The global heat transfer fluids (HTFs) market size is expected to grow from USD 3.1 billion in 2020 to USD 5.62 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 8.9 % during the forecast period. Heat Transfer Fluid (HTF) is a gas or a liquid which transmits heat from one section to another section. Heat transfer fluid is used to prevent overheating or to store thermal energy.
It is used in processes that require heating or cooling, or basically to maintain equipment at constant temperature. Heat transfer fluids are commonly used in air conditioners, refrigerators, and heat pumps mainly 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 fluid market is driven increase in requirements across the industrial sector for heat exchangers. Rise in demand from the chemical industry is one of the prominent growth drivers observed in the heat transfer fluid market. Apart from this, rise in need for energy efficiency to save energy is creates need for efficient devices that leads to the use of heat transfer fluids.
However, stringent environment regulations and fire & explosion hazards is anticipated to hamper the growth of the market. In addition, fluctuation in raw material prices is further anticipated to hamper the overall heat transfer fluid market growth. On the other hand, rise in penetration of biodegradable & bio-based products and implementation of Concentrated Solar Power (CSP) in developed countries is likely to inspire renewable energy sources. This is expected to create new growth opportunities for the global heat transfer fluid market.
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. 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. This scenario has compelled market players to enhance the efficiency and productivity of their operations to sustain growth and retain market share.
The major vendors in the HTFs market are The Dow Chemical Company (US), Eastman Chemical Company (US), ExxonMobil (US), Chevron (US), Huntsman Corporation (US), Royal Dutch Shell (Netherlands), LANXESS (Germany), Paratherm (US), Clariant (Switzerland), Schultz Canada Chemicals (Canada), Arkema (France), BASF (Germany), British Petroleum (UK), Dalian Richfortune Chemicals Ltd. (China), DuPont Tate & Lyle (UK), Dynalene (US), Global Heat Transfer (UK), Hindustan Petroleum Corporation (India), Indian Oil Corporation (India), Isel (US), Paras Lubricants Limited (India), Petro-Canada (Canada), Phillips 66 (US), Radco Industries (US), Sasol (South Africa), Schaeffer Specialized Lubricants (US), and Solvay (Belgium).
Based on region, the HTFs market has been segmented into APAC, Europe, North America, the Middle East & Africa, and South America. APAC HTFs market is the largest and fastest-growing market, owing to the increasing investments in the automotive industry, chemical manufacturing units, and the renewable energy sector in this region. The rising consumer purchasing power has propelled the rise of these industries in this region. Moreover, countries such as China and India are growing at high rates. These factors are expected to lead to increasing demand for HTFs in the region during the forecast period.
It is used in processes that require heating or cooling, or basically to maintain equipment at constant temperature. Heat transfer fluids are commonly used in air conditioners, refrigerators, and heat pumps mainly 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 fluid market is driven increase in requirements across the industrial sector for heat exchangers. Rise in demand from the chemical industry is one of the prominent growth drivers observed in the heat transfer fluid market. Apart from this, rise in need for energy efficiency to save energy is creates need for efficient devices that leads to the use of heat transfer fluids.
However, stringent environment regulations and fire & explosion hazards is anticipated to hamper the growth of the market. In addition, fluctuation in raw material prices is further anticipated to hamper the overall heat transfer fluid market growth. On the other hand, rise in penetration of biodegradable & bio-based products and implementation of Concentrated Solar Power (CSP) in developed countries is likely to inspire renewable energy sources. This is expected to create new growth opportunities for the global heat transfer fluid market.
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. 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. This scenario has compelled market players to enhance the efficiency and productivity of their operations to sustain growth and retain market share.
The major vendors in the HTFs market are The Dow Chemical Company (US), Eastman Chemical Company (US), ExxonMobil (US), Chevron (US), Huntsman Corporation (US), Royal Dutch Shell (Netherlands), LANXESS (Germany), Paratherm (US), Clariant (Switzerland), Schultz Canada Chemicals (Canada), Arkema (France), BASF (Germany), British Petroleum (UK), Dalian Richfortune Chemicals Ltd. (China), DuPont Tate & Lyle (UK), Dynalene (US), Global Heat Transfer (UK), Hindustan Petroleum Corporation (India), Indian Oil Corporation (India), Isel (US), Paras Lubricants Limited (India), Petro-Canada (Canada), Phillips 66 (US), Radco Industries (US), Sasol (South Africa), Schaeffer Specialized Lubricants (US), and Solvay (Belgium).
Based on region, the HTFs market has been segmented into APAC, Europe, North America, the Middle East & Africa, and South America. APAC HTFs market is the largest and fastest-growing market, owing to the increasing investments in the automotive industry, chemical manufacturing units, and the renewable energy sector in this region. The rising consumer purchasing power has propelled the rise of these industries in this region. Moreover, countries such as China and India are growing at high rates. These factors are expected to lead to increasing demand for HTFs in the region during the forecast period.
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