Automotive Antifreeze Market Insights, 2027
The global automotive antifreeze market was valued at USD 4.92 billion in 2019, and is projected to reach USD 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.
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.
By Fluid Type
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.
By Technology
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.
By Applications
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.
By Distribution Channel
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.
By Region
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 |
 By FLUID TYPE |
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 By TECHNOLOGY |
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| By TECHNOLOGY |
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 By DISTRIBUTION CHANNEL |
|
 By Region |
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 Key Market Players | EXXON MOBIL CORPORATION, Halfords Group PLC, CASTROL LIMITED, TOTAL SA, Prestone Products Corporation, ROCK OIL REFINING, INC, ROYAL DUTCH SHELL PLC, Chevron Corporation, Valvoline Inc, MOTUL |
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.
The global automotive antifreeze market was valued at USD 4.92 billion in 2019, and is projected to reach USD 6.01 billion by 2027.
The global automotive antifreeze market is projected to grow at a compound annual growth rate of 7.9% for the forecast period 2020-2027 to reach USD 6.01 billion by 2027.
The key players that operate in the automotive antifreeze market such as 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.
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.
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.
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