Thermoelectric Module Market Size, Share & COVID-19 Impact Analysis, By Model (Single Stage and Multi Stage), By Type (Bulk, Micro, and Thin Film), By End User (Consumer Electronics, Manufacturing and Industrial, IT and Telecom, Automotive, Healthcare, Aerospace and Defense, Oil and Gas, and Others), and Regional Forecast, 2023-2030

The global thermoelectric module market size was valued at USD 502.0 million in 2022. The market is projected to grow from USD 539.3 million in 2023 to USD 1,195.7 million by 2030, exhibiting a CAGR of 12.0 % during the forecast period.

A Thermoelectric Module (TEM) is a semiconductor electronic component that works as a small cooler or heat pump used to transfer heat from one side of the component to another side. It is also called Peltier cooler or thermoelectric cooler. Thermoelectric coolers have wide applications in various fields such as IT and telecommunications, aerospace and defense, healthcare devices, and consumer electronics.

Thermoelectric module is preferably used to safeguard electronic equipment, such as computer processor, robotic equipment, food & beverage containers, and cold water dispensers, in case of harsh and hot environments. Other than cooling and heating functionality, the thermoelectric cooler has many applications in direct energy production and waste heat recovery due to its simultaneous heating and cooling properties. For most applications, standard TEM configuration is preferable, but for specific cases, a customized design is required to meet stringent heat pumping, mechanical, electrical, or other design requirements. Increasing demand for alternative energy generation technology creates favorable conditions for products in the global market. Also, trends such as increasing use of wearable device coolers for smart devices drive the market growth.

COVID-19 IMPACT

Increasing Need for Small Cold Storage for Storing Vaccines to Propel Market Growth

Major industries, such as manufacturing, healthcare, and consumer electronics, are actively using thermoelectric cooler modules. Due to global lockdown, these industry verticals were closed, which resulted in a major decline of thermoelectric cooler demand. China, Taiwan, and Japan, the mass producers of semiconductor and electronic equipment, were majorly affected by COVID-19 cases. Thus, the manufacturing of semiconductor and electronics equipment in these countries were shut down, which had a drastic impact on the production of thermoelectric coolers. Furthermore, industries, such as healthcare and IT & telecommunication, were working with full capacity. Various vaccination programs for controlling COVID-19 by local government bodies increased the need for cold storage and small refrigerators for storing vaccines, creating the demand for thermoelectric coolers. Moreover, 90% of IT & telecom professionals were working remotely, which increased the use of servers and data centers, subsequently surging the demand for thermoelectric coolers in the IT & telecom industry. As various counties planned to restart their businesses, certain opportunities for thermoelectric cooler modules led to increase in revenue generation gradually.

LATEST TRENDS

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Increasing Use of Thermoelectric Cooler (TEC) Module in Electric Vehicles to Drive Market Growth

The electric vehicle market is growing rapidly and has also proved to be resilient in the pandemic period. Within the EV market, the demand for battery capacity, charging rates, range, wide bandgap semiconductors, and high-performance traction motors increased substantially. Moreover, electric vehicle fires and related recalls have introduced the concept of thermal runway detection, protection, and prevention to the fire. Various TEC offers exceptional Coefficient of Performance (COP) in electric vehicles, which helps in maintaining Battery Thermal Management System (BTMS). Companies are willingly investing in expanding their product offerings in the automotive sector specially for electric vehicles. For example, Ferrotec announced the expansion of its thermoelectric module business for electric and hybrid vehicles. Thus, the EV market is creating a potential landscape for thermoelectric cooler modules.

DRIVING FACTOR

Increasing Need of Renewable Energy Generation Technology to Drive Market Growth

The demand for renewable energy has been increasing since the last two decades. The conventional energy generation sources, such as thermal power plants and oil generators, will not be affordable in near future. These sources are available in limited quantities and will get depleted in the coming years. Also, the energy generation by thermal power plants and oil generators is creating huge pollution, which is responsible for global warming and ozone layer depletion. So, the need to find environment-friendly and cost-effective alternative energy generation technology is increasing. Thermoelectric technology is one of the ways to generate electricity without burning fuel as thermoelectric technology can directly convert heat into electricity. The basic concept of a thermoelectric cooler is to transfer heat and make the surface cold by using electricity. By reversing the operation, it is possible to generate electricity with the help of temperature difference between the surfaces. Multiple applications of thermoelectric cooler modules are driving the thermoelectric module market growth.

RESTRAINING FACTORS

High Initial Prices of the Product to Hinder Market Growth

The manufacturing cost of a thermoelectric cooler module is very high as the thermoelectric cooler module includes high energy material, which is costly in comparison with conventional refrigeration and HVAC systems. Germanium, bismuth, and tellurium used in the thermoelectric cooler module are expensive, which basically increases the cost of the thermoelectric cooler module. Also, the number of processes in the manufacturing of thermoelectric cooler modules are very high and the operational cost of this process is huge, which increase the cost of the final product. Replacement of the existing cooling and energy generation system in any electronic circuit is very lengthy and expensive, which is restraining the growth of the market.

SEGMENTATION

By Model Analysis

Increasing Demand for Temperature Stabilization to Uplift the Growth of Single Stage Segment

Based on model, the market is divided into single stage and multi stage.

The single stage segment dominated the market revenue in 2022 and it will be following this trend during the forecast period, owing to the growing usage of single stage thermoelectric cooler technology in consumer electronics such as smartphone, wearable smart watch, and gaming console. Single stage thermoelectric cooler is also used in modern healthcare machinery such as MRI and CT scan machines.

However, the multi stage segment is expected to witness the highest CAGR over the forecast period, owing to increasing use of multistage TEM in automotive and energy generation sectors. Thermoelectric generator is widely used as an alternative renewable energy generation technology, which is driving the market growth.  

By Type Analysis

Bulk Segment to Hold the Highest Share Due to its Demand in Automotive and Healthcare Sectors

On the basis of type, the market is divided into bulk, micro, and thin film.

The bulk segment produced the highest revenue during the year 2021, owing to the increasing demand for bulk modules in the healthcare and automotive segments, Bulk thermoelectric systems are very easy to design and modify as per customer technical requirements. This system can be used in any electronic circuit, which will increase their demand. This trend is set to continue during the forecast period.

Owing to ongoing research & development in thin film thermoelectric modules, the thin film thermoelectric cooler is predicted to generate the highest CAGR during the forecast period.

By End User Analysis

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IT & Telecom Segment Led the Market Owing to the Growing Implementation of High-end IoT Security Hardware

Based on end user, the market is divided into consumer electronics, manufacturing and industrial, IT and telecom, automotive, healthcare, and aerospace and defense, oil and gas, and others. 

Owing to various applications of thermoelectric cooler modules in the IT and telecom industry across data centers and labs, the segment dominated the market in 2021. Furthermore, the demand for thermoelectric modules for smart wearables, power management modules, sensing modules, and other high-end IoT security hardware is also growing substantially.

Moreover, oil and gas, manufacturing & industrial, and aerospace & defense are expected to follow this trend during the forecast period. Moreover, the development of the market in the automotive sector was considerably slow in 2021 due to the COVID-19 impact. However, the utilization of thermoelectric coolers in automobiles will gradually increase during the estimated period.

Furthermore, the consumer electronics segment is estimated to generate the highest CAGR during the forecast period due to increasing usage of thin film modules in wearable devices and smartphone for cooling purposes.

REGIONAL INSIGHTS 

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Asia Pacific is anticipated to dominate the global thermoelectric module market share throughout the forecast period. The increasing use of thermoelectric cooler devices in the automotive industry and healthcare sector is driving the market in Asia Pacific. Additionally, the key companies are engaging in business strategies, such as collaboration, business expansion, and product development, which is set to propel the market in Asia Pacific.

China Dominated the Asia Pacific Market in 2022 due to Established Manufacturing Facilities

China dominates the Asia Pacific region in terms of revenue generation in the regional market, owing to the huge manufacturing infrastructure for production of thermoelectric coolers and other semiconductors. China has the largest market share in manufacturing of electronic goods in the globe. This increases the supply of thermoelectric cooler modules to the rest of the world from China. Also, China has developed a method to generate renewable energy with the help of thermoelectric cooler modules, which is propelling the market growth.

Asia Pacific dominated the global market in 2022 and is expected to become the highest growing region throughout the study period. It is due to the availability of top competitors in China, Japan, and Taiwan. Furthermore, there is increasing development of SMEs and electronic makers in emerging countries such as South Korea, Japan, and Singapore. Increasing usage of thermoelectric coolers in the utility and oil & gas industries is boosting the market growth in the region.

In North America, the U.S. market is set to have a noteworthy growth during the forecast period, owing to the adoption of modern technology in the automotive industry and manufacturing sector in Canada and the U.S.

In Europe, Germany led the market in 2022 and it will continue to do so during the forecast period. This is attributed to the that fact that Germany is leading in electric automotive manufacturing and IT and telecom industries, which is boosting the usage of connected security in Germany. Moreover, the country is also set to have the highest CAGR during the forecast period, owing to the presence of enormous R&D and manufacturing facilities in the country.

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Owing to reduced adoption of new technologies and absence of skilled labor required for the development and manufacturing of thermoelectric systems, the growth of the Middle East & Africa and South America regional markets is moderate.

KEY INDUSTRY PLAYERS 

TE Technology Holds Highest Market Share Owing to Large Manufacturing Units

Amongst the key companies, TE Technology holds the highest revenue in the market share globally. As the company is the main producer of bismuth plate and thermoelectric cooler, which are the major parts of a thermoelectric module. TE Connectivity is a global supplier of thermoelectric modules in the global market. Furthermore, Crystal Ltd., Ferrotec Corporation, TEC Microsystems GmbH, KELK Ltd., Thermonamic Electronics (Jiangxi) Corp. Ltd., KRYOTHERM, Laird Technologies, RMT Ltd., II-VI Incorporated, and others have increased their production capacity in various countries, which contributes to the growth of the market. Additionally, majority of the companies have been focusing on product launches, partnership, and acquisition strategies with various SMEs to expand their global presence.

List of Key Companies Profiled:

• Crystal Ltd. (Hong Kong)


• TEC Microsystems GmbH (Germany)


• Ferrotec Corporation (Japan)


• Thermonamic Electronics (Jiangxi) Corp. Ltd. (China)


• KELK Ltd. (Japan)


• KRYOTHERM (Russia)


• Laird Technologies (U.S.)


• RMT Ltd. (U.S.)


• TE Technology Inc. (U.S.)


• II-VI Incorporated (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2022 – TEC Microsystems established its subsidiary in Georgia to provide seamless and uninterrupted shipment of thermoelectric coolers in the country.


• February 2022 – Laird System, a global provider of thermoelectric systems, developed a new and advanced elongated series of the PowerCycling PCX thermoelectric coolers. This elongated series of the thermoelectric coolers is helping to minutely maintain the temperature inside the Polymerized Chain Reaction (PCR) machine.


• August 2020– Laird System launched its new Hi-Temp ETX thermoelectric cooler, which is able to provide better cooling effect to an autonomous system in a high temperature environment.


• July 2020 – Kyocera International, Inc., a global provider of the electronic and semiconductor equipment in the global market, launched its new thermoelectric module. This newly launched product is highly reliable and compact, specially designed for the scientific instrument and medical device.


• June 2020 – TEC Microsystems, a global provider of semiconductors equipment, introduced its new thermoelectric product, which is a thermoelectric cooler along with an outer aluminum plate. Due to the aluminum outer plate, it is easy to mechanize and has very negligible weight.

REPORT COVERAGE

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The thermoelectric module market research report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use industries of thermoelectric module. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the market growth in recent years.

Report Scope and Segmentation