ID: MRFR/CnM/3245-CR | August 2020 | Region: Global | 274 pages
Market Research Future (MRFR) expects the Automotive Coolant Market to obtain a valuation of more than USD 9.7 Billion by 2025. The market size is expected to soar at a rate of over 4% during the appraisal period (2019 to 2025).
The COVID-19 outbreak has had a brutal impact on the automotive coolant industry, considering the temporary shutdown of manufacturing facilities and weakened demand. Even as the world is trying to curb the spread of SARS-CoV-2, various leading companies are trying to bolster their supply chains and accelerate operations to control further losses. Additionally, with the gradual lifting up of the lockdown across countries and the novel coronavirus under control, the global market can pick up speed in the years to follow.
Burgeoning Automotive Sector Worldwide to be a Key Growth Inducing Factor
The automotive coolant industry has picked up significant traction owing to the robust growth of the automotive aftermarket sector, particularly in Asia Pacific as well as North America. Also, soaring sales of various commercial vehicles in America, Asia Pacific and Europe, which form a total of more than 80% in the global market, could further foster the demand for automotive coolants during the evaluation period.
In view of the rising number of research activities within the chemical industry, automotive coolants are constantly subjected to technical innovations, in terms of material composition. This also enhances the market size, owing to the escalating demand. Several firms have successfully developed coolants with the use of technologies such as Organic Acid Technology (OAT), Hybrid Organic Acid Technology (HOAT) and Inorganic Acid Technology (IAT), which will add to the market value.
Thriving Automobile Sector in Emerging Countries to Present Opportunities
Turkey, Brazil, Argentina and India offer lucrative opportunities to the players, given their expanding automobile industries. These fast-emerging countries are home to a thriving automotive sector backed by the exploding population, improving socio-economic status, growing e-commerce sector, developing infrastructure and the rise in vehicle fleet.
Fluctuating Crude Oil Prices to Pose Significant Challenges
Volatile or unpredictable prices of crude oil leave a negative impact on the production of petrochemicals, which ultimately affects the manufacturing of propylene glycol and ethylene glycol. Therefore, the fluctuating prices of chief raw materials could emerge as a significant challenge in the global automotive coolant market over the assessment period.
IAT Technology to Take the Lead
Technology-dependent market segments are hybrid organic acid technology (HOAT), organic additive technology (OAT) and inorganic additive technology (IAT). The inorganic additive technology segment holds more than 55% share in the global market and is also likely to procure the highest growth rate in the given period.
Ethylene Glycol and Propylene Glycol Emerge as Leading Segments
Product-wise market segmentation includes glycerin, propylene glycol, ethylene glycol, and others. The two most sought-after products in the market are ethylene glycol as well as propylene glycol, which are extensively used in several heavy-duty or automotive applications. Ethylene glycol-based coolants are highly cost-effective while propylene glycol-based coolants find use in locations with requirement for low toxicity products.
Passenger Cars Segment to Escalate at the Fastest Rate
Depending on vehicle type, the automotive coolant market has been considered for heavy commercial vehicles, light commercial vehicles, passenger cars, and others. The passenger cars segment should be one of the fastest emerging segments in the industry while the heavy commercial vehicles segment can seize the biggest share in the global market.
Automotive Aftermarket Segment to Stay at the Top
End User-based segments are original equipment manufacturer (OEM) as well as automotive aftermarket. The automotive aftermarket segment accounted for a share of more than 65% in the year 2018 given the presence of a massive number of commercial vehicles and passenger cars currently in transit worldwide, and most of them in need of after-sales servicing in terms of maintenance purposes.
Asia Pacific’s Thriving Automotive Industry to Contribute to its Dominance
The Asia Pacific market share in 2018 came close to 45% and touched almost USD 3.4 billion. The APAC market is also set to capture the fastest growth rate of around 5% in the ensuing years, thanks to the thriving automotive industry, especially in India. India is currently the sixth-biggest passenger vehicle producer and the second-leading commercial vehicle developer in the world. The rapid industrialization giving way to improvement in the infrastructure, and the surging number of small and medium enterprises have raised the demand for heavy-duty trucks and light passenger vehicles in the country. Government policies including Auto Mission 2006-2016 and NATRiP, have also contributed significantly to the automotive sector’s growth in India, which has ultimately fostered the need for auto coolants in OEM as well as aftermarket segments.
North America Secures the Second Position
Some of the leading automakers in the United States like General Motors, Ford Motor Company, Detroit Diesel and Cummins have certified auto coolant equipment as well as stringent standards with respect to recycled antifreeze. This factor has been favorable for the North America market, in view of the rising consumer awareness level about the advantages of recycled resources along with sustainability.
Rivalry Intensifies as Firms Focus on Extensive R&D Activities
Most of the renowned manufacturers in the global market spend considerably on rigorous research and development activities to come up with advanced auto coolants with better qualities in order to facilitate higher performance and efficiency. These players launch highly efficient products to cater to the surging demand for excellence among end-use industries.
Expansion of production capacity is another significant competitive strategy usually undertaken by companies to further establish themselves in the market.
List of Key Companies Covered in this Report
Royal Dutch Shell Plc. (Netherlands) has established itself as one of the most prominent firms in the automotive coolant industry. The company has managed to stay at the top position in the market via its extensive global presence and a massive customer base worldwide. The company also maintains its lead by adopting strategies like expansion, divesture and new product launch.
The report overview outlines the top challenges, barriers and drivers affecting the market size. The market study also comprises some of the key developments post the COVID-19 pandemic and the effects of the novel coronavirus as well as the lockdown on the redispersible polymer powder market size. The report also throws light on the latest business scenario covering the expected as well as the historical value, in terms of volume and value, technological developments that induce growth. Besides, the affluent automotive coolant manufacturers and the competitive strategies they adopt to remain relevant in the competitive industry are also listed in the MRFR report.
Scope of the Report
The scope of the report presents detail about different types of automobile coolants available in the global market, while also focusing on several engine coolant brands and auto coolant vendors.
Global Automotive Coolant Market, By Technology
Global Automotive Coolant Market, By Product
Global Automotive Coolant Market, By Vehicle Type
Global Automotive Coolant Market, By End User
Frequently Asked Questions (FAQ) :
The global automotive coolant market had reached a valuation of USD 9.8 Billion by 2025.
The automotive coolant market is projected to grow at a 4% CAGR during the review period (2019-2025).
Increase in the number of passenger and commercial vehicles across the globe.
Asia Pacific holds the largest share in the global automotive coolant market followed by Europe and North America, respectively.
Total S.A (France), Valvoline LLC (US), Castrol Limited (UK), Royal Dutch Shell plc (The Netherlands), Exxon Mobil Corp (US), Sinopec Lubricant Company (China), Sinclair Oil Corporation (US), Ashland (US), British Petroleum (UK), and Chevron U.S.A. Inc. (US), are some of the leading players in the global automotive coolant market.