Heat Transfer Fluids Market Size, Share & Trends Analysis Report By Product (Glycol-Based Fluids, Mineral Oils), By Application (Chemical Industry, Oil & Gas), By Region (APAC, Europe), And Segment Forecasts, 2022 - 2030

Report Overview

The global heat transfer fluids market size was estimated at USD 10.3 billion in 2021 and is anticipated to exhibit a compound annual growth rate(CAGR) of 3.6% from 2022 to 2030. The adoption of concentrated solar power globally is one of the major factors driving the 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.

The COVID-19 pandemic caused serious disruption in businesses and supply chains. The negative impact of a pandemic on the oil & gas industry also hampered its growth of the 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 market growth. The suspension of new solar power projects installation work and disruption in activities of operational plants also obstructed the market growth. The U.S. is one of the important 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 (HTFs) 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 the high growth and significant penetration of HTFs in the segment. HTFs are 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 the 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 HTFs 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 & 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

On the basis of product, the global market has been segmented into mineral oils, aromatics, glycol fluids, silicones, and others. Glycol-based HTFs form the fastest-growing product category as they exhibit excellent antifreeze properties; the segment is anticipated to exhibit a CAGR of 4.1% 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. 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 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 major application segments catered by industry participants are oil & gas, chemical manufacturing, concentrated solar power, food and beverages, and plastic manufacturing. The oil & gas segment accounted for the maximum revenue share of more than 22.00% in 2021. Oil & gas processing dynamics require very specific HTFs 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. HTFs 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, and acids owing to their properties, such as inertness to chemicals and high thermal stability.

HTFs 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 HTFs 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 around 10% in the market in 2021.

Regional Insights

On the basis of geographies, the global market has been divided into North America, Asia Pacific, Europe, Central & South America, and Middle East & Africa. The North America region accounted for the largest volume-based share of 28.3% in 2021. It is the dominant market with key macroeconomic indicators, such as high per capita income & manufacturing output, supporting the region’s growth. The implementation of stringent regulations and ongoing product innovations have boosted the demand for HTFs. 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 the demand for HTFs. The country also has a strong presence in the plastic manufacturing industry. Governments across the Europe region have been making significant efforts to promote the use of concentrated solar power. There are 59 operational concentrating solar power projects across Europe, out of which, 52 are located in Spain.

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 chain to strengthen their market position. These companies have appointed authorized resellers or third-party distributors to cater to the local and regional demands. 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 kinds of digital offerings present the opportunity for 24/7 ordering, easy product information, and competitive pricing. 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.Some of the prominent players in the global heat transfer fluids market include:

• Dow Chemicals

• Eastman Company

• Exxon Mobil

• Shell

• BP

Heat Transfer Fluids Market Report Scope

Segments Covered in the Report

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 2018 to 2030. For the purpose of 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