Thermal Management Market for ADAS: A Global and Regional Analysis, 2023-2033

The thermal management market for ADAS was valued at $151.2 million in 2022, and it is expected to grow at a CAGR of 24.06% and reach $1,409.5 million by 2033. The growth in the thermal management market for ADAS is expected to be driven by growing demand for autonomous driving and ADAS sensors, rising developments, and integration of autonomous vehicles in public transport for semi-autonomous and autonomous vehicles.

Introduction of Thermal Management for ADAS

Thermal management for ADAS refers to materials used to maintain proper heat dissipation in ADAS sensors to withstand high temperatures. They are designed in such a way that they can easily fit in between two electronic parts, in between the cover and electronic part, and on the surface of integrated circuits (ICs). The demand for robust, durable, and stable thermal management materials is increasing significantly on account of the launch of efficient ADAS sensors in the market. For the effective working of ADAS sensors to gain precise results, these sensors must stay thermally stable. ADAS thermal management solutions are crucial for ensuring the long-term performance and lifespan of sensor components.

Market Introduction

The thermal management market for ADAS is still in its early stages of development and adoption, with limited commercial deployment and a smaller number of players involved in the market. The market is primarily focused on thermal management materials for ADAS applications. The thermal management market for ADAS is currently smaller than the overall thermal management material market, but it is expected to grow rapidly in the coming years as the technology continues to advance and the benefits of autonomous operation become more widely recognized. There is significant interest and investment in the development of high-performance thermal management products, with many companies competing to establish a foothold in this emerging market.

Market Segmentation:

Segmentation 1: by Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

Passenger Vehicles to Dominate the Thermal Management Market for ADAS (by Vehicle Type)

The passenger vehicles segment is leading the thermal management market for ADAS compared to commercial vehicles. Rapid growth in research and development activities for self-driving passenger vehicles is one of the driving factors for the growth of the thermal management market for ADAS. As the automotive industry embraces ADAS integration, passenger vehicles are spearheading this transformation. The escalating demand for safety features, particularly ADAS technologies, in personal vehicles is a key driving force. With consumers placing a premium on advanced safety systems, manufacturers are pouring resources into thermal management solutions for passenger vehicles to guarantee the dependable and efficient operation of ADAS components. This focus positions passenger vehicles as the primary catalyst for growth in the global thermal management market for ADAS.

Segmentation 2: by Propulsion Type

• Internal Combustion Engine Vehicles
• Electric Vehicles

Internal Combustion Engine Vehicles Segment to Grow at a Significant Growth Rate in the Thermal Management Market for ADAS (by Propulsion Type)

Internal combustion engine (ICE) vehicles are currently leading the thermal management market for ADAS, driven by the growing adoption of ADAS features in ICE models and their higher sales compared to electric vehicles (EVs). However, EVs are expected to overtake ICE vehicles in the long run as the global thermal management market for ADAS expands. While ICE vehicles may initially experience significant growth in ADAS integration, the long-term trajectory favors EVs due to the shift toward electric mobility and the increasing prevalence of ADAS in EVs. This shift creates a sustained demand for effective thermal management solutions tailored to the unique heat dissipation challenges posed by electric drivetrains. As EV adoption accelerates, manufacturers will prioritize developing these thermal management systems, positioning EVs as the dominant force driving growth in the global thermal management market for ADAS in the long term.

Segmentation 3: by Level of Autonomy

• Semi-Autonomous
• Fully Autonomous

Semi-Autonomous Vehicles to Dominate the Thermal Management Market for ADAS (by Level of Autonomy)

Semi-autonomous vehicles are set to become a major driving force behind the expansion of the global thermal management market for ADAS. The automotive industry's rapid progression toward autonomous driving is fueling the widespread adoption of advanced ADAS technologies in semi-autonomous vehicles. These vehicles, equipped with complex sensor systems and powerful computing components, generate significant heat, making robust thermal management solutions indispensable. As both consumers and manufacturers increasingly embrace semi-autonomous features, the demand for effective heat dissipation technologies is surging. This surge positions semi-autonomous vehicles as key contributors to the growth of the global thermal management market for ADAS.

Segmentation 4: by Sensor Type

• LiDAR
• RADAR
• Camera
• Ultrasonic

Camera Segment to Dominate the Thermal Management Market for ADAS (by Sensor Type)

Camera sensors dominate the thermal management market for ADAS, surpassing other sensor types such as LiDAR, RADAR, and ultrasonic sensors. The burgeoning integration of ADAS in vehicles heavily relies on camera sensors for crucial functions such as object detection and lane monitoring. During operation, these sensors generate heat, necessitating effective thermal management solutions. The demand for enhanced safety and image processing capabilities in ADAS propels camera sensors to the forefront. Manufacturers are channeling their resources toward developing thermal management technologies specifically tailored to combat the unique heat dissipation challenges posed by camera sensors, making them instrumental in driving the global thermal management market for ADAS.

Segmentation 5: by Product Type

• Thermal Interface Materials
• EMI Shielding Materials

Thermal Interface Materials Segment to Grow Considerably in the Thermal Management Market for ADAS (by Product Type)

Thermal interface materials are poised to play a commanding role in the global thermal management market for ADAS. As the automotive industry embraces ADAS features, the need for effective heat dissipation becomes increasingly critical. Thermal interface materials step up to this challenge by enhancing the thermal conductivity between components, ensuring that sensitive ADAS elements operate at optimal temperatures. In an era where vehicle safety and performance are paramount, thermal interface materials' ability to optimize heat transfer and prevent thermal issues positions them as a critical component in the ADAS thermal management landscape. Manufacturers are actively investing in advancements in thermal interface materials to cater to the evolving needs of the automotive industry.

Segmentation 6: by Region

• North America: U.S., Canada, and Mexico
• Europe: Germany, France, Netherlands, Norway, U.K., and Rest-of-Europe
• Asia-Pacific: China, Japan, South Korea, and Rest-of-Asia-Pacific
• Rest-of-the-World

The Asia-Pacific region is poised to dominate the thermal management market for ADAS, driven by the presence of several established manufacturers and the increasing sales of semi-autonomous vehicles. Regulatory and policy initiatives in Asia-Pacific that encourage the development and adoption of autonomous vehicles are further fueling market growth. In addition to Asia-Pacific, the Rest-of-the-World region is anticipated to witness significant growth due to the increasing demand for efficient transportation solutions and rising number of road accidents. This growth is expected to be particularly strong in emerging markets, where there is a growing middle class with increasing disposable income.

Recent Developments in the Thermal Management Market for ADAS

• In September 2023, Henkel AG & Co. KGaA launched the Bergquist gap filler TGF 4400LVO, the first product in its next-generation thermal gap filler line for automotive applications. This innovative product is designed to provide efficient heat dissipation for electronic control units (ECUs) and advanced driver-assistance systems (ADAS) sensors, ensuring optimal performance and reliability.
• In January 2021, Momentive strengthened its global presence in advanced silicones and specialized applications by acquiring KCC Corporation (KCC)'s silicones business. The acquisition encompasses KCC's silicones operations in Korea and the U.K., along with its sales operations in China.
• In July 2022, WACKER Chemie AG, a global leader in silicone chemistry, opened a new production site for silicones in Panagarh, India. The plant, which is located around 160 kilometers northwest of Kolkata, would manufacture silicone rubber and ready-to-use silicone compounds for the electromobility, medical technology, and electrical transmission and distribution (T&D) industries.
• In April 2022, Shin-Etsu Chemical Co., Ltd. launched a new line of thermal interface silicone rubber sheets, the TC-BGI Series, specifically designed for electric vehicle components as high-voltage technology progresses.

Demand - Drivers, Limitations, and Opportunities

Market Demand Drivers: Development of Regulations for Autonomous Mobility

The advent of autonomous vehicles holds immense promise for revolutionizing road safety and alleviating traffic congestion. To fully harness the potential of this transformative technology, a comprehensive regulatory framework is crucial for evaluating the usability and safety of autonomous vehicles. Governments worldwide, including Japan, China, the U.S., and the U.K., are actively shaping regulatory frameworks to facilitate trials of a diverse range of passenger and commercial autonomous vehicles. Leading economies such as Israel are collaborating with the World Economic Forum to pioneer innovative approaches to autonomous vehicle regulation.

The deployment of autonomous vehicles is gaining momentum, with several ride-hailing companies in Arizona, U.S., operating hundreds of autonomous taxis each week, overseen by remote operators. Roboshuttle manufacturers are also expanding their operations across Europe, China, the U.S., and other regions. Additionally, autonomous vehicle manufacturers are lobbying several U.S. states to revise regulations that currently restrict public testing of autonomous vehicles. The growing number of enacted and pending regulations related to autonomous vehicles indicates that governments are actively supporting the development and adoption of this technology, which is expected to boost sales of autonomous vehicles over the forecast period from 2023 to 2033.

The California Department of Motor Vehicles (DMV) is poised to introduce a new regulatory framework that will enable light and heavy-duty autonomous vehicles weighing over 10,000 pounds to operate on public roads. This streamlined regulatory approach is anticipated to accelerate the adoption of heavy-duty autonomous vehicles in the U.S. Europe has taken the lead in developing and implementing regulations that permit testing of semi-autonomous and fully autonomous vehicles on European roads. On July 28, 2022, Germany enacted two pieces of legislation pertaining to autonomous vehicles, including an ordinance regulating the operation of motor vehicles with automated and autonomous driving functions and amending road traffic legislation and the Autonomous Driving Act.

These regulatory advancements have empowered vehicle manufacturers to shift their focus toward developing Level 4 autonomous vehicles for commercial applications. A prime example is MAN Trucks & Bus SE, which successfully completed the freight transport project Autonomous Innovation in Terminal Operations (ANITA) in May 2022, which aimed to facilitate the autonomous integration of heavy-duty freight vehicles. These developments, coupled with the emergence of favorable regulatory environments across the globe, are expected to significantly accelerate the adoption of heavy-duty autonomous vehicles.

Market Challenges: Underdeveloped Autonomous Vehicle Infrastructure

The limited availability of autonomous vehicle (AV) infrastructure is a major hurdle to the widespread adoption of autonomous vehicles. This infrastructure includes dedicated lanes, charging stations, and communication networks that are specifically designed for AVs. These components are essential for enabling AVs to operate safely and efficiently.

Currently, AV deployment in developed countries is still in its early stages, with limited use cases primarily focused on research and development. For instance, companies such as Waymo and Tesla are pioneering AV technology, with Waymo testing autonomous vehicles on public roads in California and Arizona and Tesla incorporating autopilot features into its electric cars. However, broader adoption of AVs requires significant investments in infrastructure and technology, particularly in developing nations.

Integrating AVs into existing urban infrastructure poses a significant challenge in the planning of driverless cities. Existing roadways, traffic signals, and other infrastructure elements need to be adapted to accommodate AVs, ensuring seamless interaction and preventing conflicts with traditional vehicles. Standardization and interoperability are crucial for AV infrastructure to communicate effectively with AVs, enabling them to navigate safely and efficiently within the urban environment.

Developing and integrating AV infrastructure into existing urban environments requires substantial investments and careful planning to ensure seamless interaction between AVs and traditional vehicles. Rapid development of autonomous vehicle infrastructure across the world is expected to boost autonomous vehicle sales. Also, it will allow autonomous vehicle solution providers to test autonomous vehicles with levels of autonomy, such as Level 3, Level 4, and Level 5. As vehicles become more autonomous, the number of sensors per vehicle is expected to increase proportionally. Thus, this will boost the growth of the global thermal management market for ADAS.

Slow growth in the development of suitable infrastructure for autonomous vehicles is pulling the investment opportunities for investors in the autonomous vehicle space. The lack of developed autonomous vehicle infrastructure is restraining the growth of the thermal management market for ADAS.

Market Opportunities: Development of Robust Thermal Management System for ADAS Sensors

The automotive market is swiftly implementing autonomous features to enhance safety and driving convenience. This necessitates the integration of a set of sensors, including cameras, RADARs, and LiDARs, alongside advanced computing platforms. As these components evolve, they introduce thermal management challenges, thereby creating opportunities for the development and application of thermal interface materials, die-attach solutions, RADAR radome materials, and electromagnetic interference (EMI) shielding technologies. Addressing these challenges presents a promising avenue for advancements in the automotive industry, particularly in the realm of autonomous driving systems.

Advanced driver-assistance systems (ADAS) integrate multiple systems within the vehicle, incorporating sensors, cameras, connectivity features, and significantly, a data module. This data module serves as a central component that aggregates and combines information received from the diverse array of components integrated throughout the vehicle. The synergy of these systems enables ADAS to provide comprehensive and sophisticated functionalities aimed at enhancing safety, convenience, and overall driving experience.

The ascent of companies such as Tesla has compelled automotive manufacturers to redefine their corporate strategies and align with market demand shaped by evolving consumer preferences. The growing demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) brings forth new design challenges for automakers. These challenges include the imperative to lower manufacturing costs, extend battery range, reduce overall weight, and enhance safety and reliability. Meeting these demands is critical for staying competitive and addressing the evolving landscape of consumer expectations in the automotive industry.

Thermal management stands out as one of the most significant challenges in modern automobile design and has created opportunities for the development of advanced thermal materials and thermal management systems tailored for sensors. These innovations aim to enhance heat dissipation and cooling efficiency, addressing the thermal challenges associated with both exterior and interior heat-generating systems in modern vehicles. The pursuit of effective thermal management is pivotal in optimizing performance, efficiency, and overall reliability in the rapidly evolving automotive landscape.

How can this report add value to an organization?

Product/Innovation Strategy: Globally, the leading thermal management material manufacturers are continuously working to manufacture high-performance, reliable, and stable products. Increasing sales of autonomous vehicles is one of the major factors for the growth of the thermal management market for ADAS. The market is more on the consolidated side at present, where thermal management material manufacturers have been successful to a certain extent in strengthening their market position in the global market, with continuous innovation and expansion of production capacity of thermal management products for ADAS. However, with the rise of autonomous driving and growing research and development activities, the existing established players are expected to face stiff competition from emerging players. Moreover, partnerships and collaborations are expected to play a crucial role in strengthening market position over the coming years, with the companies focusing on bolstering their technological capabilities and gaining a dominant market share in the thermal management materials industry.

Growth/Marketing Strategy: The thermal management market for ADAS has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include partnerships, agreements, and collaborations.

Competitive Strategy: The key players in the thermal management market for ADAS analyzed and profiled in the study include thermal management material manufacturers that are engaged in the development and marketing of thermal management materials for ADAS. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations are expected to aid the reader in understanding the untapped revenue pockets in the market.

Research Methodology

Factors for Data Prediction and Modeling

• The scope of this report has been focused on the thermal management market for ADAS.
• The market shares for the sensor types and application types have been calculated based on the global thermal management market for ADAS.
• Automotive production data for all countries has been taken for the calculation of the volume of autonomous vehicles.
• The base currency considered for the market analysis is US$. Currencies other than the US$ have been converted to the US$ for all statistical calculations, considering the average conversion rate for that particular year.
• The currency conversion rate has been taken from the historical exchange rate of the Oanda website.
• Nearly all the recent developments from January 2020 to November 2023 have been taken into account in this research study.
• The study of the market includes standard organizations, material suppliers, ADAS sensor manufacturers, and research institutes.
• The information rendered in the report is a result of in-depth primary interviews, surveys, and secondary analysis.
• Where relevant information was not available, proxy indicators and extrapolation were employed.
• Any economic downturn in the future has not been taken into consideration in the market estimation and forecast.
• Technologies currently used are expected to persist through the forecast period with no breakthroughs in technology.

Market Estimation and Forecast

The market size for the thermal management market for ADAS has been calculated through a mix of secondary research and primary inputs. A top-bottom approach has been followed to derive the quantitative information. The steps involved in the bottom-up approach are as follows:

• The reference of automotive production data for each country, such as by vehicle type and propulsion type, has been taken into consideration.
• For market share calculations of the level of autonomy, the market share of Level 1, Level 2, Level 3, Level 4, and Level 5 for each vehicle type, i.e., passenger vehicles, light commercial vehicles, heavy trucks, and heavy buses, has been considered.
• For the semi-autonomous segment, the considerations were limited to autonomous vehicles classified as Level 1 to Level 2 autonomy according to the Society of Automotive Engineers (SAE) definition. However, when examining the fully autonomous segment, autonomous vehicles falling under Level 3 to Level 5, as defined by the Society of Automotive Engineers (SAE), were considered.
• Also, all products and applications for each company (product mapping) have been analyzed. From this, the tentative market shares of subsegments were obtained. After this, these market shares were validated by industry experts.
• A supply-side approach was used to get the market size of the global thermal management market for ADAS in value ($million) for the year 2022. All leading thermal management material manufacturers' revenues for the base year 2022 were tracked down.
• Based on the segmental and product revenue of the manufacturers, the total product revenue for the thermal management market for ADAS through supply-side calculations was found. To determine the manufacturer's segmental revenue and product revenue for a particular vehicle type, the annual reports, websites, and quarterly financial results disclosed by manufacturers were referenced for the calculations.
• For compound annual growth rate (CAGR) calculations by each country, different autonomous vehicle forecasting factors were considered. Some forecasting factors are AV regulations, government-funded AV pilots, and technology readiness.
• For the market share calculations of sensor type, the total number of sensors (LiDAR, camera, RADAR, and ultrasonic) used in each vehicle type (passenger vehicles, light commercial vehicles, heavy commercial vehicles [heavy trucks and heavy buses]) were calculated. Based on the anticipated advancement of vehicles toward autonomy, the sensor types for each vehicle category were projected.
• A similar methodology was followed for supply-side calculations, product mapping, vehicle type pricing through primary and secondary research, and validation through industry experts for market size calculation of thermal management for ADAS.
• Each country forecasts its segments’ base year numbers (value) based on the market share estimations for 2023 and 2033.
• The value for each country to derive the market size of the segments based on vehicle type, product type, propulsion type, level of autonomy, and sensor type was added. For instance, the global thermal management market for ADAS size in 2022 has been the summation of the market size of all considered regions for the year 2022.

Primary Research

The primary sources involve industry experts from the thermal management market for ADAS, such as OEMs, sensor manufacturers, autonomous vehicle technology providers, system integrators, and component suppliers. Respondents such as CEOs, vice presidents, marketing directors, and technology and innovation directors have been interviewed to obtain and verify both qualitative and quantitative aspects of this research study.

The key data points taken from primary sources include:

• validation and triangulation of all the numbers and graphs
• validation of report segmentation and key qualitative findings
• understanding the competitive landscape
• validation of numbers of various markets based on product type, propulsion type, vehicle type, level of autonomy, and sensor type
• percentage split of individual markets for regional analysis

Secondary Research

This research study involves the usage of extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, Factiva, and One-Source, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the aforementioned data sources, the study has been undertaken with the help of other data sources and websites.

Secondary research was done in order to obtain crucial information about the industry’s value chain, revenue models, the market’s monetary chain, the total pool of key players, and the current and potential use cases and applications.

The key data points taken from secondary research include:

• segmentations, split-ups, and percentage shares
• data for market value
• key industry trends of the top players of the market
• qualitative insights into various aspects of the market, key trends, and emerging areas of innovation
• quantitative data for mathematical and statistical calculations

Key Market Players and Competition Synopsis

The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.

Some of the prominent names in this market are:

• 3M
• DuPont
• Dow
• Avient Corporation
• Momentive
• PARKER HANNIFIN CORP
• bdtronic
• Henkel AG & Co. KGaA
• Wacker Chemie AG
• MG Chemicals

Companies that are not a part of the aforementioned pool have been well represented across different sections of the report (wherever applicable).


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