Thermic Fluids Market Key Insights:

The Thermic Fluids Market Size was valued at USD 11.6 Billion in 2023 and is expected to reach USD 16.3 Billion by 2032, growing at a CAGR of 3.9% over the forecast period of 2024-2032.

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The key drivers that are affecting the growth of the global thermic fluids market include the growing utilization of thermic fluids for industrial purposes and heavy investments by governments to improve energy efficiency. Across the globe, governments are promoting infrastructure development and strengthening sectors that require thermal fluid for a plethora of processes ranging from heat transfer for chemical synthesis to electricity generation, as well as food output. The most recent statistics from the International Energy Agency (IEA) published in 2023 show that the adoption of energy efficiency measures has accelerated, while the growing trend of low-carbon transition has been accompanied by rising industrial energy consumption. The market is further driven by the heavy investment in renewable energy sources by the government since renewable energy sources require substantial quantities of thermal fluids to be transferred efficiently.

With the development of infrastructure in developing economies and government policies like tax rebates, investment subsidies, and funding programs for green technologies, the demand for thermic fluid is on the rise. Market demand has also been spurred by the growing use of high-performance thermal fluids for heat transfer in renewable energy systems, e.g., concentrated solar power (CSP) plants and geothermal energy facilities. The global market was valued at over USD 5 billion in 2023 and it is projected to grow significantly due to an industrial supportive policy environment and the burgeoning green energy technologies. The emphasis on energy-efficient solutions from governments, especially in Europe, North America, and Asia-Pacific, is projected to enhance the utilization of thermic fluid in various end-use industries.

Thermic Fluids Market Dynamics

Drivers

• Thermic fluids are widely used for heat transfer in the oil and gas sector, particularly in refinery processes and chemical plants. As global energy demands rise, the market for thermic fluids continues to expand in this industry.

• The growing trend of using thermic fluids in CSP applications, due to their ability to store and transfer heat efficiently, is driving market growth.

The thermic fluids market is primarily driven by the rising application of thermic fluids in the Concentrated Solar Power (CSP) market. CSP technology makes use of efficient heat transfer fluids that can capture, store, and transfer thermal energy, ultimately converting it into electricity through steam turbines. Thermic fluids are key components of these systems, as thermic fluids retain heat, that can be used in the cold minor hours of the day to provide efficiency to the solar power plants. An example of a medium in CSP plants is, for instance, thermic fluids in solar collectors using synthetic oils or molten salts which transfer their heat to a central system. As per the Future Market Insights report, Thermic Fluids are highly stable at elevated temperatures, making them the ideal choice for use in CSP applications, creating demand for thermic fluid in CSP applications in the market thereby driving the future market. Concentrated solar power (CSP) plants have been established in areas such as the Middle East and North Africa (MENA) and certain regions of Europe where the generation of solar energy is prioritized.

The Noor CSP plant in Morocco is a prime example of this trend; it stores solar energy using thermic fluids, so it can continue producing during the night once the sun sets. Not only does this technology optimize energy efficiency, but it also facilitates the switch over to renewable energy sources, thus decreasing dependency on fossil fuels​. This trend towards renewable energy sources such as CSP, significantly drives the thermic fluids market.

Restraints:

• The cost volatility of key raw materials such as mineral oils and synthetic fluids impacts the overall price stability of thermic fluids, creating a challenge for manufacturers and consumers alike​.

• Increased awareness of environmental issues and stricter regulations regarding chemical substances in industrial applications could limit the use of certain thermic fluids, particularly those derived from petrochemical sources.

Environmental concerns and regulations are one of the major restraints in the thermic fluid market. As climate change and environmental degradation receive greater attention, the use of petrochemical-based fluids, which can cause pollution when not managed properly, is coming under greater scrutiny. Regional and global response has resulted in stricter environmental regulations in different parts of the world especially in Europe and North America. These are regulations that aim to minimize the ingestion of hazardous chemicals into the ecosystem from industrial settings. This, in turn, puts an onus on the thermic fluid manufacturers to have more environmentally friendly alternatives, which are generally costlier to produce. Such regulations may cap market penetration of conventional thermic fluids, driving industries to sustainably address the issue. For instance, even though some industries might ship better with the fluids they prefer, hesitancy might hurt long-term growth for select applications due to concerns associated with long-run exposure pathways of chemicals for humans and ecosystems.

Thermic Fluids Market Segmentation Analysis

By Product

The thermic fluids market was dominated by the aromatic segment, which accounted for 34% of the total revenue share in 2023. Therefore, aromatic-based fluids are preferred for high-temperature applications, like diphenyl oxide and biphenyl, they have excellent heat transfer performance and high-temperature stability. The prominence of this segment is due to its high application in chemical, oil & gas, and manufacturing industries that require effective heat transfer. The demand for aromatic-based thermic fluids is mainly arising from obliging thermic fluids with higher temperature resistance, and better performance, and industry needs growing industries also require changed capabilities to enhance their market.

The glycol-based segment is anticipated to register a remarkable CAGR in the projected period. Glycol-based thermic fluids, such as ethylene glycol and propylene glycol, offer a broad operating temperature range, lower freezing points, and greater ease of maintenance compared to aromatic-based fluids. With these features, they offer suitability for low-temperature applications in HVAC, automotive, and food processing industries. The demand for glycol-based thermic fluids is constantly propelling, further due to government initiatives to increase energy efficiency in these industries with the largest share being from the heating and cooling industry. Due to energy efficiency becoming a focus of district heating, refrigeration, and other renewable energy applications, the glycol-based segment is expected to see high growth

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By Application Type

The oil & gas sector held the largest share of the overall thermic fluids market with a 23% share in 2023. Thermic fluids are critical in the oil & gas industry for applications such as enhanced oil recovery, refining, and transporting heat-sensitive materials. Thermic fluids are extensively utilized in this sector owing to the rising demand for efficient heat transfer in oil drilling operations, where oil is drilled in remote and offshore locations, and managing energy is crucial. Global oil and gas demand is projected to soar in the next several years, particularly in growing developing markets based on U.S. Energy Information Administration (EIA) data. The new demand expansion spectrum along with newer developments in oil extraction technologies will allow thermic fluids in oil & gas applications to rise continuously.

The increase in oil and gas activities and production, primarily in states like the United States, Saudi Arabia, and China, has further led the market growth of thermic fluids working under high-stress conditions. Likewise, there is a demand for optimal fluids capable of thermal stability and proficient heat transmission, which is critical for the safety and efficiency of drilling activities. This, in turn, makes the oil & gas segment a lucrative part of the thermic fluids market, accounting for a massive revenue share. Stringent governmental regulation of safety and efficiency standards in the oil and gas industry is also anticipated to fuel the need for thermic fluid to maximize the efficiency of heat transfer performance in oil and gas applications.

Thermic Fluids Market Regional Outlook

In 2023, the Asia-Pacific region held the largest revenue share of 46% in the thermic fluids market. Rapid industrialization, government backing for energy efficiency, and increasing emphasis on renewable energy projects are driving the region's prominence. That growth is being fuelled by nations like China and India, whose burgeoning industrial bases and huge energy needs are ever-increasing. These countries followed different policies to promote thermic fluids in the applications including solar thermal power generation, chemical processing, and HVAC. In 2023 carbon reduction and energy conservation have been an important pillar in China's 14th Five-Year Plan, which has increased the demand for thermic fluids in renewable energy projects. The Asia-Pacific makes the strongest boost from government subsidies and programs promoting energy-efficient technologies in sectors including manufacturing, automotive, and food processing. As a result, the region is poised to maintain its leadership in the thermic fluids market in the coming years.

The North American region is projected to exhibit significant growth throughout the forecast period, the dominance of this region can be attributed to the established industrial base, especially in chemical manufacturing, energy generation, as well as oil & gas extraction which are the major end-use industries contributing to the thermal fluids market. The thermic fluids market in the United States will continue to maintain its dominance as it is one of the key energy-consuming countries and an industrial hub. In addition, the Department of Energy (DOE) opened the door for a wide range of energy-efficient technologies and enforced corresponding policies, creating driving forces to advanced thermal fluid demand.

Recent Developments

• In February 2024, Castrol launched a new brand identity combining its modern design. This change prompts the company to diversify from its typical lubricants business as well with a series of innovative EV fluids, and an eventual complete range under the Castrol ON brand, such as EV transmission fluids, thermal fluids, and greases.

• In June 2023, Dow Inc. one of the leading thermic fluid manufacturers entered into a partnership with one of the oil and gas companies to provide special high-performance heat transfer fluids for a new offshore oil drilling project in the Gulf of Mexico. This trend comes during the consistent rise in thermic fluids in the oil and gas industry, which highlights Dow's investment in the oil sector.

Key Players

Key Service Providers/Manufacturers:

• BASF SE (Lutron HF 1, Therminol 55)

• Dow Chemical (DOWFROST, Therminol VP-1)

• ExxonMobil (Mobiltherm 603, Mobiltherm 603)

• Shell (Shell Heat Transfer Fluid, Shell Turbo Oil)

• BP (Energy Transfer Fluid, Thermic Fluid for Heat Transfer)

• Apar Industries Ltd. (THERMIC Fluid, Therminol VP-1)

• Dynalene Inc. (Dynalene HTF, Dynalene HTF Pro)

• Eastman Chemical Co. (Therminol, Eastman Thermic Fluid)

• Lubrizol Corp. (Thermal Fluid, TransaCool)

• Peter Huber Kaltemaschinenbau AG (Huber Thermic Fluids, Glycol-based Heat Transfer Fluids)

• Castrol (Castrol Industrial Heat Transfer Fluids, Castrol Heat Transfer Oil)

Key Users:

• Oil and Natural Gas Corporation Ltd.

• Solar Power Industry

• Chemical Manufacturing Plants

• Pharmaceutical Manufacturers

• Food and Beverage Industry

• Petroleum Refineries

• Automotive Manufacturers

• Plastic Manufacturing Companies

• Metal Processing Plants

• Cement Manufacturers