LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global automotive coolant market to grow at a CAGR of close to 5% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global automotive coolant market for 2017-2021. The report also lists passenger cars, M&HCVs and LCVs as the three major application segments, of which the passenger cars segment dominated the market with close to 63% of the market share in 2016.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global automotive coolant market:
- Heavy dependence on IC engines for mobility in emerging countries
- Increasing sales of passenger cars is driving demand for automotive coolant
- Growing stringent norms to enhance fuel economy
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Heavy dependence on IC engines for mobility in emerging countries
Emerging countries such as India and China are witnessing an increase in the preference for mobility through roadways. In 2016, IC engines held a market share of more than 95% of the total vehicles sold globally. Therefore, these vehicles played a crucial role in mobility. In the commercial vehicle segment, there is hardly any vehicle that runs on battery or on alternate fuels. Therefore, the reliance on ICEs for transportation is high. All IC engines require engine coolants to dissipate the excess heat from the engine compartment. Even the coolant capacity in the M&HCVs is more than other vehicles. In APAC, on an average, the coolant capacity is 29L, whereas, in the Americas and Europe, the coolant capacity is 42L and 38L respectively for heavy-duty trucks.
According to Amey Vikram, a lead analyst at Technavio for automotive components research, “The lack of sufficient rail services for logistics is leading companies to choose roadways as a reliable mode of transportation for their products. IC engines are the backbone for providing easy mobility and for transporting cargo. The high requirement for IC engines will drive the demand for automotive coolants.”
Increasing sales of passenger cars is driving demand for automotive coolant
The sale of passenger cars is highly correlated with the growth of the global automotive coolant market. The market for automotive coolant in the passenger cars segment accounted for close to 63% of the global automotive coolant market in 2016. The global car sales increased in all the regions in 2016 where SUVs and crossovers registered the highest sales growth in the China and the European passenger cars market.
OEMs such as Toyota have plans for increasing their production of passenger cars. Toyota is planning to relocate its auto production to Mexico by 2019 to meet the increased demand for SUVs and crossovers in Canada and the US. The increase in the sales of passenger cars will drive the demand for automotive coolants as all IC passenger cars are equipped with coolants to dissipate excess heat.
Growing stringent norms to enhance fuel economy
All economies either developed or developing are trying to enhance fuel economy and restrict carbon emissions emitted by the automotive industry. Therefore, OEMs are focusing on enhancing the engine cooling system to limit the emission levels. Advances, such as increased use of nanofluids, increase in adoption of electric coolant pump, and increased use of propylene glycol in coolants, are being adopted to enhance the engine cooling system to enhance fuel economy.
“In Europe, there is a tax regulation based on fuel consumption and carbon emission. Therefore, OEMs are keen on improving fuel efficiency and reducing carbon emissions to meet the stringent government regulations and reduce the cost burden to be paid as tax. Therefore, the increasing focus on enhancing the fuel economy will drive the demand for automotive coolant,” says Amey.
The European Commission marks the new vehicles sold in Europe with various emissions labels displaying the vehicle’s mileage and emissions to help drivers in choosing a fuel-efficient vehicle. In the Americas, the EPA has mandated new CAFE regulations that aim at nearly doubling the current fuel economy requirements. CAFE standards will undergo another amendment by 2018 for raising the stringency of the fuel economies of commercial vehicles, including MCVs such as school buses, garbage trucks, and others that are mainly used for intracity transport. All these regulations augur well for the growth of the automotive coolant market during the forecast period.
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