Japan EV Battery Cooling Systems Market

Japan EV Battery Cooling Systems Market Insights Forecasts to 2035

• The Japan EV Battery Cooling Systems Market Size Was Estimated at USD 178.60 Million in 2024
• The Market Size is Expected to Grow at a CAGR of Around 14.47% from 2025 to 2035
• The Japan EV Battery Cooling Systems Market Size is Expected to Reach USD 789.8 Million by 2035

According to a research report published by Decision Advisors & Consulting, the Japan EV Battery Cooling Systems Market size is anticipated to reach USD 789.8 million by 2035, growing at a CAGR of 14.47% from 2025 to 2035. The Japan EV battery cooling systems market is driven by rising electric vehicle adoption, advancements in thermal management technologies, government incentives for clean mobility, growing safety requirements, expanding charging infrastructure, and increasing demand for high-performance, long-range EV.

Market Overview

The Japan EV battery cooling systems market refers to the industry focused on designing, producing, and integrating technologies that regulate the temperature of electric vehicle battery packs. These systems such as liquid, air, and refrigerant-based cooling ensure optimal battery performance, safety, and lifespan. Growth is driven by increasing EV adoption, efficiency requirements, and advancements in thermal management solutions across Japan’s automotive sector. The primary market growth driver is the widespread adoption of high-energy-density lithium-ion batteries in electrified vehicles. These batteries generate substantial heat during charging and discharging, necessitating robust thermal management to prevent degradation and catastrophic failure. Consequently, the demand for liquid cooling systems, which offer superior heat dissipation compared to air cooling, has escalated.

 The Japan government's policy framework, including the Green Growth Strategy, which aims for 100% EV sales by 2035, directly stimulates demand for cooling solutions by expanding the total addressable market. Furthermore, the emphasis on vehicle performance and battery longevity by major Japanese automakers like Toyota and Nissan compels them to integrate advanced cooling technology as a standard feature, directly increasing its demand as a critical component. Japan Ministry of Economy, Trade and Industry (METI) -Green Growth Strategy This strategy sets a target for 100% electrified vehicle sales by 2035, including BEVs, PHEVs, and HEVs. This policy creates a sustained, long-term demand for battery thermal management.

Japan Eco-Car Tax Break This incentive provides tax reductions for environmentally friendly vehicles. The regulation indirectly influences the cooling market by making electrified vehicles more affordable for consumers, thereby stimulating overall vehicle sales and, consequently, the demand for their core components, including cooling systems.               

Report Coverage

This research report categorizes the market for the Japan EV battery cooling systems market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan EV battery cooling systems market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of Japan EV battery cooling systems market.

Driving Factors

The EV battery cooling systems markets in Japan are driven by the adoption of hybrid cooling technologies that combine air and liquid cooling methods is supporting the Japan EV battery cooling systems market growth. Automakers are seeking cost-effective solutions that balance performance and affordability, especially for mid-range EVs. Hybrid systems reduce reliance on expensive liquid cooling components while maintaining optimal battery temperatures, appealing to price-sensitive consumers. With Japan emphasis on sustainability and energy efficiency, hybrid cooling aligns well with the market needs.

The Japan government has long encouraged energy-efficient motor vehicle technologies, such as improved HVAC and cooling systems, through programs such as the New Sunshine Programme and the Clean-Energy Vehicles Initiative toward a goal of 50% emission reduction by 2030. While battery-electric vehicles were initially the focus, hybrid electric vehicles (HEVs), presently 1% of the Japanese automotive market, have benefited from electric drivetrain R&D, with over 50,000 HEVs sold by 2001. Encouragement of environmentally friendly EV battery cooling technologies aligns with Japan Auto-NOx Law and global sustainability aims, promoting thermal management innovations for more sustainable mobility. Companies are pioneering hybrid systems to cater to diverse EV segments, from compact cars to commercial vehicles. This trend is expected to gain traction as Japan expands its EV infrastructure, supporting both premium and budget-friendly electric mobility solutions.

Restraining Factors

The EV battery cooling systems market in Japan is restrained by high development costs, complex thermal management requirements, supply chain limitations, stringent safety standards, slow EV adoption in some regions, and competition from alternative cooling technologies.

Market Segmentation

The Japan EV battery cooling systems market share is categorized by cooling technology, battery type and end user.                                

• The liquid cooling systems segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Japan EV battery cooling systems market is segmented by cooling technology into air cooling systems, liquid cooling systems, phase change material cooling systems, refrigerant cooling systems, and others. Among these, the liquid cooling systems segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is driven by rising demand for efficient thermal management, suitability for high-performance EVs, superior heat dissipation capability, increasing battery energy density, safety requirements, and widespread adoption by leading Japanese automakers.

• The lithium-ion batteries segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Japan EV battery cooling systems market is segmented by battery type into lithium-ion batteries, nickel-metal hydride batteries, solid-state batteries, and others. Among these, the lithium-ion batteries segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is driven by the increasing adoption of electric vehicles (EVs) in Japan, favourable government initiatives and subsidies, and the demand for batteries with high energy density and longer lifespan.

• The original equipment manufacturers segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

The Japan EV battery cooling systems market is segmented by end user into original equipment manufacturers and, aftermarket. Among these, the original equipment manufacturers segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is due to increasing EV production, integration of advanced cooling technologies by automakers, stricter battery safety standards, rising demand for high-performance thermal systems, and strong investment in electric mobility by leading Japanese OEMs.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan EV battery cooling systems market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Marelli Holdings Co. Ltd.
• Sanden Corporation
• Continental AG
• Valeo
• Denso Corporation
• Others

Key Target Audience       

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 08, 2025, Toshiba launched its new SCiBTM lithium-ion battery module, designed specifically for electric buses, electric ships, and stationary applications, with an aluminum baseplate for increased heat dissipation. Releasing from mid-April 2025, the module enhances battery life by maintaining high power delivery while efficiently reducing heat. With 45 Ah rated capacity and DC18.0 to 32.4 V voltage range, the module is also UL1973 certified for stationary applications.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the Japan EV Battery Cooling Systems Market based on the below-mentioned segments:

Japan EV Battery Cooling Systems Market, By Cooling Technology

• Air Cooling Systems
• Liquid Cooling Systems
• Phase Change Material Cooling Systems
• Refrigerant Cooling Systems
• Others

Japan EV Battery Cooling Systems Market, By Battery Type

• Lithium-Ion Batteries
• Nickel-Metal Hydride Batteries
• Solid-State Batteries
• Others

Japan EV Battery Cooling Systems Market, By End User

• Original Equipment Manufacturers
• Aftermarket

FAQ’s   

Q: What is the market size of Japan EV battery cooling systems market in 2024?

A: The market size was estimated at USD 178.60 million in 2024.

Q: What is the expected CAGR of the Japan EV battery cooling systems market from 2025 to 2035?

A: The market is projected to grow at a CAGR of 14.47% during the forecast period.

Q: Which cooling technology segment dominated the market in 2024?

A: The liquid cooling systems segment held the largest revenue share due to superior heat dissipation and suitability for high-performance EVs.

Q: Which battery type accounted for the largest market share in 2024?

A: Lithium-ion batteries dominated the market, supported by high energy density, long lifespan, and strong EV adoption in Japan.

Q: Who are the major end users in this market?

A: Original equipment manufacturers (OEMs) accounted for the largest revenue share in 2024 owing to rising EV production and stricter battery safety requirements.

Q: What factors are driving market growth in Japan?

A: Growth is driven by EV adoption, government incentives, thermal management innovations, high-energy-density batteries, safety requirements, and expanding charging infrastructure.