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2020

Automotive Antifreeze Market

Automotive Antifreeze Market Size, Share, Competitive Landscape and Trend Analysis Report by Fluid Type, Technology, Application and Distribution Channel : Global Opportunity Analysis and Industry Forecast, 2020-2027

AT : Automotive systems and accessories

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Author's: Abhay Singh | Lalit Janardhan Katare
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Automotive Antifreeze Market Statistics - 2027

The global automotive antifreeze market was valued at $4.92 billion in 2019, and is projected to reach $6.01 billion by 2027, registering a CAGR of 7.9% for the forecast period 2020-2027.     

Antifreeze is an additive that helps manage the temperature of a vehicle’s engine by reducing freezing point and increasing the boiling point of the cooling system. It can be developed from either organic acid, inorganic salts, and azoles or a combination of all three. It prevents rigid enclosures from bursting due to expansion from freezing. Earlier, methanol was the major ingredient for engine coolant as antifreeze and was widely used in windshield fluids, but later its use gradually declined due to need of frequent replacement and corrosion of the metals, especially aluminum, used in the engine and cooling systems. Methanol-based antifreeze is substituted by an antifreeze with ethylene glycol as the major ingredient, which possesses less volatility and requires less replacements. 

Automotive-Antifreeze-Market-2020-2027

Factors such as rise in demand for high-performance vehicles and increased use of high-quality technologically advance additive supplements the growth of the global automotive antifreeze market. However, fluctuating raw material (crude oil) price and growing demand of battery operated electric vehicles hampers the growth of the global automotive antifreeze market. Moreover, availability of environment friendly, bio-based coolants & antifreeze supplements the growth of automotive antifreeze market in the near future.

The global automotive antifreeze market is segmented based on fluid type, technology, applications, distribution channel and region. Based on fluid type, the global automotive antifreeze market has been categorized into ethylene glycol, propylene glycol and glycerin. Based on technology, the global automotive antifreeze market has been categorized into inorganic additive technology (IAT), organic acid technology (OAT) and hybrid organic acid technology (HOAT). Based on application, the market has been categorized into passenger vehicle, commercial vehicle and commercial vehicle. Based on distribution channel, the global market has been segmented into original equipment manufacturers (OEMs) and aftermarket. Also, based on region, the global automotive antifreeze market has been studied across North America, Europe, Asia-Pacific and LAMEA. 

Key players operating in the global automotive antifreeze market includes Castrol, Chevron Corporation, Exxon Mobil Corporation, Halfords Group PLC., Motul, Prestone Products Corporation, Rock Oil Company LLC., Royal Dutch Shell PLC, TOTAL SA and Valvoline Inc.

Rise in demand for high-performance vehicles

The high-performance cars witnessed a surge in sales last year. The Mercedes-Benz Cars division sold a total of 2,385,400 vehicles in 2019 despite difficult conditions. It sold 2,382,800 units in 2018. The Mercedes-Benz Cars division hence surpassed the record level of unit sales set in the previous year. At $105.1 billion, revenue also exceeded the previous year’s high level by 1%. This growth in sales was in large part due to the extensive market success of their new compact-class models and continued strong demand for the E-Class and SUVs. In 2019, BMW Group sold 2,520,357 vehicles, posting an all-time high and increase of 1.2% compared to the previous year. Sales of the BMW brand also marked a record in the history of the carmaker where 2,168,516 units were delivered globally, an increase of 2.0% as compared to 2018. 

High-performance cars have a necessarily high requirement of automotive antifreeze or coolants to manage the excessive heat produced by the powerful engine and other components. The rising sale of high-performance cars is anticipated to propel the growth of the automotive antifreeze market during the forecast period.

Increased use of high-quality technologically advance additive

Engine coolant is typically required to transfer heat from the IC engine to the radiator. The radiator cools down the fluid by the means of airflow. A good coolant provides year-round protection against the impacts of high and low temperatures. Currently, a large number of materials are used in the modern cooling system such as steel, copper, aluminum, solder, cast iron, brass, plastics, and numerous types of elastomers. To protect the damage to the components made from these materials, engine coolants must contain specific additives, for instance, corrosion inhibitors. 

Today, usually all coolants contain a base fluid and an additive package comprising mostly of corrosion inhibitor additives. The base fluid mainly controls heat transfer properties, freezing, and boiling protection. Moreover, coolant additives are crucial for the health and longevity of diesel engines. Diesel engines are prone to a problem called cavitation (or liner pitting). Both cavitation and corrosion can result in shorter engine life if the coolant additive level of the coolant is not monitored and maintained. 

The rising usage of coolant additives (that help in protecting the engine parts against corrosion and cavitation and also helps in maintaining the engine health) is expected to propel the growth of the automotive antifreeze market in the forecast timeframe. 

Automotive Antifreeze Market
By Fluid Type
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Ethylene Glycol is projected as the most lucrative segments

Fluctuating raw material (crude oil) price influencing the engine coolant and antifreeze market

The key constituents of automotive antifreeze that are readily available in the market have ethylene glycol, propylene glycol, and glycerin as the base fluids. These chemicals are the by-products of the crude oil refining process.  A fluctuation is usually observed in the prices of crude oil, which poses a direct impact on the prices of these base fluids. The average price per barrel of crude oil fluctuates vastly. The average price per barrel of crude oil in 2016 was $40.76, in 2017 was $52.51, in 2018 it was $69.78 and in 2019 it was US $64.05. The fluctuations in the price of crude oil directly impact the price of automotive coolants as its base materials, for instance, ethylene glycol, propylene glycol, and glycerin, all are the by-products of crude oil. This factor directly impacts the market for automotive antifreeze on a global scale.

Environment-Friendly and Bio-Based Coolants and Antifreeze

Conventional automotive coolant/antifreeze, for instance, ethylene glycol or propylene though essential to automobiles, are toxic to plants, animals, and the environment, and should be treated and stored with great care. Antifreeze leaks should be cleaned up as fast as possible. Although propylene glycol is less toxic in nature, its ingestion can damage the central nervous system, and can even cause death in some cases. The bright green color and sweet taste have been found to attract children and animals. Moreover, antifreeze spills on lawns can destroy the grass if not cleaned up immediately.

Automotive Antifreeze Market
By Technology
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Organic Acid Technology (OAT) is projected as the most lucrative segments

The abovementioned reasons have forced the automotive antifreeze manufacturers to look for other substances such as bio based formulations that can be used as an alternative for ethylene glycol, which doesn’t harm the environment.

To find a solution, researchers at the U.S.-based company ACTA Technology have created an antifreeze formula that they claim is safer, more environmentally friendly, and performs better than existing products. ACTA has patented their antifreeze and are currently investigating means to scale up the production. Another company, Sveaskog (Swedish Forestry Company) is testing a new coolant in their forest machines in cooperation with Avantherm, a Swedish developer of renewable specialty chemicals.

Automotive Antifreeze Market
By Applications
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Commercial vehicle is projected as the most lucrative segments

The development of environment-friendly antifreeze solutions is anticipated to boost the growth of the automotive antifreeze market during the forecast timeline. 

COVID-19 Impact Analysis

The poor economic conditions that the world witnessed due to outbreak of COVID-19 has severely affected the nations worldwide. The data released by UNIDO (United Nations Industrial Development Organization) regarding the trend of industrial production between April 2020 and December 2019 clearly indicated that both upper and lower- income nations have been considerably impacted by the pandemic.

Automotive Antifreeze Market
By Distribution Channel
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Aftermarket is projected as the most lucrative segments

Index of Industrial Production (IIP) of India experienced a slump by 65%, which reflects the extreme loss in exports. Approximately 50% of the countries observed a decrease in industrial production by over 20%. The countries where the IIP fell between 10% 20% include the majority of the countries

In many aspects, the automotive industry is crucial for a robust global economy and the prosperity of a nation.

The COVID-19 pandemic has had a sudden impact on the worldwide unified automotive industry. Indications include an interruption in the export of Chinese parts, huge manufacturing disruptions across Europe, and the shutting of assembly plants in the United States.

A limited supply of parts and strategy of just-in-time production, together with confinement measures and a reduced workforce: all these factors led OEMs to halt their production lines. This hit the automotive industry hard and the industry will take an appreciable time to overturn the detrimental after effects of the COVID-19.

Automotive Antifreeze Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Europe would exhibit the highest CAGR of 8.6% during 2020-2027.

Key Benefits For Stakeholders

  • This study presents the analytical depiction of the global automotive antifreeze market analysis along with the current trends and future estimations to depict imminent investment pockets.
  • The overall automotive antifreeze market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  • The report presents information related to the key drivers, restraints, and opportunities of the global automotive antifreeze market with a detailed impact analysis.
  • The current automotive antifreeze market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Automotive Antifreeze Market Report Highlights

Aspects Details
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By FLUID TYPE
  • Ethylene Glycol
  • Propylene Glycol
  • Glycerin
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By TECHNOLOGY
  • INORGANIC ADDITIVE TECHNOLOGY (IAT)
  • ORGANIC ACID TECHNOLOGY (OAT)
  • HYBRID ORGANIC ACID TECHNOLOGY (HOAT)
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By TECHNOLOGY
  • PASSENGER VEHICLE
  • COMMERCIAL VEHICLE
  • CONSTRUCTION VEHICLE
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By DISTRIBUTION CHANNEL
  • ORIGINAL EQUIPMENT MANUFACTURERS (OEMS)
  • AFTERMARKET
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By Region
  • NORTH AMERICA  (US, CANADA, MEXICO)
  • EUROPE  (GERMANY, FRANCE, UK, ITALY, REST OF EUROPE)
  • ASIA-PACIFIC  (CHINA, INDIA, JAPAN, SOUTH KOREA, REST OF ASIA-PACIFIC)
  • LAMEA  (LATIN AMERICA, MIDDLE EAST, AFRICA)
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Key Market Players

Prestone Products Corporation, MOTUL, EXXON MOBIL CORPORATION, CASTROL LIMITED, Halfords Group PLC, ROCK OIL REFINING, INC, Chevron Corporation, TOTAL SA, Valvoline Inc, ROYAL DUTCH SHELL PLC

Analyst Review

Antifreeze acts as an essential accessory for a vehicle, as it protects the engine of the vehicle from freezing at extreme conditions. Numerous developments carried out by the top antifreeze manufacturers, which has led to the growth of the market. Moreover, technological advancements in the type of fluid and increase in investments for vehicle antifreeze liquids are expected to drive the automotive antifreeze market growth. 

Developments have been carried out by different companies such as Castrol Limited, Chevron Corporation, Exxon Mobil Corporation and others which has supplemented the growth of automotive antifreeze industry. For instance, in 2019, Chevron Corporation developed new Delo ELC Advanced Antifreeze/Coolant for double duty. The new coolant formulation is based on organic acid technology (OAT), but capitalizes on an inorganic additive, nitrite, for positive wet-cylinder-liner (wet-sleeve) protection. In addition, in May 2018, Chevron Lubricants launched its new range of commercial vehicle heavy-duty motor oils across all European markets under the Texaco Delo brands. Such developments carried out by different manufacturers’ leads to the growth of the market.

The factors such as rise in demand for high-performance vehicles and increased use of high-quality technologically advance additive supplements the growth of the global automotive antifreeze market. However, fluctuating raw material (crude oil) price and growing demand of battery operated electric vehicles hamper the growth of the global automotive antifreeze market. Moreover, availability of environment friendly, bio based coolants & antifreeze supplements the growth of automotive antifreeze market in the near future.

Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by Europe, North America and LAMEA. On the basis of forecast analysis, Asia-Pacific is expected to maintain its lead during the forecast period in terms of revenue, whereas Europe is expected to grow at a significant growth rate owing to increase in production of vehicles across Europe. 
 

Author Name(s) : Abhay Singh | Lalit Janardhan Katare
Frequently Asked Questions?

The global automotive antifreeze market was valued at $4,923.37 million in 2019, and is projected to reach $6,016.20 million by 2027, registering a CAGR of 7.9%

Post COVID-19, the automotive antifreeze market will register a suitable growth due to the increased demand for aftersales services of vehicles which are standing in parking from a longer time.

The report sample for global automotive antifreeze market report can be obtained on demand from the website.

Upcoming trends in automotive antifreeze market includes the introduction of latest chemicals with better cooling capacity which can prevent the vehicle engine from cooling for a longer time.

The key strategies adopted by top players to increase their revenue includes the increased sales of their products in market so that the product is available to its customers easily.

The company profiles of the top ten players of the market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry along with their last three year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated.

Based on the automotive antifreeze market analysis, Asia-Pacific accounts to be highest revenue contributor in 2019 and Europe is expected to see a lucrative growth providing more business opportunities during the forecast period.

By Fluid Type, Ethylene Glycol is the most influencing segment due to its revenue and better growth rate as comapred to others.

Germany, China has wirnessed as a key matured markets growing in the global automotive antifreeze market.

The potential customers of automotive antifreeze includes the aftermarket players operating in the industry which continuously offer antifreeze to its customers.

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Automotive Antifreeze Market

Global Opportunity Analysis and Industry Forecast, 2020-2027