South America Antifreeze Market Key Players and Forecast by 2027

The South America antifreeze market accounted to US$ 552.52 million in 2019 and is projected to account US$ 806.69 million by 2027; it is expected to grow at a CAGR of 5.0% during 2020–2027.

Antifreeze is a type of additive that helps in lowering the freezing point in a water based liquid. A mixture of antifreeze is used to obtain freezing point depression for cold environments. With changing and evolving times, antifreeze has been used increasingly in various applications other than being used in automobiles. Antifreeze is produced by mixing water with any one of the four main agents namely, glycerol, ethylene glycol, methanol and propylene glycol. Each of these agents can be put into a variety of uses. Heating, ventilation and air conditioning (HVAC) systems have become an integral part of the modern residences, hospitals, office buildings and ships & submarines. Antifreeze are used in the HVAC systems for preventing the pipes from freezing, bursting and causing damage. It reduces the risk of corrosion and scale build ups. Solar energy is being used all over the world. Antifreeze find application in the solar water heating systems in the form of heat transfer fluid which offer protection from freezing and prevents causing damage to the system. The need of effective heat dissipation and protection against corrosion & heating among the manufactures also require the employment of antifreeze. There is growing demand for antifreeze products and coolants due to the rise in the sale of construction equipment that are used in heavy duty workloads by the manufactures of construction equipment. Other than this, the demand for antifreeze products are increasingly being used in aerospace applications. Freezing temperatures and snowfall lead to perilously ice driveways. The use of non-toxic antifreeze mainly propylene glycol helps in clearing the snow before the spraying of diluted antifreeze over the icy areas. Owing to these attributes antifreeze is employed in different applications which again bode well the growth of the market.

The COVID-19 pandemic first began in Wuhan (China) in December 2019, and since then, it has spread at a fast pace across the globe. As of February 2021, Brazil and Argentina are among the worst-affected countries in terms confirmed cases and reported deaths. The pandemic has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Shutdowns of chemicals and materials industry and disruptions in supply chains due to lockdown of countries has created a strain on the supplies of the various products offered by this industry. In South America, India is the worst-hit country by the COVID–19 outbreak. The government of various countries in the South America has taken necessary steps to reduce its effects by announcing lockdowns, and thus, impacting the growth of the antifreeze market. The introduction of lockdowns has resulted in the halt of construction projects in the region, which negatively impacted the growth of antifreeze in the region. After a prolonged lockdown, various countries have started easing the restrictions. The COVID–19 pandemic will have a short-term impact on the Asia Pacific antifreeze market; however, the market will recover in the coming years.   

South America Antifreeze Market

Market Insights

Development of Eco-Friendly and Bio-Based Antifreezes

The conventional antifreeze such as ethyl glycol and propylene glycol are vital for the automobiles but at the same time are very toxic to the plants, animals and the environment at large. They are required to be stored and treated with care and must be disposed of properly. However, as per the Agency for Toxic Substances and Disease Registry (ATSDR) propylene glycol is considered to be less toxic and causes harm in small amounts. Glyserol on the other hand enjoy the advantage of being non-toxic, non-corrosive and has the capacity to withstand high temperature which supports its usage as an antifreeze in automobiles. There is a rising demand for environment friendly and bio-based antifreeze and coolants by the automotive manufacturers due to the upsurge in concerns related to the pollutant emission by the vehicles. Hugh quality recycled antifreeze products are now being produced by reclaiming the glycol, a freeze point depressant and consequently stripping all the contaminants & residual corrosion inhibitors from the glycol. The glycol or glycol water mixture is then being used as a raw material for the formulation of an engine coolant and antifreeze that can perform well. Many companies have developed bio-based, ecologically and environment friendly non-toxic antifreeze for process cooling and AC systems which are produced from refined vegetable extracts. The increasing investments by the Government in conducting research & development activities for the development of cost effective, eco-friendly and performance efficient antifreezes creates significant opportunities for the development of the antifreeze market in the long run.

Product Type Based Insights

The antifreeze market based on product type has been segmented into ethylene glycol, propylene glycol, glycerin, and methanol. In 2019, the ethylene glycol segment accounted for a larger share of the South America antifreeze market, whereas the market for propylene glycol is expected to grow at a higher CAGR during the forecast period. Ethylene glycol is an organic compound mainly used as a raw material in the manufacture of polyester fibers and for antifreeze formulations. It is a colorless, odorless, sweet-tasting, viscous liquid. End-user industries highly prefer ethylene glycol-based antifreeze due to its exceptional properties such as the ability to be mixed in any proportion to form coolant, miscibility in water, and others. The production cost of ethylene glycol coolants is less as it requires less energy at various stages of conversions, along with the low cost of raw materials. Thus, ethylene glycol coolants are cost-efficient, and this is also one of the primary factors driving a huge number of customers to opt for ethylene glycol coolants. Earlier, vehicle owners were reluctant to use ethylene glycol owing to its sweet taste and toxic characteristics. The sweet taste of ethylene glycol attracted animals to consume it, which lead to the deaths of pet animals worldwide. Hence, coolant manufacturers started adding a bittering agent in ethylene glycol, and thereafter the product regained its demand in the market. Moreover, the low viscosity and low freezing point properties of ethylene glycol makes it ideal for winter and summer conditions, and hence it is largely adopted in regions like South America.                                                                        

South America Antifreeze Market, by Product Type – 2019 and 2027

Technology Type Based Market Insights

Based on technology type, the antifreeze market is segmented into organic acid technology antifreeze (OAT), inorganic acid technology antifreeze (IAT), and hybrid organic acid technology (HOAT). In 2019, the organic acid technology antifreeze segment dominated the South America antifreeze market and is also expected to grow at the fastest rate during 2020–2027. Organic Acid Technology (OAT) is expected to exhibit a staggering growth over the forecast period. In organic acid technology, the corrosion inhibitors are entirely neutralized organic acids and azoles. OAT antifreeze consists of 2-EHA, sebacate, and numerous organic acids. OAT antifreeze does not contain phosphates or silicates. It is primarily exploited in heavy and light-duty automotive. It has an extended lifespan, which is up to 6 years or 960,000 kilometers for heavy-duty vehicles, whereas, for a lightweight automotive vehicle, its lifespan is up to 5 years or 250,000 kilometers. In addition to this, it offers superior protection to magnesium and aluminum-based engines that are used in modern engines and thereby makes it suitable across the automotive industry. The aforementioned product properties are likely to make a significant contribution to coolants market size in the coming years.

Application Based Market Insights

Based on application, the antifreeze market is segmented into automobile, construction, electronics, and others. In 2019, the automobile segment dominated the South America antifreeze market and the others segment is expected to grow at the fastest rate during 2020–2027. Antifreeze is considerably used in the automotive industry to maintain the optimum temperature inside the vehicle's engine by lowering excess heat which is produced when it runs and thereby avoiding severe damage to its internal component. The rapidly growing automotive industry in South America is driving product demand. For instance, as per the OICA (Organisation Internationale des Constructeurs d'Automobiles), the light commercial vehicle production has grown from 10.4 million units in 2015 to 11.0 million units in 2016. The increased sales of vehicles are attributed to the rising living standards of the populace and increasing per capita income. A similar trend is observed in other regions as well. The automotive sector in developing countries such as China, India, and Indonesia is expanding tremendously. For instance, India's automotive industry has proliferated over the last few years and this expansion in the vehicle's sales has considerably increased the demand for coolants in the country, thereby contributing to the South America market growth.

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South America Antifreeze Market: Strategic Insights

Market Size Value in	US$ 552.52 Million in 2019
Market Size Value by	US$ 806.69 Million by 2027
Growth rate	CAGR of 5.0% from 2020-2027
Forecast Period	2020-2027
Base Year	2020

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Product development, merger and acquisition, and business planning are the commonly adopted strategies by companies to expand their product portfolio. BP p.l.c, Chevron Corporation, BASF SE, CCI Corporation., Old World Industries, LLC, Prestone Products Corporation, Total, Exxon Mobil Corporation and Royal Dutch Shell Plc. are amongst the market players implementing this strategy to enlarge the customer base and gain significant market share in South America, which in turn permits them maintain their brand name in the South America market.

Report Spotlights

• Progressive industry trends in the South America antifreeze market that help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the South America antifreeze market from 2017 to 2027
• Estimation of South America antifreeze demand across various industries
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry to predict market growth
• Recent developments to understand the market competition in South America
• Market trends and outlook, coupled with factors driving and restraining the growth of the South America antifreeze market
• Decision-making process by understanding strategies that underpin commercial interest with regard to the South America antifreeze market growth

• South America Antifreeze market size at various nodes of market
• Detailed overview and segmentation of the South America antifreeze market, as well as its dynamics in the industry
• South America antifreeze market size in various regions with promising growth opportunities

South America Antifreeze Market, by Product Type

• Ethylene Glycol
• Propylene Glycol
• Glycerin
• Methanol

South America Antifreeze Market, by Technology Type

• Organic Acid Technology Antifreeze (OAT)
• Inorganic Acid Technology Antifreeze (IAT)
• Hybrid Organic Acid Technology (HOAT)

South America Antifreeze Market, by Application

• Automobile
• Construction
• Electronics
• Others

Company Profiles

• BP p.l.c
• Chevron Corporation
• BASF SE
• CCI Corporation
• Old World Industries, LLC
• Prestone Products Corporation
• Total
• Exxon Mobil Corporation
• Royal Dutch Shell Plc