The global heat transfer fluids market size was estimated to be 465.9 kilo tons in 2014. Rapid industrialization in BRICS economies, particularly in manufacturing sectors including automotive, metal processing, chemical, and oil & gas, is expected to remain a major factor driving demand. Growth drivers for manufacturing sector in these regions include favorable foreign investment norms, availability of large pool of skilled labor and technological know-how.
Substantial growth in oil and gas manufacturing is projected to positively influence the growth over the forecast period. Concentrated solar power (CSP) is an emerging technology to recover solar energy. This requires a medium to transfer the heat generated at the collectors to the generators and in turn continuously cool the PV surface. Increasing installation of CSP plants in economies including France, the U.S., and China is estimated to fuel product demand in the segment over the foreseeable future.
These fluids are also required in pharmaceutical and chemical plants to maintain the furnace and equipment temperature in batch processes. They are also used as coolant and heat recovery fluids in thermal reactors in these industries. Growing pharmaceutical and chemical manufacturing industries in BRIC economies are estimated to drive product demand in these segments.
Stringent environment regulations coupled with the unstable raw material (including crude oil, base oils) demand-supply scenario is estimated to hinder industry expansion over foreseeable future. Development of bio-based or water-based heat transfer fluids is anticipated to create significant avenues for industry participants.
FDA and NSF approval of HT1 grade fluids for food & beverage processing is expected to provide an impetus to industry penetration over the forecast period. EPA and REACH regulations about emissions from perfluorinated compounds (PFC) have led to commercialization of mineral and glycol based thermal fluids. They have low environmental impact and high thermal coefficient.
U.S. heat transfer fluids market volume by product, 2012-2022 (Kilo Tons)
Silicone & aromatics formed the largest product segment, accounting for over 40% of market share in 2014 and are expected to grow at a CAGR of 6.3% from 2015 to 2022. Silicone & aromatic fluids are specifically intended to operate at extremely high temperatures. These are widely used in spin & weave, wood processes, plastics, chemical, and food processing industries.
Growing oil & gas and chemical industries in Asia Pacific along with increasing requirement for synthetic thermal oils in these applications is expected to drive the product demand over the forecast period
Glycol-based thermal fluids generated revenue worth of USD 269.9 million in 2014 and are expected to gain market share to account for over 13% of global revenue by 2022. Glycol fluids are anticipated to be the fastest growing product segment on account of excellent antifreeze properties. They are commonly used as antifreeze agents in food & beverage industry.
Growing food & beverage industry particularly in Asia Pacific is anticipated to fuel demand over the forecast period. Increasing scope in solar power plant particularly in CSP applications has created new avenues for industry participants for future investments.
Oil & gas was the largest application segment accounting for 23.8% of total volume in 2014 and are expected to grow at a CAGR of 5.5% from 2015 to 2022. Rising use of heating oil in offshore oil & gas thermal processes is anticipated to drive the expansion over the forecast period.
An increasing number of LNG terminals is anticipated to fuel market growth. Europe and Asia Pacific petroleum industry is anticipated to witness rapid growth over the forecast period. This is anticipated to raise product requirement in the aforementioned regions.
Concentrated solar power (CSP) is anticipated to be the fastest growing application segment over the forecast period. The segment is estimated to generate revenue exceeding USD 120.0 million by 2022 at a CAGR of over 9% over the forecast period. Heat transfer fluids are critical components for storing and transferring thermal energy in CSP. Growing CSP installations, particularly in Europe and Asia Pacific, is expected to drive market growth in the segment over the forecast period.
Food & beverage and heating, ventilating & air conditioning (HVAC) are estimated to witness above average growth over the forecast period. India and China were the largest consumers in HVAC industry in 2014. Rising thermal fluids demand in the region is anticipated to drive penetration over the next seven years.
Europe heat transfer fluids market dominated the global industry, with a total demand exceeding 140.0 kilo tons in 2014. It is expected to lose share to high growth markets including Asia Pacific and Central & South America over the forecast period. Increased population coupled with high energy demand has steered the power and energy sector.
Recent developments observed in new solar plants coupled with surging energy requirements are expected to drive the HTF industry in Europe. Increasing requirement of utilizing excess heat and energy dissipated in major industries such as chemical, HVAC, concentrated solar power (CSP) plants is expected to drive industry penetration in the region over the forecast period.
Asia Pacific heat transfer fluids market is anticipated to witness the high gains over the forecast period and accounts for over 24% of the global volume share by 2022. Rapid development in thermal management and increasing renewal energy sector is expected to drive the HTF industry in China and Japan. Recent developments observed in new solar plants coupled with surging energy demand are expected to drive the regional heat transfer fluid market.
North America is anticipated to witness a stagnant growth owing to stable requirements in major end-use industries, accounting for over 28% of total market revenue share by 2022. CSA and MEA regions are expected to witness a moderate growth over the forecast period.
Global heat transfer fluids market share is highly consolidated with top five players including The Dow Chemical Company, ExxonMobil, Eastman Company, Shell and BP, accounting for over 75% in 2014.
The Dow Chemical Company was the industry leader with a share of over 28% of the total industry revenue in 2014. The company offers thermal fluids for a wide host of industries including chemical, industrial, energy & water, and pharmaceutical. Major products offered in the heat transfer segment include inhibited glycol (ethylene or propylene glycol) fluids and synthetic fluids.
Industry participants are investing heavily in R&D to develop bio-based thermic oils owing to stringent environmental regulations regarding the synthetic counterparts. Companies have also been investing to commercialize nanofluids with enhanced thermal properties and multi-utility in various applications.
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