Written by Eric Pimenta and Pooja Sharma
In 2016, the total demand for undiluted antifreeze in the United States is estimated at nearly 620 kilotonnes. This represents an increase at a compound annual growth rate (CAGR) of 0.6% from the 2011 volume of about 600 kilotonnes.
The U.S. antifreeze market is essentially glycol-based, with mono-ethylene glycol (MEG) and propylene glycol currently being the two most popular base-fluids used for formulating antifreezes. With 84% of the total antifreeze market, MEG is the leading base-fluid type.
In terms of product technology, there is a growing demand for organic acid extended-life antifreezes. Additives in these antifreezes act slowly, but have longer service life when compared with conventional antifreezes. Thus, if these antifreezes are used in accordance to OEM recommendations, they do not require draining after every two years, reducing overall maintenance cost and vehicle downtime.
The market is quite consolidated as the top four companies account for nearly 80% of the total market. Leading the way is Old World Industries (OWI), followed by Prestone, Valvoline, and Chevron.
The commercial automotive service-fill segment accounts for over 60% of the total antifreeze demand in the United States, followed by the consumer automotive service-fill segment with over 25%.
The automotive industry in the United States witnesses a slow growth, at 1%, in 2016 over 2015. While passenger car and two-wheeler sales experienced a decline in sales during the year, sales of commercial vehicles, particularly light commercial vehicles, witnesses strong growth. Car sales in the United States have been low; nonetheless, the commercial vehicles market is witnessing growth and driving the automotive market in the United States.
Total demand for coolants in the United States is expected to increase to over 620 kilotonnes by 2021, growing by a CAGR of 0.1%. Commercial vehicles will continue to be the leading market segment, followed by consumer vehicles.
Although growth in volume demand for coolants in the United States is subdued, the market is attractive for high performance extended life antifreezes.
Pooja Sharma, Project Lead in Kline’s Energy Practice, will be hosting a complimentary webinar on the recently published Opportunities in Coolants: Global Market Analysis report on Wednesday, May 24, 2017 at 9:00 AM EDT. Please click here to register.