Automotive Antifreeze Market Size, Share & Trends Analysis Report By Fluid Type (Ethylene Glycol, Propylene Glycol, Glycerin), By Technology (Inorganic Additive Technology (IAT), Organic Acid Technology (OAT), Hybrid Organic Acid Technology (HOAT)), By Application (Passenger vehicle, Commercial vehicle, Construction vehicle), By Distribution Channel (Original equipment manufacturers (OEMs), Aftermarket) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The automotive antifreeze market size was valued at USD 3,722 million, expected to reach USD 7,018 million, advancing at a CAGR of 8.25% during the forecast period. 

Antifreeze is an additive that raises the boiling point of the cooling system while simultaneously lowering the temperature at which it freezes. This allows the temperature of the engine to be more easily controlled. It can be produced using organic acid, inorganic salts, azoles, or a combination of all three. It prevents rigid containers from bursting as a result of freezing expansion. Previously, methanol was the primary component of engine coolant that served as antifreeze, and it was also widely used in windshield fluids. However, as time passed, its use gradually decreased due to the need for frequent replacement and corrosion of the metals, particularly aluminum, used in the engine and cooling systems. The methanol-based antifreeze is replaced with an antifreeze containing ethylene glycol as the primary component, which is less volatile and requires fewer replacements.

The global market for automotive antifreeze is fueled in part by a rise in the demand for high-performance vehicles and an increase in the utilization of high-quality, technologically advanced additives. However, fluctuating raw material prices (such as crude oil) and rising demand for battery-powered electric vehicles restrain the global automotive antifreeze market's expansion. The availability of environmentally friendly and bio-based coolants and antifreeze is another factor contributing to the development of the market for automotive antifreeze soon.

Market Dynamics

Global automotive antifreeze market drivers

The increased demand for high-performance vehicles and use of high-quality advanced technology additive

In the past years, there has been a marked increase in the sales of high-performance automobiles. Despite the market conditions in 2019, the Mercedes-Benz Cars division still sold 2,385,400 vehicles. In 2018, it made sales of 2,382,800 units. This increase in sales was majorly owing to the substantial market success of their new compact-class models and continued strong demand for E-Class automobiles and SUVs. To effectively manage the excessive heat generated by the potent engine and the other components, high-performance automobiles have an inevitably high need for the automotive antifreeze or coolants used. It is estimated that the incrementing demand for high-performance automobiles will accelerate the automotive antifreeze market growth over the forecast period.

An engine coolant is typically necessary to effectively transfer heat from an internal combustion engine (IC) to a radiator. The radiator utilizes the flow of air to cool the fluid. The effects of high and low temperatures can be mitigated throughout the year using an adequate coolant that offers this protection. Steel, copper, aluminum, solder, cast iron, brass, plastics, and a wide variety of elastomers are some materials presently used to construct sophisticated cooling systems. Certain additives, such as corrosion inhibitors, must be included in engine coolants to prevent damage to the components made from such materials. 

These days, a coolant will typically consist of a base fluid and an additive package, with the majority of the additives in the package acting as corrosion inhibitors. The base fluid is primarily responsible for determining the heat transfer properties and protecting against freezing and boiling. In addition, the inclusion of coolant additives is essential for the wellness and longevity of diesel engines. Cavitation is an issue that frequently arises in diesel engines (or liner pitting). Suppose the coolant additive level is not monitored and maintained. In that case, it can lead to cavitation, the formation of bubbles in the engine, and corrosion, which eats away at the engine over time. It is anticipated that the increased utilization of coolant additives (which protect the engine parts against corrosion and cavitation and also help maintain engine health) will propel the automotive antifreeze market growth during the forecast period.

Global automotive antifreeze market restraints

The fluctuations in raw materials 

Ethylene glycol, propylene glycol, and glycerin are the base fluids that make up the primary components of automotive antifreeze, all of which are readily available on the market. These chemicals are produced during the refining of crude oil. Typically, the price of crude oil fluctuates, which has a direct effect on the cost of these base fluids. The median value per barrel of crude oil varies significantly. The average price per barrel of crude oil was USD 40.76 in 2016, USD 52.51 in 2017, USD 69.78 in 2018, and USD 64.05 in 2019. As its base materials, such as ethylene glycol, propylene glycol, and glycerin, are all by-products of crude oil, variations in crude oil prices directly affect the cost of automotive coolants. This variable has a direct impact on the global automotive antifreeze market share.

Global automotive antifreeze market opportunities

Environmentally friendly and bio-based coolants and antifreeze

Even though conventional automotive coolant/antifreeze, such as ethylene glycol or propylene, are essential to automobiles, they are harmful to plants, animals, and the environment and must be stored with care. Leaks of antifreeze should be cleaned up quickly. Although propylene glycol is less poisonous in its natural state, its ingestion can cause damage to the central nervous system and, in some cases, death. Furthermore, antifreeze spills on lawns can kill the grass if not removed immediately. Thus, manufacturers of antifreeze for automobiles were compelled to search for alternatives to ethylene glycol, such as bio-based formulations that do not harm the environment. To come up with a solution, researchers at the U.S.-based company ACTA Technology have developed a formula for antifreeze that they profess is better, more environmentally friendly, and more effective than existing products. ACTA's antifreeze has been patented, and the company is currently investigating ways to scale up production. It is anticipated that the development of environmentally friendly antifreeze solutions will stimulate the growth of the automotive antifreeze market and create lucrative opportunities over the forecast period.

Regional Analysis

The region-wise segmentation of the global automotive antifreeze market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and Europe Will Dominate the Regional Market

The Asia Pacific is most likely to hold the largest share during the forecast period and grow at a CAGR of 8.6%. It is expected that the rising demand for automobiles in the region will be driven in part by the growing populations of countries like India and China. Some of the world's leading vehicle manufacturers are in the Asia-Pacific region. Numerous countries, including China, Japan, India, and South Korea, rely on the automotive industry as a primary industry due to its vast sales in regions with high production levels. Between 2006 and 2017, the Asia-Pacific region saw significant growth in the segment of the market for passenger cars. Since 2015, sales of commercial vehicles have increased dramatically throughout the region. Demand for automotive antifreeze in the region is being propelled upward by an upward trend in the sales of automobiles in the region's countries.

Europe will hold a share of USD 1,956 million while growing at a CAGR of 8.85%. During the forecast period, Europe's significant market share resulted from the region's technological advances in antifreeze formulations for automobiles. Automobile manufacturing is one of Europe's most enduring industries, providing millions of jobs, billions of euros in investment, and a substantial portion of the continent's exports. Europe is one of the world's largest producers of automobiles, and the automotive industry is a primary driver of significant private investment in research and development to produce innovative goods and services for the automotive market. An established automotive industry in Europe increases the demand for antifreeze in the region.

Segmental Analysis

The global automotive antifreeze market is classified based on fluid type, technology, application, distribution channel, and region.

By fluid type analysis

Segmentation based on fluid type includes ethylene glycol, propylene glycol, and glycerin.

The ethylene glycol segment will hold the largest market share during the forecast period and grow at a CAGR of 8.8%. The most common antifreeze is ethylene glycol. Almost all engines utilize coolants with identical base fluids, such as a 50/50 mixture of ethylene glycol and water. Due to its overall temperature stability, high boiling point, low freezing point, and good thermal conductivity and specific heat, ethylene glycol is the most economical antifreeze available today.

The propylene glycol segment will hold the second-largest share. Antifreeze solutions on the market are typically a combination of distilled water and ethylene or propylene glycol, which serves as the base. The principal distinction between the two bases is their relative toxicity. Propylene glycol is significantly less toxic than ethylene glycol, which explains the rising popularity of antifreeze products containing propylene glycol.

By technology analysis

Segmentation based on technology includes inorganic additive technology (IAT), organic acid technology (OAT), and hybrid organic acid technology (HOAT).

The organic acid technology (OAT) segment is expected to hold the largest market share while advancing at a CAGR of 8.82% throughout the forecast period. Organic Acid Technology-based coolants do not contain nitrite. Antifreeze based on Organic Acid Technology (OAT) does not contain silicates, allowing for longer service life. OAT-based coolants do not protect brass and copper components utilized in earlier-generation cooling systems. Some diesel applications demand nitrate-free HD OAT coolant. Manufacturers like General Motors (GM), the Japanese, and the Europeans have created their OAT formulations.

The hybrid organic acid technology (HOAT) segment will hold the second-largest share. HOAT is a combination of IAT and OAT coolants and contains added silicates that boost the protection of aluminum components. In addition to preventing corrosion, the additives in the solution prevent rusting. HOAT coolant includes a small number of silicates to increase safety for aluminum surfaces and to aid in the repair of surface deterioration caused by cavitation in the water pump.

By application analysis

Segmentation based on application includes passenger, commercial, and construction vehicles.

The commercial vehicle segment is estimated to grow at a CAGR of 8.78% and hold the largest share during the forecast period. Light commercial vehicles, heavy-duty trucks, and buses are commercial vehicles. Nearly all heavy-duty antifreeze consists of approximately 95% ethylene glycol and 5% water and additives. Heavy-duty vehicles, such as trucks and buses, generate great heat; therefore, coolants are needed to manage the heat and provide the engine with optimal operating conditions. During the forecast period, the growing demand for commercial vehicles is anticipated to boost the global automotive antifreeze market share.

The passenger vehicle segment will hold the second-largest share. The demand for passenger cars remains robust and is anticipated to increase over time. As antifreeze is required for the proper operation of an automobile's engine, the steady demand for passenger vehicles is expected to boost the antifreeze market during the forecast period.

By distribution channel analysis

Segmentation based on distribution channels includes OEMs (original equipment manufacturers) and aftermarkets.

The aftermarket segment is estimated to grow at a CAGR of 8.5% and hold the largest share during the forecast period. In addition to OEM-preferred coolants, automotive parts stores also carry various aftermarket brands. Independent garage sales of coolants account for a large portion of total revenue. The global prevalence of car rental companies is driving maintenance and coolant replacement, thereby creating new growth opportunities for the antifreeze market.

The OEMs or original equipment manufacturers will hold the second-largest share. The antifreeze/coolant sold by original equipment manufacturers is guaranteed to be the correct one. Currently, automotive original equipment manufacturers (OEMs) recommend either a hybrid coolant or a full carboxylate ELC (Extended Life Coolant). Standard, conventional green coolants are now obsolete.

Recent Developments

• In 2022, Chevron Corporation announced the acquisition of Renewable Energy Group, Inc. 
• In 2022, Chevron Corporation announced collaboration on lower carbon opportunities.
• In 2022, Exxon Mobil Corporation, Shell, CNOOC, and Guangdong Provincial Development & Reform Commission collaborated to evaluate the potential for a world-scale carbon capture and storage project to reduce greenhouse gas emissions.