The global heat transfer fluids market was valued at USD 10.8 Billion in 2022 and is projected to reach USD 14.1 Billion by 2030, registering a CAGR of 3.3% for the forecast period 2023-2030.
Market Definition
Heat transfer fluid is a gas or liquid that takes part in heat transfer by serving as an intermediary in cooling on one side of a process, transporting and storing thermal energy, and heating on another side of a process. The increasing adoption of heat-transfer fluids in various industries such as oil and gas, chemicals, manufacturing, automotive, and solar is driving the growth of the heat transfer fluids market. The demand for heat-transfer fluids is driven by the growing need for efficient heat transfer in industrial processes to increase energy efficiency and reduce operational costs. Heat transfer fluids are indispensable in numerous industries, enabling precise temperature control, energy efficiency, and the safe operation of equipment. The choice of heat transfer fluid depends on specific application requirements, safety considerations, and compatibility with system components. These versatile fluids play a crucial role in maintaining the integrity and efficiency of modern industrial processes, contributing to advancements in technology, energy conservation, and environmental sustainability.
Market Size:
- 2022: USD 10.8 Billion
- 2030: USD 14.1 Billion
- CAGR (2023-2030): 3.3%
Heat Transfer Fluids Market Dynamics
Drivers Propelling the Demand for Heat Transfer Fluids include
Rising demand for heat transfer fluids for energy efficient solutions : Increasing interest in heat transfer fluids to facilitate energy efficiency solutions is the major factor drives the growth of the global heat transfer fluids market. Heat transfer fluids play a crucial role in various industrial processes, including manufacturing, HVAC systems, and renewable energy applications. These fluids help transfer heat efficiently, which is essential for energy-intensive processes. By using the right heat transfer fluid, industries can optimize their energy consumption, reduce heat loss, and improve overall energy efficiency. Heat transfer fluids are also important in producing different types of chemicals, such as phthalic anhydride (PA), linear alkyl benzene (LAB), plasticizers, alcohols, and olefins. They are also used for a variety of other petrochemicals. Many industries, such as chemicals, food and beverage, and pharmaceuticals, rely on precise temperature control during their manufacturing processes. Heat transfer fluids are essential in maintaining consistent and controlled temperatures, reducing waste, and ensuring product quality. These industries are increasingly adopting energy-efficient heat transfer solutions.
Heat-transfer fluids carry heat through solar collectors and a heat exchanger to the heat storage tanks in solar water heating systems. For example, in a cold climate, solar water heating systems require fluids with low freezing points. Fluids exposed to high temperatures, and should have a high boiling point. Heat transfer fluids carry the heat to the storage tank and then to the steam generator. As a result, it is important for good fluids to have a low viscosity and high thermal capacity. Water, synthetic oil, and molten salt can be used as a heat transfer fluid. Thus, the demand for heat transfer fluid is increasing in the forecast period.
Recent Developments
In July 2022, Eastman announced the expansion of the manufacturing capacity of its Eastman Therminol 66 heat transfer fluid, in Anniston, Alabama. The expansion project is anticipated to be completed by 2024, increasing the production capacity in the country by 50%.
Restraint
The volatility in raw material costs and the potential fire and explosion risks linked to thermal heat transfer fluids
The production of heat transfer fluids often relies on specific raw materials, such as specialty chemicals and base oils. The prices of these raw materials can be subject to frequent fluctuations due to factors like supply and demand dynamics, geopolitical events, and market speculation. When the cost of raw materials rises significantly, it can increase the production expenses for heat transfer fluid manufacturers. As a result, these increased costs can potentially be passed on to customers, making heat transfer fluids more expensive. This can affect the competitiveness of heat transfer fluids in the market and influence buying decisions by industries that rely on these fluids. This will somehow restrain the growth of the global market.
Challenges
The risk of fires and explosions associated with thermal heat transfer fluids (HTFs)
Recent incidents have underscored the fire and explosion risks associated with thermal fluid systems, impacting approximately 4,000 companies in the UK that utilize these systems. While water or steam can serve as heat transfer fluids, applications requiring high temperatures often employ organic fluids, which have the potential to form explosive atmospheres. While the fire and explosion hazards of low flash point flammable liquids are well-recognized, similar risks with high flash point materials, such as thermal fluids, are frequently overlooked. Notably, these heat transfer fluids are frequently handled at temperatures above their flash point. The Health and Safety Executive in the UK has recently issued a prohibition notice to a company following a significant thermal fluid incident. Subsequently, thermal fluid systems have been identified as a fire and explosion hazard. Most companies are aware that any system operating above the flash point of the thermal fluid falls under the Dangerous Substances and Explosive Atmosphere Regulations 2002 (DSEAR). This regulatory framework may pose a challenge on the growth of the global market.
Opportunities
Government scheme focused on energy efficiency and renewable energy : Governments often offer incentives like tax credits, grants, or feed-in tariffs to individuals and businesses investing in renewable energy technologies. This includes solar thermal systems, which rely on heat transfer fluids for energy capture and storage. The Bureau of Energy Efficiency (BEE) initiated the Standards & Labeling programme for equipment and appliances to provide the consumer with an informed choice about the energy saving. The energy efficiency labelling programs under BEE are intended to reduce the energy consumption of appliance without diminishing the services it provides to consumers. The Energy Conservation Building Code (ECBC) was launched by Ministry of power for new commercial buildings. It sets minimum energy standards for new commercial buildings.
Additionally, the National Mission for Enhanced Energy Efficiency (NMEEE) constitutes one of the eight pivotal missions outlined in the framework of the National Action Plan on Climate Change (NAPCC). NMEEE's primary objective is to bolster the energy efficiency market by establishing a favorable regulatory and policy environment, with a vision to promote groundbreaking and sustainable business models within the realm of energy efficiency. These government schemes offer the opportunity for the growth of the global market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 10.8 Billion |
| Market Forecast in 2030 | USD 14.1 Billion |
| Compound Annual Growth Rate (CAGR) | 3.3 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product, By Application, & By region |
| By Product |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Heat Transfer Fluids Market
The heat transfer fluids market is segmented into by product, application, and region.
Based on Type
The mineral oils segment held the largest share of the heat transfer fluid market in 2022. Mineral oils, including petroleum, paraffin, wax, and others, are widely used in a wide range of applications, including machine parts and motor fuel. Glycol-based fluids, silicone-based fluids, and molten salt-based fluids are more expensive than mineral oil. Mineral oil is significantly simpler and less expensive to use. For instance, when heat is delivered, fluid commonly leaks, making mineral oil a cost-effective option. This is one of the main factors influencing the mineral oil market for heat transfer fluids.
By Application
The oil and gas segment have gained the largest market share in 2022 : The oil and gas segment dominated the market with a largest revenue share in 2022. The oil & gas processing dynamics require very specific heat transfer fluids that are formulated to suit desired temperatures and compatibility. These products find application in processes such as recycling, production, refining, and transportation. Offshore platforms utilize heat transfer liquid in the aqueous phase for regenerating glycols and facility heating, which eventually removes water from the produced natural gas.
Regional Analysis
Asia Pacific occupied the largest market share in 2022 : The Asia Pacific region is witnessing a significant growth in the adoption of heating, ventilation, and air conditioning (HVAC) systems. This increase can be attributed to the expanding population, shifting climate patterns, rising urbanization, and demographic transformations in the economic powerhouses of India and China. These two factors are expected to propel the growth of the heat transfer fluid market in the Asia Pacific region. Furthermore, this strong demand can be attributed to the region's significant presence of petroleum refining, pharmaceutical, and chemical manufacturing industries. Thermic fluid also serves a crucial role in chemical processing and petrochemical production plants. Heat transfer systems are integral components in key chemical processing facilities involved in the production of various compounds such as phthalic anhydride, dimethyl terephthalate, linear alkylbenzene, terephthalic acid, olefins, plasticizers, alcohols, and other essential substances. Thus, the demand for heat transfer fluid is increasing in the Asia Pacific region.
List of the prominent players in the Heat Transfer Fluids Market:
- Eastman
- Paratherm
- Petro-Canada Lubricants
- Dow
- Radco Industries
- Duratherm
- Valvoline
- Shandong Australia Run Chemical Technology
- Shandong Bluesky Lubricating Oil
Segmentation Analysis of the Heat Transfer Fluids Market
By Product
- Silicone Fluids
- Aromatic Fluids
- Mineral Oils
- Chemical
- Oil & Gas
- Food & Beverage
- Pharmaceuticals
- Renewable Energy
- Automotive
- HVAC & Refrigeration
- Others (electronics and aerospace)
Impact of the COVID-19 Pandemic on the Heat Transfer Fluids Market:
The COVID-19 pandemic caused severe disruption in businesses and supply chains. The negative impact of a pandemic on the oil & gas industry hampered the growth of the heat transfer fluid industry. The onshore and offshore production processes were stopped due to the decline in supply and demand for oil and gas, particularly in North America and Europe, which had an effect on the market growth for heat transfer fluids. The market was further hampered by the suspension of the installation of new solar power projects and the disruption of plant operations. Many ongoing projects, including new solar power installations and industrial expansions, were delayed or put on hold due to the uncertainty caused by the pandemic. This postponed the demand for heat transfer fluids in these applications.
