At 19.8% CAGR, Europe Electric Vehicle Heat Pump Systems Market is Projected to be Worth US$ 799.90 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the Europe electric vehicle heat pump systems market was valued at US$ 187.96 million in 2023 and is expected to reach US$ 799.90 million by 2031, registering a CAGR of 19.8% from 2023 to 2031. Key strategic developments in EV heat pump systems and government initiatives toward vehicle electrification are among the critical factors attributed to drive the Europe electric vehicle heat pump systems market growth.

The increasing adoption of heat pump systems in electric vehicles is owing to associated benefits, including high performance, great efficiency, wide battery range, and low charging time, among others. Such a rise in the adoption of heat pump systems paves the way for the key companies operating in the EV heat pump systems market to expand their product offerings and presence worldwide. As heat pumps become a crucial part of electric vehicles, their role in the HVAC industry will gain traction, creating an opportunity to improve the mileage of electric vehicles. The HVAC business value chain for electric vehicles is closely related to the automotive industry, thermal management components, and refrigerants, among others. In addition, the rise in research & development initiatives toward the development of effective thermal management systems through partnerships, collaboration, and joint ventures is expected to create opportunities for the key companies operating in the EV heat pump systems market during the forecast period. A few of the key strategic initiatives or developments in the electric vehicle heat pump systems market are mentioned below:

• In June 2023, the Rheinmetall, a German defense company & automotive supplier, presented or introduced a new modular heat pump system for plug-and-play EVs. Through this product development, Rheinmetall strengthened its heat pump system product offering in the electric vehicle industry.
• In April 2022, General Motors introduced its plan to add a heat pump system to its Ultium electric vehicle platform. This Ultium platform is the primary electric vehicle architecture for models such as the GMC Hummer EV and Chevy Silverado EV. This will strengthen the position of the company in the market.
• In October 2023, Rheinmetall won the order for its innovative plug-and-play heat pump solution from an electric tractor manufacturer from Europe. This new contract is expected to run for the next seven years, with the first heat pump expected to be delivered in 2024 for field trials.
• In March 2023, Mitsubishi Heavy Industries Thermal Systems, Ltd. developed a new electric-driven transport refrigeration unit exclusively for electric vehicles, the TEJ35AM, which is equipped with a heat-pump heating function. These units can operate with an electric vehicle's power supply and provide high-efficiency operation with carbon emission reductions.
• In July 2023, ZF Friedrichshafen AG introduced a new concept passenger electric vehicle with a thermal management system for the electric drive motor and passenger compartment. It includes an 800V propane (R290)-based heat pump.

Such key strategic developments in the electric vehicle heat pump systems market are expected to create opportunities for the key players operating in the market during the forecast period. 

On the contrary, the high initial cost of heat pump systems hampers the growth of Europe electric vehicle heat pump systems market.

Based on propulsion type, the Europe electric vehicle heat pump systems market is categorized into BEV, HEV, and PHEV. The BEV segment held 63.7% market share in 2023, amassing US$ 119.80 million. It is projected to garner US$ 530.12 million by 2031 to register 20.4% CAGR during 2023-2031.

In terms of component, the Europe electric vehicle heat pump systems market is categorized into evaporator, condenser, compressors, and others. The compressors segment held 46.5% share of Europe electric vehicle heat pump systems market in 2023, amassing US$ 87.42 million. It is anticipated to garner US$ 390.77 million by 2031 to expand at 20.6% CAGR during 2023-2031.

By vehicle type, the Europe electric vehicle heat pump systems market is bifurcated into passenger vehicle and commercial vehicle. The passenger vehicle segment held 95.4% share of Europe electric vehicle heat pump systems market in 2023, amassing US$ 179.34 million. It is projected to garner US$ 756.23 million by 2031 to expand at 19.7% CAGR from 2023 to 2031.

Based on country, the Europe electric vehicle heat pump systems market is categorized into the Germany, France, Italy, the UK, Russia, and the Rest of Europe. Our regional analysis states that Germany captured 35.3% share of Europe electric vehicle heat pump systems market in 2023. It was assessed at US$ 66.41 million in 2023 and is likely to hit US$ 226.05 million by 2031, registering a CAGR of 16.5% during 2023-2031.

Key players operating in the Europe electric vehicle heat pump systems market are Denso Corp, Modine Manufacturing Co, Hanon Systems, Mahle GmbH, Rheinmetall AG, Valeo SE, Mitsubishi Heavy Industries Ltd, TitanX Holding AB, SANDEN Corp, and Highly Marelli Holdings Co., Ltd. among others.

• In October 2023, The tech enterprise Rheinmetall has won another major e-mobility order from an up-and-coming European manufacturer of electric tractors, underscoring the Group's successful expansion in this forward-looking field. An innovative plug-and-play solution, the component ordered is a new heat pump designed for electrically powered tractors. The order is worth a figure in the lower-two-digit million-euro range.
• In February 2023, Hanon Systems, a leading global automotive thermal management supplier for electrified mobility, reaffirms its commitment to building a clean energy future through innovative electric vehicle (EV) solutions, such as its industry-leading heat pump systems and components. EV driving ranges continue to be a concern among consumers and automakers alike, particularly in winter conditions. The challenge surrounds the amount of battery energy required to heat the cabin for occupant comfort and maintain the optimal temperature of the battery and power electronics in cold conditions.
  
  

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