The primary factors driving the market for heat transfer fluids are the use of these industrial products, which are made from petroleum, to prevent overheating and store thermal energy, as well as the rising demand for products due to their low viscosity, high thermal conductivity and diffusivity, non-corrosive nature, and extreme phase transition temperatures. The growth of the heat transfer fluids market is accelerated by the essential elements used to boost the efficiency of concentrated solar power plants, their critical role in the collection and delivery of solar energy to energy storage systems, the expanding application of CSP, and its competitive advantages over other renewable energy sources. The market for heat transfer fluids is also benefited from the use of the oil and gas sector, the growth of shale resources, and financial investments in R&D. Additionally, the projection period offers lucrative prospects for market participants in heat transfer fluids due to the high development potential of bio-based HTFs and the growing need for energy conservation.
The COVID-19 outbreak caused several countries worldwide to apply various legal and financial limitations, significantly impacting the global heat transfer fluids market. The many restrictions throughout the world during the pandemic significantly impacted the market regarding production, supply, and distribution. All movements, including people and commodities, were forbidden due to concerns about the spreading coronavirus. The sharp decline in sales and consequent drop in demand for heat transfer fluids substantially affected the market for such materials.
Market Growth Is Predicted to Be Driven by Growing Demand for Heat Transfer Fluid for Energy-Efficient Solutions
The temptation to boost productivity is enormous in today's manufacturing and process-related sectors. As a result, the heat transfer fluids system's operational temperature must rise and exert pressure for longer. Particularly in the 24-hour/day/night operating industries, there is a considerable demand for these items. For example, it significantly impacts production facilities in the chemical and petrochemical process sectors. These fluids help regulate the temperature in these industries, where the working temperature is very high. To increase energy economy, dependability, temperature control, and operational safety, a heat transfer fluid has become crucial in many sectors.
Fluctuating Costs For Raw Materials To Limit Market Growth
Crude oil is one of the main raw materials utilized to create heat transfer fluids. Due to the continually shifting supply-demand situation, crude oil is a very volatile commodity. One of the major problems facing the market for heat transfer fluids is the unpredictability of crude oil prices. In 2020, the price of crude oil declined by 20.54%; in 2019, it increased by 34.46%; in 2018, it decreased by 24.84%; and in 2017, it increased by 12.47%. This illustrates how volatile crude oil is, which poses one of the main problems for the market for heat transfer fluids.
By Product Type
Based on product type, the heat transfer fluids market is segmented into mineral oils, synthetic fluids, glycol-based fluids and others. The mineral oils category dominated the market in 2022. Due to their widespread availability from large refineries and their versatility with only a little number of additives mixed, mineral oils are inexpensive. Mineral oils dominate the market for heat transfer fluids. Compared to other readily available oils, mineral oils are more affordable. People have been using mineral oils for a long time, and because they are accustomed to their benefits and drawbacks, it is challenging to convince them to switch. The additional advantage of mineral oils is that they may be used in any equipment, which has several uses in the food and beverage, chemical, pharmaceutical, and other industries.
By End Use
Based on end use, the heat transfer fluids market is segmented into chemical & petrochemical, oil & gas, automotive, renewable energy, HVAC, pharmaceutical and others. The mineral oils category dominated the market in 2022. They are a vital part of the oil and gas processing sector and are extensively used during all stages of fuel extraction, transportation, and refinement. Precision devices designed to function at high temperatures for extended periods are required for oil and gas processing. Due to the majority of oil and gas activities being situated in isolated locations, so HTFs must be used at high flashpoints to reduce the risk of explosion.
North America is projected to hold the largest share of the heat transfer fluids market over the forecast period because there are several manufacturers in the area. Demand for the product has also increased due to strict laws on carbon emissions and ongoing R&D efforts for novel and creative solutions. Demand for HTFs has increased due to continual product advancements and the adoption of strict restrictions. Production is anticipated to increase throughout the forecast period due to the availability of base stock, one of the key raw materials. On the other hand, the Asia Pacific heat transfer fluids market is anticipated to grow significantly because of rising demand from nations like China, India, and Japan. Due to its active efforts in energy-saving technology, China currently holds the highest stake in this region. The importance of heat transfer fluid has increased as a result of quick industrialization and advances in equipment in nations like South Korea and India.
November 2022: Several projects, including the joint development of lower-carbon fuel in Australia, are being worked on by Chevron and JERA.
March 2022: With Standard Lithium, Lanxess signs a contract to collaborate on the lithium project.
LIST OF KEY COMPANIES PROFILED:
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