Heat Transfer Fluids Market is Expected to Reach $2.0 Billion by 2027

According to a new report published by Allied Market Research, titled, “Heat Transfer Fluids Market: Opportunity Analysis and Industry Forecast, 2020–2027,” 

The global heat transfer fluids market was valued at $1.5 billion in 2019 and is projected to reach $2.0 billion by 2027, growing at a CAGR of 4.8% from 2020 to 2027.

Heat transfer fluids (HTFs) are gases or liquid, which transmit heat from one section to another section. HTF is used to prevent overheating or store thermal energy. It is used in processes that require heating or cooling, or basically to maintain the equipment at constant temperature. HTFs are commonly used in air conditioners, refrigerators, and heat pumps in end-use industries, such as chemical, oil & gas, plastics & polymers, and solar power, which work in intense temperature conditions.

The growth of the global heat transfer fluids market is driven by rapid adoption of concentrated solar power globally. Rapid industrial development in emerging economies, such as India and China, especially in automotive, metal processing, chemical, and oil & gas sectors is expected to drive the growth of the heat transfer fluids market. The rise in need to maintain temperatures in these sectors is the major factor responsible for increased demand for heat transfer fluids.

However, factors, such as fire and explosion hazards posed by heat transfer fluids and volatility in raw material prices, are expected to hinder the growth of the heat transfer fluids market. In addition, energy scarcity and environmental safety regulations have surged the need for energy conservation. This has led to the increase in adoption of energy transfer devices such as heat exchangers and heat pumps. Therefore, this is expected to provide lucrative opportunities for the heat transfer fluids market to grow in the near future.

Based on type, the heat transfer fluids market size is segmented into mineral oils, synthetic fluids, glycols, and others. The mineral oil segment accounted for a major share in the heat transfer fluids market in 2019, and is expected to maintain its lead position during the forecast period. This is attributed to the fact that it has high demand in the chemical processing and petrochemical industries and is preferred over other types due to its low price. 

Based on the end-use industry, the heat transfer fluids market is segmented into chemical, oil & gas, food & beverage, pharmaceutical, renewable energy, automotive, HVAC & refrigeration, and others. The chemical segment accounted for a major share in the heat transfer fluids market in 2019, and is expected to maintain its lead position during the forecast period due to surge in demand for chemicals from automotive, energy & resources, construction, consumer goods, electronics, and health & nutrition industries. 

Based on region, the heat transfer fluids market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Europe accounted for the major heat transfer fluids market share in 2019, and is expected to maintain its lead position during the forecast period, owing to rising population coupled with increasing energy demand has propelled the power and energy sector growth. Ongoing construction of new solar plants along with existing demand in industrial sectors including, automotive and metal processing is anticipated to drive the industry demand in the region.

COVID-19 Analysis:

Due to the COVID-19 outbreak, industrial manufacturing activities have been hampered globally. Heat transfer fluids are widely used in chemical, automotive, and HVAC & refrigeration. These industries have halted their operations due to disrupted supply of raw materials amid shutdown declared by governments of various countries to prevent the transmission of coronavirus. This is expected to decrease the demand for heat transfer fluids till the industrial activities across these sectors resume.

Volatility in raw material prices of HTFs is one of the major challenges for manufacturers. Raw materials used in HTFs include phenol, benzene, glycol, and other materials. During the COVID-19 outbreak, crude oil prices decreased significantly, but now as governments of many countries are lifting their lockdown to start their economic activities, the price of crude oil is gaining momentum. The rise or fall in crude oil prices has a direct impact on the price movements of raw materials required for HTFs. Manufacturers have to cope with high and volatile raw material costs, which reduce their profit margins.

The heat transfer fluids manufacturers across countries, such as China and India, have huge opportunities to grow and generate maximum revenue as governments of these countries are gradually lifting their lockdown restrictions to start industrial activities. Therefore, this is expected to increase the demand for HTFs across the chemical, oil & gas, food & beverage, pharmaceutical, renewable energy, automotive, HVAC & refrigeration industries. Furthermore, this factor is anticipated to drive the growth of the market.

Key findings of the study

• In 2019, Europe dominated the global heat transfer fluids market with around 32.2% of the share in terms of revenue. 
• The chemical segment dominated the global heat transfer fluids market with around 21.4% of the share in terms of revenue. 
• The synthetic fluids segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.8% from 2020 to 2027.
• Asia-Pacific is projected to grow at a highest CAGR of 5.8% in terms of value.
• The mineral oil segment dominated the global heat transfer fluids market with around 42.0% of the share in terms of revenue. 
• The renewable energy segment is projected to grow at the highest CAGR of 6.0% in terms of revenue. 

The key players operating in the global heat transfer fluids market include Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., Eastman Chemical Company, The Dow Chemical Company, BP p.l.c, Clariant International Ltd., Royal Dutch Shell plc, Phillips 66, Chevron Corporation, and Exxon Mobil Corporation.