Thermic Fluids Market

Market Definition

The market covers the global landscape of heat transfer fluids used in various industrial applications. It involves the manufacturing, supply, and use of synthetic and organic fluids for efficient thermal management. Key areas where thermic fluids are used include chemical processing, oil and gas, food and beverage, pharmaceuticals, and renewable energy solutions such as concentrated solar power systems. 

The report explores key drivers of market development, a detailed regional analysis, and a comprehensive overview of the competitive landscape that will shape future opportunities.

Thermic Fluids Market Overview

The global thermic fluids market size was valued at USD 11.32 billion in 2024 and is projected to grow from USD 11.71 billion in 2025 to USD 15.27 billion by 2032, exhibiting a CAGR of 3.86% during the forecast period. 

The market is witnessing consistent growth driven by the rising demand for energy-efficient systems and the expansion of industrial operations worldwide. The growing use of concentrated solar power (CSP) plants and the shift toward cleaner energy solutions have significantly increased the demand for heat transfer fluids.

Major companies operating in the thermic fluids industry are Eastman Chemical Company, Exxon Mobil Corporation, Shell Group, Unilub, HP Lubricants, Chevron Corporation, Dow, Clariant, Paratherm, Dynalene, Inc., Multitherm LLC, Rhomar, Tulstar Products Inc, Schultz, and Wacker Chemie AG.

Major industrial sectors, such as chemical processing, oil and gas, and food and beverage, continue to rely on thermal fluids for precise temperature control and process efficiency. 

The market is largely driven by innovation in advanced thermal fluids to enhance safety and reliability, particularly in high-risk applications like energy storage. These fluids offer superior thermal stability and are non-flammable, which helps prevent critical failures and extend operational lifespan.

• In September 2024, Hanwha Aerospace and SK Enmove unveiled the world’s first immersion cooling energy storage system (ESS), featuring advanced thermal fluids for enhanced battery safety and non-flammability. The system prevents thermal runaway and is certified by global institutions for maritime use.

Key Highlights

1. The thermic fluids industry size was valued at USD 11.32 billion in 2024.
2. The market is projected to grow at a CAGR of 3.86% from 2025 to 2032.
3. Asia Pacific held a market share of 36.33% in 2024, with a valuation of USD 4.11 billion.
4. The mineral oils segment garnered USD 4.36 billion in revenue in 2024.
5. The oil & gas segment is expected to reach USD 4.36 billion by 2032.
6. The market in Europe is anticipated to grow at a CAGR of 4,01% during the forecast period.

Market Driver

Growing Need for Efficient Thermal Management

The thermic fluids market is propelled by increasing demand for efficient thermal management solutions in data centers, electric vehicles, and renewable energy systems. As these segments expand, they require advanced fluids for maintaining optimal temperatures to ensure operational efficiency and reliability. 

Data centers rely on effective cooling for their high-density computing equipment to prevent overheating and maintain performance. Electric vehicles demand thermal fluids that manage battery temperatures to enhance safety and prolong battery life.

Meanwhile, renewable energy systems utilize thermal fluids to optimize heat transfer in energy generation and storage, improving overall system efficiency. This rising need for precise, reliable thermal control across diverse high-growth applications significantly drives the adoption of advanced thermic fluids.

• In December 2024, Castrol launched Castrol ON Direct Liquid Cooling PG 25, a ready-to-use propylene glycol-based cooling fluid designed for direct-to-chip cooling in high-performance data centers. The product addresses growing thermal management needs of AI and high-density computing, offering protection against corrosion and bacterial growth while enhancing cooling efficiency.

Market Challenge

Thermal Degradation and Fluid Longevity Challenge

A significant challenge in the thermic fluids market is thermal degradation, which shortens fluid lifespan and affects overall system performance. Continuous exposure to high temperatures can cause chemical breakdown, leading to increased viscosity, corrosion, and deposit buildup. These issues raise maintenance costs and reduce operational efficiency, which impacts industrial processes that rely on efficient temperature control. 

To overcome this, manufacturers are focusing on developing advanced synthetic thermic fluids with enhanced thermal stability. These next-generation fluids withstand higher temperatures without degrading, ensuring longer service life and reliable performance. This advancement helps reduce downtime and maintenance frequency, ultimately improving cost efficiency and system reliability for various industries using thermal fluids.

• In November 2024, LANXESS introduced Everest ESR 220, a sustainable synthetic ester lubricant optimized for use with low-GWP refrigerant R-1234ze in HVAC and refrigeration systems. Developed in collaboration with a leading OEM and supported by the U.S. Department of Energy grant, Everest ESR 220 enhances system efficiency and stability, reduces maintenance costs, and extends equipment lifespan.

Market Trend

Shift Toward Eco-Friendly and Biodegradable Thermal Fluids

The thermic fluids market is witnessing a growing trend of eco-friendly, PFAS-free, and biodegradable synthetic thermal fluids. These fluids are designed for immersion cooling and direct liquid cooling applications, which are critical for improving energy efficiency in industrial and data center environments. 

By minimizing harmful chemical components, these advanced fluids reduce environmental impact and address sustainability concerns. This shift includes industries aiming to lower their carbon footprint while maintaining high thermal performance. 

The demand for safer and greener thermal fluids reflects a broader commitment to sustainable practices, driving innovation in fluid formulation and expanding market opportunities for environmentally responsible solutions.

• In October 2024, Perstorp launched Synmerse DC, a high-performing, biodegradable synthetic fluid designed for immersion cooling in data centers. The product offers enhanced thermal management, operational safety, and reduced maintenance while being 100% PFAS-free with zero ozone depletion potential. Synmerse DC was developed in collaboration with leading processor manufacturers to ensure compatibility with next-generation computing technologies.

Thermic Fluids Market Report Snapshot

Segmentation	Details
By Type	Mineral Oils, Synthetic Fluids, Glycol-based Fluids, Others
By End-use Industry	Oil & Gas, Chemicals Manufacturing, Food & Beverage Processing, Pharmaceuticals Manufacturing, Textile Manufacturing & Processing, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Mineral Oils, Synthetic Fluids, Glycol-based Fluids, and Others): The mineral oils segment earned USD 4.36 billion in 2024 due to their widespread use in moderate-temperature applications and lower initial cost compared to synthetic alternatives.
• By End-use Industry (Oil & Gas, Chemicals Manufacturing, Food & Beverage Processing, Pharmaceuticals Manufacturing, Textile Manufacturing & Processing, and Others): The oil & gas segment held 29.55% of the market in 2024, due to the high demand for reliable heat transfer solutions in upstream and downstream operations.

Thermic Fluids Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific thermic fluids market share stood at around 36.33% in 2024 in the global market, with a valuation of USD 4.11 billion. The region’s growth is driven by robust industrial development across China, India, Japan, and Southeast Asian countries. China leads in chemicals and textile manufacturing, where thermal fluids are critical for maintaining operational efficiency. 

India has witnessed significant expansion in food and beverage and pharmaceutical production, both of which rely on thermic fluids for precise temperature control. Japan’s advanced electronics and materials processing sectors also keep the demand consistent. Additionally, rising investments in solar power projects across countries have increased the uptake of synthetic thermal fluids, particularly in concentrated solar power (CSP) systems.

The industry in Europe is expected to register the fastest growth in the market, with a projected CAGR of 4.01% over the forecast period, driven by the region’s advanced industrial infrastructure and strong presence of key end-use sectors. Europe hosts a dense network of chemical, pharmaceutical, and food processing industries, which rely heavily on efficient heat transfer solutions to optimize production. 

The increasing adoption of high-performance thermic fluids in these industries supports energy efficiency and operational reliability, boosting market demand. Additionally, Europe’s mature manufacturing ecosystem includes significant investments in modernization and process optimization, encouraging the replacement of conventional heating methods with advanced thermic fluid systems. 

The region’s established R&D capabilities further contribute to the development and adoption of innovative fluid formulations for specific industrial applications, enhancing market penetration.

• In October 2024, The Lubrizol Corporation expanded its partnership with the Oil Store to grow its distribution of refrigeration lubricants and heat transfer fluids across the UK, Europe, the Middle East, and North Africa. This collaboration supports the increasing regional demand for industrial refrigeration and heat transfer solutions.

Regulatory Frameworks

• In Europe, DSEAR (Dangerous Substances and Explosive Atmospheres Regulations) and ATEX (ATEX Directive) regulations are the main regulatory authorities for thermal fluid management, particularly when dealing with flammable or explosive materials.
• In India, the regulatory authority related to thermal fluids is the Bureau of Indian Standards (BIS). The BIS develops and implements standards for various aspects of thermal fluid use, including safety, quality, and performance.

Competitive Landscape

The thermic fluids industry is characterized by key players focusing on innovation and strategic expansion to maintain their market share. Companies are investing in research and development to enhance the thermal stability, safety, and environmental compatibility of their products. 

Strategic collaborations and partnerships with end-use industries are utilized to tailor solutions that meet specific customer requirements. Expansion into emerging markets through local manufacturing facilities and distribution networks is a priority to improve accessibility and reduce costs. 

Additionally, players emphasize product portfolio diversification by introducing advanced synthetic and bio-based fluids to address a wider range of applications. Mergers and acquisitions also play a critical role in strengthening their technological capabilities and geographic reach.

• In June 2024, Perstorp partnered with Intel’s Open IP Advanced Liquid Cooling team to develop a high-performance synthetic thermal management fluid for immersion cooling in data centers. The fluid, designed for Intel’s SuperFluid Cooling Technology, features low viscosity, superior thermal performance, and enhanced sustainability as a PFAS-free, biodegradable solution.

List of Key Companies in Thermic Fluids Market:

• Eastman Chemical Company
• Exxon Mobil Corporation
• Shell Group
• Unilub
• HP Lubricants
• Chevron Corporation
• Dow
• Clariant
• Paratherm
• Dynalene, Inc.
• Multitherm LLC
• Rhomar
• Tulstar Products Inc
• Schultz
• Wacker Chemie AG

Recent Developments (Product Launch)

• In May 2025, Chemours Company entered into a strategic agreement with Navin Fluorine International Limited to manufacture Opteon two-phase immersion cooling fluid. The partnership, part of Chemours’ expanded Liquid Cooling Venture, aims to support growing data center cooling demands driven by AI and next-generation chips.