US Battery Thermal Management System Market Outlook (2025)
The US Battery Thermal Management System (BTMS) market encompasses advanced solutions for controlling battery temperature and ensuring optimal performance across key sectors including electric vehicles, energy storage, consumer electronics, and industrial equipment. BTMS solutions, ranging from active and passive systems to liquid cooling, air cooling, thermoelectric, and PCM technologies, provide reliable safety, lifecycle extension, and efficiency enhancement. The market is propelled by EV adoption, grid modernization, and innovations in thermal management, with strong penetration via both direct and indirect distribution channels, and adoption spanning small to large organizations.
Latest Market Dynamics
Key Drivers
Accelerated adoption of electric vehicles (EVs) in the US, fueled by consumer demand for sustainable transport and supportive federal incentives. Latest example:
(June 2024) expanded production of its advanced liquid cooling BTMS for the upcoming Model Y lineup.
Rising deployment of battery energy storage systems (BESS) for renewable integration and grid stability. Example: LG Chem (July 2024) rolled out new modular BTMS units for utility-scale storage deployments, enhancing safety and operational lifetime.
Key Trends
Integration of phase change materials (PCMs) and hybrid thermal management for next-gen high-density batteries. For example, Gentherm (June 2024) introduced PCM-based solutions targeting fast-charging EVs.
Shift towards smart, IoT-enabled BTMS for real-time monitoring and predictive maintenance, especially in industrial and storage settings. Denso Corporation (July 2024) unveiled a cloud-connected BTMS platform for fleet and grid operators.
Key Opportunities
Expansion of BTMS adoption within utility-scale battery storage supporting decarbonization goals, with Hanon Systems (June 2024) winning contracts for hybrid cooling systems in large grid projects.
Growing need for highly compact and efficient BTMS solutions in consumer electronics, seen by Samsung SDI (August 2024) launching next-gen BTMS modules for wearables and portable devices.
Key Challenges
High cost and complexity in retrofitting advanced BTMS solutions to aging or legacy battery systems. Example: Dana Incorporated (July 2024) reported longer integration cycles for industrial retrofits.
Supply chain vulnerabilities affecting core components such as thermal interface materials. MAHLE GmbH (June 2024) highlighted rising lead times for critical parts under recent global logistics disruptions.
Key Restraints
Technical limitations of air cooling systems in ultra-high density applications are restraining wider application, as noted by Continental AG (June 2024) in recent product update.
Stringent regulatory safety and environmental compliance demands are slowing the rollout of innovative BTMS designs. Bosch (July 2024) revealed delays in certification for next-gen thermoelectric modules.
In 2025, liquid cooling remains the dominant BTMS type in the US market, capturing 38% share due to its effectiveness in high-performance applications, especially electric vehicles and BESS. Air cooling follows with 26%, favored in lower-density and cost-sensitive segments, such as industrial equipment and basic electronics. Phase Change Materials (PCMs) and other solutions make up the rest, with PCMs at 14%, reflecting growing but still niche adoption within advanced EV and consumer device platforms. The overall market segmentation by type illustrates a trend towards more sophisticated BTMS technologies as end-user requirements intensify.
Electric vehicles lead BTMS demand in the US, accounting for 42% share in 2025, driven by mass EV adoption and tighter thermal performance standards. Battery energy storage systems represent 28%, reflecting ongoing investments in renewable grid integration. Consumer electronics and industrial equipment hold 10% and 8% respectively, underscoring growing miniaturization and industrial safety needs. The remainder is spread across telecommunications and renewable energy backup roles. This distribution confirms BTMS as a critical enabler in US mobility, clean energy, and high-tech device trends.
The US BTMS market revenue is anticipated to grow from $1,720 Million in 2020 to $4,680 Million by 2035, at a CAGR of 7.2%. The market's accelerating trajectory is shaped by robust EV penetration and surging investments in utility-scale battery projects. Intermediate years reflect compounded growth due to incremental regulatory drivers, expanded renewable energy mandates, and rapid advances in battery safety requirements. The forecast underscores BTMS’s pivotal role in facilitating transition to electrified mobility and resilient energy systems.
US BTMS Market Year-Over-Year (%) Growth, 2020-2035
The US BTMS market shows steady YoY growth, averaging 7-8% through 2035, with peaks in 2024-2026 fueled by major federal EV incentives, soon plateauing as base effects and market maturity set in. 2025 is forecasted at 8.2% YoY, then moderates to around 6.9% by 2035 as adoption saturates the core transportation and energy storage sectors. Overall, the sustained YoY growth reflects enduring infrastructure modernization and technological upgrades across all BTMS-enabled industries.
In 2025, the West region leads the US BTMS market, representing 36% share on the back of strong EV adoption in California and large-scale energy storage deployments. The Midwest follows closely with 28%, capitalizing on battery manufacturing growth and grid upgrades, while the Northeast attains 20% given its urban e-mobility initiatives. The South makes up 16%, driven by industrial conversions and expanding grid infrastructure. These figures illustrate the regionally diverse but convergent demand for advanced battery thermal solutions.
Tesla, Inc. dominates the US BTMS competitive landscape with 22% market share, driven by proprietary thermal management innovation in EVs. Denso Corporation and LG Chem follow, holding 17% and 15% respectively, leveraging extensive OEM integrations. Gentherm and MAHLE GmbH each have 10%, reflecting strong portfolios in hybrid/ICE vehicles and cooling tech. The remaining 26% is split among Robert Bosch, Hanon Systems, Samsung SDI, and others, all contributing to a competitive, rapidly-evolving market.
OEMs constitute the largest buyer segment for BTMS solutions in the US, accounting for 58% of the market in 2025, driven by integration into EVs and energy systems at manufacture. Power & Utility Companies represent 17%, relating to utility-scale storage, while commercial fleet operators claim a 13% share as they electrify logistics. Consumer electronics makers and aftermarket channels together form the balance, totaling 12%, mirroring increased adoption in portable and retrofit markets.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
Revenue (USD Million)
Regions
West, Midwest, Northeast, South
Segments
Type (Active, Passive, Liquid Cooling, Air Cooling, Phase Change Materials (PCMs), Others), Application (Electric Vehicles, Battery Energy Storage Systems, Consumer Electronics, Industrial Equipment, Telecommunications, Renewable Energy), Distribution Channels (Direct, Indirect/Distributors, Online, Offline, Retail, Others), Technology (Liquid Cooling, Air Cooling, PCM, Thermoelectric, Forced Air, Others), Organization Size (Small, Medium, Large)
August 2024 – Samsung SDI introduces miniaturized BTMS modules for wearable and high-density consumer electronics.
Frequently Asked Questions
About the Author
Clara
Senior Market Research Analyst
Clara is a Senior Market Research Analyst specializing in market research, industry analysis, and business consulting across Automotive & Transportation. Clara brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Clara has helped organizations translate data into actionable growth strategies.
