Global Automotive Coolant Market 2023-2030

Global Automotive Coolant Market 2023-2030

Global Automotive Coolant Market Size, Share & Trends Analysis Report by Product Type (Ethylene Glycol, Propylene Glycol, and Others), by Technology (Inorganic Additive Technology (IAT), Organic Additive Technology (OAT), Hybrid Organic Acid Technology (HOAT)), by Vehicle Type (Passenger Cars, Heavy Commercial Vehicles, Light Commercial Vehicles) Forecast Period (2023-2030)

The global automotive coolant market is anticipated to grow at a considerable CAGR of 4.0% during the forecast period. The growing automobile industry across the globe has created demand for automotive coolant which has resulted in the growth of the global automotive coolant market. In September 2022, UPM Biochemicals has launched water glycol which is formulated from a three-part mixture of mono-ethylene glycol (MEG), water and a small quantity of additives. EV coolant has the potential to make automotive greener by broadening of their sustainability strategies.

The growing investments in R&D for the development of cost-effective, environment-friendly, and less toxic products with extensive product life is boosting the automotive coolant market. Moreover, the easy and abundant availability of various materials, including ethylene glycol, propylene glycol, and glycerin, in developed economies promotes new entrants to develop such products and also drives the automotive coolant market.

Segmental Outlook

The global automotive coolant market is segmented based on product type, technology, and vehicle type. Based on product type, the market is segmented into ethylene glycol, propylene glycol, and others. Based on technology, the market is divided into Inorganic Additive Technology (IAT), Organic Additive Technology (OAT), and Hybrid Organic Acid Technology (HOAT). Based on vehicle Type, the market is segmented into passenger cars, heavy commercial vehicles, and light commercial vehicles.

Passenger Car Segment Holds a Prominent Share in the Global Automotive Coolant Market

The considerable rise in the demand for utility vehicles in highly populated countries such as China, India, and Brazil has driven the demand for passenger cars. Coolant is the key material for use in passenger cars; therefore, rising passenger car production is anticipated to drive the growth of this market segment. Automobile manufacturers are introducing newer brands and products to offer customized coolant and lubricant solutions for customers. Several global OEMs are investing in this market either through joint ventures with established players or after FDI norms have been invested directly in setting up their production unit or enhancing their sales and dealership networks across the globe. For instance, in May 2021, Chevron Corp. and Noble Midstream Partners LP had completed the previously announced acquisition, which resulted in Noble Midstream becoming an indirect, wholly-owned subsidiary of Chevron.

Moreover, high demand for e-class, crossovers, SUVs, and hatchbacks is driving the passenger vehicle segment, which, in turn, is likely to boost the automotive coolant market. The rise in preferences for private transport and purchasing power of consumers is driving the passenger vehicle segment of the market.

Regional Outlooks

The global automotive coolant market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America).Among these, Europe automotive coolant market is anticipated to make considerable contribution to the global automotive coolant market.

Global Automotive Coolant Market Growth, by Region 2023-2030

Source: OMR Analysis

Asia-Pacific to Exhibit Significant Growth in the Global Automotive Coolant Market

Asia-Pacific held considerable share of the global automotive coolant market owing to the higher volume of vehicle production in major countries, including India, China, and Japan, and lower manufacturing and labor costs across the region. According to the India Brand Equity Foundation, India’s annual production of automobiles in FY22 was 22.93 million vehicles. India is presently the sixth-biggest passenger vehicle manufacturer globally and the second-leading commercial vehicle developer. India is also a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India such as the Automotive Mission Plan 2026, scrappage policy, and production-linked incentive scheme in the Indian market are expected to make India one of the global leaders in the two-wheeler and four-wheeler market by 2022.

Indian PSU oil players, like IOCL, HPCL, BPCL, etc., and private players like RIL are continuously increasing their crude oil production capacity. As ethylene glycol is a crude oil by-product, the increasing production and refining capacity of crude oil may increase the availability of ethylene glycol in India, simultaneously boosting the domestic production of coolants in the country. The increasing domestic production of coolants to cater the rising regional demand is a key factor driving the regional market growth.

Market Players Outlook

The major companies serving the global automotive coolant market include Total S.A., Castrol Limited., Cummins Filtration, Valvoline International Inc., and Exxon Mobil Corp. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. The companies are focusing on geographic expansion to increase their customer base and to enhance revenue generation. For instance, In April 2021, Valvoline expanded its company-owned Quick-Lube Network with the acquisition of 16 service centers in Texas.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global automotive coolant market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.