Market Trends of Engineered Fluids Industry
Growing Demand for Lubricants from Automotive Sector
- Engineered fluids are widely used as lubricants owing to their thermal stability and are expected to grow rapidly during the forecast period.
- They are suitable for a temperature range of about -120°C to 300°C and are more stable than petroleum-based lubricants because they do not , discolor, crack, react, or dissolve.
- Fluoride-based lubricants are resistant and non-flammable to harsh fuels and chemicals and, due to their low volatility, are often preferred for high-vacuum applications.
- The growing demand for these lubricants in various applications in automotive sector is estimated to drive the market for engineered fluids over the coming years.
- China is the major manufacturer of automobiles in the world. The country’s automotive sector is shaping up for product development, with the country focusing on manufacturing products to ensure fuel economy while minimizing emissions. It is owing to the growing environmental concerns.
- According to OICA (The Organisation Internationale des Constructeurs d'Automobiles), automobile production and sales reached 27.021 million and 26.864 million in 2022, up 3.4% and 2.1% from the previous year.
- Thus, due to the factors mentioned above, the market is expected to grow significantly during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the Engineered Fluids market during the forecast period due to increase in demand from countries like China and India.
- Engineered fluids are used as heat transfer fluids(HTFs) in a variety of applications, such as in high-performance machines, chemical industries and power generation. It is also used in electrical applications, such as , electronic devices,semiconductors and servers. The rising competition in developing artificial intelligence, supercomputers, and growing usage of electronics is expected to drive the market.
- Asia-Pacific region is referred to as home to some of the world’s most valuable vehicle manufacturers. Developing countries such as China, Japan, India, and South Korea are working hard to strengthen the manufacturing base and develop efficient supply chains for greater profitability.
- According to the Society of Indian Automobile Manufacturers (SIAM), a total of 37,92,356 passenger vehicles were sold in India in 2022, witnessing a growth rate of around 23% compared to the passenger vehicles sold in the year 2021.
- In the electronics segment, Chinese manufacturers are setting up overseas production bases in order to expand in the international markets. For instance, In March 2023, TCL broadened its presence in international markets by establishing factories abroad, producing televisions, modules, and photovoltaic cells in Vietnam, Malaysia, Mexico, and India. In addition, it formed partnerships with local companies in Brazil to collaboratively develop production facilities, supply chains, and an R&D infrastructure.
- Further, the Asia-Pacific thermal sector is registering growth, with China primarily driving the growth of the sector. China includes the most coal-fired power plants of any country or territory in the world. On the Chinese Mainland, as of July 2022, there were 1,118 operational coal power plants. It is approximately four times the number of such power plants in India, which came in second place. China accounts for more than half of worldwide coal electricity generation.
- The factors above, are contributing to the increasing demand for engineered fluids during the forecasted period.
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