Heat Transfer Fluids Market Size, Share & Trends Analysis Report By Product (Silicone Fluids, Aromatic Fluids, Mineral Oils), By Application (Oil & Gas, Chemical Industry, CSP, Food & Beverages), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global heat transfer fluids market size was estimated at USD 10.7 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.2% from 2023 to 2030. 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 prevent overheating and store thermal energy. The primary raw materials involved in the production are crude oil, silica, and base oils. The essential characteristics that define a heat transfer fluid are low viscosity, non-corrosive nature, high thermal conductivity and diffusivity, and extreme phase transition temperatures.

Heat transfer fluids are traditionally used for the sole purpose of transferring heat to the process stream. However, the selection of the right HTF is a multi-dimensional complication wherein factors such as pumpability, thermal stability, and pressure requirements are put into consideration. Heat transfer fluids are gaining significant importance in their applications, such as extracting heat from the sun in concentrated solar panels to processing gas & oil in cold climatic conditions.

The COVID-19 pandemic caused severe disruption in businesses and supply chains. The negative impact of a pandemic on the oil & gas industry also hampered the growth of the heat transfer fluid industry. The decrease in supply and demand for oil & gas, especially in North America and Europe, halted the onshore and offshore production processes, impacting the growth of the heat transfer fluids market. The suspension of new solar power projects installation work and disruption in activities of operational plants also obstructed the market.

The U.S. is one of the critical contributors to the global installed CSP capacity. The country strategically delivers its power outputs using CSP units when the demand is exceptionally 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 essential 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 the high growth and significant penetration of heat transfer fluids in the segment.

Heat transfer fluids are used in the oil and gas industry, 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 significant 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.

Product Insights

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 3.7% over the forecast period. Bio-based glycols are increasingly gaining significance as one of the critical ingredients in heat transfer fluid formulations, as they are compatible with high and low-temperature applications.

Mineral oils are generally utilized in diverse convenient radiator heaters, which are used broadly for commercial and residential applications. These oils have a high level of resistance toward chemical oxidation and thermal cracking and are simultaneously non-toxic and non-corrosive. They provide high thermal conductivity and specific heat, which helps them efficiently transfer heat. Mineral oils are also used in multiple heat transfer mediums 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.

Application Insights

The oil and gas segment dominated the market with a revenue share of 22.4% 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.

In the chemical industry, reboilers are heat exchangers to provide heat to distillation column bottoms. Reboilers boil the liquids from the bottom of the distillation column to form vapors that 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 carry chemicals, fluids, and acids owing to their properties, such as inertness to chemicals and high thermal stability.

Heat transfer fluids are extensively used to manufacture PET, polyester, nylon, and 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 avoid 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 around 10% of the market in 2021.

Regional Insights

Asia Pacific is the dominant market with key macroeconomic indicators, such as high per capita income and manufacturing output, supporting market growth. The region accounted for a market share of 47.7% in 2022. The use of heating, ventilation, and air conditioning (HVAC) systems is growing tremendously in the Asia Pacific region because of the increasing population, changing climatic conditions, increasing urbanization, and demographic changes in the two economic giants, India and China. These two factors are likely to drive the growth of the Asia Pacific heat transfer fluid market.

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.

European governments have been making significant efforts to promote the use of concentrated solar power—59 operational concentrating solar power projects across Europe, with 52 in Spain alone.

Key Companies & Market Share Insights

The global market 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 chains 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. For instance, the Dow product line is now available on the Hubbard-Hall e-commerce site. These digital offerings present the opportunity for 24/7 ordering, accessible product information, and competitive pricing.

Moreover, Indian oil and gas producer Oil & Natural Gas Corp (ONGC) completed the acquisition of Hindustan Petroleum Co. Ltd. (HPCL) by purchasing 51.11% shares to become the country’s first vertically integrated oil manufacturer. These varied strategic implementations worldwide by key companies reflect their operational strategies to remain sustainable key players in the global heat transfer fluids ecosystem. Some prominent players in the global heat transfer fluids market include:

• Dynalene, Inc.

• Indian Oil Corporation Ltd. (IOCL)

• KOST USA, Inc

• Hindustan Petroleum Corporation Ltd. (HPCL)

• Delta Western, Inc. (DWI)

• British Petroleum (BP)

• Huntsman Corporation

• Royal Dutch Shell Plc

• Eastman Chemical Company

• Phillips 66

• Chevron Co.

• BASF SE

• ExxonMobil Corporation

• Dow Chemicals

• Dalian Richfortune Chemicals Ltd.

• GJ Chemical

• Radco Industries Inc

• LANXESS AG

Recent Development

• In May 2023, ORLEN Południe announced the completion of the first operational year of its BioPG plant, involving the conversion of glycerol into renewable propylene glycol. BASF provided its BioPG technology for the purpose, while Air Liquide Engineering & Construction contributed with the licensing, proprietary equipment, and basic engineering services

• 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%

• In December 2021, Dalian Richfortune Chemicals Co., Ltd. unveiled a new plant for increasing the capacity of RFCTHERM-PHT350, also known as Partial Hydrogenated Terphenyl. It is one of the most well-known and reliable high temperature, liquid phase heat transfer fluids, being utilized extensively in areas such as chemicals, biodiesel, plastics, and PET production

• In July 2021, ExxonMobil and SABIC announced that their ‘Gulf Coast Growth Ventures’ JV, situated near Corpus Christi, Texas, had attained the mechanical completion of two polyethylene units and a monoethylene glycol unit, which would cater to the automotive, medical, and packaging sectors. Monoethylene glycol is known for its use in the manufacturing of automotive coolants and polyesters, among other applications

• In May 2021, Eastman launched the ‘Fluid Genius’ product for enabling operational managers and engineers to optimize the performance of heat transfer fluids through predictive insights. Fluid Genius leverages AI and the company’s expertise for predicting the life expectancy of the fluid, while offering advice on how to extend it optimally, and serves chemicals, oil & gas, and polymer processing industries, among others

• In November 2020, KOST USA announced its acquisition by the Canada-based Recochem Corporation. Recochem is a global name in the industrial and household fluid markets, as well as the automotive aftermarket, while KOST USA had been a major presence in the antifreeze/coolants space in the U.S. The development is expected to aid both companies in expanding their geographical reach

Heat Transfer Fluids Market Report Scope

Global Heat Transfer Fluids Market Report Segmenation

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global heat transfer fluids market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • 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, 2018 - 2030)

  • Oil & Gas

  • Chemical Industry

  • CSP

  • Food & Beverages

  • Plastics

  • Pharmaceuticals

  • HVAC

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

    • Malaysia

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Africa

    • Saudi Arabia