The thermoelectric modules market is expected to grow from USD 693 million in 2022 to USD 1,054 million by 2027, at a CAGR of 8.8% during the forecast period.
Increasing application of thermoelectric modules in electric and luxury vehicles is one of the primary factors for the deployment of thermoelectric modules in automotive applications. Benefits of TEMs over conventional systems and simultaneous heating and cooling properties of TEMs are factors driving demand of TEMs in several applications. With many of the COVID-19 vaccines requiring sub-zero or freezing temperatures, TEMs with large temperature differentials can be very effective in controlling the storage temperature of vaccines.
TEMs are used in a wide range of industries, including automotive, consumer, electronics, aerospace & defense, and medical & laboratories, among others. Automotive application is expected to hold high growth opportunities for thermoelectric modules market. Thermoelectric modules are prominently used in the automotive application for automotive seat cooling/heating, cup holders, glove boxes, automotive night vision, and waste heat recovery.
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For automotive seats, thermoelectric modules are used as they can switch easily between heating and cooling functions. Autonomous systems provide numerous benefits in modern vehicles. High-temperature thermoelectric coolers provide the thermal management solution needed to operate each system within an acceptable temperature range and optimize its performance. The growth in the production of light vehicles is expected to increase the demand for thermoelectric modules in the automotive application. With the fast growth of electric cars, thermoelectric modules are expected to be used to a greater degree to maintain the optimal temperature of battery packs.
Thermoelectric modules market for services is expected to grow at a higher CAGR as in-house services such as testing and compliance performed by companies are much more economical compared to tests performed separately by clients. Customers can save costs as they do not have to purchase testing equipment separately. These testing services save time and budget for clients, solve disputes around different testing results, and help in understanding the actual performance level of a thermoelectric module. Simple services involve the computerized selection of the most efficient coolers for any specified application. Advanced services include tests with laboratory equipment that simplify the testing process and provide precise and accurate results on the performance level and the power consumption of a module.
The thermoelectric module market in APAC is currently following a prosperous growth curve in terms of the adoption of thermoelectric modules for various applications. The region has emerged as a global focal point for large investments and business expansion opportunities. The region represents the fastest-growing market worldwide for thermoelectric modules. The increased demand for waste heat recovery, consumer goods, industrial automation, and healthcare monitoring devices is expected to drive this market in the region.
The growth of the market in China is mainly driven by the consumer electronics market, as it is one of the largest markets in the world. Japan is also one of the early adopters of electric vehicles and is a significant manufacturer and exporter of electric vehicles. This in turn creates growth opportunities for thermoelectric modules in Japan. The growth of the thermoelectric modules market in South Korea is mainly driven by the penetration of new communications technologies and hardware equipment.