Although BEVs lack engines, their power batteries, drive motors, electronic control systems, and cabin air conditioning systems demand far more precise thermal management than traditional vehicles.

Automotive thermostats, also known as thermostatic valves, are critical temperature control components in internal combustion engine cooling systems. Their core function is to automatically regulate the coolant flow into the radiator based on temperature changes, ensuring the engine operates within the optimal temperature range throughout its duty cycle.

With the advancement of vehicle electrification and intelligence, the definition of thermostats is expanding—evolving from mechanical valves with simple on/off functionality into electronic thermostats capable of continuous adjustment, multi-path switching, and responding to electronic control commands.

From a market demand perspective, while global new passenger vehicle production with internal combustion engines approaches its peak, traditional mechanical thermostats have not rapidly declined. On one hand, China's and the global automotive parc continues to grow, with the aftermarket providing long-term, stable replacement demand for mechanical thermostats. On the other hand, commercial vehicles, off-road machinery, and some hybrid models still widely use mechanical thermostats as redundant or auxiliary components.

Although BEVs lack engines, their power batteries, drive motors, electronic control systems, and cabin air conditioning systems demand far more precise thermal management than traditional vehicles. Battery packs require heating/preheating and cooling/dissipation, while heat pump systems necessitate multi-path switching, directly driving demand for new thermostat actuators such as electronic water valves, multi-port valves, and proportional water valves.

Additionally, hybrid vehicles, which feature both engine and battery thermal sources, demand higher capabilities for independent dual-zone or even multi-zone temperature regulation, significantly increasing the number of thermostat components used per vehicle. According to the "Global and China Automotive Thermostat Industry Research and 15th Five-Year Plan Analysis Report 2026-2030" released by SII, the Chinese market size is expected to exceed RMB 1.5 billion by 2025.

In the traditional mechanical thermostat sector, companies such as Germany's Mahle (Behr), the U.S.-based STANT, the UK's TMS, and Japan's NTC have long dominated the OEM market with decades of expertise in material formulations (paraffin purity, elastic component longevity) and precision manufacturing processes. In the electronic thermostat and intelligent water valve segments, technical barriers lie in micro-motor control, dynamic sealing, sensor fusion, and collaborative calibration with vehicle thermal management systems.

Domestic companies like Dongfeng Thomson (a joint venture between Dongfeng Technology and Germany's Walrms) have leveraged years of thermostat R&D experience to achieve large-scale electronic thermostat production. Meanwhile, Tianbo Intelligent has successfully transitioned from a traditional thermostat manufacturer, with its intelligent water valve products now in their fourth generation, mastering core technologies such as dynamic sealing and angular precision control, serving the majority of China's mainstream automakers.

SII analysts believe the automotive thermostat industry will accelerate along an intelligent trajectory. First, electronic thermostats will gradually replace mechanical products in hybrid and high-efficiency fuel vehicles. Active ECU control over activation temperatures and valve opening enables rapid warm-up, zonal regulation, and reduced fuel consumption/emissions. Second, integrated multi-port water valves will become the core of new energy thermal management systems. Traditional setups with multiple independent thermostats and complex piping are being replaced by single five-port, six-port, or even eight-port integrated valves, significantly simplifying structures, reducing leakage points, and enhancing system reliability.

Finally, thermostats will evolve from mere actuators to integrated "sensing-decision-execution" systems. Some high-end products now integrate temperature sensors, position feedback chips, and microcontrollers, enabling direct communication with vehicle domain controllers for predictive thermal management and OTA upgrades.

In summary, intelligent thermostat actuators will soon account for a significantly larger share of production value than traditional mechanical thermostats, with the entire industry shifting from "precision mechanical manufacturing" to "mechatronics-software integrated technology," presenting new upgrade opportunities for China's domestic supply chain.

SII Industrial Research Institute