Global Thermoelectric Generator Market Outlook to 2028

Global Thermoelectric Generator Market Overview

• Global Thermoelectric Generator (TEG) market reached a valuation of USD 812 million in 2023, driven by rising energy demands and the increasing adoption of waste heat recovery systems across industries. These devices, which convert heat directly into electrical energy, have found growing applications in automotive, aerospace, and industrial sectors due to their efficiency and eco-friendly nature.

• Major players in the thermoelectric generator market include II-VI Incorporated, Gentherm, Inc., Laird Thermal Systems, Ferrotec Holdings Corporation, and Komatsu Ltd. These companies dominate due to their extensive R&D capabilities and well-established distribution networks. Their strategic focus on developing advanced TEGs with higher efficiency and broader application ranges has solidified their market positions.
• In 2022, Yamaha and Sumitomo Corporation Power & Mobility recently demonstrated a new waste heat recovery system utilizing thermoelectric generators. This system aims to significantly reduce CO2 emissions in vehicles by harnessing waste heat, showcasing Yamaha's commitment to sustainable automotive solutions.
• Cities like San Francisco, Tokyo, and Munich dominate the thermoelectric generator market due to their strong industrial bases, particularly in the automotive and electronics sectors. San Francisco, with its proximity to Silicon Valley, benefits from technological innovations and investments in sustainable energy solutions.

Global Thermoelectric Generator Market Segmentation

The Global Thermoelectric Generator Market can be segmented based on several factors:

By Application: The thermoelectric generator market is segmented by application into automotive, aerospace, industrial, and military sectors. In 2023, the automotive sector dominated this segment due to the increasing integration of TEGs in electric vehicles to improve energy efficiency. The growing demand for sustainable transportation solutions and stringent fuel efficiency standards have driven the adoption of TEGs in this sector.

By Region: The thermoelectric generator market is segmented by region into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America dominated this segment due to its advanced industrial base, significant investments in R&D, and supportive government policies promoting energy-efficient technologies.

By Material Type: The thermoelectric generator market is segmented by material type into bismuth telluride, lead telluride, and silicon germanium. In 2023, bismuth telluride dominated this segment due to its high efficiency and widespread use in consumer electronics and automotive applications. The material's ability to operate efficiently at room temperatures and its relative affordability make it a preferred choice in various TEG applications.

Global Thermoelectric Generator Market Competitive Landscape

• Laird Thermal Systems: In 2022, Laird Thermal Systems launched a new 5000-watt liquid-to-air heat exchanger solution, named LA5000, specifically designed for data centers and industrial applications. This product aims to improve thermal management in high-demand environments where traditional air-cooling methods are becoming inadequate due to rising heat generation from advanced CPUs and GPUs.
• Ferrotec Holdings Corporation: In 2022, Ferrotec Holdings Corporation held a grand opening ceremony for its new manufacturing facility located at Kulim Hi-Tech Park in Kedah, Malaysia. This facility is designed to enhance Ferrotec's manufacturing capacity, particularly in the production of components for semiconductor equipment, which includes thermoelectric generators.

Global Thermoelectric Generator Industry Analysis

Growth Drivers:

• Increasing Adoption in Automotive Industry: The automotive industry has seen a significant increase in the integration of thermoelectric generators (TEGs), especially in electric vehicles (EVs). In 2023, 14 million EVs were sold globally, with major markets like China and the U.S. leading the adoption. TEGs are being utilized to convert waste heat from EV systems into electrical energy, enhancing overall efficiency.
• Rising Investment in Waste Heat Recovery: In 2023, waste heat recovery systems accounted for 58.32% of the thermoelectric generator market, indicating a significant focus on capturing and converting waste heat into usable electricity across various industries. To mitigate this loss, companies are investing heavily in waste heat recovery systems, where TEGs play a crucial role.
• Government Support for Clean Energy: Governments worldwide are increasingly supporting the adoption of clean energy technologies, including TEGs. The European Unions Horizon 2020 program allocated USD 1.1 billion between 2014 to for research and development in energy-efficient technologies, including TEGs. These funds have helped several companies develop advanced TEG systems that can be integrated into various industries, from automotive to consumer electronics.

Global Thermoelectric Generator Market Challenges

• Limited Efficiency at Large Scale: While TEGs are effective for small-scale applications, their efficiency decreases significantly at larger scales. Several industrial firms reported that their TEG systems were underperforming in large-scale waste heat recovery projects, leading to reconsideration of alternative technologies.
• Supply Chain Disruptions: The thermoelectric generator market has faced significant supply chain disruptions, particularly in sourcing rare materials like tellurium and bismuth, essential for TEG production. This disruption has affected the ability of manufacturers to meet growing demand, particularly in the automotive and industrial sectors.

Global Thermoelectric Generator Market Government Initiatives:

• U.S. Department of Energys Advanced Manufacturing Office (2023): In 2023, the U.S. Department of Energys Advanced Manufacturing Office invested USD 304 million to promote energy-efficient manufacturing processes. Part of this funding was directed towards the development and implementation of TEGs in industrial settings. energy.
• Japans Green Innovation Fund: In 2022, Japan's government launched the Green Innovation Fund as part of its commitment to achieving carbon neutrality by 2050. The fund was established with an allocation of JPY 2 trillion, which is approximately USD 16 billion. TEGs received significant attention under this program, with several Japanese firms receiving grants to develop next-generation TEG systems for automotive and industrial applications.

Global Thermoelectric Generator Future Market Outlook

Global Thermoelectric Generator market is poised for significant growth over the next few years as the market is expected to reach 1595 Mn in 2030, driven by increasing demand for energy-efficient technologies across various industries. As the world continues to transition towards sustainable energy solutions, TEGs are expected to play a crucial role in waste heat recovery and energy conversion.

Future Market Trends

• Integration of TEGs in Electric Vehicles: Over the next five years, the integration of thermoelectric generators in electric vehicles is expected to become more widespread. Automotive manufacturers are likely to increase their adoption of TEGs to enhance vehicle range and improve overall energy efficiency. This trend will be driven by the growing demand for EVs and the need to meet stringent fuel efficiency and emission regulations.
• Advancements in Material Technology: The development of new materials with higher thermoelectric efficiency will be a key trend in the TEG market. Researchers are focusing on materials such as skutterudites and clathrates, which offer better performance at varying temperature ranges. These advancements are expected to lead to more efficient and cost-effective TEG systems, enabling broader adoption across multiple industries.