Automotive Coolant Market by Type (Ethylene Glycol-based, Propylene Glycol-based, Glycerine and Others), Vehicle Type (Passenger Cars, Commercial Vehicles and Others), by Technology (Organic Additive Technology, Inorganic Additive Technology, Hybrid Organic Acid Technology and Others), by End Users (Original Equipment Manufacturer and Aftermarket)–Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The Automotive Coolant Market size was valued at USD 6.38 billion in 2023 and is predicted to reach USD 8.75 billion by 2030 with a CAGR of 4.63% from 2024-2030.

Automotive coolant also known as antifreeze refers to specialized fluid used in vehicle cooling system to regulate engine temperature and prevent overheating or freezing of vehicles. Automotive coolant circulates through the engine and radiator that helps in absorbing excess heat generated during engine combustion and dissipating it into the surrounding air. The application of automotive coolant includes its usage for various purposes that includes freeze protection, boil over protection, corrosion prevention, lubrication and others. The advantage of automotive coolant includes vehicle's engine to run smoothly by preventing it from overheating or freezing. Automotive coolant helps to prevent corrosion and rust formation within the cooling system of components such as the radiator, water pump, and engine block which result in prolonging the lifespan of vehicles and avoid its costly repairs.

Market Dynamics and Trends

The rising growth of the automotive industry is accelerating the demand for automotive coolants. The rise in manufacturing and sales of vehicles led to increase in demand of automotive coolant for maintaining optimal engine temperatures and ensuring efficient vehicle operation.

According to the European Automobile Manufacturer Association, 2023, around 13.1 million automobiles is manufactured every year and contributes to around 7% to the total GDP of EU. The large production and export of vehicles accelerates the demand of automotive coolant for engine operation, and driving the aftermarket need for maintenance and servicing.

Additionally, the persistent need for vehicles to endure longer lifespans and perform well in various weather conditions lead companies to introduce automotive coolants to enhance engine durability in challenging weather conditions propelling their demand in the market.

In August, 2022 Valvoline launched advanced automotive coolant with OAT technology that provides 5 years or upto 5,00,000 km of service life. The automotive cooling system with OAT coolants offers protection to vehicles in both extreme hot and cold weather conditions, safeguarding against engine overheating and freezing temperatures to maintain optimal engine performance that accelerates its market demand.

Moreover, the stringent emission regulatory measures imposed by governments for minimizing carbon emission is accelerating the demand of automotive coolant market. Coolants play a crucial role in maintaining optimal engine temperature in automotives that results in enhancement of fuel efficiency and reduce emissions.

In November 2023, the European Parliament announced proposals for inclusion of ambitious provisions related to the reduction of global warming and safeguarding biodiversity, health, and social progress that would strengthen the implementation of the SDGs within as part of amendment of the EU Treaties.

It emphasizes the adoption of automotive coolants that play a vital role in reducing carbon emissions by effectively regulating engine temperature and preserving fuel efficiency. This aspect significantly boosts up their demand in the market. However, high-quality automotive coolants can be expensive, especially those designed for specialized vehicles or applications.

Additionally, the cost of disposal and environmental cleanup in case of coolant leaks or spills adds to the overall expense of using automotive coolant, thus these factors restraints the market growth. On the other hand, integration of nanotechnology in automotive coolants would help to integrate new features such as self-healing and adjustable thermal conductivity is anticipated to boost automotive coolant demand in the forthcoming years.

Market Segmentation

The automotive coolant market is segmented on the basis of type, vehicle type, technology, end users and region. On the basis of type, the market is divided into ethylene glycol-based, propylene glycol-based, glycerine and others. On the basis of vehicle type the market is classified into passenger cars, commercial vehicles and others. On the basis of technology, the market is divided into organic additive technology, inorganic additive technology, hybrid organic acid technology and others. On the basis of end users, the market is divided into original equipment manufacturer and aftermarket. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia Pacific holds the major share of the automotive coolant market and is projected to maintain its dominance throughout the forecast period. This is due to the presence of large automotive sector in the countries of China, India and Japan. With a surge in vehicle production and sales across the region, there's a significant need for effective coolant solutions to maintain engine efficiency and prevent overheating.

According to International Trade Administration Report of 2023, China continued to be the leading global vehicle manufacturing and sales market with its domestic production to reach USD 35 million by 2025. The automotive industry of the region fuels demand for automotive coolant to maintain efficient engine operation by maintaining optimal engine temperature.

Moreover, the presence of key market players such as Exxon Mobil Corporation, Chevron Corporation, Shell Plc, and Lumax Auto Tech in the region that are adopting various strategies including product launches is driving the growth of automotive coolant market in the region.

In May, 2023, Lumax Auto tech launched new range of Smart Cool, Ultra Cool, and antifreeze Supreme Cool coolant range for all vehicle segment. While Smart Cool is suitable for tropical weather conditions, Ultra Cool is suitable for all weather conditions and Supreme Cool is especially made for extremely cold weather conditions.

On the other hand, North America is expected to show a steady rise in the market of automotive coolant market due to rising trend towards electric vehicle in countries such as U.S. and Canada. Electric vehicles produce heat during both operation and charging, necessitating the use of automotive coolant to dissipate this heat and prevent overheating of battery.

According to the report of International Council on Clean Transportation, 2024, the U.S. electric vehicle market achieved sales of 1 million units, marking a notable 53% increase compared to the previous year's figures. The rising demand of EV in the region correspondently enhance the demand of automotive coolant to ensure optimal battery operation of the EVs.

Furthermore, government initiatives aimed at promoting sustainability and reducing carbon emissions are driving the automotive coolant market in the region. In March 2022, the Canadian Climate Institute unveiled its 2030 Emission Reduction Plan, outlining the federal government's strategic goal to reduce carbon emissions by 40%-45% by 2030. 

This initiative reflects a growing trend towards eco-friendliness and underscores the government's commitment to addressing climate change. Regulations and policies mandating the use of eco-friendly and low-emission coolant solutions are encouraging automotive manufacturers to adopt more sustainable practices. As a result, there's a growing demand for coolant products that are environmentally friendly and help mitigate the environmental impact of vehicles, thereby propelling the market growth in the region.

Competitive Landscape

The automotive coolant market comprises of various market players such as Exxon Mobil Corporation, BASF SE, Total Energies, Chevron Corporation, Shell Plc, Valvoline Inc., Prestone Products Corporation, Arteco, UPM Biochemical, and BP PLC. These market players are adopting various strategies including product launches and partnership to stay competitive and maintain their market positions.

For instance, in April, 2023, Arteco launched multifunctional coolant for electric vehicles, addressing specific cooling needs in the automotive industry's transition to electric and hybrid vehicles. This product launch reflected the evolving demands within the automotive coolant market as the industry shifts towards electrification, requiring specialized cooling solutions.

Further, in February, 2023 UPM Biochemicals partnered with Haertol Chemie GmbH to develop new sustainable coolants and enhancement of innovation in the automotive coolant market. This partnership aimed to create environmentally friendly solutions that meet the increasing demand for sustainable automotive coolants and contributed to the advancement of eco-friendly practices in the automotive industry.

Moreover, August 2021, Valvoline launched Valvoline Antifreeze Coolant HT-12, designed to provide superior heat transfer capabilities and protection for modern engines. This innovation represented a significant advancement in automotive coolant technology, catering to the evolving needs of high-performance engines in the automotive coolant market.

Key Benefits

• The report provides quantitative analysis and estimations of the automotive coolant market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the automotive coolant market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the automotive coolant market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type

• Ethylene Glycol Based

• Propylene Glycol-based

• Glycerine

• Others

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

• Others

By Technology

• Organic Additive Technology

• Inorganic Additive Technology

• Hybrid Organic Acid Technology 

• Others

By End Users

• Original Equipment Manufacturer 

• Aftermarket

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

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