Heat Transfer Fluids Market Size, Share & Growth Analysis By Type (Silicone Fluids, Aromatic Fluids, Mineral Oils, Glycol Based Fluids, and Others), By Application (Oil & Gas, Chemical, Concentrated Solar Power, Food & Beverages, Plastics, Pharmaceutical, HVAC and Others), and Regional Forecast, 2020-2027

The global heat transfer fluids market size was valued at $3,477.90 million in 2019 and is projected to grow $5,372.24 million in 2027, exhibiting a compound annual growth rate (CAGR) of 5.78% during the 2020-2027 period. North America dominated the heat transfer fluids market with a market share of 24.% in 2019.

Heat transfer fluids transmit heat by cooling one side of a process while heating the other side, transporting and storing energy typically in closed, continuous cycles. HTFs are used in many end-uses and industrial processes requiring heating/cooling. At higher temperatures, synthetic hydrocarbon/silicone-based fluids are preferred as they operate under lower pressure. HTFs help machinery and engines in automotive and industrial sectors work efficiently at varying temperatures, preventing overheating, extending equipment life, and avoiding breakdowns.

LATEST TRENDS

Increase in Demand for Concentrated Solar Power to Aid Growth

Heat transfer fluids are used in solar collectors along with water, and water-glycol mixtures. They are emerging as ‘green glycol’ known as trimethylene glycol. Also, several hydrocarbon oils are used in different compositions including naphthenic oils, aromatic oils, and paraffinic oils in their growing order of temperatures. Moreover, semi-synthetic products are also used in some instances. The demand for these products for high-temperature collectors is high and extensive investigations & developments are carried out globally for its usage. Synthetic hydrocarbon oils are used in various high-temperature collectors and commercial feasibility for maximizing their benefits.

DRIVING FACTORS

Rising Demand for Heat Transfer Fluid for Energy Efficient Solutions Is Expected to Drive the Market

In today’s world, industries that are involved in production and process are facing tremendous pressure to increase productivity. This indicates that the operating temperature of the heat transfer fluids system is increasing and they must operate under pressure for a longer time duration. The demand for these products is especially high from the industries which operate 24*7. For instance, in the chemical and petrochemical process industries, it plays a very important role in the production plants. The operating temperature in such industries is very high and these fluids help regulate the temperature. A heat transfer fluid has become an essential component in the industries to improve energy efficiency, reliability, temperature control, and operational safety.

Increasing Demand in Concentrated Solar Power (CSP) is driving the Market

A heat transfer fluid plays a very important role in CSP. It carries the heat that is collected from the sun to the solar field and is then transferred to a power block and is converted into electricity. It is the most preferred fluid in CSP as water can prove unstable and very difficult to manage at high pressure and temperature. Moreover, at elevated temperatures, it begins to vaporize causing energy losses. These products are used to get over the pressure and temperature issues; it does not expand or contracts with the temperature changes and works with maximum efficiency.

RESTRAINING FACTORS

Problems Associated with Cracking of the Product are Expected to Hamper the Market

The process involved in the aging of heat transfer fluid is a bit complicated. Thermal cracking of fluids occurs when the system operates at very high temperatures when it occurs to causes decomposition of oil molecules and the formation of coke. This formation can result in a decrease in flashpoint and the viscosity of a fluid, which will increase vapor pressure. Flashpoint is the temperature when vapor produced by fluid begins to ignite. The coke present in the system will be baked in the system and will create a hotspot that can burn the metal surface. Hence, it is very essential for the manufacturers to regularly carry out the health checks of the system and the working fluid.

SEGMENTATION

By Type Analysis

Mineral Oils to holds the Largest Share in the Market

Based on type, the market is classified into silicone fluids, aromatic fluids, mineral oils, glycol-based fluids, and others. Mineral oils are low in cost as they are generally available from major refineries, and they are multi-purpose with a negligible amount of additives blended. Mineral oils hold the largest share in the heat transfer fluids market. Mineral oils are cheaper than other oils that are easily available in the market. Moreover, people are stuck to mineral oils for years and it is difficult to change their minds as they are used to the pros and cons of it. The added benefit of mineral oils is that it can fit into any kind of machinery, which have several applications in industries such as food & beverages, chemicals, pharmaceuticals, and others.

By Application Area Analysis

Oil & Gas to Hold the Largest Share in the Market

The heat transfer fluid market is segmented into oil and gas, chemicals, concentrated solar power, plastics, food & beverages, pharmaceutical, HVAC, and others. They are a key component in the oil & gas processing industry and are widely consumed in all the phases of fuel extraction, fuel transport, and fuel refining. Oil & gas processing necessitates precise products which is developed to perform at elevated temperatures for extended periods. Oil & gas operations are mostly located in remote areas, so it becomes necessary to use HTFs at high flashpoints to minimize the possibility of explosion.

On offshore platforms, liquid phase heat transfer fluids are used for heating purposes and regenerate glycols in order to separate water from the produced natural gas. HTFs are also used in refineries for the distillation purposes of oil and oil-based products. Market players that recycle and reprocess used oils also use the thermal fluids at high-temperature plants, whereas the pumping stations and oil pipelines consume heat transfer mechanisms in order to regulate the viscosity of the moving oil through the line. The heat transfer fluid has numerous applications in the oil & gas processing industry; as a result of which this segment holds the largest share in the market.

REGIONAL INSIGHTS

The market size in North America stood at USD 834.52 million in 2019. North America holds a significant share in the global heat transfer fluids market owing to the presence of various manufacturers in the region. Moreover, the stringent regulations on carbon emission and the continuous R&D activities for new and innovative solutions have boosted demand for the product. In Europe, the governments in several countries across the region are making tremendous efforts to promote the usage of concentrated solar power. As mentioned, these fluids are an important element in the CSP industry, thus this is estimated to drive the market in this region. The Asia Pacific is currently the fastest growing market due to increasing demand from countries such as China, India, and Japan.

China holds the largest share in this region, due to the active efforts in the energy-saving techniques in this country. Rapid industrialization, coupled with the improvement in machinery in countries such as India and South Korea have enhanced the significance of heat transfer fluid. In Latin America, Mexico has done various investments in the chemical industry to strengthen its core in chemicals. Growing industrialization and urbanization, along with the growing export of chemicals to countries such as Brazil and Mexico, are projected to fuel demand. The Middle East & Africa is expected to show rapid growth in the future, due to the demand from various industries including food & beverages and petrochemicals. This region is considered the fastest-growing region due to rapid industrial development in this region.

Moreover, the COVID-19 pandemic is projected to have an unpleasant effect on the market all over the world. The impact of COVID-19 is anticipated to reflect in the years 2020 and 2021 very severely, due to the temporary shutdown of all production plants in all the regions. In the COVID-19 situation only food and beverage industries are operating, that too at only a 30% operational rate to meet the basic demand of the customers. This pandemic is anticipated to drastically decrease the market in 2020, however, the industries are expected to resume at the end of 2020. The demand for heat transfer fluid is anticipated to rise after 2021 as various machinery which will be idle will require new and fresh fluid for their smooth and efficient operation.

KEY INDUSTRY PLAYERS

Key Players are Adopting Merger and Acquisition to Maintain a Considerable Position in the Market

The global HTF market is fragmented in nature with the presence of several global and regional players. Key market players have been continuously investing heavily in research & development activities to develop innovative products. Additionally, several small, as well as medium-scale players, have adopted mergers & acquisitions as their key strategy, to improve their product offerings.

LIST OF KEY PLAYERS PROFILED:

• Element Solutions Inc (U.S.)


• Caldic B.V. (Netherlands)


• Eastman Chemical Company (U.S.)


• Schultz Chemicals (Canada)


• Arkema S.A. (France)


• Isel (Florida)


• FRAGOL AG (Germany)


• Clearco Products Co., Inc. (U.S.)


• Arteco (Belgium)


• Eastern Petroleum (North Carolina)


• Dynalene, Inc. (Pennsylvania)


• Honeywell International Inc. (U.S.)


• Exxon Mobil Corporation (U.S.)


• Chevron Corporation (U.S.)


• The Dow Chemical Company (U.S.)


• Huntsman Corporation (U.S.)


•  and Others

KEY INDUSTRY DEVELOPMENTS:

• September 2019 – Valvoline, a manufacturer, and supplier of premium branded lubricants and automotive services, announced the first of its electric vehicle-specific product and service offerings with the introduction of Valvoline EV Performance Fluids. The global product line will include ValvolineTM EV Heat Transfer Fluid, ValvolineTM EV Brake Fluid, ValvolineTM EV Drive System Fluid, and ValvolineTM EV Grease these fluids are designed for the diverse needs of the expanding number of EVs on the road today.


• April 2019: Eastman Chemical Co. announced that it has acquired Marlotherm, heat transfer fluids manufacturing assets, intellectual property, related formulations, and customer contracts located in Germany from Sasol, which is a global chemical and Energy Company. This acquisition will help Eastman to expand its heat transfer fluids product offerings to customers around the globe.

REPORT COVERAGE

The heat transfer fluids market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, type, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market growth over recent years.

Report Scope & Segmentation