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Global Heat Transfer Fluids Market - Outlook and Forecast 2022-2027
The global heat transfer fluids market had a valuation of $3.6 billion in 2021 and is estimated to exceed $4 billion by 2027, exhibiting a CAGR of 5.6% from 2022 to 2027. Heat transfer fluid serves as an intermediary liquid or gas that transfers heat from a source to other heat-dependent processes. It is employed in industrial and various applications where temperature regulation within a closed circuit and continuous cycle is required.
Prominent companies are focusing on enhancing the efficiency, longevity, and safety of heat transfer fluids. Currently, mineral oil-based fluids dominate the market due to their lower cost compared to other types. However, the glycol-based heat transfer fluid market is expected to grow at a faster rate owing to advantages such as low viscosity, low toxicity, and antifreeze properties, making it suitable for diverse applications.
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USD 3.6 billion in 2020
Type, End-Use, and Region
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The usage of heat transfer fluids is prevalent in natural gas industries, including processing, refining, and transportation. They find application in glycol recovery and the removal of water from processed natural gas through heating. The increasing utilization of heat transfer fluids in offshore oil and natural gas systems, as well as the growing number of LNG workstations, are key drivers for the rising demand. Heat transfer fluids provide excellent temperature control and ensure safety. Additionally, downstream heating of petrochemicals relies on efficient heat transfer fluids, further contributing to their demand.
The rapid industrialization of emerging economies has led to increased production and the adoption of new technologies to enhance productivity and efficiency. The manufacturing sector, experiencing high production rates, exhibits significant demand for heat transfer fluids in machining and casting industries. These fluids are used in equipment to facilitate heat transfer and maintain desired system temperatures. Consequently, the installation of heat transfer fluid systems in new facilities worldwide has surged to support process efficiency growth in sectors such as chemicals, automotive, metal processing, power generation, and oil & gas.
It is important to note that heat transfer fluids have a limited effective lifespan. Over time, constant use can lead to degradation, resulting in costly maintenance and potential shutdowns due to diminished heat transfer capacity. Thermal cracking, oxidation, and contamination are the primary causes of heat transfer fluid degradation. Regardless of the type of thermal fluid employed, it should be replaced periodically. With a global focus on the environmental impact of chemicals and corporate sustainability objectives, heat transfer fluid users are actively seeking alternatives to the disposal of used fluids through methods like burning or landfilling.
The market is segmented based on various factors, including type, end-use, and region.
Segmentation by Type
Segmentation by End-Use
Oil & Gas
Food & Beverages
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, Italy, Spain, Russia, Rest of Europe
APAC – China, Japan, India, South Korea, Australia, Rest of APAC
Latin America – Brazil, Mexico, Rest of Latin America
Middle East & Africa – South Africa, UAE, Iraq, Rest of the Middle East & Africa
During the forecast period, the global mineral oil heat transfer fluid market is projected to grow at a CAGR of 5.77%.
In 2021, mineral oil-based heat transfer fluids accounted for the largest share of the global heat transfer fluid market. The key factors driving the growth of mineral oil-based fluids are their affordability and longer lifespan. These fluids offer a wide temperature range, are non-toxic, and have minimal environmental impact. They find applications in various industries such as desalination, food production, beverage processing, biodiesel production, specialty chemical production, and batch chemical production.
Heat transfer fluids play a crucial role in heating or cooling operations in refineries, gas processing facilities, offshore plants, manufacturing plants, and other related industries. They provide precise temperature control, thermal stability, and non-fouling properties in applications such as refining units, boilers, reactors, and storage tanks. High-temperature operations in oil refineries and pump stations along oil pipelines require heat transfer fluids to maintain optimal viscosity for efficient pumping. The global oil & gas heat transfer fluid market is expected to grow at a CAGR of 5.83% during the forecast period.
The Asia-Pacific (APAC) region holds the dominant position in the heat transfer fluid market, followed by North America. APAC comprises emerging economies such as China, Japan, South Korea, India, and Australia. The presence of low-cost labor and rapid industrialization has significantly boosted the manufacturing sector, driving the demand for heat transfer fluids. Additionally, the growing population in countries like China and India has increased the demand for food processing, consequently driving the need for food-grade heat transfer fluids.
The global heat transfer fluid market is experiencing an increasingly competitive landscape. Vendors are facing challenges due to the fluctuating prices of raw materials, which are impacting their operations. In order to stay ahead, manufacturers are making significant investments in research and development (R&D), and these initiatives require ongoing financial commitment. To ensure a sustainable presence in the market, companies are adopting collaborative partnerships as a key strategy. Through such associations or acquisitions, there is a mutual exchange of technologies and a delivery of improved products.
The market is characterized by the presence of numerous global players across different geographical regions. Major players in the heat transfer fluid market include Dow (US), Eastman Chemical Company, ExxonMobil (US), Clariant (CH), Arkema (FR), Chevron (US), and Schultz (CN).
Key companies profiled in this report include Dow, Eastman Chemical Company, ExxonMobil, Clariant, Arkema, Chevron Corporation, Shell plc, Phillips 66, Radco Industries, Lanxess, Paratherm, Indian Oil Corporation ltd, CFR Chemicals, Sinopec, Sasol, Total Energies, Schulz, Petro-Canada, Eastern Petroleum Private Limited, Huntsman Corporation, HP Lubricant.
Key Questions Answered
WHAT IS THE ESTIMATED MARKET SIZE OF HEAT TRANSFER FLUIDS?
The heat transfer fluids market is projected to reach USD 4.9 billion by 2027, up from USD 3.6 billion in 2021.
WHAT IS THE EXPECTED GROWTH RATE OF THE HEAT TRANSFER FLUIDS MARKET?
The heat transfer fluids market is anticipated to grow at a compound annual growth rate (CAGR) of 5.6% during the forecast period.
WHO ARE THE MAJOR PLAYERS IN THE HEAT TRANSFER FLUIDS (HTFs) MARKET?
Key players in the heat transfer fluids (HTFs) market include Dow, Eastman Chemical Company, ExxonMobil, Clariant, and Arkema.
WHICH REGION DOMINATES THE HEAT TRANSFER FLUIDS (HTFs) MARKET IN TERMS OF MARKET SHARE?
The Asia-Pacific (APAC) region holds the largest market share in the heat transfer fluids (HTFs) market.
WHICH END-USER SEGMENT IS EXPECTED TO EXPERIENCE THE HIGHEST GROWTH RATE IN THE HEAT TRANSFER FLUIDS (HTFs) MARKET?
The oil & gas end-user segment is expected to witness the fastest growth rate in the global heat transfer fluids market.