The Total Addressable Market (TAM) for Heat Transfer Fluids was valued at USD 10.11 billion in 2022. It is projected to reach USD 13.42 billion by 2031, growing at a CAGR of 3.20% during the forecast period (2023-2031).
Heat transfer fluid (HTF) is a gas or liquid that avoids overheating any device or is used for storing thermal energy. In order to perform this operation, fluid flows inside a system or a device so as to transfer the heat outside that particular device or system, which would eventually prevent them from overheating. Increasing demand for heat transfer fluids in industries such as chemical processing, automotive, and oil & gas for heat transfer applications are positively driving the heat transfer fluids market in the forecast period. Moreover, the heat transfer fluid market has perceived significant growth in the past few years owing to an increase in the manufacturing sector and the rising need for primary energy in developed and emerging economies. Increasing demand for a particular application-based HTF for optimum energy competence is projected to drive the heat transfer fluid market. Furthermore, the cost-saving operation related to its counterparts, such as electric and steam, and high-temperature control properties helps in maintaining the product penetration.
Industries involved in production and process face intense pressure to boost productivity in the modern world. This shows that the system's heat transfer fluids are operating at higher temperatures and under pressure for longer periods of time. Particularly in 24*7 running industries, there is a high demand for these products. It is crucial in the production plants of the chemical and petrochemical process industries, for example. These fluids assist in regulating the extremely high operating temperatures found in these industries. In order to increase energy efficiency, dependability, temperature control, and operational safety in industries, a heat transfer fluid has become a crucial component.
Reboilers are used as heat exchangers in the chemical industry to warm the bottoms of distillation columns. The distillation column's bottom liquids are heated in reboilers to create vapors that power the separation process. The vaporization procedure is initiated using HTFs or steam. Due to their qualities like chemical inertness and high thermal stability, the products are also used in components like tubes, pipes, bushes, and gaskets that transport chemicals, fluids, and acids. India's industrial and agricultural development is supported by the chemical industry. The chemical industry in India plays a crucial role in providing for basic needs as well as raising the quality of life. Despite having a severe lack of conventional hydrocarbons, India has a robust refining sector that provides a number of essential feedstocks for the chemical industry. According to the American Chemistry Council, the output of chemicals will increase by 4.3% in 2022 in the USA.
When a system operates at extremely high temperatures, thermal cracking of fluids happens, which results in the breakdown of oil molecules and the production of coke. This formation may cause a fluid's viscosity and flashpoint to decrease, which will raise the vapor pressure. The temperature at which a fluid's produced vapor starts to ignite is known as the flashpoint. The coke that is already in the system will bake there, creating a hotspot that could burn the metal surface. Therefore, it is imperative that manufacturers perform regular health checks on the system and working fluid.
In concentrated solar power, a heat transfer fluid has a crucial function. It transports the solar heat that has been captured to the solar field, where it is transferred to a power block and transformed into electricity. Since water can be unstable and very challenging to control at high pressure and temperature, it is the most preferred fluid in CSP. Additionally, it starts to vaporize at high temperatures, which results in energy losses. These products are used to overcome pressure and temperature problems because they operate most effectively and do not expand or contract with temperature changes. CSP plants have the ability to increase power storage capacity by an additional six hours when compared to photovoltaic systems, which results in an operational cost of USD 35.8/MWh.
The global heat transfer fluids market is segmented by type and end-use.
Based on type, the global market is bifurcated into mineral oil, silicon & aromatics, and glycols.
The mineral oil segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Compared to other oils that are readily available on the market, mineral oils are less expensive. Furthermore, people have been using mineral oils for a long time and find it difficult to switch because they are accustomed to both their benefits and drawbacks. Mineral oils also have the advantage of fitting into any type of equipment, which has numerous uses in food and beverage, chemical, pharmaceutical, and other industries.
The silicon and aromatics segment is expected to witness a higher CAGR owing to increasing demand for synthetic thermal oils by the oil and gas (O&G) and chemicals segments. Furthermore, it offers properties such as inert, non-corrosive, non-toxic, and low volatility. They are widely used in spin and weave, plastics, wood processes, and chemical industries.
Based on the end user, the global market is bifurcated into chemical processing, oil & gas, renewable energy, pharmaceuticals, and food & beverage.
The oil & gas segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Oil and gas processing dynamics demand extremely specialized HTFs that are formulated to suit preferred temperatures and compatibility. Processes like production, transportation, refining, and recycling make use of these products. In order to regenerate glycols and heat facilities, offshore platforms use heat transfer liquid in the aqueous phase, which eventually draws water out of the natural gas produced.
The chemical processing segment is expected to grow at a significant rate owing to the high demand for all types of thermic fluids. The segment is also expected to contribute to the heat transfer fluid market as energy recovery, and heat recovery plays an increasing role in chemical industry operations. Furthermore, increasing demand for thermic fluids in concentrated solar power projects may raise the demand for energy from renewable energy sources.
The global heat transfer fluids market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia Pacific region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to the increase in production capacities, growing population, and enhanced standard of living. Moreover, an increase in solar power project installations and growth in the chemicals and processing industry is driving market growth in the forecast period. Adding to this, another factor influencing the growth of the heat transfer fluid market is the rising demand for energy from renewable energy sources in emerging economies such as China, India, and Japan. A 50-megawatt concentrator solar thermal power (CSP) plant is being built in Qinghai province of China. It will be the nation's first utility-scale CSP facility. The project will also include training and capacity building in CSP management, operation, and construction. Annual output of 199 gigawatt-hours of electricity is anticipated from the power plant.
Europe accounts for the second largest position in the global heat transfer fluids market. This is attributed to the growing population combined with accumulative energy demand has driven energy and power sector growth, which will positively influence market growth in the coming year. Moreover, Germany and Spain hold the major market share in the region, owing to the growth in industrial expansion. In the upcoming years, Europe is expected to host more sizable solar power facilities. Greek PPC Renewables issued a request for proposals for the construction of the country's largest solar power plant, with an installed capacity of 550 MW. El Sun Energy intends to construct a 950 MW solar power plant in Croatia, and Fintel Energia and M.K. Group are developing a 660 MW agrisolar project in Serbia that will integrate crop production with electricity generation. A new 1 G.W. solar power project is underway in France, while construction is underway in Turkey's Konya province, south of Ankara, on a power plant with 3.5 million solar panels with a capacity of 1.35 GW.
North America is a developing region for the heat transfer fluids market. The major trend witnessed in the market is an increase in energy released during processes and rising demand to develop an excess of warmness in key industries such as concentrated solar power plants, chemicals, and HVAC. Moreover, the chemical and processing sectors are contributing to the growth of the heat transfer fluids market. According to the American Chemistry Council (ACC), the output of chemicals will increase by 4.3% in 2022, with bulk petrochemicals and organics increasing by about 4.6%, plastic resins increasing by about 4.4%, and inorganic chemicals increasing by about 4.4% in the USA.
The LAMEA region is expected to grow at a moderate rate throughout the forecast period. Growing natural gas production, mainly in Gulf Cooperation Council (GCC), helps to drive the market growth in the coming year. Moreover, the evolution in natural gas production will positively influence the demand for synthetic lubricants along with HTFs. Moreover, the enhanced performance delivered by thermic fluids, along with the rising number of applications in the industrial sector, are some of the key factors that are driving the heat transfer fluids market, particularly in this region.
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