Thermal Management Market Report Overview
150 Pages report analyses the thermal management market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for thermal management solutions is increasing due to the rise in electronic devices and data centers. The Asia-Pacific region is witnessing a surge in demand for thermal management solutions. The competitive rivalry is intensifying with major players such as Honeywell International Inc., Vertiv Group Corp, and Delta Electronics Inc. actively operating in the market.
Thermal Management Market Scope and Summary
| Metrics | Details |
| Market CAGR | 8.5% |
| Segments Covered | By Devices, By Services, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Thermal management is maintaining the required temperatures of generators, computers, electronic devices, etc to avoid any kind of fault. Many cooling solutions like heat pipes, cooling fans, heat sinks, liquid cooling systems, heat exchangers, etc are part of thermal management systems and this helps to keep devices within their operating temperature. Thermal management is efficient and helps to improve performance and also it reduces the high cost of energy.
Thermal Management Market Dynamics and Trends
The major factor driving the rising demand for Global Thermal Management is the increasing use of electronic devices in various industries and this results in high demand for thermal management systems also thermal management can control temperature and noise levels in the aerospace and defense industry.
Increasing use of Electronic devices in different industries like healthcare and automobile
The increasing use of electronics in various sectors like healthcare etc is driving the demand for thermal management solutions which in turn is increasing the demand for thermal management systems. Increasing focus on the use of electric cars is also a driving factor for the growth of this industry. Heat pipes, pumps, sinks, and spreaders are used in cooling computers and convection cooling systems are also used in electric circuits, so the efficiency of electronic devices drives the growth of the market.
Increasing use in Aerospace and Defence sectors
Thermal management technology can control the temperature and noise level of a system in the defense and aerospace industry. According to a report in 2018 by Aerospace Industries Association, global aerospace & defense manufacturing, and the sale was expected to increase with 7.4% annual growth for an estimated USD 150 billion per year for commercial aircraft and defense spending. But in 2020 due to the pandemic, both aerospace and defense manufacturing and sales suffered due to the increase in supply and demand gap but still more defense, aerospace manufacturing, and sales are major factors for the growth of the thermal management market.
Complexity in the design of components of cooling systems, and the high cost of thermal technology are hampering the growth of the Global Thermal Management Market
COVID-19 Impact on Thermal Management Market growth
The Global Thermal Management Market has shown a slight decline due to the COVID-19 pandemic, as there were full or partial lockdowns in many countries of the world since aviation and defense were classified as non-essential services so they were shut down and this led to fewer manufacturing and sales in the defense and aerospace sector and affected the growth of thermal management systems and pandemic also affected the businesses of companies in the thermal management sector and it also affected operations of various thermal management industries and since the industry is dependent on raw materials suppliers which were not able to operate during the lockdown and hence hampered the growth of Global Thermal Management Market. Now the demand for electronic devices also declined due to the pandemic which resulted in the decline of the thermal management market. After the pandemic demand in the healthcare sector and personal monitoring systems will be driving the growth of the Global Thermal Management Market. Due to covid-19 initially market suffered as china was in complete lockdown as it is the largest electronics consumer and producer so there was not a high demand for electronics when china started its manufacturing activities the whole world was in complete lockdown and mismanagement in supply and demand lead to the decline in the growth of the market. The automotive industry also suffered during covid 19 due to less manufacturing across Europe and several assembly plants were closed in the USA, so almost all sectors dependent on thermal management systems suffered, only the healthcare sector was able to stop the significant decline in the market.
Thermal Management Market Segment and Shares
Global Thermal Management is segmented based on Fats Type, Oil Type, End-uses, and Region. The market is divided based on Devices used, Materials, Services, Region, and End-uses.
Based on devices, Global Thermal Management Market is segmented into - Conduction Cooling Devices, Convection Cooling Devices, Advanced Cooling Devices, and Hybrid Cooling Devices.
Convection cooling devices had the highest market share in 2019 due to the increasing demand for air conditioning systems over water cooling systems as water cooling systems require large components and also there is a high cost involved with water cooling systems and so there is a high demand for air cooling systems with high consumer spending, especially in low and mid-income families of developing countries. According to a report by the International Energy Agency, there were 1.6 billion AC units in the world in 2018 which rose to 1.9 billion in 2020 and are expected to reach 5.6 billion by 2050 thus making convection cooling systems the leading segment. Convection cooling systems are used in electric circuits and these devices lower the temperature of the system by convection. Heat pipes, pumps, sinks, and spreaders are used in cooling computers. Conduction, advanced, and hybrid cooling systems are also growing due to the large population of the world and now there is a focus on hybrid cooling systems as there are minimal water losses and it also offers energy efficiency and it also consumes less water. In 2020 eight solutions were discussed to reduce global warming’s effects on the environment such as the use of evaporative cooling, solid-state technologies, smart hybrid vapor-compression, and advanced cooling systems are expected to be in demand in the future as direct immersion cooling is there in data centers and servers and increased microchannel cooling in electronic devices.
Based on services, the global thermal management market is segmented into Installation and Calibration, Optimization, and Post Sales Support.
Installation and Calibration was the leading segment according to a report in 2019 as the demand for using renewable energy is increasing which in turn is increasing the market for Global Thermal Management devices. Every year around 1300-1400 solar cooling systems are installed worldwide and now it is expected that this number will increase by 40%-60% as the number of solar panels installed are increasing every year according to the report by the world economic forum in 2018, no of solar panels will increase to 70000 per hour worldwide by five years. The demand for optimization and post-sales is also increasing due to the rise in demand for the repair and maintenance of cooling systems worldwide. According to the report by the Öko-Institute organization, every year 200 million split-type AC units are sold worldwide which require repair, and maintenance.
Based on End-Uses, Global Thermal Management Market is segmented into Aerospace & Defense, Automotive & Electronics, Telecommunications, Renewable Energy, Data Centers Consumers, and healthcare.
Among these, the automotive & electronics segment had the highest market share in 2019 but due to covid-19 both the automotive and electronics industry suffered due to a gap in demand and supply and minimum operations due to lockdown, even E-commerce sites only allowed essential services so these led to a decline in the electronics industry. Even the automotive industry suffered and the reason for the growth of electronics and automotive is due to rising consumer spending with a rise in the global population. According to India Electronics & Semiconductor Association, the global market for strategic electronics was valued at around USD 256 billion in 2018 and is projected to grow at a CAGR of 4%, with an estimated USD 422 billion in 2032. In 2019 Global market for electronics was valued at USD 1.07 trillion but due to covid-19 it contracted by 7% in 2020 and it is expected that it will grow at 5%-7% in 2021. The demand for renewable energy is increasing which in turn is increasing the market for Global Thermal Management devices Every year around 1300-1400 solar cooling systems are installed worldwide and now it is expected that this number will increase by 40%-60% as the number of solar panels installed are increasing every year and according to the report by world economic forum in 2018, no of solar panels will increase to 70000 per hour worldwide by five years. It is expected that Servers and Data centers (data centers consumer) will emerge with 2nd largest market growth based on End-use as thermal management is important for useful operations in data centers such as data placement, data replication, and control of disk speeds. The demand for thermal management in the healthcare sector is high as there is a rise in cardiovascular diseases and cancer and this led to a huge demand for warming and cooling devices, a drop in body temperature multiplies cancer cells. Telecommunications has the 2nd highest market share by end-use after Automotive & Electronics. Thermal management technology can control the temperature and noise level of a system in the defense and aerospace industry.
Based on material, Global Thermal Management Market is segmented into Adhesive and Non-Adhesive Materials.
Thermal Management Market Geographical Analysis
Based on Region, Global Thermal Management is segmented as - North America, Europe, Asia-Pacific, Middle East, Africa, South America
Asia-Pacific region has the highest market share in Global Thermal Management and it is expected that it will grow at a much higher rate in the future due to the large population and also manufacturing facilities increasing for the automobile and electronics industries as China, India, Japan, South Korea are in the top 6 automobile manufacturing countries with China at rank 1, Japan at rank 3, South Korea at rank 5, India at rank 6. Even in the electronics industry, China is the biggest consumer and producer in the world. It is expected that China will produce 50% of the world's electronics in value by 2025. According to a report by the International Energy Agency, the total cars sold in China, India, and Japan were 25 million, 4 million, and 4 million. But in 2020 due to covid-19 car sales declined in every country but even then based on cars sold China, Japan, and India were at rank 1, 3, and 5 with 19.2 million, 4.6 million, 2.47 million cars sold and the role of thermal management is significant in maintaining the car engine temperature within the required level to avoid any failure. Major countries in the Asia-Pacific region are China, India, Japan, South Korea, and Australia.
Thermal Management Companies and Competitive Landscape
The global Thermal Management Market is fragmented with key global players in the market. Some of the major companies contributing to the market's growth are- Honeywell International, Sapa Group, Heatex, Pentair Thermal Management, Thermacore, Vertiv Co, European Thermodynamics Ltd, Dau Thermal Solutions, Master Bond Inc, Alcatel-Lucent, LairdTech, Aavid Thermalloy, and many others.
Mergers and Acquisitions, expansions, joint ventures, etc increase competition in the market such as Honeywell acquiring a Nevada-based thermal and power/energy management company named Rocky Research in 2020. Lytron, a thermal management company in the US, was acquired by Boyd corporation in 2019.
New products and services launched also increase competition between companies such as Honeywell launched E-cooling which cools electronics in a more efficient way using liquid heat transfer agents and this involves low operational costs. Master Bond Inc launched EP17HTS-DA and the Ultra-tech UTX series thermoelectric cooler was launched by LairdTech. New agreements and partnerships also make the market competitive.
HONEYWELL INTERNATIONAL
Overview:
Honeywell International Inc is an American multinational company, it is a multinational conglomerate. The headquarters of the company are in Charlotte, North Carolina. The company has four areas of business which are Aerospace, performance materials, and technology (PMT), safety and productivity solutions (SPS), and home and building technology. It is a public company or a publicly traded company. AlliedSignal, an American aerospace company, acquired Honeywell Inc in 1999 but the name of the combined company was chosen as Honeywell. Allied Corp and Signal companies merged in 1985 to form AlliedSignal. The company rejoined the Dow Jones Industrial Average Index in 2020. The current CEO of the company is Darius Adamczyk. Honeywell recently acquired Rocky Research, a Nevada-based thermal management based company.
Product Portfolio:
- Micro Vapor Cycle System (VCS): It is a good cooling solution for urban air mobility aircraft and civil & military aircraft/helicopters where small size and reduced weight are to be given importance. It uses a high-speed centrifugal compressor, next-generation refrigerant, and power electronics along with switches made of silicon carbide.
- Power/Thermal Management systems: Honeywell’s power and thermal management system integrate an auxiliary power unit, environmental control system, and emergency power into one and it also increases efficiency, reliability and the life cycle cost of the system is also reduced.
- Liquid cooling system, Air coolers
Key Development
- Honeywell acquired a Nevada-based thermal and power/energy management company named Rocky Research in 2020.
- Honeywell launches the Micro Vapor cycle system as a cooling system for aerial mobility and it uses advanced technology to cool electronics, batteries, etc in 2020.
- Honeywell launches new cooling technology which involves low operational costs and is quite useful for data centers.
Financial Overview
Vanguard Group Inc, SSgA Funds Management, Inc, Capital Research & Management Co, Massachusetts Financial Services Co, and Newport Trust Co are major shareholders of the company with 7.61%, 5.03%, 4.09%, 3.29%, 2.41% market shares respectively. Honeywell is a Fortune 500 company and its market value is USD 1.59 according to Fortune and Nasdaq.
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