From 2017 to 2027, the market for heat transfer fluids is anticipated to expand at a CAGR of 7.4%. The expanding application of these fluids across a range of industrial sectors is anticipated to drive the market for heat transfer fluids. The market for heat transfer fluids is also anticipated to be driven by the expanding use of renewable energy sources. ExxonMobil, Royal Dutch Shell, and Total SA are some of the major companies operating in the worldwide heat transfer fluids industry.
The market for heat transfer fluids is anticipated to expand at a CAGR of 5.6% over the forecast period. The analysis uses 2018 as its base year, and the prediction runs from 2019 to 2024. The growing demand for heat transfer fluids from the oil and gas and chemical end-use sectors is what propels the market.
The largest end-use sector for heat transfer fluids is the oil and gas industry. Heat transfer fluids are used in the oil and gas sector for many different purposes, including heat exchangers, coolers, and condensers. Due to the expanding exploration and production operations in the area, it is anticipated that the need for heat transfer fluids in the oil and gas industry will rise in the upcoming years.
| Heat Transfer Fluids Market Report Scope and Segmentation | |
| ATTRIBUTES | DETAILS |
| ESTIMATED YEAR | 2023 |
| BASE YEAR | 2022 |
| FORECAST YEAR | 2030 |
| HISTORICAL YEAR | 2017-2022 |
| UNIT | Value (USD Million/Billion) |
| BY REGION | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
The largest market for heat transfer fluids is in the Asia-Pacific region, followed by North America and Europe. Due to the expanding chemical and oil-and-gas sectors in the region, the market for heat transfer fluids in the Asia-Pacific region is also expanding at the quickest rate. India and Japan are the next-largest markets for heat transfer fluids in the Asia-Pacific region after China.
DowDuPont (US), ExxonMobil (US), Royal Dutch Shell (Netherlands), Total (France), BASF (Germany), Sinopec (China), and CNPC are some of the major companies in the market for heat transfer fluids (China).
One of the top companies in the market for heat transfer fluids is DowDuPont. The business sells a variety of heat transfer fluids under the Dowtherm brand. Applications for these heat transfer fluids include heat exchangers, coolers, and condensers. The company is well-established in the North American and Asia-Pacific areas.
Another major player in the market for heat transfer fluids is ExxonMobil. ThermoGard is the company’s brand name for a variety of heat transfer fluids. Applications for these heat transfer fluids include heat exchangers, coolers, and condensers. The company is well-established in the European and Asia-Pacific areas.
Opportunities in the Heat Transfer Fluids Market
The market for heat transfer fluids is expected to grow at a CAGR of 5.2% from 2020 to 2025, when it will reach USD 12.8 billion from USD 10.1 billion. The need for heat transfer fluids is rising in end-use sectors such as chemical and petrochemical, food and beverage, power generation, and HVAC, which is propelling the market’s expansion.
The market for heat transfer fluids has been negatively impacted by the COVID-19 epidemic. The market’s expansion is being constrained by the decline in demand from end-use sectors like automotive, HVAC, and power generation as a result of lockdown procedures and supply chain interruptions.
The synthetic oil market is expected to grow at the fastest CAGR between 2020 and 2025.Synthetic oils are suitable for use in high-temperature applications, such as heat exchangers and solar thermal collectors, due to their great thermal stability, low pour point, and low volatility.
The largest market for heat transfer fluids is in the Asia Pacific region, which is also expected to develop at the fastest CAGR throughout the forecast period. This market’s expansion is attributed to the region’s expanding demand from end-use sectors such as chemical and petrochemical, food and beverage, power generation, and HVAC.
Dow (US), Royal Dutch Shell (Netherlands), ExxonMobil (US), Total (France), Chevron Oronite (US), BASF (Germany), Sinopec (China), Fuchs (Germany), Eastman (US), and Houghton International are the major companies mentioned in this research (US).
One of the top businesses in the market for heat transfer fluids is Dow. Therminol is a brand name used by the business to market a variety of heat transfer fluids. Thermoelectric heat transfer fluids are used in a variety of industries, including chemical processing, HVAC, and solar power generation.
Market Restrictions for Heat Transfer Fluids
The strict environmental rules that apply to the production of these fluids are one of the main factors limiting the growth of the global market for heat transfer fluids. The creation of heat transfer fluids frequently entails the employment of potentially hazardous substances. As a result, many nations have implemented stringent laws governing the production of these fluids. Over the course of the forecast period, this is anticipated to negatively affect the expansion of the global market for heat transfer fluids.
The high cost of these fluids is another factor limiting the growth of the global market for heat transfer fluids. Water, which is the most frequently used fluid for heat transfer applications, is typically more expensive than heat transfer fluids. This is anticipated to restrict the use of these fluids in a number of industries, which would impede the expansion of the market for heat transfer fluids globally.
Key Trends in the Heat Transfer Fluids Market
The market is being driven by the demand for efficient and environmentally friendly heat transfer fluids.The strict government limits on the use of conventional fluids, such as oils and hydrocarbon-based fluids, have led to an increase in the demand for effective and environmentally acceptable heat transfer fluids. Additionally, the market is anticipated to increase as a result of the rising need for effective cooling solutions in the HVAC, power generation, and automotive sectors.
The market is divided into categories for oils, glycols, silicones, and other substances. Mineral oils, synthetic oils, and bio-based oils make up the remainder of the oil market sector. Propylene glycol, ethylene glycol, and others are subcategories of the glycols category. Dimethyl silicone, methylphenyl silicone, and other silicones are subcategories of the silicones market category. Fluorocarbons, inorganic fluids, and nanofluids are further divided into the “others” group.
Automotive, power generation, HVAC, food and beverage, pharmaceuticals, chemicals, and others are some of the application-specific market segments. Off-highway vehicles, commercial vehicles, and passenger cars are further subdivided under the automotive category. Nuclear power plants, renewable energy power plants, and fossil fuel power plants make up the remainder of the power generation industry. Residential, commercial, and industrial are further categories for the HVAC market. Food and beverage products are further broken down into the dairy, bread, confectionery, and other categories. Pharmaceuticals are further divided into completed dosage forms, active pharmaceutical components, and others. Petrochemicals, specialised chemicals, and other chemicals are subcategories of the chemicals segment. Textiles, electronics, and other categories make up the other segment.
Dow Chemical Company, ExxonMobil Chemical Company, Royal Dutch Shell plc, BASF SE, Chevron Phillips Chemical Company LLC, and Sinopec Corporation are the major market participants.
Due to the rising demand from numerous industries, including power generation, oil and gas, chemicals, food, and beverage, among others, the market for heat transfer fluids is expanding quickly. Power generation demand expansion, oil and gas exploration operations, and the expanding chemicals sector are the main market growth factors.
One of the main industries using heat transfer fluids is the power generation sector. Power demand is increasing as the world’s industrialization and urbanisation accelerate.As a result, the need for heat transfer fluids is increasing. Another significant user of heat transfer fluids is the oil and gas sector. High-temperature fluids are needed in this business for heat transmission during the exploration and manufacturing processes. Another significant consumer of heat transfer fluids is the chemical industry. This industry is expanding due to the rising demand for chemicals from various industries.
One other significant consumer of heat transfer fluids is the food and beverage sector. The industry is expanding due to the rising demand for packaged and processed foods. The processing of metal, paper and pulp, and textiles are some of the other industries that use heat transfer fluids.
Impact of the Heat Transfer Fluids Market, COVID-19
The COVID-19 pandemic epidemic has had a huge effect on the world economy, challenging enterprises in various industries. The pandemic is not an exception, and it is predicted that the market for heat transfer fluids will experience a fall in demand in 2020.
The heat transfer fluids market was valued at $2.9 billion in 2019 and is expected to decline by 19.4% CAGR to $2.4 billion in 2020.The market is expected to recover in 2021 and grow at a 13.5% CAGR to reach US$ 2.9 billion by 2023.
The recession in the world economy brought on by the COVID-19 outbreak is the main cause of the reduction in the market for heat transfer fluids. The epidemic has had a big impact on the automotive and HVAC&R industries, which are the main end-use markets for heat transfer fluids.
The pandemic is anticipated to cause a fall in production and sales in the automotive industry in 2020. Significant production and sales declines are predicted for 2020 in important automotive markets like the US, Europe, and China. A slowdown in the HVAC&R industry is anticipated in 2020 as a result of the pandemic.
The market is anticipated to resume growth in 2021, negating the transitory effects of the COVID-19 epidemic. The market is anticipated to benefit from the global economy’s slow recovery as well as the resurgence of demand from the automobile and HVAC&R industries.
The market for heat transfer fluids has been significantly impacted by the COVID-19 epidemic. The pandemic is anticipated to cause a fall in demand in the industry in 2020. The market is expected to recover in 2021 and grow at a 13.5% CAGR to reach US$ 2.9 billion by 2023.
Key Industry Developments in the Heat Transfer Fluids Market
In the upcoming years, there will likely be a noticeable increase in demand for heat transfer fluids on a global scale. This can be due to the rising demand from a variety of end-use sectors, including food and beverage production, chemical production, and power generation.
Additionally, the market expansion is anticipated to be fueled by the rising need for environmentally friendly and energy-efficient heat transfer fluids. However, the high price of these fluids is probably going to limit market expansion to some extent.
Type, application, and geography are the market segments used to divide the worldwide heat transfer fluids market.
The market has been divided into water-based, oil-based, and other types based on type. Due to its low price and widespread availability, the water-based segment is anticipated to hold the largest share of the market.
The market has been divided into power generation, chemicals, food and beverages, and others based on application. Due to the rising need for electricity around the world, the power generation segment is anticipated to contribute most to market growth.
On the basis of geography, the market has been further divided into North America, Europe, Asia-Pacific, and the rest of the world. Due to the huge number of producers in the region, North America is predicted to be the largest market for heat transfer fluids.
ExxonMobil Corporation, Dow Chemical Company, Royal Dutch Shell plc, Chevron Corporation, and Total S.A. are some of the major companies active in the worldwide heat transfer fluids industry.
From 2019 to 2025, the market for heat transfer fluids is anticipated to expand at a CAGR of 6.8%. The market is being pushed by the rising demand for applications in HVAC&R and power generation.
The market for heat transfer fluids is divided into types, applications, and geographical regions.
Type:
Mineral oils, synthetic oils, glycols, silicones, and other types of products make up the market segments. During the projected period, the sector for mineral oils is anticipated to increase at the greatest CAGR.
Application:
Application-based market segments for heat transfer fluids include HVAC&R, power generation, chemicals, food & beverage, and others. During the projected period, the HVAC&R sector is anticipated to increase at the highest CAGR.
Geography:
North America, Europe, Asia-Pacific, South America, and the Middle East and Africa make up the geographical segments of the market. The highest CAGR is anticipated for North America during the forecast period.