Coolant and antifreeze demand in any given region is closely related to the vehicle population, vehicle type, and dilution rates prevalent in that region. While most coolants and antifreeze manufacturers specify the recommended dilution needed for their products, not all end-users heed these recommendations. This is especially true in developing markets where there is little awareness of the significance of coolants in vehicle operation and maintenance. In many countries, such a China and India, a large proportion of end-users dilute coolants beyond recommended levels, in some cases completely replacing coolants with water.

The global market for undiluted coolants is estimated to be more than 1.9 million metric tons per year with an estimated value of 5.4 billion. North America has the highest demand for coolants globally, accounting for 37 percent of the total, followed by the Asia-Pacific region with 32 percent and Europe with 24 percent. South America accounts for 4 percent and the rest of the world, including Middle Eastern and African countries, accounts for 3 percent of the total global volume.

European demand for undiluted antifreeze and coolants is estimated to be over 450,000 t/y, around half of which is for passenger cars. The region had more than 300 million passenger cars in 2011, and approximately 400 million total vehicles.

It goes without saying that demand for factory-fill antifreeze is directly related to vehicle production in the region. According to the European Automobile Manufacturers Association (ACEA), Europe accounts for 24 percent of global vehicle production with approximately 210 production plants in 22 countries. With over 6.3 million vehicles produced in 2011, Germany is the leading manufacturer of passenger cars and commercial vehicles, followed by Spain and France. Together these three countries account for approximately 56 percent of the total passenger car and commercial vehicle production in Europe in 2011. Over 55,000 t/y of undiluted antifreeze and coolants are used for factory fill in auto plants in Europe.

Most of the coolant used around the world falls into one of three categories – Inorganic Acid Technology (IAT), which contain silicates; Organic Acid Technology (OAT), which are free of silicates; or Hybrid Organic Acid Technology (HOAT). OAT is the leading technology globally followed by IAT and HOAT.

In Europe, however, the majority of coolants and antifreeze used fall under the HOAT and Si-OAT (adds silicates to OAT technology) product categories. HOAT antifreeze, as the name suggests, contains a mixture of organic acids as well as inorganic corrosion inhibitor compounds. Hybrid products with lower concentrations of silicates compared to the traditional IAT products are also known as Si-OAT. These antifreezes benefits of silicate-free, long-life antifreezes with those of antifreezes that do contain silicates. In Europe, Mercedes-Benz, Volkswagen, and BMW use these antifreezes for factory-fill and recommend them for replacement fill.

The European automobile population is expected to grow at a rate of 1.8 percent from 2011 to 2016 and 1.9 percent from 2016 to 2021. Although the population is increasing marginally, the antifreeze and coolants market in Europe is expected to shrink during the same period. This is primarily due to the growing demand for extended-life antifreezes with longer drain intervals than regular antifreezes.

Despite an increasingly uncertain economic environment and declining volumes, opportunities exist for coolants and antifreeze suppliers. Some countries in greater Europe, such as Russia, still have the potential to grow antifreeze sales. The drain intervals of coolants and antifreeze used in these places is still lower than the regional average and presents an opportunity to market high-end, long-life coolants. Moreover, vehicle production in Russia has grown at a cumulative rate of 5.7 percent per year since 2006 despite a significant dip during the recession. Consequently, factory-fill sales in Russia also present a big opportunity.

In addition to exploring unsaturated markets, there is also scope for new product developments. A majority of coolants and antifreezes marketed globally are ethylene glycol based, and the penetration of propylene glycol based products is low due to its high price differential with ethylene glycol. A number of coolant and antifreeze manufacturers have started marketing economical glycerin and ethylene glycol blended products. This trend is expected to continue with the increasing availability of glycerine, provided glycerine prices remain competitive. Overall, the European market will grow in value rather than volume due to increased usage of high-end, extended-drain coolants. The anti-freeze and coolant market will evolve with new product innovations involving coolant bases and technology.