The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global heat transfer fluids market size is projected to reach USD 15.3 billion by 2027, according to a new report by Grand View Research, Inc., registering a 4.9% CAGR during the forecast period. Growing demand from the manufacturing and energy sectors is expected to drive global demand.
Thermal oils are typically formulated from petrochemicals and mineral oils, which eventually harm the environment in terms of recyclability, biodegradability, and aqueous toxicity. Due to multiple strict regulations laid down by governments across the globe, the growth of heat transfer fluids has taken a hit. Major innovators in the field are trying to bring imminent changes in the production process, such as usage of bio-based products, increased extraction efficiency, and enhanced solvent recovery.
Food grade heat transfer fluids are widely used for storage and refrigeration applications. With rising precision in temperature controlling in the processing of food and beverages, thermal fluid systems are gaining acceptance in upcoming food processing plants and facilities. These products are highly preferred due to lower maintenance costs and low-pressure requirements in the processing facility.
Asia Pacific is the fastest growing regional market backed by rising demand from China and Japan. Rapid industrialization and development of new machinery have increased the importance of heat transfer fluids. Investments in renewable energy initiatives such as CSP are expected to have a positive impact on the industry. China is aiming to take its installed CSP capacity to 3 GW by 2020.
Further key findings from the report suggest:
- Silicone-based products are anticipated to exhibit a CAGR of 3.8% from 2020 to 2027 owing to rising application in oil and gas and chemical manufacturing
- The consumption of heat transfer fluids in pharmaceuticals accounted for a market share of 9.2% in 2019, backed by application in extraction and crystallization processes
- The demand for monoethyl based glycols in HVAC application is expected to exhibit a CAGR of 4.2% from 2020 to 2027 owing to their compatibility across wide temperature ranges
- Asia Pacific dominated the heat transfer fluids market, in terms of revenue, with a share of 47.1% in 2019. Rising demand from emerging countries such as India, Indonesia, and Thailand is likely to drive the consumption over the forecast period
- The Central and South America market is expected to register a revenue-based CAGR of 1.5% from 2020 to 2027 owing to changing political dynamics. Rising automobile production in the region is expected to drive product demand
- Major industry participants include Eastman, Royal Dutch Shell, Sasol, Dow Chemicals and BASF.