Market Trends of Automotive Coolant Industry
Passenger Car Segment Likely to Dominate the Market
The passenger car segment is likely to hold a significant share of the market by the end of the forecast period owing to a rise in the demand for utility vehicles in highly populated countries such as China, India, and Brazil.
Automobile manufacturers are introducing newer brands and products to offer customized coolant and lubricant solutions for customers, expanding the automotive coolant market's share. Several global OEMs are investing in the country through either joint ventures with established players or after FDI norms have been invested directly in setting up their production units or enhancing their sales and dealership networks across the country. For instance,
- In December 2021, ExxonMobil announced that it had finalized corporate plans, which include increasing its spending to USD 15 billion on greenhouse gas emission-reduction projects over the next six years while maintaining disciplined capital investments in its industry-leading portfolio.
- In May 2021, Chevron Corporation and Noble Midstream Partners LP announced that they had completed the previously announced acquisition, which resulted in Noble Midstream becoming an indirect, wholly-owned subsidiary of Chevron.
Moreover, high demand for e-class, crossovers, SUVs, and hatchbacks is driving the passenger vehicle segment, which, in turn, is likely to boost the automotive coolant market. The rise in preferences for private transport and purchasing power of consumers is driving the passenger vehicle segment of the market.
The Passenger car segment of the market during the forecast period is to grow at a faster pace owing to rising vehicle production and the growing focus of key OEMs on launching innovative products to attract a wide range of consumers in wake of rising vehicle sales across major regions in the world.
Asia-Pacific dominating the Market
Asia-Pacific held a leading share of the global automotive coolant market due to the higher volume of vehicles produced in major countries, including India, China, and Japan, and lower manufacturing and labor costs across the region. India is expected to witness prominent growth due to the rising demand for vehicles during the forecast period. Moreover, the availability of inexpensive labor and raw material in the region, coupled with the increasing number of local manufacturers, is likely to propel the market in Asia-Pacific during the forecast period.
India is presently the sixth-biggest passenger vehicle manufacturer globally and the second-leading commercial vehicle developer. Rapid industrialization has given way to improvements in the infrastructure, which is likely to benefit the regional market's progress. The swelling number of small and medium enterprises has elevated the demand for light passenger vehicles and heavy-duty trucks.
Indian PSU oil players, like IOCL, HPCL, BPCL, etc., and private players like RIL are continuously increasing their crude oil production capacity. As ethylene glycol is a crude oil by-product, the increasing production and refining capacity of crude oil may increase the availability of ethylene glycol in India, simultaneously boosting the domestic production of coolants in the country.
Major key players expanding their manufacturing facilities to enhance the product portfolios across the region, which in turn is likely to witness major growth for the market during the forecast period. For instance,
- In August 2022, Shell Lubricants announced it sell electric vehicle battery coolants in India. Shell Lubricant India had increased its production capacity at its lubricant oil-blending plant at Taloja in Maharashtra recently, and it now plans further expansions for a few more India- as well as South Asia-specific products.
The increasing domestic production of coolants may significantly help coolant manufacturers cater to the rising demand for coolants in the country. This is projected to fuel the automotive coolant market in the region over the next few years.
