The global heat transfer fluids (HTF) market was valued at USD 11.06 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2030. This steady growth is largely driven by the increasing adoption of concentrated solar power (CSP) systems across the globe. CSP, which is a renewable energy technology that relies on solar power to generate electricity, heavily depends on heat transfer fluids to store and transfer the heat collected from the sun to power generation systems. This growing trend towards renewable energy sources is one of the major contributing factors to the rising demand for HTFs.

Heat transfer fluids are primarily industrial products that are derived from petroleum and serve to prevent overheating and store thermal energy. The production of these fluids typically involves the use of raw materials such as crude oil, silica, and base oils. These materials are processed to create fluids that have specific qualities essential for heat transfer processes. he key characteristics that define an effective HTF include:

1. Low Viscosity: This property is crucial for ensuring that the fluid can flow easily and efficiently within a system, facilitating the transfer of heat with minimal energy loss.

2. Non-Corrosive Nature: To prevent damage to pipes, systems, and equipment, HTFs need to be chemically stable and non-corrosive to metals and other materials used in the system.

3. High Thermal Conductivity and Diffusivity: These features ensure that heat is effectively transferred from one part of the system to another, maintaining efficiency in processes such as heating or cooling.

4. High Phase Transition Temperatures: HTFs are designed to withstand extreme temperatures, allowing them to maintain their thermal properties even under high heat conditions, making them suitable for both high-temperature processes and applications in cold climates.

Gather more insights about the market drivers, restrains and growth of the Heat Transfer Fluids Market

Regional Insights

The Asia Pacific heat transfer fluid market is currently the dominant regional market, driven by several macroeconomic factors. With high per capita income, strong manufacturing output, and rapid industrialization, the region continues to experience substantial growth. In 2023, Asia Pacific accounted for 47.9% of the global heat transfer fluid market share, making it the largest market for these products.

A major factor contributing to this market dominance is the rapid growth in the use of heating, ventilation, and air conditioning (HVAC) systems across the region. As countries like India and China undergo significant urbanization and face changing climatic conditions, the demand for energy-efficient HVAC systems continues to rise. The expanding urban populations, coupled with demographic shifts in these two economic powerhouses, are major drivers for the heat transfer fluid market in Asia Pacific. These systems require reliable and efficient heat management solutions, which heat transfer fluids provide, ensuring their integral role in the region's industrial, commercial, and residential sectors.

In addition to HVAC, other industries like automotive, chemical production, and manufacturing are also driving demand for heat transfer fluids. The increasing industrialization and infrastructure development in countries across the region ensure that heat transfer fluids remain a crucial component in various applications, from oil and gas to renewable energy.

Growth in Mexico's Chemical Industry

Mexico is another emerging market for heat transfer fluids, particularly driven by its chemical industry. Over the past few years, Mexico has seen significant investments aimed at expanding its manufacturing capabilities and diversifying its product offerings. The country has attracted high-level investments, which are supporting the continued sourcing of raw materials to strengthen its chemical sector. This has led to a surge in demand for heat transfer fluids used in the production processes of chemicals.

Furthermore, the growing export of chemicals to NAFTA (North American Free Trade Agreement) countries is expected to further propel demand for heat transfer fluids. As Mexican manufacturing plants ramp up production, the need for efficient heat management solutions, including heat transfer fluids, becomes increasingly critical to ensure optimal operational performance.

Mexico's strong presence in the plastic manufacturing industry also contributes to the growing demand for heat transfer fluids, as plastics production processes require reliable temperature regulation and energy-efficient thermal management.

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Key Companies & Market Share Insights

Leading companies in the heat transfer fluid market are employing a variety of organic and inorganic growth strategies to maintain and expand their market share. These strategies include expanding production capacities, entering into mergers and acquisitions (M&A), and forming joint ventures to diversify product portfolios and strengthen market presence globally.

1. Valvoline: In September 2023, Valvoline, a prominent player in the heat transfer fluid market, made a strategic move by investing in a European manufacturer of heat transfer fluids. This acquisition allows the company to expand its product range and enhance its ability to serve global consumers, strengthening its competitive position in the international market.

2. ORLEN Południe: In May 2023, ORLEN Południe, a leader in the renewable energy and chemical sectors, announced the successful completion of the first operational year of its BioPG plant, which focuses on converting glycerol into renewable propylene glycol. This development is a significant step towards producing more sustainable heat transfer fluids. The company collaborated with BASF, which provided its BioPG technology, while Air Liquide Engineering & Construction contributed by offering licensing, proprietary equipment, and basic engineering services to support the project.

3. Chevron: In February 2022, Chevron announced the acquisition of Renewable Energy Group, a deal that will enhance Chevron’s ability to deliver lower-carbon energy solutions. This acquisition is part of Chevron’s broader strategy to diversify its energy portfolio and increase its footprint in the renewable energy sector, which is increasingly relevant to the production and use of heat transfer fluids that are part of energy-efficient processes.

Key Heat Transfer Fluids Companies:

• Dynalene, Inc.

• Indian Oil Corporation Ltd. (IOCL)

• KOST USA, Inc.

• Hindustan Petroleum Corporation Ltd. (HPCL)Delta Western, Inc. (DWI)

• British Petroleum (BP)

• Huntsman Corporation

• Royal Dutch Shell Plc

• Eastman Chemical Company

• Phillips 66

• Chevron Co.

• BASF SE

• Exxon Mobil

• DowDuPont Chemicals

• Dalian Richfortune Chemicals Ltd.

• GJ Chemical

• Radco Industries Inc.

• LANXESS AG

• Schultz Chemicals

• Sasol Limited

• Evermore Trading Corporation

• Tashkent Industrial Oil Corporation

• Shaeffer Manufacturing Co.

• Paras Lubricants Limited.

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