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

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