Automotive Antifreeze Market Insights

The major use of automotive antifreeze is in passenger manufacturing (OEMs) and the automotive aftermarket. Antifreeze is typically used by passenger makers for the initial filling of the vehicles' cooling systems. Such filling depends on the capability of the cooling system and the vehicle type. For instance, the average cooling system capacity of passenger cars in the light vehicle segment is around 8 to 10 liters in the US, and that is over 35 liters for medium/heavy trucks. In the aftermarket automotive market, there is a major user of antifreeze as vehicles in service need changing coolants every 24 to 36 months. Consumption of coolants is high in the automotive aftermarket, with a significant number of passenger vehicles and commercial vehicles in transit in North America and Asia-Pacific. Furthermore, in North America, the average age of vehicles is about 11 years and needs periodic maintenance for proper service. Considering the above-mentioned factors and increasing customer spending on vehicle maintenance, demand for coolants is expected to drive the end-user segment of the automotive aftermarket.

The automotive aftermarket is the secondary market of the automotive industry, which involves the business of automotive services and parts. In recent years, due to technological developments, changing consumer demands, and changes in competitive power, the global automotive aftermarket has seen healthy growth. In the last decade, technical advances in the global aftermarket have helped to increase the average age of vehicles. Improving vehicle build quality & standards, growth of the organized used vehicle market, and rising focus and understanding of vehicle maintenance are the key factors favoring this pattern. Depending on the type of vehicle, these factors have increased the demand for automotive aftermarket services and, thus, for automotive antifreeze in the regional markets of North America and Asia-Pacific, as the replacement of antifreeze in an automobile is necessary over a period of 2-5 years. However, the production of petrochemicals and, subsequently, the production of ethylene glycol and propylene glycol have been affected by fluctuating crude oil prices. Thus, the volatile prices of raw materials are expected to hold back the growth of the global demand for automotive antifreeze during the forecast period.

The largest automotive antifreeze demand in North America is due to a large number of automobiles and their vibrant intercity and country road connectivity. Asia Pacific and Europe are preceded by road connectivity. In Asia Pacific, mainly in China and other developing countries such as India, Malaysia, Indonesia, Thailand and the Philippines, are the leading countries for automotive antifreeze. The market for automotive antifreeze in the Asia Pacific region is increasing among the middle-class population and expanding road transport infrastructure. Also, the other major factors supporting the growth of automotive antifreeze market is growing demand for passenger vehicles, increasing mobility due to the growth of satellite township near megacities and increasing demand for product carriers from micro, small and medium enterprises (MSMEs). In North America and Europe, the growth of automotive aftermarket and do it yourself (DIY) culture is fueling the growth of automotive antifreeze.

Impact of COVID-19 on the Global Automotive Antifreeze Market

The region-wide outbreak of COVID-19 has resulted in a city lockdown, border limits, and the collapse of transport networks. This is expected to have a major impact on the supply chains of chemicals & products, foreign trade, and worldwide manufacturing activities. The global economy is expected to contract by about 1% or more, according to the United Nations, instead of registering 2.5% expansion, as projected by the 2020 World Economic Situation and Prospects Survey. The rate of contraction in the world economy is estimated to be more than 1% or probably more than what was observed in the 2009 global financial crisis (i.e. ~2.5%) if governments (in both developing and developed countries) do not provide the requisite income support and help increase consumer spending. With the continuous spread of the novel coronavirus around the world, automakers are taking drastic steps to avoid the spread of COVID-19 in the form of plant closures. As more European firms suspend work, the situation remains fluid, and US automakers prolong shutdown times. The initiative of the automakers to stop production in North America is an attempt to slow down the COVID-19 outbreak; however, the area is currently the global epicentre of the outbreak, with the regular number of reported cases outstripping the number in China.

Some of the prominent players in the automotive antifreeze market include Exxon Mobil Corporation, Halfords Group PLC., Castrol limited, Prestone Products Corporation, Valvoline Inc., China Petroleum & Chemical Corp, Rock Oil Company LLC., Total SA, Motul, Kost USA, and others.

The global automotive antifreeze market is segmented as below:

Automotive Antifreeze Market Segmentation

Automotive Antifreeze Market By Product

Ethylene Glycol

Propylene Glycol

Glycerin

Automotive Antifreeze Market By Vehicle

Passenger Vehicles

Commercial Vehicles

Automotive Antifreeze Market By Distribution

OEM

Automotive Aftermarket

Automotive Antifreeze Market By Geography

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa