Heat Transfer Fluids Market Size, Share & Trends Analysis Report By Application (Oil & Gas, Concentrated Solar Power), By Product (Aromatics, Mineral Oils, Silicone), And Segment Forecasts, 2019 - 2025

Industry Insights 

The global heat transfer fluids market size was valued at USD 2.29 billion in 2018 and is projected to exhibit an estimated CAGR of 5.1% over the forecast period. The industry has gained significant importance in solar thermal systems and the choice of heat transfer fluids (HTF) used determines its production cost, performance, and reliability. Introduction of nano-heat transfer fluids have changed the industry outlook in solar collectors.

There has been rapid industrialization in BRICS nations, specifically in the manufacturing sector comprising chemical, automotive, oil and gas, and metal processing segments. This is a key market driver. Rapid expansion of the CSP industry is also driving product demand globally. Conversely, government regulations across emerging as well as developed economies in-line with the Environment Protection Act is projected to hinder market growth over the next decade.

Companies such as British Petroleum, Shell, Chevron, and Exxon Mobil are fully integrated companies operational in the domain. They have ventured into manufacturing heat transfer fluids for various grades and consume most of the product in their own operations (chemical/petrochemical processes), distributing the surplus mostly through third-party distributors.

Distributors play a significant role in the industry. Product manufacturers have been depending on distributors to get their products to end users on time. Consolidation and globalization of HTF manufacturers have a significant impact on distributors and force them to look beyond traditional boundaries. Thus, in order to sustain in the business, distributors are adopting various strategies including alliances with overseas suppliers.

Crude oil is the basic raw material required to produce benzene, propylene, and ethylene glycol and mineral oil. Aromatic thermic fluids are synthetic variants produced from aromatic compounds derived from benzene and find application in different heating and cooling processes. Glycol-based thermic counterparts are prepared using ethylene or propylene glycol, which is made from ethyl oxide. Silicone-based thermic fluid, another synthetic thermic grade type, is prepared using silicone polymers.

Companies such as Therminol are formulating products that can be used for alternative energy technology. The fluids, used in the process of combining concentrated solar power and Organic Rankine Cycle, are thoroughly laboratory tested and upon processing, ultimately generate electricity. The HTFs are vigorously tested and processed to attain excellent thermal energy transfer and safe recovery of waste heat. With constant investment in R&D activities, companies are now formulating enhanced products, which find core applications in both emerging as well as conventional technologies globally.

Product Insights

The global market has been segmented based on its products into silicones, aromatics, mineral oils, glycol-based fluids, and others. Glycol fluids are one of the fastest growing product segments globally on account of excellent antifreeze properties and they are typically used in the food and beverage industries.

A booming food and beverage industry, particularly in Asia Pacific, is anticipated to fuel product demand over the forecast period. Aromatics HTFs are designed to operate at very high temperatures. They are extensively used in spin and weave, plastics, wood processes, chemical, and food industries. Growing oil and gas as well as chemical industries in Europe and Asia Pacific, along with increasing requirement for synthetic thermal oils in these applications, is expected to drive the market over the forecast period.

Silicone fluids have excellent thermal stability. They resist chemical and physical changes under severe heat, cold, shear, oxidation, and other operating conditions that break down organic fluids. Moreover, they are inert, non-corrosive, nontoxic, and have low volatility. They are extensively used in spin and weave, plastics, wood processes, chemical, and food industries.

Products that are based on alkylated aromatic compounds are typically formulated for closed loop liquid heating systems. Major applications include gas processing, in asphalt plants, plastic production, and liquid terminal tank cleaning. Other heat transfer fluid products include molten salts, which are usually used for very specific applications requiring high temperature medium for heat transfer. Apart from its application as HTF, it is also used extensively for heat recovery systems.

Application Insights

Rapidly increasing utilization of heating oils in the oil and gas thermal process, coupled with rise in LNG terminals, is driving the heat transfer fluids market. Europe was the key contributor to the industry till 2013, but has been gradually taken over by Asia Pacific countries in terms of consumption volume.

Rapid population growth across South America and Asia Pacific has led to high energy demands, which has eventually steered the energy and power sector in these regions. Introduction of new solar projects is being observed in emerging economies to contain the surge in energy requirements across China, Japan, India, Indonesia, and other Asian countries. China and Japan have also reflected high thermal management in the energy industry, which has directly led to a surge in demand for HTFs for concentrated solar power applications.

Heat transfer fluids are used in offshore heating and cooling processes in oil and gas platform utilities and floating production units. They are used in LNG in liquefaction and regasification terminals. Moreover, oil and gas processing dynamics require very specific HTFs, which are formulated in sync with desired temperatures and simultaneously provide a safe feasible solution. The application requires the product at multiple levels including recycling, production, refining, and transportation.

These are also extensively used for thermal storage and CSP applications. These applications require certain HTFs that function at set temperatures for a longer period in-line with solar thermal electricity applications. These fluids are utilized in concentrated solar power applications with the help of concentrators such as parabolic trough systems.

Regional Insights

On a regional basis, Central and South America as well as Asia Pacific are projected to witness faster growth as compared to North America. High energy demand from these regions is triggered majorly by rapidly increasing population and growing industrialization, which is driving CSP applications.

North America has reflected significant growth in terms of upcoming solar projects in the region fueled by rising need to utilize excess energy and heat dissipated from chemical industries and CSP plants. In Asia Pacific, countries such as Japan and China are gradually paving their way into thermal management, which is projected to drive HTF applications in the region, especially for concentrated solar power generation.

In North America, glycol-based as well as silicone-based HTFs are estimated to grow the fastest whereas silicone-based fluids are expected to gain higher market share. This can be attributed to its growing utility across multiple application scopes such as the chemical, spin and weave, food and beverages, wood processing, and plastics industries.

As per publications being launched by the European Union, the region is undertaking several measures to enhance the concentrated solar power industry across all major business hubs in Europe. Technological advancements in CSP projects in the region are highly funded by the government and their major objective is cost reduction in the production and storage of thermal energy and development of hybridized solutions for optimum outcome.

Heating, ventilation, and air conditioning (HVAC) systems are growing tremendously in Asia Pacific because of increase in population, climatic conditions, growing urbanization, and demographic changes in the two economic giants – India and China. This factor is likely to drive the industry across Asia Pacific, particularly in the HVAC application scope.

Heat Transfer Fluids Market Share Insights

Asia Pacific is one of the key contributors to market growth due to multiple levels of political as well as legal reforms across countries such as India and Singapore. Since the initiation of the “Make in India” policy, there has been rapid expansion of the domestic manufacturing industry in India, which has led to increased consumption of HTFs across pharmaceuticals, automotive, and other end-use industries.

On a global scale, companies operating in the market are highly competitive and integrated along the value chain. Based on a comprehensive analysis of 24 leading producers across the globe, it has been identified that nearly 55.0% of the producers of heat transfer fluids are also involved in captive manufacturing of basic raw materials and allied feedstock.

One notable aspect of the operational dynamics of these companies is that in 2017, most companies registered decreased levels of revenue contribution from HTF sales, with Eastman, Royal Dutch Shell, and Schultz Chemicals being the few companies whose segment sales growth exceeded that of their overall revenue growth.

Key industry participants across the globe include companies with high-regional presence, broader product portfolio, and dynamic value chain such as Royal Dutch Shell, Eastman, Sasol, BASF, and DowDuPont.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)

  • Silicone

    • Oil & Gas

    • Chemical Industry

    • Concentrated Solar Power Generation (CSP)

    • Food & Beverages

    • Plastics

    • Pharmaceuticals

    • HVAC

    • Other

  • Aromatics

    • Oil & Gas

    • Chemical Industry

    • Concentrated Solar Power Generation (CSP)

    • Food & Beverages

    • Plastics

    • Pharmaceuticals

    • HVAC

    • Other

  • Mineral Oils

    • Glycol Fluids

    • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Oil & Gas

  • Chemical Industry

  • Concentrated Solar Power Generation (CSP)

  • Food & Beverages

  • Plastics

  • Pharmaceuticals

  • HVAC

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

    • Malaysia

    • Australia

  • Central and South America

    • Brazil

  • Middle East and Africa

    • Saudi Arabia

    • Africa