Automotive Coolant Market

Automotive Coolant Market Size-(2023-2028)

The Automotive Coolant Market was worth $11,701.02 million in 2022 and is projected to reach $13,552.72 million by 2028, expanding at a CAGR of 2.48% over the forecast period-2023-2028

 Automotive Coolant Market Overview

The automotive coolant is used to regulate engine temperature. Antifreeze, also known as automotive coolant, is typically a mixture of water and ethylene glycol or propylene glycol. Its primary purpose is to regulate the engine's temperature, which can become exceedingly high during operation. This is essential because an overheated engine can cause severe damage and even cause the vehicle to break down. Additionally, automotive coolant prevents corrosion and scale accumulation within the engine and other cooling system components. Automobiles, lorries, buses, and railroads are just some of the vehicles that use automotive coolant. It is a crucial component in the automotive industry because it helps maintain the engine's efficacy and durability. A variety of colors, including green, blue, red, and yellow, are used to identify the type of automotive coolant and its specific properties. The automotive coolant market is undergoing technological advancements, resulting in the creation of new and enhanced coolant formulations. This has led to an increase in demand for specialized coolants, such as those with a five-year shelf life. The increasing demand for eco-friendly products has also affected the automotive coolant market, resulting in the creation of eco-friendly coolants that are less detrimental to the environment. 

Automotive Coolant Market Drivers

The automotive coolant market is driven by several factors, including the rising global demand for passenger and commercial vehicles. As the number of vehicles on the road rises, so too does the demand for efficient and dependable refrigeration systems. In addition, the rising popularity of electric vehicles with advanced cooling systems is anticipated to drive market expansion in the coming years. Advanced coolant technologies are being developed in response to stringent regulations concerning vehicle emissions and fuel economy. Manufacturers are investing in R&D to produce coolants that adhere to the most recent emission standards and enhance fuel economy. The growing trend of engine downsizing, which entails reducing engine displacement to improve fuel efficiency, is also increasing the demand for advanced coolants that can effectively cool smaller engines.

The increasing emphasis on vehicle safety and dependability is fueling demand for the automotive coolant market. Automakers are developing cooling systems that effectively regulate engine temperature and prevent overloading, which can result in engine damage and safety risks.

 Automotive Coolant Market Restraints

Additionally, the automotive coolant market faces restraints that may hinder its expansion. Increasing the use of electric vehicles, which do not require the same amount of refrigerant as conventional gasoline-powered vehicles, is one of the primary challenges for the market. As demand for electric vehicles continues to rise, the automotive coolant market is likely to contract. In addition, the availability of counterfeit goods and the use of low-quality raw materials in the production of coolants pose a market challenge. Not only do these low-quality products harm the engine, but they also pose a grave threat to the environment. The need for routine maintenance and replacement of coolants, which can be costly for vehicle owners, is another obstacle. In addition, strict government regulations regarding the disposal of used coolant and the use of hazardous compounds in the production of coolant may inhibit market expansion. The high cost of developing novel coolants that comply with these regulations also presents a challenge for manufacturers. Despite these obstacles, market participants are investing in R&D to introduce more eco-friendly and efficient coolants and collaborating with automakers to improve their product offerings and expand their customer base.

Automotive Coolant Market Opportunities:

In the future years, the automotive coolant market presents several growth opportunities. One of the significant opportunities is the creation of novel coolants that are more effective, environmentally favorable, and durable. Increasingly, manufacturers are investing in R&D to create advanced coolants that can operate in extreme conditions, reduce engine degradation, and improve fuel efficiency.

The expansion of the electric vehicle (EV) market is another opportunity for the automotive coolant market. It is anticipated that the demand for coolants used in electric powertrain systems will increase as the popularity of EVs continues to rise. These coolants must be non-conductive and non-corrosive to protect the vehicle's electrical components. It is anticipated that the rising demand for engine lubricants with extended oil change intervals will also increase the demand for durable coolants. The development of engine lubricants that require fewer oil changes will necessitate the use of longer-lasting coolants. The rising demand for hybrid vehicles is anticipated to create expansion opportunities for the automotive coolant market. To cool the engine and battery pack, these vehicles require a distinct form of coolant that can operate at a broad range of temperatures. It is anticipated that the demand for this form of coolant will rise as hybrid vehicles grow in popularity. 

Automotive Coolant Market Key Developments:

• ExxonMobil announced in December 2021 that it had finalized its corporate plans, which include increasing its expenditure on greenhouse gas emission-reduction initiatives to USD 15 billion over the next six years while maintaining disciplined capital investments in its industry-leading portfolio.
• Chevron Corporation and Noble Midstream Partners LP announced in May 2021 that the previously announced acquisition had been finalized, resulting in Noble Midstream becoming a wholly-owned indirect subsidiary of Chevron.

 AUTOMOTIVE COOLANT MARKET REPORT COVERAGE:

COVID-19 Impact on the Automotive Coolant Market:

The pandemic of COVID-19 has had a varied effect on the automotive coolant market. The pandemic has severely impacted the automotive industry, with factories and dealerships temporarily closing in many regions of the globe. This has significantly decreased the demand for automotive coolants. In addition, disruptions in the supply chain have reduced the availability of basic materials and delayed the production and distribution of coolants.

In contrast, demand for automobiles has increased in certain regions, including the Asia-Pacific and North American regions, as people have opted for private vehicles over public transportation. Consequently, the demand for automotive coolants has increased. The increase in e-commerce and online sales of automotive coolants has mitigated the market's negative response to the pandemic. Manufacturers have also prioritized the development of new and enhanced refrigerant technologies that are more eco-friendly and improve engine performance. This trend is anticipated to persist even after the pandemic, creating new market expansion opportunities. As the world gradually recovers from the pandemic and the automotive industry resumes operations, it is anticipated that the demand for automotive coolants will increase, creating additional market opportunities.

Automotive Coolant Market Segmentation  

By Type:

• Inorganic
• Organic
• Hybrid

Due to their superior performance characteristics, such as enhanced heat transmission and corrosion resistance, organic coolants are anticipated to dominate the market during the forecast period. On the other hand, owing to their high boiling points and low cooling points, inorganic coolants are commonly used in heavy-duty commercial vehicles and off-road applications. In the automotive industry, hybrid coolants, which are a combination of inorganic and organic coolants, offer a balance between performance and cost-effectiveness.

By Technology:

• Ethylene Glycol

• Propylene Glycol

• Glycerine

• Others

The technological segmentation of the automotive coolant market emphasizes the significance of selecting the most suitable coolant for particular vehicles and operating conditions. Due to their superior heat transfer properties, extensive availability, and low cost, coolants based on ethylene glycol continue to dominate the market. However, the market for coolants based on propylene glycol is expanding due to their lower toxicity and environmental impact. Some applications may not be compatible with glycerin-based coolants, but they offer an eco-friendly alternative. Other coolant technologies, such as P-HOAT and OAT, are acquiring prominence in some regions as a result of their durability and compatibility with a greater variety of materials.

By Sales Channel:

• OEMs

• Aftermarket

The automotive coolant market's sales channel segmentation indicates that both original equipment manufacturers and the aftermarket play a significant role in the distribution of automotive coolants. As a result of the direct relationship between automakers and refrigerant manufacturers, the OEM segment dominates the market. Due to the rise in the number of vehicles on the road and the need for replacement coolants, the aftermarket segment is anticipated to expand rapidly. Online sales channels are gaining popularity due to their convenience and accessibility, but traditional brick-and-mortar stores are still preferred by consumers who prefer to physically scrutinize and purchase products. To capitalize on the expanding market potential in the aftermarket segment, coolant manufacturers should focus on strengthening their partnerships with automakers and expanding their distribution channels through e-commerce platforms and partnerships with online retailers.

By Region:

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• Latin America   

Four main regions comprise the global automotive coolant market: North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America. The Asia-Pacific region dominates the market and is anticipated to maintain its dominance due to the expanding automotive industries in China, India, Japan, and South Korea. Additionally, the region has a large population and rising disposable income, which has led to an increase in automobile demand, thereby fuelling the demand for automotive coolants.

North America and Europe are mature markets with a well-established automotive industry and stringent emissions and vehicle safety regulations, resulting in a greater demand for premium automotive coolants. The regions of the Middle East, Africa, and Latin America are anticipated to experience significant growth as a result of rising investments in the automotive industry and rising vehicle production.

Automotive Coolant Market Key Players

• BASF SE

• BP PLC

• Chevron Corporation

• Cummins Filtration

• ExxonMobil Corporation

• Fuchs Petrolub SE

• KOST USA Inc.

• Motul

• Total S.A.

• Valvoline Inc.