The global automotive thermostat market will develop at a CAGR of 3.9% during the forecast period of 2023 to 2030. It is anticipated that the European market will experience consistent expansion as a consequence of the region's comparatively high disposable income as well as the rising ownership of luxury vehicles. During the time frame covered by the forecast, it is anticipated that this region would have a significant proportion of the market for automotive thermostats. The thermostat in a motor vehicle is an essential component of the internal combustion engine in that vehicle. It is a little device situated between the radiator and the engine. When the temperature reaches the level that has been determined to be safe, the valve that is contained within the thermostat will open, allowing the engine coolant to flow through the radiator and the cylinder block. This flow is necessary for ensuring that the optimal operating temperature is maintained in order to improve fuel efficiency, enhance driveability, and protect the engine. The coolant flow reduces when the engine cools down and increases when the engine temperature rises. The thermostat was first put into use in automobiles to hasten the process of the engine warming up and to cut down on the amount of wear and tear experienced by the cylinder ring. Currently, the role of these thermostats has become more significant as they help to reduce the harmful emissions and improve the efficiency of the engine combustion. Thus, the electronic control unit or ECU in the engine controls the functioning of the thermostat to ensure that the temperature of the engine is correctly regulated according to the load of the engine. The automotive thermostat market is experiencing tremendous traction owing to the rapid development of the automotive sector and the upgradation in the policies thus providing fuel for the development of the automotive thermostat industry.

Expanding Demand for Passenger Cars Driving the Market Growth

The expanding demand for passenger cars as well as commercial vehicles worldwide, is one of the economic factors driving the market for automotive thermostats worldwide. Proper distribution of coolant improves the overall safety of the engine. As a result of constantly developing technology, the rise in production, as well as the requirement for high-speed engines that perform more effectively, there is going to be a significant increase in the demand for automotive thermostats in the not-too-distant future. Because of the rapidly expanding automobile industry and the high demand for better-performing vehicles, the market for automotive thermostats is expected to increase by multiples over the course of the forecast period. Companies that manufacture automotive thermostats can target potential opportunities in regions such as North America, Europe, and Asia Pacific. By working together with a variety of automotive suppliers, businesses have the potential to seize tremendous opportunities in the global market for automotive thermostats. The only thing that can stop the market from expanding is mechanics, some of whom believe that a thermostat is an unnecessary addition to an engine because it's already there. Some engineers also argue that use of thermostat puts the engine at higher risk because thermostat can fail or its opening get delayed due to any reason.

Increasing Demand from Replacement Market

The rising need for new and improved products in the automotive thermostat market is a crucial factor that is driving market growth. This demand is coming from the replacement market as well as the original equipment manufacturers. For thermostat-controlled cooling systems, the electronic-controlled form is the more favoured alternative as it offers faster warm-up time and reduced fuel use. This aspect is projected to boost the global automotive thermostat market growth throughout the forecast period.

Increasing Adoption of Hybrid Powertrains in North America

The automotive industry in North America is making attempts to build fuel-efficient as well as emission-free vehicles. As a direct consequence of this, the international market is observing a rise in the manufacturing of hybrid vehicles, and it is anticipated that this industry will expand greatly in the years to come.To prevent the motors, batteries, powertrain, and other components from overheating, hybrid and electric vehicles, similar to conventional internal combustion engines (IC), require additional cooling from the outside. The efficient cooling of the components in hybrid vehicles frequently calls for the utilisation of advanced thermostat systems (map-controlled thermostats) in conjunction with advanced coolants. In some cases, multiple thermostats may also be required in order to separately maintain the temperature of the internal combustion engine and the water pumps. It is anticipated that growth in the global market for automotive thermostats will be driven by an increase in the production of automobiles.

It is anticipated that these factors will lead to an increase in sales of automotive thermostats. Moreover, over the last few years, the automotive parts and accessories manufacturing industry has undergone comprehensive remodelling, which is leading to the advent of a highly competitive global industry, and subsequently raising the demand for automotive thermostats.

Passenger Cars Sales Account to the Largest of Revenue Contribution

It is anticipated that housed automotive thermostats will continue to be widely desired for a broad range of cars, contributing to a significant portion of the bottom lines of their respective manufacturers. It is anticipated that Europe will be a significant region for the global automotive thermostat market. During the period covered by the forecast, it is anticipated that Europe will grow at a compound annual growth rate (CAGR) of approximately 3%.During the year 2021, the market sector for passenger automobiles accounted for the majority of the total revenue. The major factors that will drive the demand for automotive thermostats from this market segment include the stabilisation of the economy, the growth of employment opportunities, the availability of cheap credit facilities, the rise in urbanisation, and the reduction in interest rates on loans in APAC countries.

Asia Pacific to be The Market Leader, Europe Promising Significant Growth During Forecast Period

Asia Pacific is the leading region in the global automotive thermostat market when compared to other regions in 2021. This is due to the growing automotive production in countries such as China, India, and Japan as well as the rapid growth in the demand for the mid-segment vehicles. Other factors contributing to this growth include the development of technological advancements in the automotive industry as well as the increasing job opportunities in emerging technologies. It is anticipated that the presence of these factors will contribute to an even greater increase in the demand for automotive thermostats in this region. By using vehicle thermostats in a variety of settings, Europe will contribute to the expansion of the scope of the global market for automotive thermostats at the fastest rate during the forecast period of 2023 to 2030. Considerable increase in adoption of vehicles, luxury cars in particular, in the region is predicted to contribute to increased demand for automotive thermostats. When it comes to technological developments, the German car industry has traditionally been at the forefront of the pack. The current market scenario for the automotive component industry in Germany is still centred on "innovation" as a key growth strategy. This is true even though other growth strategies have been implemented.

The Market Expansion Is Being Driven by The Strategic Expansion of Regional Players

Global market for automotive thermostats is significantly fragmented due to the presence of vast number of minor competitors. In order to increase their presence in the global and regional markets for automotive thermostats, key strategies include expanding their production capacities, merging with other companies, and acquiring new ones. To meet the ever-increasing need for automotive thermostats in the automobile industry, a number of manufacturers, including BorgWarner Inc., Hella KGaAHueck& Co., Continental AG, MAHLE GmbH, and Robert Bosch GmbH, are following the trend of organic expansion in order to meet the demand. The key players in the global automotive thermostat market are Mahle GmbH, Stant Manufacturing, Inc., BorgWarner Inc., HELLA, Kirpart, Vernet, Tama Enterprises Co., Ltd., Nippon Thermostat Co. Ltd., Ningbo Xingci Thermal Electric Appliances Co., Ltd., BG Automotive, Fishman Thermo Technologies Ltd., Honeywell International Inc., Magal Engineering Ltd., and Honeywell International Inc. Ltd., Dongfeng-fuji-thomson thermostat co. ltd, RuianWantai auto electric appliance Co. Ltd., and others. Due to the limited number of manufacturers present on both the regional and international levels, it is anticipated that the global market for automotive thermostats will undergo consolidation in the near future. BorgWarner Inc., Gates Corporation, AC Delco, Continental AG, MAHLE GmbH, MotoRad Ltd., Hella KGaAHueck& Co., Robert Bosch GmbH, Stant Manufacturing, Inc., Valeo SA, Tama Enterprises Co., Ltd., Vernet SAS, and Nippon Thermostat Co. are a few of the players that have been identified across the value chain of the global automotive thermostat market. Other players include Nippon Ther Ltd., Ningbo Xingci Thermal Electric Appliances Co. Ltd., and Kirpart A.S. Tier-1 companies in the automotive thermostat market are focusing on collaborations and strategic expansions in order to strengthen their brand positions as well as their worldwide and regional footprints in the industry.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Thermostats market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Thermostats market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Thermostats market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Thermostats market?
• Which is the largest regional market for Automotive Thermostats market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Thermostats market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Thermostats market worldwide?