The domestic thermal management component market is gaining momentum alongside the expansion of the electric vehicle market. As automakers engage in a technological competition to extend battery life and enhance rapid charging performance, the importance of related components has increased. Domestic component manufacturers are also seizing new growth opportunities by expanding their supply of thermal management systems.
According to financial information firm FnGuide on October 27, Hanon Systems and Hyundai Wia are projected to report operating profits of 112 billion won and 53.9 billion won, respectively, for the third quarter of this year. This marks an increase of 17.5% and 3.9% compared to 95.3 billion won and 51.8 billion won during the same period last year.
Hanon Systems and Hyundai Wia produce thermal management components that regulate the temperature of electric vehicle batteries and drive systems. Hanon Systems, the second-largest player in the global automotive thermal management market, primarily manufactures vehicle thermal conditioning systems, including heat pumps and electric compressors. Recently, it has expanded its supply of battery cooling systems for electric and hybrid vehicles, establishing a foothold in the global market.
Hyundai Wia is nurturing its thermal management business as a future growth driver. Following its decision to sell a special business division, the company is focusing more on developing thermal management systems. According to its recently announced mid- to long-term growth strategy, Hyundai Wia plans to increase the combined revenue of its thermal management systems (TMS) and robotics businesses from approximately 400 billion won this year to 4 trillion won by 2035. The TMS business alone is expected to grow at an average annual rate of 40.4%, reaching 2.7 trillion won by 2035.
The commitment of domestic component manufacturers to the thermal management sector is driven by the acceleration of battery technology advancements among major global automakers, their primary clients. As battery performance and lifespan emerge as key factors influencing the marketability of electric vehicles, there is a swift movement toward securing related technologies.
Hyundai Motor has announced that it is pursuing in-house research and development of solid-state batteries, which are considered the next-generation battery technology. Solid-state batteries replace the liquid electrolyte in conventional lithium-ion batteries with a solid, enhancing safety and energy density. Chinese company BYD has also entered the rapid charging performance competition by unveiling its second-generation blade battery this year. The competition among automakers is intensifying as they strive to reduce charging times and extend driving ranges.
With the activation of the electric vehicle market, the thermal management component market is also experiencing growth. According to global market research firm Fortune Business Insights, the global electric vehicle thermal management system market is projected to grow from $26.84 billion this year to $84.11 billion by 2034, at an average annual growth rate of 15.3%. Furthermore, there is potential for additional growth as the business scope expands beyond vehicles to include data centers, energy storage systems (ESS), and robotics.
Moon Hak-hoon, a professor at Osan University’s Future Electric Vehicle Department, stated, "The automotive thermal management market grows in proportion to vehicle production volumes, but there is a high potential for utilization in other industries. Since thermal management is essential wherever batteries are used, the growth trend of related companies is likely to continue for some time."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.