Home Automotive and Transportation Automotive Coolant Market Size, Competitive Landscape [2031]

Automotive Coolant Market

Automotive Coolant Market Size, Share & Trends Analysis Report By Product (Ethylene Glycol, Propylene Glycol, Glycerin, Others), By Vehicle Type (Passenger Car, Heavy Commercial Vehicles, Light Commercial Vehicles, Others), By Technology (Inorganic Additive Technology (IAT), Organic Additive Technology (OAT), Hybrid Organic Acid Technology (HOAT)), By End User (Original Equipment Manufacturer (OEM), Automotive Aftermarket) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT55625DR
Study Period 2019-2031 CAGR 4.9%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 7.7 Billion
Forecast Year 2031 Forecast Year Market Size USD 11.8 Billion
Largest Market Asia Pacific Fastest Growing Market Europe
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Market Overview

The global automotive coolant market size was valued at USD 7.7 billion in 2022 and is projected to reach USD 11.8 billion by 2031, registering a CAGR of 4.9% during the forecast period (2023-2031). Growing vehicle production in emerging and developed nations and constant R&D investments to produce cost-effective, environmentally friendly, and less hazardous products are the primary market drivers boosting automotive coolant market growth.

Automotive coolant (antifreeze) is a critical fluid needed in vehicles to keep the engine working at its optimal temperature. It performs various important functions in the cooling system. Traditional ethylene glycol-based coolants and more ecologically friendly propylene glycol-based coolants are available in various formulas for automotive coolants. Specialty coolants are also available for certain vehicle types or uses.

Significant factors influencing the growth of the automotive coolant market include fast growth in the automobile sector and the capacity to provide engine durability. However, the automotive coolant market's growth is hampered by tight government regulations, expensive manufacturing costs, and unpredictable prices. Furthermore, the rapid growth of the automotive and transportation industries will impact the automotive coolant market share.

Market Dynamics

Global Automotive Coolant Market Drivers

Rise in Global Vehicle Production

The global expansion of vehicle production and sales is a key driver of the automotive coolant market. As more automobiles are built and sold worldwide, the demand for coolants to manage engine temperatures and avoid freezing rises. According to the International Organization of Motor Vehicle Manufacturers (OICA), global motor vehicle manufacturing, including passenger cars, commercial vehicles, and trucks, has steadily increased. For example, in 2022, roughly 85.01 million automobiles will be manufactured worldwide. Vehicle sales in established automotive markets such as North America, Europe, and Asia continue to rise, with buyers replacing older vehicles with newer, more fuel-efficient models. Consumers tend to invest in vehicles during periods of economic development and low interest rates, increasing the vehicle fleet.

Furthermore, as the global vehicle fleet grows, the aftermarket coolant market benefits from regular coolant replacement requirements during vehicle maintenance and servicing. This driver emphasizes the symbiotic relationship between vehicle production and demand for automotive coolants, which results in the automotive coolant market trend.

Global Automotive Coolant Market Restraints

Market Saturation in Mature Regions

The automotive coolant market in mature regions such as North America and Western Europe may reach saturation due to strong market knowledge, established habits, and widespread use of effective engine coolants. Many automobiles in these countries already use coolant-based cooling systems, resulting in limited expansion potential and increased competition. Antifreeze and engine coolant use is prevalent in the United States, where temperatures can vary greatly, according to the United States Environmental Protection Agency (EPA). Vehicle owners and mechanics know the importance of cooling system maintenance. Consumers in mature markets can easily access coolant supplies and replacement services thanks to a wide network of vehicle service facilities, repair shops, and auto parts stores. 

In mature regions, the saturation of the automotive coolant industry may limit chances for significant expansion in sales volume. Gaining market share can be difficult for manufacturers and suppliers, and competition can be fierce. This constraint, however, can force producers to focus on product innovation, customer education, and environmentally friendly formulas to differentiate their products and grab a market share.

Global Automotive Coolant Market Opportunities

Hybrid and Electric Vehicles

Hybrid and electric vehicles (EVs) have different cooling requirements than regular internal combustion engine automobiles. These modern vehicles use electric drivetrains and battery systems, which necessitate the use of specific cooling solutions. This creates a big potential for coolant makers to create customized products that fulfill hybrid and electric vehicles' specific temperature regulation requirements.

According to the International Energy Agency (IEA), electric car markets are expanding exponentially, with sales expected to top 10 million by 2022. Electric car sales have more than tripled in three years, from roughly 4% in 2020 to 14% in 2022. Major automakers such as Tesla, Nissan, and Chevrolet have added a variety of electric vehicles to their product lineups. These EVs are outfitted with innovative cooling systems to keep the electric drivetrain and lithium-ion batteries cool. As the electric car industry grows, coolant producers can play a critical role in facilitating the move to cleaner, more sustainable transportation. This specialist market area provides a distinct opportunity for innovation and growth.

Regional Analysis

The global automotive coolant market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global Automotive Coolant market shareholder and is estimated to grow at a CAGR of 5.3% over the forecast period. Asia-Pacific led the worldwide automotive coolant market due to larger vehicle production volumes in major nations such as India, China, and Japan and cheaper manufacturing and labor costs throughout the region. India is expected to increase significantly during the projection period due to rising vehicle demand. Furthermore, the availability of low-cost labor and raw materials in the region, combined with an expanding number of local manufacturers, is expected to boost the Asia-Pacific market during the projection period. India is currently the world's sixth-largest passenger car maker and second-largest commercial vehicle developer.

Additionally, rapid industrialization has resulted in infrastructure upgrades, projected to boost the area market's progress. The growing number of small and medium-sized businesses has increased demand for light passenger vehicles and heavy-duty trucks. Shell Lubricants stated in August 2022 that it will sell electric vehicle battery coolants in India. Shell Lubricant India has boosted capacity at its lubricant oil-blending factory in Taloja, Maharashtra, and it now anticipates further expansions for a few more India- and South Asia-specific goods. The increased local production of coolants may greatly assist coolant makers in meeting the country's rising demand. This is expected to propel the region's automotive coolant industry in the coming years. 

Europe is anticipated to exhibit a CAGR of 5.0% over the forecast period due to the expanding middle-class population, rising disposable income, growing aspiration of owning private vehicles, developing surface transportation infrastructure, increasing mobility due to the development of satellite townships near megacities, and increasing demand for goods carriers from micro, small, and medium-sized enterprises are fueling the market in this region. Furthermore, the German automotive coolant market held the biggest market share, while the UK was Europe's fastest-growing market.

North America holds a significant market share. The market in North America accounts for 30% of the total. Due to off-road capabilities and fluctuations in weather conditions, the region sees increased manufacturing and demand for large-engine capacity cars. Furthermore, significant regional firms invest heavily in infrastructure, new manufacturing facilities, and research and development. The automotive coolant aftermarket in North America is expanding rapidly, with major manufacturers such as BASF making considerable capital investments in regional production plants. For example, BASF's Cincinnati factory manufactures coolant for both on-road and off-road cars. BASF has also teamed with Old World Industries (OWI), a leading provider of coolants in North America, to increase distribution channels and boost its market presence.

Report Scope

Report Metric Details
By Product
  1. Ethylene Glycol
  2. Propylene Glycol
  3. Glycerin
  4. Others
By Vehicle Type
  1. Passenger Car
  2. Heavy Commercial Vehicles
  3. Light Commercial Vehicles
  4. Others
By Technology
  1. Inorganic Additive Technology (IAT)
  2. Organic Additive Technology (OAT)
  3. Hybrid Organic Acid Technology (HOAT)
By End User
  1. Original Equipment Manufacturer (OEM)
  2. Automotive Aftermarket
Company Profiles Exxon Mobil BASF TotalEnergies Chevron Shell OLD WORLD INDUSTRIES Prestone Products Arteco Recochem Corporation MOTUL BP PLC Valvoline Sinopec Castrol Limited
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global automotive coolant market is segmented based on product, vehicle type, technology, end-user, and region.

The market is further segmented by product into Ethylene Glycol, Propylene Glycol, and Glycerin.

Ethylene Glycol accounts for the largest share of the market. Coolants based on ethylene glycol are among the most commonly utilized in the automotive sector. They have great heat transfer capabilities, good freeze resistance, and high-temperature stability. This variety is frequently colored green to aid identification. The ethylene glycol segment dominated the market and generated the majority of market revenue. Because it has a lower freezing point than water, ethylene glycol is commonly used in automotive radiators for cooling. It absorbs engine heat, reducing overheating, and is increasingly used in automobiles.

Coolants based on propylene glycol are an alternative to ethylene glycol. They are noted for being less hazardous and more environmentally friendly, making them ideal for applications requiring non-toxic coolants, such as in the food processing industry. For identification, they are generally colored pink or orange.

Based on Vehicle type, the market is sub-segmented into Passenger cars, Heavy Commercial Vehicles, and Light Commercial Vehicles.

Passenger Car generates the most income in the market. Sedans, hatchbacks, SUVs, and other personal vehicles meant for passenger transportation are examples of passenger automobiles. These vehicles often have standard cooling systems that regulate engine temperature with automotive coolants. Due to increased demand for utility vehicles in highly populated nations such as China, India, and Brazil, the passenger car category earned the greatest income over the projection period.

Heavy commercial vehicles include huge trucks, buses, and other industrial vehicles meant for larger-scale transportation of cargo or passengers. Because of the great demands imposed on their engines, these vehicles frequently have more robust cooling systems. In these applications, heavy-duty coolants are typically utilized.

By technology, the segment can be further bifurcated into Inorganic Additive Technology (IAT), Organic Additive Technology (OAT), and Hybrid Organic Acid Technology (HOAT).

Organic Additive Technology (OAT) is a significant contributor to the market. Organic corrosion inhibitors, such as carboxylates and other organic acids, are used in organic additive technology coolants. OAT coolants are well-known for their long service life and low environmental effects. They are frequently employed in modern cars and long-lasting compositions. Leading manufacturers are developing automotive coolants using innovative technologies that aid in creating silica- and phosphate-free products, driving the market sector.

Inorganic corrosion inhibitors such as silicates and phosphates are used in inorganic additive technology coolants. These coolants provide efficient rust and corrosion prevention and are commonly used in older vehicles and conventional formulations.

Based on end-user, the market is sub-segmented into Original Equipment Manufacturer (OEM) and Automotive Aftermarket.

Automotive Aftermarket holds the major market share. The automotive aftermarket includes selling coolant products to consumers, vehicle owners, repair shops, and service centers for coolant replacement and maintenance in existing vehicles. Aftermarket coolants are often available in various formulas and types to accommodate vehicle needs. During the forecast period, the automotive aftermarket category earned the most revenue. This is due to the large number of commercial vehicles and passenger cars currently in use worldwide, most of which require after-sales maintenance service.

The OEM segment includes vehicle and cooling system manufacturers. Automotive coolant manufacturers provide coolants to car manufacturers for use in vehicle assembly. OEM coolant products are frequently designed throughout the manufacturing process to fulfill the specific requirements of the cars and cooling systems.

Market Size By Product

Market Size By Product
  • Ethylene Glycol
  • Propylene Glycol
  • Glycerin
  • Others
  • Recent Developments

    • October 2023- BASF collaborates with Oriental Yuhong in China to provide solar rooftop solutions.
    • October 2023- TotalEnergies has agreed to buy the full share capital of the German company Quadra Energy from the Aloys Wobben Foundation (AWS).

    Key Players

    Automotive Coolant Market Share of Key Players

    Automotive Coolant Market Share of Key Players
    Exxon Mobil BASF TotalEnergies Chevron Shell OLD WORLD INDUSTRIES Prestone Products Arteco Recochem Corporation MOTUL BP PLC Valvoline Sinopec Castrol Limited Others

    Frequently Asked Questions (FAQs)

    What is the estimated size of the Automotive Coolant Market?
    The global automotive coolant market size was valued at USD 7.7 billion in 2022 and is projected to reach USD 11.8 billion by 2031, registering a CAGR of 4.9% during the forecast period (2023-2031).
    Asia-Pacific region has the highest growth rate in the Automotive Coolant Market.
    Hybrid and Electric Vehicles are one of the key opportunities in Automotive Coolant Market.
    The global automotive coolant market is segmented based on product, vehicle type, technology, end-user, and region.
    Rise in Global Vehicle Production are some key drivers supporting the growth of the Automotive Coolant Market.

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