Global Thermal Management Market - 2021-2028

Global Thermal Management Market - 2021-2028

Market Overview

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.

The Global Thermal Management (SSR) market size was valued at US$ XX billion in 2020 and a growth in market size is expected resulting in a market size worth US$ XX billion by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).

Market Dynamics

The major factor driving the rising demand for Global Thermal Management is the increasing use of electronic devices in the various industries and this results in high demand for thermal management systems and also thermal management can control temperature and noise level in the aerospace and defence industry.

Increasing use of Electronic devices in different industries like healthcare and automobile

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, 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 defence and aerospace industry. According to a report in 2018 by Aerospace Industries Association, the global aerospace & defence manufacturing and sale was expected to increase with 7.4% annual growth for an estimated USD 150 billion per year for commercial aircraft and defence spending. But in 2020 due to the pandemic, both the aerospace and defence manufacturing and sales suffered due to the increase in supply and demand gap but still more defence, aerospace manufacturing and sales are major factors for the growth of the thermal management market.

Complexity in the design of components of cooling systems, high cost of thermal technology are hampering the growth of the Global Thermal Management Market

COVID-19 Impact Analysis

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 and since aviation and defence were classified as non-essential services so they were shut down and this led to less manufacturing and sales in the defence 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 health care 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 but 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.

Segment Analysis

Global Thermal Management is segmented based on Fats Type, Oil Type, End-uses and Region. The market is divided based on Devices used, Material, Services, Region, End-uses.

Based on devices, Global Thermal Management Market is segmented as - Conduction Cooling Devices, Convection Cooling Devices, Advanced Cooling Devices, 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 the 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 vapour-compression and advanced cooling systems are expected to be in demand in the future as direct immersion cooling is there in data centres and servers and increased microchannel cooling in electronic devices.

Based on services, the global thermal management market is segmented into Installation and Calibration, Optimization, 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 and 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, maintenance.

Based on End-Uses, Global Thermal Management Market is segmented into Aerospace & Defense, Automotive & Electronics, Telecommunications, Renewable Energy, Data Centers Consumer 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 gap in demand and supply and minimum operations due to lockdown, even E-commerce sites only allowed essential services so this led to decline in the electronics industry. Even the automotive industry suffered and the reason for the growth of electronics and automotive 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 centres (data centres consumer) will emerge with 2nd largest market growth based on End-use as thermal management is important for useful operations in data centres such as data placement, data replication, 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 defence and aerospace industry.

Based on material, Global Thermal Management Market is segmented as Adhesive and Non-Adhesive Material.

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 the Global Thermal Management and it is expected that it will grow at a much higher rate in the future due to large population and also manufacturing facilities are increasing for automobile and electronics industry 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, 4 million. But in 2020 due to covid-19 car sales declined in every country but even then based on cars sold China, Japan, India were at rank 1, 3, 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.

Competitive Landscape

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 increases 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, 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, 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), 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 auxiliary power unit, environmental control system and emergency power into one and it also increases efficiency, reliability and 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 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 centres.

Financial Overview

Vanguard Group Inc, SSgA Funds Management, Inc, Capital Research & Management Co, Massachusetts Financial Services Co, 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.

Why Purchase the Report?

● Visualize the composition of the Global Thermal Management market products in terms of Devices, End-use highlighting the critical commercial assets and players.

● Identify commercial opportunities in the Global Thermal Management market by analyzing trends and co-development deals.

● Excel data sheet with thousands of data points of Global Thermal Management market-level 4/5 segmentation.

● PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

● Product mapping in excel for the key product of all major market players

The Global Thermal Management radar market report will provide access to approximately 53 market data tables, 44 figures, and 200 pages

Target Audience 2022
• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Research professionals
• Distributors
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