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  • Heat Transfer Fluid Market Growth Analysis | 2023-2028

    Heat Transfer Fluid Market Growth Analysis | 2023-2028

    Heat Transfer Fluid Market Growth Analysis | 2023-2028
    Report code - SRAM433 Delivery - 2 Weeks
    Heat Transfer Fluid Market Size, Share, Trends, Challenges, Opportunities, Forecast,& See more...

    Market Insights

    The heat transfer fluid market was estimated at USD 10.29 billion in 2022 and is likely to grow at a CAGR of 4.10% during 2023-2028 to reach USD 13.14 billion in 2028.

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    What is a heat transfer fluid?

    A heat transfer fluid, also known as thermal fluid or heat transfer oil, is a specialized liquid or gas that is used to move heat from one point to another. It is often employed in a variety of industrial processes and systems when direct heating or cooling with a typical fluid like water is impractical or inefficient.

    Heat transfer fluids are created with excellent thermal stability and effective heat transfer qualities in mind. They can resist high temperatures and transfer heat in a steady and controlled manner. These fluids have a high boiling point, a low freezing point, and a low viscosity, allowing them to flow smoothly through heat exchangers and other heat transfer system components. There are different types of heat transfer fluids available, and the selection depends on the specific requirements of the application.

    COVID-19 Impact

    COVID-19 severely impacted various industries, including chemical, petrochemical, oil & gas, automotive, HVAC, and food & beverage. The global economy declined due to lockdowns, and the Heat Transfer Fluids Market experienced a decline in 2020. US and European plants shut down or operated with limited workforces. Manufacturers have limited R&D budgets to restructure and maintain their fundamental functions in end-use industries.

    Heat Transfer Fluid Market Report Overview

    Market Size in 2028

    USD 13.14 Billion

    Market Size in 2022

    USD 10.29 Billion

    Market Growth (2023-2028)

    CAGR of 4.10%

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2028

    Market Dynamics

    The heat transfer fluid market is driven by a host of factors, some of which are noted below:

    • Rapid growth & development in emerging economies, especially in metal processing, automotive, chemical, oil & gas sectors.
    • Growing requirements for temperature maintenance in these sectors, and growing demand for particular application-based HTF for optimum energy efficiency.
    • In addition, properties such as elevated temperature control and cost-saving operation in comparison with its counterparts including, steam and electric & high-temperature control.
    • The safety of the environment, production efficiency, and, low maintenance.

    Opportunities:

    • Continues Development: The continuous demand for new heat transfer fluids with enhanced properties, including higher capacity, thermal stability, and lower toxicity, presents new market opportunities.
    • Increasing use in emerging economies: The heat transfer fluid market is predicted to experience faster growth in emerging economies like China, India, and Brazil due to their growing industrialization and urbanization.
    • Increasing demand in the electronics industry: Heat transfer fluids are crucial in electronics manufacturing, including semiconductor, printed circuit board, and solar cell manufacturing, with the growing electronics demand expected to drive their demand.

    Trends:

    Surge in Demand for Concentrated Solar Power to Aid Growth.

    Heat transfer fluids, such as trimethylene glycol, are used in solar collectors alongside water and water-glycol mixtures. Hydrocarbon oils, including naphthenic, aromatic, and paraffinic oils, are also used in various compositions. The demand for these products in high-temperature collectors is high, leading to extensive global research and development for their commercial feasibility.

    Challenge:

    Fire and explosion hazards related to thermal heat transfer fluids.

    High-temperature chemical plant applications, such as plastic processing and metal processing, require organic fluids to prevent explosive atmospheres. Heat transfer fluids, which are often handled above their flash point, fall under the "Dangerous Substances and Explosive Atmosphere" Regulations, 2002. Over time, these fluids may degrade, making them flammable and potentially forming explosive mist atmospheres. A strict procedural control is needed to change the HTF and remove lower flash point components, and regular thermal tests can help reduce the risk. Without these measures, explosion hazards pose a significant threat to their use.

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    Segment Analysis

    By Product Type

    The heat transfer fluid market is segmented as silicones & aromatics, mineral oils, glycol, and others. Silicone & aromatics accounted for the highest market share in 2022 & are estimated to register a strong growth rate over the forecast period. The growth of the segment is attributed to its extensive use in industries, where processes need a very high temperature such as plastics, wood processing, spinning and weaving, chemicals, and food.

    Other major factors such as high thermal stability, better physical & chemical resistive properties to change when exposed to elevated temperatures accompanied by oxidation conditions, ongoing technological enhancements in manufacturing sectors such as automotive and plastics, metal processing, are expected to fuel the product demand in the market during the forecast period.

    By Application Type

    The market is segmented as oil & gas, chemical industry, concentrated solar power, food & beverages, plastics, pharmaceuticals, heating, ventilation & air conditioning, and others. Oil & gas occupied a market share of more than 20% in 2022 and is estimated to register a strong growth rate during the forecast period. The growth can be attributed to the application of products for warming oils for offshore oil & gas thermal processes. Additionally, the setting up of new LNG terminals, and new oil & gas exploration projects in Asia-Pacific and in the European region, are expected to fuel the product demand during the forecast timeframe.

    Regional Insights

    Asia-Pacific held a market share of more than 45% in 2022 and is estimated to dominate the heat transfer fluid market during the forecast period, on account of the growing demand for thermal management, accompanied by the promotion of renewable energy with emerging economies, such as China and Japan, which are the major countries offering lucrative growth opportunities. Also, the growing demand for energy from various industrial sectors is expected to fuel the development of new solar plants, which in turn, is likely to boost the industry demand in APAC as well.

    On the other hand, Europe is estimated to hold a significant share of the market in the coming years. The major factors such as the increasing population the rising demand for energy, and the ongoing construction of new solar plants accompanied by existing demand for heat transfer fluids in industrial sectors including, automotive and metal processing are expected to fuel the demand for the industry in the regional market. Furthermore, strict rules and regulations regarding the environment in Europe, accompanied by an unstable supply of crude oil, and base oils will encourage the development of biodegradable heat transfer fluids and will provide lucrative growth opportunities in the regional market during the forecast period.

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    Critical Questions Answered in the Report

    • What are the key trends in the global market?
    • How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
    • What is the impact of COVID-19 on the global market?
    • What are the key strategies adopted by the major vendors to lead in the market?
    • What is the market share of the top vendors?

    Market Segmentation

    This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

    The heat transfer fluid market is segmented into the following categories.

    By Product Type

    • Silicones & aromatics 
    • Mineral Oils
    • Glycol 
    • Others

    By Application Type

    • Oil & Gas
    • Chemical Industry
    • Concentrated Solar Power
    • Food & beverages
    • Plastics
    • Pharmaceuticals
    • Heating, Ventilation & Air Conditioning

    By Region

    • North America (Country Analysis: the USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
    • Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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    Key Players

    The following are some of the key players in the heat transfer fluid market-

    • British Petroleum
    • CFR Chemicals
    • Dynalene, Inc.
    • Eastman Chemical Company
    • Hindustan Petroleum Corporation Ltd.
    • Huntsman Corporation
    • Indian Oil Corporation Ltd.
    • Inlet Petroleum Company
    • KOST USA, Inc.
    • Royal Dutch Shell Plc.

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

    More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

    We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the Heat Transfer Fluid Market

    How lucrative is the future?

    The market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

    Report Customization Options

    Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to 3 players)
    • SWOT analysis of key players (up to 3 players)

    Market Segmentation

    • Current market segmentation of any one of the product types by application type.

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.

    Frequently Asked Questions (FAQs)

    A heat transfer fluid, also known as thermal fluid or heat transfer oil, is a specialized liquid or gas that is used to move heat from one point to another. It is often employed in a variety of industrial processes and systems when direct heating or cooling with a typical fluid like water is impractical or inefficient.

    The heat transfer fluid market was estimated at USD 10.29 billion in 2022.

    The heat transfer fluid market is likely to reach USD 13.14 billion in 2028.

    The heat transfer fluid market is estimated to grow at a CAGR of 4.10% during 2023-2028.

    British Petroleum, CFR Chemicals, Dynalene, Inc., Eastman Chemical Company, Hindustan Petroleum Corporation Ltd., Huntsman Corporation, Indian Oil Corporation Ltd., Inlet Petroleum Company, KOST USA, Inc., and Royal Dutch Shell Plc are among the key players in the market.

    Asia-Pacific held a market share of more than 45% in 2022 and is estimated to dominate the market during the forecast period, on account of the growing demand for thermal management, accompanied by the promotion of renewable energy with emerging economies, such as China and Japan, which are the major countries offering lucrative growth opportunities.

    Some of the major factors driving the growth of heat transfer fluid market are rapid growth & development in emerging economies, especially in metal processing, automotive, chemical and oil & gas sectors, growing requirements for temperature maintenance in these sectors, growing demand for particular application-based HTF for optimum energy efficiency.