Thermoelectric Modules Market Analysis

Market Overview

A thermoelectric module is a solid-state heat pump, which operates on the Peltier effect. Thermoelectric modules can instantly cool or warm an object by producing temperature differentials. It is comprised of an array of p- and n-type semiconductor elements that are heavily fixed with electric carriers. These elements are arranged into array that is thermally connected in parallel and electrically connected in series. Manufacturers of thermoelectric modules focus on providing technologically advanced products to customers to ensure better work, greater reliability, and increased precision.

The global thermo electric module market is estimated to account for US$ 1,217.2 Mn in terms of value by the end of 2027.

Market Dynamics- Drivers

1. High advantages of thermoelectric modules over conventional products are expected to drive growth of the global thermoelectric modules market during the forecast period

Thermoelectric modules offer numerous advantages such as compact geometric size, accurate temperature control, rapid temperature cycling, reliable solid-state operations, integrated design, and fully reversible switch in polarity, and rapid response.  Moreover, thermoelectric modules do not have moheemoe. Electriv modeving parts and operate noise-free, with highly reliable operation. They have high lifetimes, of up to 100,000 hours. Besides, thermoelectric modules do not emit chlorofluorocarbons and hence are environmentally safe. The ability of thermoelectric modules to cool and heat by simple reversal of current flow is convenient for applications, even where precise temperature control of +/-0.1 degrees Celsius is required. Therefore, these factors are expected to drive growth of the global thermoelectric modules market during the forecast period.

2. Increasing applications of thermoelectric modules in different industries are expected to propel the global thermoelectric modules market growth over the forecast period

Thermoelectric modules are being increasingly used in different industries such as laboratory, semiconductor, automotive, consumer electronics, medical, defense, aerospace, and telecommunications. Thermoelectric modules are available in there types namely micro thermoelectric modules, thin thermoelectric modules, and bulk thermoelectric modules. Micro thermoelectric modules are widely used in lasers and LEDs, automotive, and photodiodes, and arrays. Thin film thermoelectric modules are used in detectors and sensors and consumer electronics applications. Furthermore, single-stage thermoelectric modules are suitable for a wide range of heating and cooling applications that require medium or high pumping capacity. Their key applications include consumer products, electrical and industrial equipment, biomedical instruments, and scientific and laboratory instruments. Thus, these factors are expected to propel the market growth in the near future.

Statistics:

APAC held dominant position in the global automotive cockpit electronics market in 2019, accounting for 33.1% share in terms of value, followed by North America, Europe, and RoW respectively.

Figure 1: Global Thermoelectric Modules Market Share (%), in terms of Value, By Region, 2019

Market Dynamics- Restraints

1. High capital cost as compared to conventional systems is expected to hamper the global thermoelectric modules market growth over the forecast period

The basic price of a thermoelectric module as around US$ 3,000 which is significantly higher than conventional systems. As a result of this, small and medium-sized companies are hesitant towards procuring these advanced devices. Besides, thermoelectric modules require frequent repair and maintenance operations, which incurs an additional cost. Hence, these factors are expected to hamper the market growth over the forecast period.

2. Design complexities associated with thermoelectric modules is expected to restrain growth of the global thermoelectric modules market during the forecast

Designing and manufacturing thermoelectric modules require complex planning and design. It also requires a robust infrastructure and skilled personnel to operate the machinery. Such complexities are challenging to handle and can only be done by trained professionals. Hence, these factors are expected to restrain growth of the global thermoelectric modules market during the forecast period.

Thermoelectric Modules Market Report Coverage

Report Coverage	Details
Base Year:	2019	Market Size in 2019:	US$ 586.6 Mn
Historical Data for:	2016 to 2019	Forecast Period:	2020 to 2027
Forecast Period 2020 to 2027 CAGR:	9.6%	2027 Value Projection:	US$ 1217.2 Mn
Geographies covered:	North America: U.S., Canada Latin America: Brazil, Argentina, Mexico, Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific Middle East: GCC Countries, Israel, Rest of Middle East Africa: South Africa, North Africa, Central Africa
Segments covered:	By Technology: Single Stage Thermoelectric Modules, Multi Stage Thermoelectric Modules. By Type: Bulk Thermoelectric Modules, Micro Thermoelectric Modules, Thin Film Thermoelectric Modules. By Application: Consumer Electronics, Telecommunication, Medical and Laboratories, Automotive, Defense and Space, Industrial Applications, Energy Harvesting, Others.
Companies covered:	Ferrotec Corporation, Crystal Ltd., RMT Ltd., TE Technology, Inc., Laird Technologies, Inc., Gentherm Inc., Tellurex Corporation, Thermion Company, Marlow Industries, and KELK Ltd.
Growth Drivers:	High advantages of thermoelectric modules over conventional products Increasing applications of thermoelectric modules in different industries
Restraints & Challenges:	High capital cost as compared to conventional systems Design complexities associated with thermoelectric modules

Market Opportunities

1. Waste heat recovery from industrial applications can present lucrative growth opportunities

Most of the world’s energy is still supplied by the combustion of fossil fuels, which in turn results in atmospheric pollution. Only a fraction of the released energy by burning fossil fuel is converted into electricity or mechanical energy and most of the energy is released as heat. Thermoelectric power generators can easily and effectively access this large untapped source of waste heat energy for conversion into additional electricity. For instance, researchers at the Fraunhofer Institute and BMW are working on the development of thermoelectric materials, modules, assemblies, and systems to harvest the waste heat in automobiles. This could potentially lead to improved fuel consumption in automobiles.

2. Growing use of larger thermoelectric systems for certain applications can provide major business opportunities

Large thermoelectric systems are have been built for special applications such as railroad cars, cooling within submarines, and in semiconductor manufacturing. Presently, a preference for larger thermoelectric systems has been observed in the market. The cost of a complete thermoelectric system used for temperature control, cooling, and power generation is lower, due to the presence of less expensive power supplies and the superior performance of thermoelectric systems. Thermoelectric systems with a 200 Watt to 400 Watt capacity range are becoming more common in various industries.

Figure 2: Global Thermoelectric Modules Market Value (US$ Mn), 2017 - 2027

The global automotive cockpit electronics market was valued at US$ 586.6 Mn in 2019 and is forecast to reach a value of US$ 1217.2 Mn by 2027 at a CAGR of 9.6% between 2020 and 2027.

Market Trends

1. Use of advanced thermoelectric materials manufacturing thermoelectric modules

The most commonly used material for the manufacturing of thermoelectric coolers is bismuth telluride (Be2Te3). This is because of its relatively high figure of merit. However, the performance track record of this material is still relatively poor and better-performing materials are currently used in the manufacturing of thermoelectric modules. The alternatives to Be2Te¬3¬¬ include antimony telluride (Sb2Te3), lead telluride (PbTe), and silicon–germanium. Some of these materials perform exceptionally well in high-temperature applications. For instance, oxide thermoelectric materials are preferred in high-temperature applications due to their superior thermal stability.

2. Quick and cost-effective custom-made solutions

There are a number of standard thermoelectric modules available in the market. Since manufacturers are aware of the fact that standard products would not always meet their customers’ requirements. Hence, customized solutions would yield a more optimal thermal solutions. Furthermore, a flexible manufacturing process adopted by key players help them provide better thermoelectric products in the near future.

Global Thermoelectric Modules Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on thermoelectric modules market, as Chinese automotive industries rapidly closing their business to reduce the spread of COVID-19 pandemic. Further, this trend continued in Europe and North America region, where factories where temporary closed due COVID-19 spread. In pre-crisis time, automotive industry witnessed significant drops in the sale. Thermoelectric modules are typically used in electric vehicles for instant cooling and heating. For instance, According to the Coherent Market Insights analysis, in 2019, China registered 4.2% of drops in automotive sells, which is negatively impacted the Thermoelectric Modules Market .

Competitive Section

Key companies operating in the global thermoelectric modules market are Ferrotec Corporation, Crystal Ltd., RMT Ltd., TE Technology, Inc., Laird Technologies, Inc., Gentherm Inc., Tellurex Corporation, Thermion Company, Marlow Industries, and KELK Ltd.

Key Developments

Major companies in the market are focused on product launches, in order to expand the product portfolio. For instance, in September 2018, Ferrotec Corporation launched customized thermoelectric module technology for cooling and heating applications in automobile.