Automotive Coolant Market size is projected to amass a considerable growth from 2023 to 2032, propelled by rising vehicle sales and the increasing requirements for the maintenance and servicing of automobiles. The need for periodic annual vehicle servicing for optimum performance while maintaining appropriate thermal management of engines is further expected to boost the business share. Automotive coolant, an efficient mixture of propylene glycol, ethylene, and water, helps remove impurities from the engine cooling systems while preventing the engine from heating.
These attributes have accelerated product utilization among consumers and automobile manufacturers, thus creating a favorable growth scenario for the automotive coolant market. Automobile manufacturers globally have been focusing on introducing newer brands and products to offer customized coolant and lubricant solutions to their consumer base. As a result, increasing technological innovations in automotive coolants are expected to boost industry revenue streams.
Organic Acid Technology (OAT), based on neutralized organic azoles and acids, has become increasingly popular in recent years, as these chemicals significantly reduce the probability of corrosion and material degradation. The OAT also contributes towards increasing the engine service life and offers high-temperature aluminum protection, thereby driving the automotive coolant market expansion.
On the other hand, the automotive and repair industries have been dealing with the ripple effect of inflation due to a significant rise in overhead costs, comprising fuel, transport, labor, and insurance, which may hamper industry dynamics through 2032. Alongside, the Russo-Ukrainian war has caused severe value chain disruptions in the regional automotive sector, prompting OEM and aftermarket suppliers to discontinue or defer trade with Russia, further impacting the industry growth.
Automotive coolant market share based on the vehicle is classified into PCV, LCV, and HCV. The PCV segment is anticipated to capture a noticeable growth, attributed to the increasing vehicle sales globally. Automotive coolant helps maintain engine temperature while eliminating the chances of mechanical failure. Additionally, mandatory servicing and maintenance requirements of PCVs for maintaining optimum performance and warranty will further boost segment revenues by 2032.
The overall industry, based on type, is fragmented into synthetic, organic, and hybrid coolants. The synthetic coolant segment is poised to attain a sizeable valuation by 2032. This can be attributed to the benefits offered by such coolants, including improved cooling ability, lubrication properties, enhanced corrosion protection, and convenient cleaning & maintenance operations. These coolants are also ideal for performance and high-end vehicles, therefore, will accumulate a decent revenue share during 2023-2032.
With respect to chemical composition, the overall market is bifurcated into ethylene glycol and propylene glycol. Of these, the ethylene glycol segment is expected to expand at a moderate growth rate between 2023 and 2032. This can be attributed to the superior heat dispersion capabilities offered by the chemical. However, the requirement for appropriate disposal capabilities owing to its highly toxic nature may limit the segment growth by end of 2032.
Regarding the distribution channel, the industry is segmented into OEM and aftermarket. Aftermarket will showcase a significant growth rate on account of increasing requirements for periodic vehicle services. Additionally, the availability of a broad spectrum of coolants from multiple manufacturers gives customers a wide range of alternatives, which may create a favorable impact on the automotive coolant market.
Asia Pacific will account for a significant industry revenue. This can be credited to the increasing vehicle sales across the region. Moreover, automobile manufacturers offer attractive annual maintenance packages and extended warranties that cover vehicle maintenance and servicing for a certain period, thereby expanding the regional market share over the projected timeframe.
Prominent players in the automotive coolant market scenario include Chevron, Shell, Exxon Mobil, Lukoil Petrons, Ashland Corporation, Sinclair Oil Corporation, Blue Star Lubrication Technology, and others. Industry players are focusing on new product development to increase their customer base and enhance revenue generation. For instance, in August 2022, Valvoline Cummins rolled out Valvoline Advanced Coolant, a glycol-based full-antifreeze coolant incorporated with OAT technology for cars and commercial vehicles, which provides up to 5,00,000 Kms or 5 years of service life/drain interval.