Regional Forecast: Europe’s Coolant Market Trends Under the EU Green Deal

The global automobile coolant market is undergoing a significant transformation as the automotive industry transitions toward sustainability, electrification, and enhanced engine performance. Automotive coolants, formulated with base fluids such as ethylene glycol, propylene glycol, and glycerine, are indispensable to maintaining optimal operating temperatures and ensuring corrosion protection in both traditional internal combustion engine (ICE) and electric vehicles (EVs). These fluids play a critical role in extending engine life, improving efficiency, and ensuring vehicle safety across a wide spectrum of climate conditions and driving environments.

The rise of electric vehicles, increasingly stringent environmental regulations, and technological advancements in vehicle thermal management are reshaping the competitive landscape of the coolant industry. With vehicle manufacturers and fleet operators actively seeking sustainable and high-performance solutions, the automobile coolant market is poised for steady and strategic growth.

According to Persistence Market Research, the global automobile coolant market size is likely to be valued at US$8.42 Bn in 2025 and is projected to reach US$10.8 Bn by 2032, achieving a CAGR of 3.6 percent during the forecast period from 2025 to 2032.

This growth is supported by increasing consumer awareness, regulatory compliance requirements, and innovation in both product formulations and thermal management technologies. Key industry players are introducing long-life and bio-based coolants to meet changing demand, while regional markets show diverse patterns in adoption, regulation, and application preferences.

Key Drivers Accelerating Market Growth

1. Expansion of the Electric Vehicle Market

The electric vehicle segment is a major growth catalyst for the coolant industry. As EVs gain global traction, their thermal management needs differ significantly from those of ICE vehicles. EVs require non-conductive, specialized coolants to protect battery packs, electric motors, and power electronics. In fact, around 60 percent of EV thermal management relies on liquid cooling solutions.

The global EV market, valued at approximately US$400 Bn in 2024, continues to accelerate due to increasing government incentives, technological innovation, and emission reduction mandates. By 2030, EVs are expected to represent around 40 percent of global vehicle sales. This rapid growth is creating new opportunities for advanced and sustainable coolant formulations specifically tailored to the needs of electrified vehicles.

2. Increasing Demand for Eco-Friendly Coolants

Environmental regulations and sustainability initiatives are shaping coolant choices worldwide. Conventional ethylene glycol-based coolants, though effective, are facing scrutiny due to their toxicity and potential environmental impact. Approximately two million tons of used coolant are generated each year, and improper disposal can lead to soil and water contamination.

As a result, demand is rising for low-toxicity alternatives like propylene glycol and glycerine-based coolants. These bio-based coolants are biodegradable, safer for the environment, and align with regulatory frameworks in regions like North America and Europe. Manufacturers investing in these greener formulations are well positioned to capitalize on the growing preference for sustainable automotive fluids.

3. Growth in Commercial Vehicle Fleets

Commercial vehicles represent the largest end-use segment for automotive coolants, accounting for an estimated 73 percent share of the global market. This dominance is driven by their large engines, high thermal loads, and continuous operational cycles, which require frequent coolant replacement and higher coolant volumes.

The rise in e-commerce, logistics, and freight operations is expanding commercial vehicle fleets globally. Additionally, the growing presence of electric commercial vehicles further drives the need for advanced, high-performance coolant solutions that can support EV battery systems and power electronics under heavy-duty conditions.

Product Type Trends

Ethylene Glycol-Based Coolants

Ethylene glycol remains the dominant coolant type, capturing over 60 percent of the global market share. Its superior thermal performance, affordability, and wide compatibility with both ICE passenger and commercial vehicles make it the preferred choice for OEMs and aftermarket users alike. Ethylene glycol-based coolants offer efficient heat transfer and reliable freeze protection, particularly in extreme climate regions.

Despite growing environmental concerns, this coolant type continues to be widely used in high-volume vehicle platforms, particularly in Asia Pacific and North America, where established vehicle fleets and infrastructure support its ongoing application.

Propylene Glycol-Based Coolants

Propylene glycol is gaining traction as the leading eco-friendly alternative to ethylene glycol. With non-toxic, biodegradable properties, PG-based coolants are becoming increasingly popular in electric vehicles and industrial fleets where environmental safety is a priority. Their rising adoption is expected to be further accelerated by regulations restricting hazardous substances in automotive fluids, making PG an attractive option for OEMs striving to meet net-zero and circular economy goals.

Glycerine-Based Coolants

Glycerine-based coolants are emerging as a sustainable and renewable option in the coolant market. These bio-derived coolants offer excellent heat transfer properties and environmental benefits, and are projected to account for approximately 15 percent of the global market by 2032. Their application is growing in regions with strict environmental standards, including Europe and North America, where eco-conscious vehicle buyers are influencing product innovation and selection.

Technology Type Trends

Inorganic Additive Technology (IAT)

Inorganic additive technology is expected to hold approximately 62 percent of the automotive coolant market in 2025. Known for its cost-effectiveness and compatibility with older vehicle models, IAT-based coolants are widely used in conventional ICE platforms, particularly in regions with high aftermarket vehicle populations.

Despite being phased out in some newer vehicle models, IAT coolants remain a staple in many parts of the world due to their proven corrosion protection and low production costs.

Organic Acid Technology (OAT)

Organic acid technology is expected to experience the fastest growth, with a projected CAGR of 14 percent between 2024 and 2029. OAT coolants are favored for their extended service intervals, compatibility with modern vehicle materials, and lower environmental impact. These coolants are increasingly used in EVs, hybrids, and vehicles with aluminum components, supporting advanced engine and thermal management designs.

Hybrid Organic Acid Technology (HOAT)

Hybrid organic acid technology blends the benefits of IAT and OAT formulations, offering enhanced protection and extended service life. HOAT coolants are being increasingly adopted in European markets and by OEMs focusing on performance and sustainability, particularly in EV and luxury segments.

Application Type Insights

Commercial Vehicles

As the backbone of logistics, transport, and freight, commercial vehicles account for the largest share of coolant usage. These vehicles operate under higher stress and over longer distances, requiring frequent coolant changes and robust thermal management solutions. With the increasing shift toward electric commercial fleets and connected vehicle technologies, demand for advanced coolant formulations continues to rise.

Passenger Cars

While commercial vehicles dominate in volume, passenger cars remain a key driver of growth in the coolant market. Rising vehicle ownership, urbanization, and consumer awareness about preventive maintenance are fueling coolant demand in the passenger segment. Additionally, growing adoption of hybrid and electric passenger vehicles is pushing OEMs and coolant suppliers to innovate in high-performance, long-life, and environmentally safe formulations.

Regional Market Insights

North America

North America leads the global automobile coolant market, capturing approximately 34 percent of total revenue in 2025. A mature automotive ecosystem, strong aftermarket demand, and proactive EV adoption are contributing to this dominance. The region is also a hub for sustainability-driven innovation, with increasing use of PG and glycerine-based coolants to meet regulatory and consumer expectations.

The cold climate conditions across parts of the region further drive demand for advanced OAT and HOAT formulations, ensuring optimal engine protection and thermal performance.

Europe

Europe is a highly regulated market emphasizing eco-friendly technologies and emission reductions. Countries such as Germany, France, and the UK are leading in coolant innovation, with a strong focus on EV-compatible and sustainable formulations. The EU Green Deal and net-zero goals are fostering investment in biodegradable and bio-based coolants, supported by recycling initiatives and regulatory frameworks such as REACH.

Asia Pacific

Asia Pacific is the fastest-growing region in the global coolant market, driven by high automotive production, rapid urbanization, and increasing EV penetration. China and India are central to this growth, with strong government support for green mobility and expanding automotive ownership across both urban and rural regions. OEMs and aftermarket players in the region are rapidly adopting cost-effective and environmentally safe coolants to meet the demands of a diverse and evolving vehicle landscape.

Competitive Landscape and Strategic Developments

The global automotive coolant market is highly competitive, with a mix of global giants and regional specialists driving product innovation and market penetration. Key companies include:

• Shell
• Chevron
• Exxon Mobil
• Sinclair Oil Corporation
• Blue Star Lubrication Technology
• BASF
• Valvoline
• Prestone
• Total Energies
• Lukoil Petrons
• Ashland Corporation

These companies are actively investing in R&D to develop next-generation coolants with enhanced thermal performance, extended life cycles, and reduced environmental impact. Strategic collaborations and new product launches remain central to market expansion.

Recent Developments

• In February 2024, Arteco launched an EV-specific coolant optimized for thermal stability and battery safety, highlighting the growing trend toward electrification-ready solutions
• In October 2023, UPM Biochemicals partnered with HAERTOL Chemie GmbH to create bio-based glycol alternatives, reinforcing the industry shift from fossil-based ethylene glycol
• In August 2022, BASF introduced the Glysacorr Coolant Range, aimed at electric vehicle thermal management, emphasizing sustainability and extended service life

Outlook and Opportunities

The global automobile coolant market is poised for robust and sustained growth through 2032. The convergence of EV adoption, sustainability mandates, and technological innovation is reshaping the coolant landscape, creating opportunities for players across product categories, applications, and geographies.

Companies that embrace environmentally responsible formulations, align with regional regulatory requirements, and invest in thermal system advancements will be best positioned to thrive in this evolving market. The transition from ethylene glycol to safer, bio-based alternatives presents not only a regulatory necessity but also a strategic opportunity for differentiation, brand value, and long-term growth.