Automotive Coolant Market by Chemical Types (Propylene Glycol and Ethylene Glycol), Vehicle Types (Commercial Vehicle and Passenger Car), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global automotive coolant market size was valued at USD 4653.1 million in 2020 and is expected to expand at a CAGR of 5.1% during the forecast period, 2021–2028. The growth of the market is attributed to the global automotive industry's expansion.

Liquid coolants are mechanisms used to handle the heat in vehicle due to internal combustion in engines. The coolant avoids corrosion in the cooling system by removing excess heat from the engine and reducing long-term harm to the engines. The right combination of propylene glycol, ethylene, and water is employed to make the automobile system more efficient. The temperature of the automobile is regulated by automotive coolant, which absorbs and dissipates heat through the radiator. Moreover, it aids in the reduction of the number of automobile repairs and maintenance. Excessive usage and contamination with impurities causes the metal components to overheat, resulting in engine failure. Furthermore, tight regulatory requirements for the safe disposal and recycling of antifreeze material have encouraged end-user acceptability of reusable coolant kinds.

The COVID-19 pandemic had a significant negative impact on the world economy and shattered the market due to sudden closure of manufacturing units of the automotive industry. During the pandemic, several studies reported that the new automobile registrations worldwide were on sharp decline.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing consumers’ disposable income and their changing lifestyle has resulted in a surge in demand for passenger automobiles. This is a key factor that drives the market.
• Wide expansion of international trade volume boosts the transportation services. This leads to increase the demand for commercial vehicles, which presents another key driver of the market.
• Ample availability of different components such as ethylene glycol, propylene glycol, and glycerin especially in developed nations is projected to boost the market in the coming years.
• Crude oil prices are volatile or unexpected price difference have a detrimental influence on petrochemical production, which can hamper the market growth.
• Rising new entrants in developing innovative products and massive expenditures on R&D programs to produce cost-effective, environmentally friendly, and long-lasting products are creating lucrative opportunities in the market expansion.

Scope of the Report

The report on the global automotive coolant market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Propylene glycol segment to expand at a considerable CAGR

On the basis of chemical types, the automotive coolant market is bifurcated into propylene glycol and ethylene glycol. The propylene glycol segment is projected to expand at a considerable CAGR during the forecast period due to increasing demand for high-quality coolant and antifreeze bio-based products. On the other hand, the ethylene glycol segment is anticipated to account for a major market share during the forecast period as increasing demand of ethylene glycol to manufacture for plastic-based product parts.

Passenger Car segment to hold a significant share of the market

In terms of vehicle types, the market is divided into commercial vehicle and passenger car. The passenger car segment is expected to hold a significant share of the market during the forecast period due to an increase in utility vehicle demand in densely populated nations such as China, India, and Brazil. However, the commercial vehicle segment is projected to account for a key market share due to growing consumers’ demand for private transportation.

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the automotive coolant market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period due to the increased number of cars manufactured in key nations such as India, China, and Japan. Moreover, the availability of key factors such as reduced production and labor costs across the region presents another key aspect for the segment growth. However, the market of North America is anticipated to expand at a rapid pace during the forecast period owing to the consumer knowledge of the benefits of recycled materials as well as sustainability production substances.

Segments

• Propylene Glycol
• Ethylene Glycol

• Commercial Vehicle
• Passenger Car

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

• BP PLC (Castrol)
• Valvoline Inc.
• Royal Dutch Shell PLC
• ExxonMobil Corp.
• Chevron Corporation

Competitive Landscape

Key players competing in the automotive coolant market are BP PLC (Castrol); Valvoline Inc.; Royal Dutch Shell PLC; ExxonMobil Corp.; and Chevron Corporation. The worldwide automotive coolant market is highly concentrated due to the domination of market share by only a few major players. These corporations are concentrating on geographic growth in order to expand their consumer base and generate more sale revenues. For example, Valvoline acquired 16 service locations in Texas in April 2021, expanding its company-owned Quick-Lube Network.