Thermal Management Solutions Market

Updated on : April 15, 2024

Thermal Management Solutions Market

The global thermal management solutions market was valued at USD 4.3 billion in 2022 and is projected to reach USD 6.1 billion by 2028, growing at 5.9% cagr from 2023 to 2028. Increasing demand for thermal management solutions from emerging markets due to rapid industrialization and urbanization, and various end-use industries including automotive, energy & power, and pharmaceuticals are driving the market.

ATTRACTIVE OPPORTUNITIES IN THE THERMAL MANAGEMENT SOLUTIONS MARKET

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Thermal Management Solutions Market Dynamics

Driver: Increased use of thermal management solutions to reduce operating costs and save energy

Thermal management solutions have better heat transfer properties than petroleum oils of comparable viscosity. They have exceptional thermal and oxidation stability and are widely used in open vented heat transfer systems; chemical processing equipment; laminating and calendaring rolls, molds, and dyes in the rubber and plastic industries; die-cast zinc; and aluminum alloys. The use of thermal management solutions in industrial plants leads to an increase in production volume and improving product quality. However, thermal management solutions are formulated to provide long-term stability and durability in high-temperature applications. They are designed to resist thermal degradation, oxidation, and other forms of degradation, which can extend their service life compared to other heat transfer methods. Longer service life means less frequent replacement or replenishment of thermal management solutions, resulting in cost savings and reduced energy consumption associated with manufacturing, transportation, and disposal of thermal management solutions. Additionally, thermal management solutions help processing industries reduce operating costs and energy consumption.

Restraint: Volatile raw material prices

Manufacturers of thermal management solutions face a significant challenge with the fluctuating prices of raw materials, including phenol, benzene, and glycol. These prices are directly influenced by the price changes of crude oil. As a result, manufacturers must adapt to the constantly changing costs of raw materials, which can decrease their profits. Consequently, market players are seeking to improve their efficiency and productivity to maintain their position in the market and achieve growth despite these challenges.

Opportunities: Electronic vehicles (EVs) and charging infrastructure

The shift towards EVs is driving the demand for thermal management solutions such as thermal management solutions to manage the temperature of the batteries, motors, and electronics. Heat transfer fluids help in efficient operation and prolong the lifespan of these components by maintaining the optimum temperature range. Moreover, with the growing demand for EV charging infrastructure, thermal management solutions are required for thermal management of charging stations, which provides opportunities for thermal management solutions manufacturers. As such, the thermal management solutions market is expected to grow significantly in the coming years due to the increasing adoption of EVs and the need for efficient thermal management solutions.

Challenges: Fire and explosion hazards related to thermal management solutions

Chemical plants use organic fluids for high-temperature applications like metal processing, plastic processing, and specialty chemical production. Thermal management solutions are not suitable for such applications as they can create explosive atmospheres. Heat-transfer fluids are utilized at temperatures above their flash point and fall under the Dangerous Substances and Explosive Atmosphere Regulations 2002 (DSEAR). Moreover, thermal management solutions that rely on mineral oils can degrade over time, lowering the fluid’s flash point. As a result, thermal fluids that were not flammable when installed may become flammable at operating conditions over time. Under pressure, these thermal fluids may also produce explosive mist atmospheres, even when below the flash point temperature. To minimize the risk of explosion, it is essential to follow strict procedures to change the thermal management solutions and eliminate the lower flashpoint components from the fluid. Regular thermal tests can help reduce the potential for risks. However, without adequate testing and maintenance, the risk of explosion associated with heat-transfer fluids is unavoidable, which restricts their usage.

Thermal Management Solutions Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of thermal management solutions. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Some of the prominent companies in this market include ExxonMobil (US), The Dow Chemical Company (US), Chevron (US), Shell PLC (UK), and Clariant AG (Germany).

The Silicon Polymer thermal management solutions segment, by type, is expected to be the second largest market during the forecast period.

Based on type, silicone polymer-based thermal management solutions are expected to dominate the market during the forecast period. Their high thermal stability, longer fluid life, lower maintenance cost, and excellent thermal performance make them a popular choice. Compared to other types, they are versatile and can be used in a wide range of applications such as heating and cooling systems, heat exchangers, solar thermal systems, and geothermal systems. This versatility has contributed to their growing popularity in various industries and applications.

Based on form, non- aqueous form accounts for the largest share of the overall market

Based on form, the non-aqueous form holds the majority of the market share for thermal management solutions. This is because non-aqueous thermal management solutions have higher thermal stability and can operate at higher temperatures compared to water-based fluids. Additionally, non-aqueous thermal management solutions offer better heat transfer efficiency, lower viscosity, and reduced fouling and corrosion, leading to improved system performance and longer equipment lifespan. Furthermore, non-aqueous thermal management solutions have low freezing points, allowing them to be used in cold climates without the need for antifreeze additives. These benefits make non-aqueous thermal management solutions preferred choices in a wide range of applications, driving their demand and market share.

Based on Packaging, bulk containers accounts for the largest share of the overall market

Based on packaging, bulk containers account for the major share. This is because thermal management solutions are typically used in large-scale industrial processes that require a continuous and reliable supply of fluid. Bulk containers, such as intermediate bulk containers (IBCs) or drums, provide a cost-effective and efficient way to store and transport a large volume of thermal management solutions, reducing the need for frequent replacements or refills. This can result in improved operational efficiency and reduced downtime in industrial processes.

Based on Temperature, high temperature thermal management solutions accounts for the largest share of the overall market

Based on the temperature, high temperature thermal management solutions accounts for the largest share. High temperature thermal management solutions, such as synthetic oils, molten salts, and liquid metals, offer superior thermal stability, allowing them to maintain their performance properties even at extreme temperatures. They exhibit high boiling points, low vapor pressure, and excellent thermal conductivity, enabling efficient heat transfer in demanding applications. Moreover, high temperature thermal management solutions are often designed with enhanced oxidation and thermal degradation resistance, minimizing the risk of system failures and extending the fluid's service life.

Based on end-use industry, renewable energy accounts for the second largest share of the overall market

Based on the end use industry, renewable energy accounts for the second largest share in the overall market. The renewable energy industry's rapid growth has created a significant demand for thermal management solutions that are specifically designed to meet the unique requirements of these renewable energy systems, such as high thermal stability, low environmental impact, and efficient heat transfer performance. As governments and industries around the world continue to prioritize renewable energy as a key component of their energy mix, the demand for thermal management solutions in the renewable energy sector is expected to remain strong, making it the largest industry in the thermal management solutions market.

Asia Pacific is expected to account for the largest share of the global market during the forecast period.

Based on the region, Asia Pacific accounts for the largest share. The region's rapid industrialization and urbanization have resulted in a significant increase in demand for thermal management solutions in various industrial processes, including manufacturing, petrochemicals, automotive, and electronics. The growing industrial activities in countries like China, India, Japan, South Korea, and Southeast Asian countries have led to an increased need for efficient and reliable heat transfer solutions to support their expanding industrial sectors. Furthermore, the Asia Pacific region has also witnessed significant growth in renewable energy production, particularly in solar thermal and geothermal power generation. Thermal management solutions are crucial in these renewable energy systems to capture, store, and transfer heat for power generation. With a push towards renewable energy and sustainability in the region, the demand for thermal management solutions in the renewable energy sector has also increased which results in driving the thermal management solutions market in Asia Pacific.

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Thermal Management Solutions Market Players

The thermal management solutions market is dominated by a few major players that have a wide regional presence. The key players in the thermal management solutions market are The Dow Chemical Company (US), Eastman Chemical Company (US), ExxonMobil (US), Chevron (US), Huntsman Corporation (US), Shell PLC (UK), Lanxess (Germany), Clariant AG (Germany), Wacker Chemie (AG), and Dupont (US). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the thermal management solutions market.

Thermal Management Solutions Market Report Scope

This report categorizes the global thermal management solutions market based on form, type, temperature, package, end-use industry, and region.

On the basis of form, the thermal management solutions market has been segmented as follows:

• Aqueous Form
• Non-Aqueous form
• Gaseous Form

On the basis of type, the thermal management solutions market has been segmented as follows:

• Alkyl Benzenes
• Mineral Oils
• Synthetic Fluids
• Silicon Polymer
• Glycol
  • Ethylene Glycol
  • Propylene Glycol
• Water
• Steam
• Molten Salts
• Others

On the basis of temperature, the thermal management solutions market has been segmented as follows:

• High Temperature
• Low Temperature

On the basis of package type, the thermal management solutions market has been segmented as follows:

• Drums
• Bulk Containers

On the basis of end-use industry, the thermal management solutions market has been segmented as follows:

• Energy & Power
  • Non-Renewable Energy
  • Renewable Energy
    • Solar
    • Other Renewables
• Chemical & Petrochemical
• Plastic & Fiber
• Oil & Gas
• HVAC
• Pharmaceuticals
• Automotive
• Food & Beverage
• Data Center
• Others

On the basis of region, the thermal management solutions market has been segmented as follows:

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

Recent Developments

• Eastman plans to expand the Therminol 66 thermal management solutions manufacturing capacity in Anniston, Alabama in July 2022. By 2024, the expansion of the plant is anticipated to be finished, which will result in a 50% augmentation in the capacity of the US-based facility.
• In June 2022, Chevron finalized the acquisition of the Renewable Energy Group, with the aim of utilizing its expertise to provide energy with lower carbon emissions by leveraging the company's strengths.
• Eastman introduced Fluid Genius in June 2021, which is a patent-pending product that utilizes artificial intelligence technology and Eastman's proficiency to enhance the performance of heat transfer systems with predictive analytics. By providing end-users with predictive insights, Fluid Genius aids in optimizing the performance of thermal management solutions and maximizing the life cycle of thermal management solutions for diverse system applications.
• In April 2019, Eastman expanded its product offerings by acquiring Marlotherm from Sasol (South Africa). Marlotherm is a brand of thermal management solutions.

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