Heat Transfer Fluids Market Size & Share, by Type (Mineral Oils, Synthetic Fluids, Glycols); End-user (Chemical, Oil & Gas, Food & Beverage, Pharmaceuticals, Renewable Energy, Automotive, HVAC & Refrigeration) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4931
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Heat Transfer Fluids Market size is estimated to reach ~USD 20 billion by the end of 2035 by growing at a CAGR of ~13% during the forecast period, i.e., 2023 – 2035. in the year 2022, the industry size of heat transfer fluid was ~USD 5 billion. The high demand for clean energy, such as solar power, all over the world is thought to be the major factor driving the growth of the market. Further, the market should also benefit from applications in different industries, including food & beverage, chemical, automotive, renewable energy, pharmaceuticals, oil and gas, and more. According to International Energy Agency (IEA), the power generation from solar photovoltaic (PV) increased by 179 terawatt hours (TWh) between 2020 and 2021. The agency also adds that about 3.6% of the globally generated electricity got generated for Solar PV.

In addition to these factors, the market should also benefit from the rapid and steady growth of urbanization and industrialization in the world. For instance, according to the World Bank, the urban population as a percentage of the world's total population increased steadily from 52% in 2010 to 56% by 2021. Similarly, the total urban population in the world, which stood at ~4 billion in 2021, has been projected to grow to ~7 billion by 2050. Further, business expansions, acquisitions, and the launch of new innovative products should also create many opportunities for the growth of the market during the forecast period.


Heat Transfer Fluids Market
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Heat Transfer Fluids Sector: Growth Drivers and Challenges

Growth Drivers

  • Tremendous Growth in the Applications Involving Renewable Energy - Heat transfer fluids play a major role in applications where renewable energy is used. For instance, in a solar water heater system, it is the heat transfer fluid that transfers heat through a heat exchanger and solar collector to the heat storage tanks. It is estimated that renewable energy sources accounted for about 29% of the total global electricity generation in 2021.
  • Remarkable Growth of the Automotive Sector - The machinery used in the automotive industry requires constant regulation of temperature and pressure. Heat transfer fluids help avoid overheating of machinery and enable these machineries to work efficiently in all temperatures. This also increases the life span of the machinery. Hence, the growth of the automotive sector is expected to result in market growth. It is estimated that the global sales of automobiles did amount to ~67 million units by 2021.
  • Large-scale Production of Oil from Oil Rigs Worldwide - The drilling of oil from oil wells under high temperatures and pressure often makes use of formate brines, such as potassium formate brine, for heat transfer. Hence the increase in the global production of oil is expected to lead to market growth by 2035. For instance, before the onset of the pandemic, the global oil production volume reached an all-time high of up to 96 million barrels.
  • Notable Growth of the Food Processing Sector in Many Parts of the World - Heat transfer is critical in the food processing industry as heating is inevitable not only to ensure product quality but also to develop the correct texture and flavor of food. Further, food processing also employs many thermal processing operations such as baking, canning, and pasteurization. Hence the tremendous growth of the food procession industries in different parts of the world is expected to contribute to the market growth considerably. For instance, as of 2023, the food processing industry in India has generated close to 13% of all employment among Registered Factory sector in the country.
  • Wide Demand for Chemicals for Various Applications - Several manufacturing processes of chemicals make use of heat transfer fluids to ensure uniform and precise cooling and heating throughout the process. Chemical manufacturing also includes equipment applications such as reboilers, distillation towers, autoclaves, chemical reactors, jacketed vessels, and more. Hence the large demand for chemicals worldwide is expected to lead to market growth. For instance, it is estimated that Asia Pacific alone sold chemicals worth ~USD 3 trillion in 2021.

Challenges

  • Volatility in the Pricing of Raw Materials - The fluctuating price of raw materials used in the production of heat transfer fluids is thought to be the major factor that should hinder market growth during the forecast period. The major raw materials involved in the manufacturing of heat transfer fluids include benzene, phenol, and glycol. It was observed that there was an increase of about 26% in the average monthly price for each metric ton of benzene in June 2022 compared to the same period in 2021.
  • Hazards Related to Explosions in High-Temperature Applications
  • Need to Regularly Carry Out Health Checks of Heat Transfer Fluids and Systems

Heat Transfer Fluids Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~13%

Base Year Market Size (2022)

~ USD 5 billion

Forecast Year Market Size (2035)

~ USD 20 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Heat Transfer Fluids Segmentation

By Type (Mineral Oils, Synthetic Fluids, Glycols)

The global industry is segmented and analyzed for demand and supply by type into mineral oils, synthetic fluids, glycols, and others. Out of the three types, the subsegment of mineral oils is expected to hold the largest market share by 2035. Mineral oils should hold a market share of up to 47% by 2035. The growth of the subsegment can be attributed to the high demand for mineral oils in various applications in different industries, including chemicals, pharmaceuticals, food & beverages, and others. For instance, the demand for white oil-grade mineral oil in the United States (U.S.) alone is expected to surpass 399999 tons in 2025. The low cost of mineral oils and their easy availability from refineries make mineral oil the most popular preference for different applications. Even though synthetic fluids soon follow mineral oils, the cost involved in replacing the mineral oils is much less compared to synthetic fluids. Further, mineral oil is in wide use in several regions of the world, including the Asia Pacific and the Middle East and Africa.

End-use Industry (Chemical, Oil & Gas, Food & Beverage, Pharmaceuticals, Renewable Energy, Automotive industry, HVAC & Refrigeration)

The global heat transfer fluids market is also segmented and analyzed for demand and supply by end-use industry into chemical, oil & gas, food & beverage, pharmaceuticals, renewable energy, automotive industry, HVAC and refrigeration, and others. Amongst these end-use industries, the industry of oil & gas is expected to hold the largest market share by the end of the forecast period. It is estimated that the oil & gas industry should hold a market share of ~24% by 2035. The inevitable role of heat transfer fluids in all phases of oil production is the major factor driving the demand for these fluids in the oil & gas industry. In offshore oil drilling, the heating and regeneration of glycols make use of liquid-phase heat transfer fluids to separate natural gas and water. There were more than 200 offshore rigs in the world by the end of 2021. Similarly, the number of operational oil rigs on land in the world by the end of 2021 was about 1310.

Our in-depth analysis of the global market includes the following segments:

   By Type

  • Mineral Oils
  • Synthetic Fluids
  • Glycols
  • Others

  By End-use Industry

  • Chemical
  • Oil & Gas
  • Food & Beverage
  • Pharmaceuticals
  • Renewable Energy
  • Automotive industry
  • HVAC & Refrigeration
  • Others

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Heat Transfer Fluids Industry - Regional Synopsis

APAC Market Statistics

Amongst the various regions in the world, Asia Pacific is expected to hold the largest market share in the market for heat transfer fluids by the end of the forecast period. The regional market held about 48% of the market revenue in 2022. Further, the region should also grow at a rate of ~11% in its demand for heat transfer fluids. The regional market growth is expected to be led by China, while India, Japan, and South Korea should also contribute considerably to the development of the market. The rapid developments in industrialization, urbanization, and infrastructure in the region following the tremendous growth of the population are thought to be the major factors increasing the applications for heat transfer fluids. It is estimated that more than 59% of the world's population resides in the Asia Pacific as of current times. Further, about 70% of households in India are expected to be using air conditioning by 2040. This tremendous growth in the use of HVAC in India and many places in the region should also prove beneficial for the market.

Europe Market Forecast

The European heat transfer fluids market is expected to be the second-largest market during the forecast period. The energy demand in Europe is estimated to increase remarkably to fulfill the demand of the growing population. The market growth in Europe is expected to be led by Germany and Spain. The developments in different industries in these places should help them hold the major shares in the regional market during the forecast period. Further, the infrastructure for solar energy production in the region is projected to grow remarkably in the coming years. Similarly, a mammoth increase of ~49% was observed in solar power generation in the EU in 2022 compared to the previous year.

North American Market Forecast

Another region that is expected to exhibit significant market growth during the forecast period is North America, and the regional market there is projected to be led by the United States (U.S.). The market in North America was estimated to have held up to 835 million of the total market revenue in 2019. The region houses a significant number of manufacturers and witness several efforts in research and development for innovative solutions in many applications. Further, the concern over carbon emission and the stringent government regulations to bring the emission rate and volume under control should contribute considerably to the regional market growth. For instance, the United States Environmental Protection Agency estimated that the total greenhouse gas emission in the U.S. in 2021 was equivalent to 5,586 million metric tons of carbon dioxide.

Research Nester
Heat Transfer Fluids Market Share
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Companies Dominating the Heat Transfer Fluids Landscape

top-features-companies
    • Eastman Chemical Company
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Dynalene, Inc.
    • Indian Oil Corporation Ltd.
    • KOST USA, Inc.
    • Hindustan Petroleum Corporation Limited
    • The Dow Chemical Company
    • Delta Western Petroleum, LLC
    • BP International Limited.
    • Huntsman International LLC.
    • Royal Dutch Shell plc

In-the-news

In The News

  • Eastman Chemical Company announced amending its agreement with Krahn Chemie GmbH for the distribution of its heat transfer fluids (HTF) to expand the company's market in southeastern Europe.
  •  Royal Dutch Shell plc announced the plans for its subsidiary, Shell Lubricants to launch electric vehicle (EV) battery coolants in India with the country's increase in the consumption of electric vehicles.
  • Hindustan Petroleum Corporation Limited announced achieving an increase of 192% in its Profit after Tax (PAT) during the period of April-December 2020 compared to the same period in the previous year.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 4931
  • Published Date: May 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growth of applications involving renewable energy and the wide production of oil for oil rigs all over the world are the major factors driving the market growth.

The market size of heat transfer fluids is anticipated to attain a CAGR of ~13% over the forecast period, i.e., 2023-2035.

The volatility of pricing of raw materials, explosions in high-temperature applications, and the need for regular monitoring of heat transfer fluids and systems are estimated to be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are Eastman Chemical Company, Dynalene, Inc, Indian Oil Corporation Ltd, KOST USA, Inc, and Hindustan Petroleum Corporation Limited.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, end-use industry, and by region.

The mineral oil segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Heat Transfer Fluids Market Report Scope
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