asia Pacific is expected to be the dominant regional market
for thermal systems due to factors such as changing consumer preferences,
increasing per capita income of the middle-class population, and cost
advantages to global OEMs. The demand for passenger cars is increasing in the
region, with front A/C becoming standard in all vehicles. Moreover, the rising
demand for mid and full-size SUVs, luxury cars, and government initiatives
towards electric vehicles are driving the need for thermal systems for engines
and transmissions, batteries and electric motors, as well as superior cabin
comfort technologies such as heated/ventilated seats and rear air conditioning.
China, with its growing vehicle production and sales, is projected to be the
largest market for thermal systems in the region.
Key Players in Thermal Systems Market
- DENSO CORPORATION
- MAHLE GMBH
- VALEO SA
- HANON SYSTEMS
- BORGWARNER INC
- GENTHERM INC
- SCHAEFFLER AG
- JOHNSON ELECTRIC HOLDINGS LTD
- DANA LIMITED
- ROBERT BOSCH GMBH
- EBERSPACHER
- CONTINENTAL AG
- VOSS AUTOMOTIVE GMBH
- GRAYSON THERMAL SYSTEMS
- CAPTHERM SYSTEMS
- DUPONT
- BHTC
- BOYD CORP.
- SANDEN HOLDINGS CORP.
- SANHUA AUTOMOTIVE
- SHANDONG HOUFENG GROUP
- MAGNA INT.
- LEAR COPR.
- STANT COPR.
- AIR INTERNATIONAL THERMAL SYATEMS
- MICHIGAN AUTOMOTIVE COMPRESSOR, INC.
- MODINE MANUFACTURING COMPANY
- WELLS VEHICLE ELECTROICS
- T.RAD NORTH AMERICA INC.
- THERMAL SOLUTION MANUFACTUURING, INC.
- AKG THERMAL SYSTEMS INC.
Recent Developments in Thermal Systems Market
The thermal systems market has been witnessing significant
developments in recent years, driven by advancements in technology, increasing
demand for energy-efficient systems, and growing concerns about climate change.
Here are some non-plagiarized updates on recent developments in the thermal
systems market:
The Thermal Systems Market has seen various developments in
recent years. In March 2022, MAHLE Aftermarket expanded its portfolio to
include indirect air conditioning condensers for modern vehicles. The same
month, Hanon Systems opened a new plant in China to manufacture HVAC modules
for electrified vehicles. In November 2021, MAHLE developed an innovative
internal coating for fuel cell coolers to improve operational safety and fuel
cell service life. In May 2021, Hanon Systems completed the acquisition of the
condenser business from Keihin Corporation in Europe and North America. In
March 2021, Hanon Systems began construction on its fifth plant in Korea to
produce heat pump modules and coolant valve assemblies for electric vehicles.
In February 2021, MAHLE acquired Keihin Corporation's thermal management
business activities in Japan, Thailand, and the US. Finally, in February 2021,
Schaeffler invested EUR 80 million in a new central laboratory complex in
Herzogenaurach as part of their Roadmap 2025 strategy to strengthen their
position as a center of technological excellence.
Increasing Adoption of Renewable Energy Sources: The growing
need to reduce carbon emissions has led to the increasing adoption of renewable
energy sources such as solar and wind power. The use of thermal energy storage
systems has also become more prevalent in recent years to help integrate renewable
energy into the grid.
Advancements in HVAC Systems: The HVAC industry has seen
significant advancements in recent years, including the development of smart
thermostats and the integration of IoT technology. These systems can monitor
and adjust temperature and humidity levels in real-time, providing greater
comfort and energy efficiency.
Growing Demand for Electric Vehicles: With the rise of
electric vehicles, there has been an increasing demand for thermal management
systems that can help regulate the temperature of batteries and other
components. This has led to the development of innovative solutions such as
liquid cooling and heat pumps.
Emergence of Energy Storage Systems: Energy storage systems
are becoming increasingly important as the use of renewable energy sources
grows. Thermal energy storage systems, in particular, are gaining traction due
to their ability to store energy for long periods of time and release it when
needed.
Shift Towards District Heating and Cooling: District heating
and cooling systems are becoming more popular as a way to reduce energy
consumption and emissions. These systems use centralized thermal plants to provide
heating and cooling to multiple buildings, reducing the need for individual
heating and cooling systems.
Overall, the thermal systems market is experiencing
significant growth and innovation, driven by the need for energy-efficient
solutions and the shift towards renewable energy sources. As technology
continues to advance, we can expect to see even more developments in this space
in the coming years.