The global heat transfer fluids market size is projected to reach USD 15.3 billion by 2027, according to a new report by Grand View Research, Inc., registering a 4.9% CAGR during the forecast period. Growing demand from the manufacturing and energy sectors is expected to drive global demand.
Thermal oils are typically formulated from petrochemicals and mineral oils, which eventually harm the environment in terms of recyclability, biodegradability, and aqueous toxicity. Due to multiple strict regulations laid down by governments across the globe, the growth of heat transfer fluids has taken a hit. Major innovators in the field are trying to bring imminent changes in the production process, such as the usage of bio-based products, increased extraction efficiency, and enhanced solvent recovery.
Food grade heat transfer fluids are widely used for storage and refrigeration applications. With rising precision in temperature controlling in the processing of food and beverages, thermal fluid systems are gaining acceptance in upcoming food processing plants and facilities. These products are highly preferred due to lower maintenance costs and low-pressure requirements in the processing facility.
The Asia Pacific is the fastest growing regional market backed by rising demand from China and Japan. Rapid industrialization and the development of new machinery have increased the importance of heat transfer fluids. Investments in renewable energy initiatives such as CSP are expected to have a positive impact on the industry. China is aiming to take its installed CSP capacity to 3 GW by 2020.
North America is the dominant market with key macroeconomic indicators, such as high per capita income and manufacturing output, supporting market growth. The implementation of stringent regulations and ongoing product innovation has boosted demand for heat transfer fluids. The region accounted for a volume-based share of 22.8% in 2019. The availability of base stock, which is one of the important raw materials, is expected to boost production over the forecast period.
The chemical industry in Mexico has observed multiple high-level investments as well as constant sourcing of diverse raw materials to strengthen its core. Rapid industrialization, coupled with the growing export of chemicals to NAFTA countries, is expected to drive demand for heat transfer fluids. The country also has a strong presence in the plastic manufacturing industry.
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