Coolant Concentrate Market

Coolant Concentrate Market Outlook (2023-2033)

The global coolant concentrate market is set to estimate a valuation of US$ 860.9 million in 2023 and it is anticipated to grow at a CAGR of 4.7% to reach US$ 1,366.8 million by the end of 2033.

Coolant maintains the engine's ideal operating temperature and prevents overheating and thus is a crucial fluid for any engine in a car or any industrial machinery. This fluid prevents the engine and cooling system from freezing in cold weather since it is a mixture of antifreeze and water. The system is additionally shielded from corrosion, foaming, deposit build-up, scaling, and other performance-harming issues due to cutting-edge coolant technology.

Report Attributes	Details
Market Size (2023)	US$ 860.9 Million
Forecasted Market Value (2033F)	US$ 1,366.8 Million
Global Market Growth Rate (2023-2033)	4.7%
North America Market Share (2023)	~19.3%
East Asia Market Growth Rate (2023-2033)	~5.1%
Key Companies Profiled	Advance Petrochemicals Limited BASF SE Brad-Chem Ltd Chevron U.S.A. Inc. Dow Exxon Mobil Corporation LUKOIL Mitasu Oil Corporation Nexton Lubricants PETRONAS Precise High Speed Spindle Service Centre Pvt. Ltd. Prestone Shell TDX Ltd Technical Lubricants International (TecLub) Valvoline

Market Buoyancy Analysis

Coolant is available as concentrates as well as ready-to-use mixtures. Coolant in concentrated form has a poor heat transfer property and therefore it should never be used directly in a vehicle. Instead, it should always be diluted with water to improve heat transfer properties. Coolant also acts as a lubricant and protects the part it comes in contact with. When compared to glycol-based coolants pure water has better heat-carrying abilities but it comes with challenges such as the formation of rust on iron parts of the engine. Coolant protects the engine against corrosion and rust too.

• Short Term (2023-2026): The growing automotive sector to proliferate the coolant concentrate market growth.
• Medium Term (2026-2029): With the amplifying adoption of electric vehicles across the Asia Pacific and Europe, it is anticipated that due to coolant concentrate application in the automotive coolant concentrate market witness immense growth.
• Long Term (2029-2033): The groundbreaking strategies adopted by market players to augment the coolant concentrate market growth.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.7% CAGR between 2023 and 2033.

Market share analysis of coolant concentrate based on application and region is provided in a nutshell in the above image. Under the application segment, the automotive sub-segment dominates with a 72.8% market share in 2023.

“Growing Automotive Industry to Augment Growth”

Coolant is mainly used to transport heat and guard against freezing or boiling-related engine damage. Another purpose of a coolant is to prevent corrosion, which is accomplished by including a well-balanced inhibitor package. Avoiding corrosion problems is essential in modern engines due to the increased use of aluminum alloys and castings with thinner sections.

Growing population, urbanization, and rising disposable income have led to an increase in the sales of automobiles. According to OICA, around 82.7 million vehicles were sold globally in 2021, out of which 56.4 million were passenger cars and 26.3 million were commercial vehicles.

Electric vehicles are gaining traction due to rising fuel prices coupled with government incentives. Coolant is required in electric vehicles too, to prevent the battery from getting overheated.

Hence, the increasing number of automobiles in emerging countries such as China, India, and European countries is creating significant opportunities for the growth of the coolant concentrate market.

“Bio-based Coolant to Support Market Demand”

The bio-based coolants have greater viscosity and pressure performance and naturally offer better lubrication. Additionally, they offer a higher flash point, minimal volatility, and improved thin-film strength. Because of their superior lubricity, these lubricants reduce friction. The metal-cutting process produces less heat and cutting forces as a result of the reduced friction, which also enables the tools to be fed more quickly. Reduced friction also prolongs the life of cutting and grinding instruments by reducing wear.

In addition to the aforementioned elements, bio-based lubricants have flash points that are significantly higher than those of petroleum, which helps to enable faster feed rates, reduce smoke while cutting metal, and ensure a less smoke-filled environment.

In contrast to petroleum-based fluids, which have no polarity and no affinity for metal, these oils also have a polar attraction to the metal. The polarity of bio-based lubricants, however, provides more effective metal affinity and thin layer protection to the cutting tool interface.

“Fluctuation of Raw Material Prices May Hamper Market Growth”

The base oil such as ethylene glycol, glycerin, and propylene glycol that are used as an ingredient in the coolant are derived after the refining process of crude oil. Fluctuations in the price of crude oil will have a direct effect on the prices of these fluids.

According to EIA, the average price of crude oil in 2019 was US$ 64.0 per barrel and in December 2021 it was US$ 71.0 per barrel which further increased to around US$ 110.0 per barrel in May 2022.

This factor is anticipated to hamper the market growth of coolant concentrate negatively over the forecast period.

Country-wise Insights

Why the Coolant Concentrate Market in India is expected to be Highly Promising?

Indian coolant concentrate market is anticipated to develop significantly during the forecast period as a result of the increased demand for automobiles. Additionally, the presence of cheap labor and raw materials in the area, together with the rise in local manufacturers, are expected to drive the market.

India is among the largest commercial vehicle developer nations and holds the second position. It is also the sixth-largest passenger vehicle producer in the world. Demand for light passenger cars and heavy-duty trucks has increased due to the growth of small and medium-sized businesses. This, in turn, augments the coolant concentrate markets’ growth.

What is the Market Scenario of Coolant Concentrate in China?

Today, China is the world’s second-largest economy. Along with such a strong economy, China’s population is also the highest in the world. It is accounted for around 1.4 billion which is approximately 19.0% of the overall world's population. This high population & economy creates a strong base for automotive, chemical, agriculture, oil & gas, and other industries which are expected to create more opportunities for coolant concentrate across the country.

Since ethylene glycol is a byproduct of the production of crude oil, China's ability to refine more crude oil will increase the amount of ethylene glycol produced as a byproduct, which, in turn, increases domestic coolant production across China.

Category-wise Insights

Why is HOAT Technology Dominating the Market?

IAT coolants give better corrosion resistance while OAT coolants have a long life. Hybrid Organic Acid Technology is a combination of IAT and OAT technology and thus offers the best of both. HOAT coolants contain inorganic as well as organic compounds to protect the engine from corrosion.

Owing to its superiority over other coolant technology, the demand for HOAT is expected to grow during the forecast period.

Why is there a Growing Demand for Propylene Glycol as a Base Fluid?

Propylene glycol's use as a basic fluid for coolants is supported by this fluid's affordability and versatility in all climatic circumstances. These factors lead to the preference for propylene glycol over other fluids.

Additionally, propylene glycol is utilized as a coolant in a variety of industrial and automotive engine cooling solutions, as well as in food and pharmaceutical applications.

Competitive Landscape

Prominent coolant concentrate manufacturers are Advance Petrochemicals Limited, BASF SE, Brad-Chem Ltd, Chevron U.S.A. Inc., Dow, Exxon Mobil Corporation, Eurol, LUKOIL, Mitasu Oil Corporation, Nexton Lubricants, PETRONAS, Precise High-Speed Spindle Service Centre Pvt. Ltd., Prestone, Shell, TDX Ltd, Technical Lubricants International (TecLub), and Valvoline.

Vital players are investing heavily in expanding their overall production capacity and are partnering to ensure a regular supply of their products. Besides, collaborations and partnerships have been the go-to strategy for manufacturers in the coolant concentrate market, with manufacturers focusing on establishing long-term relationships with customers. Players are focusing on improving their online presence and increasing their production capacity in order to reach a broader market.

• Valvoline in August 2021, launched two new coolants Valvoline Antifreeze Coolant HT-12 Pink and HT-12 Green that were specifically designed and produced for advanced engines.
• In July 2021, Eurol introduced a new coolant GLX-AV that contains OAT technology and phosphate compounds that offer optimal heat transfer with added protection against corrosion.
• In April 2021, Valvoline acquired a chain of 16 service centers in Texas to expand its quick lube service networks.

Fact.MR has provided detailed information about the price points of key manufacturers of coolant concentrate positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Coolant Concentrate Industry Research

• By Technology :

  • Organic Additive Technology (OAT)
  • Hybrid Organic Acid Technology (HOAT)
  • Inorganic Acid Technology (IAT)

• By Base Fluid :

  • Ethylene Glycol
  • Propylene Glycol
  • Glycerin

• By Application :

  • Automotive
  • Industrial

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA