The global heat transfer fluids market size was estimated at USD 10.5 billion in 2019 and is anticipated to exhibit a CAGR of 4.9% from 2020 to 2027. The rapid adoption of concentrated solar power globally is one of the major factors driving demand. Heat transfer fluids are industrial products derived from petroleum sources that are used to prevent overheating and for the storage of thermal energy. The basic raw materials involved in the production are crude oil, silica, and base oils. The important characteristics that define a heat transfer fluid are low viscosity, non-corrosive nature, high thermal conductivity and diffusivity, and extreme phase transition temperatures.
U.S. is one of the crucial contributors to the global installed CSP capacity. The country strategically delivers its power outputs, by using CSP units when the demand is particularly high. Heat transfer fluids have been identified as one of the crucial components used to improve the efficiency of concentrated solar power plants. They play an important role in the collection of energy from the solar field and transport it to the energy storage systems. This stored energy is later utilized for generating electricity after sunset or even in cloudy weather conditions. Compared to PV systems, CSP plants possess capabilities to add storage capacity of an extra six hours, which leads to the operational value of USD 35.8/MWh. The increasing scope of CSP and its competitive advantages over other renewable energy sources is responsible for high growth and significant penetration of heat transfer fluids in the segment.
Heat transfer fluids are also used in the oil and gas industry, which is a key contributor to the U.S. economy. The country is projected to up its liquids and natural gas production over the foreseeable future as a result of shale resource development, thereby boosting product demand.
Major manufacturers are involved in the captive consumption of these thermal oils. Others distribute them to target markets through third-party suppliers. Some of the major suppliers of heat transfer fluids in the industry are Paratherm, Hubbard Hall, Thermic Fluids Pvt. Ltd., and Inlet Petroleum Co. (IPC). Most of these suppliers offer multi-brand fluids and have a separate internet-based portal for selling their products. With heavy investments in research and development activities, major industry participants are shifting toward bio-based thermic oils to comply with government regulations. The shift from synthetic to bio-based thermic oils is anticipated to be a disrupting trend fueled by stringent regulations and strict scrutiny of available products in the marketplace.
On the basis of product, the global heat transfer fluids market has been segmented into mineral oils, aromatics, glycol fluids, silicones, and others. Glycol-based heat transfer fluids form the fastest-growing product category as they exhibit excellent antifreeze properties; the segment is anticipated to exhibit a CAGR of 5.4% over the forecast period. Bio-based glycols are increasingly gaining significance as one of the key ingredients in heat transfer fluid formulations, as they are compatible with both high and low-temperature applications.
Mineral oils are generally utilized in diverse convenient radiator heaters, which are used broadly for commercial as well as residential applications. These oils have a high level of resistance toward chemical oxidation and thermal cracking and are simultaneously non-toxic and non-corrosive in nature. They provide high thermal conductivity and also have high specific heat, which helps them efficiently transfer heat. Mineral oils are also used in multiple heat transfer medium but have a high degradation rate when exposed to higher temperatures.
Alkylated aromatic compounds are typically formulated for closed-loop heating systems based on the Rankine cycle. Major operational areas include asphalt plants, gas processing, tank cleaning, and plastic production. These aromatic HTFs are utilized in both the vapor phase and liquid phase and possess excellent fluid properties and heat transfer properties for applications involving low-temperatures.
The major application segments catered by industry participants are oil and gas, chemical manufacturing, concentrated solar power, food and beverages, and plastic manufacturing. Oil and gas processing dynamics requires 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.
In the chemical industry, reboilers are used as heat exchangers to provide heat to distillation column bottoms. Reboilers boil the liquids from the bottom of the distillation column to form vapors that are used to drive the distillation column separation. Heat transfer fluids or steam are used to heat the vaporization process. The products also find application in components such as tubes, pipes, bushes, and gaskets that are used to carry chemicals, fluids, acids owing to its properties such as inertness to chemicals and high thermal stability.
Heat transfer fluids are extensively used in the manufacturing of PET, polyester, nylon, and multiple other synthetic fibers. The products are formulated to provide optimum efficiency across a diverse range of temperatures. Refined heat transfer fluids provide optimum stability at high temperatures, which eventually helps in avoiding premature degradation of fluids when exposed to high temperatures. Owing to stagnating plastic production in developed countries, the application segment accounted for a meager share of 9.7% in the market in 2019.
North America is the dominant market with key macroeconomic indicators, such as high per capita income and manufacturing output, supporting market growth. The implementation of stringent regulations and ongoing product innovation has boosted demand for heat transfer fluids. The region accounted for a volume-based share of 22.8% in 2019. The availability of base stock, which is one of the important raw materials, is expected to boost production over the forecast period.
The chemical industry in Mexico has observed multiple high-level investments as well as constant sourcing of diverse raw materials to strengthen its core. Rapid industrialization, coupled with the growing export of chemicals to NAFTA countries, is expected to drive demand for heat transfer fluids. The country also has a strong presence in the plastic manufacturing industry.
Governments across Europe have been making significant efforts to promote the use of concentrated solar power. Although there is only one operational CSP plant in Spain, several pilot projects are underway. France is testing a 9 MW Fresnel facility and Denmark is currently constructing a 17 MW hybrid CSP-biomass facility.
The global market for heat transfer fluids is moderately consolidated with major companies striving for market leadership. Key players such as Dow Chemicals, Eastman Company, Exxon Mobil, Shell, and BP have integrated their value chain to strengthen their market position. These companies have appointed authorized resellers or third-party distributors to cater to local and regional demand. Manufacturing companies have also partnered with e-commerce companies to distribute their products across a particular region or globally.
A notable aspect of the industry competition is product offerings. It has been identified that on average, a company offers seven different variants of heat transfer fluids, with Dynalene, DowDuPont, Radco Industries, BASF, and Eastman bringing the highest number of products to the market.
Report Attribute |
Details |
Market size value in 2020 |
USD 10.99 billion |
Revenue forecast in 2027 |
USD 15.35 billion |
Growth Rate |
CAGR of 4.9% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD billion and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Country scope |
U.S., Canada, Mexico, Germany, U.K., Russia, China, India, Japan, South Korea, Thailand, Australia, Malaysia, Brazil, Saudi Arabia, Africa |
Key companies profiled |
Dow Chemicals, Eastman Company, Exxon Mobil, Shell, and BP. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global heat transfer fluids market report on the basis of product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Silicone fluids
Oil & gas
Chemical industry
CSP
Food & beverages
Plastics
Pharmaceuticals
HVAC
Others
Aromatic fluids
Oil & gas
Chemical industry
CSP
Food & beverages
Plastics
Pharmaceuticals
HVAC
Others
Mineral oils
Glycol based fluids
Other (including molten salts & HFPE)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Oil & gas
Chemical industry
CSP
Food & beverages
Plastics
Pharmaceuticals
HVAC
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
U.S
Canada
Mexico
Europe
Germany
The U.K.
Russia
Asia Pacific
China
India
Japan
South Korea
Thailand
Malaysia
Australia
Central & South America
Brazil
Middle East & Africa
Africa
Saudi Arabia
b. The global heat transfer fluids market size was estimated at USD 10.49 billion in 2019 and is expected to reach USD 10.99 billion in 2020.
b. The global heat transfer fluids market is expected to grow at a compound annual growth rate of 4.9% from 2020 to 2027 to reach USD 15.35 billion by 2027.
b. The Asia Pacific dominated the heat transfer fluids market with a share of 47.1% in 2019. This is attributable to the rising focus on the development of the manufacturing sector in the region.
b. Some key players operating in the heat transfer fluids market include Dow Chemicals, Eastman Company, Exxon Mobil, Shell, and BP.
b. Key factors that are driving the heat transfer fluids market growth include the growing concentrated solar power industry globally, FDA Approval of food-grade heat transfer fluids, and growing natural gas production in GCC countries.
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The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.