Press Release

Australia Automotive Coolant Market to Grow with a CAGR of 6.80% through 2029

The market for automotive coolants in Australia has been influenced by several factors, including automotive sales, technological advancements, environmental regulations, and changing consumer preferences.

According to TechSci Research report, “Australia Automotive Coolant Market – Industry Size, Share, Trends, Opportunity, and Forecast, 2019-2029F”, the Australia automotive coolant market was valued at USD 352.69 million in 2023 and is expected to reach USD 521.38 million by 2029 with a CAGR of 6.80% during the forecast period. Australia’s automotive coolant market is growing steadily due to factors like increased vehicle ownership, extended vehicle lifespans, and rising awareness of engine maintenance. With a growing vehicle fleet, there is a heightened demand for coolants that can efficiently manage engine temperatures and prevent overheating, particularly in regions with harsh weather conditions. These coolants play a vital role in maintaining engine performance and reliability. Key trends influencing the market include the rising demand for long-life coolants and environmentally friendly alternatives. Consumers are increasingly choosing coolants with longer service intervals, reducing the need for frequent changes. As environmental concerns become more prominent, there is a shift toward biodegradable, non-toxic coolants that align with sustainable practices. Manufacturers are adapting by offering products that combine high performance with reduced environmental impact.

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The automotive coolant market is divided into three key technologies: Inorganic Acid Technology (IAT), Organic Acid Technology (OAT), and Hybrid Organic Acid Technology (HOAT). Each offers distinct benefits tailored to different vehicle needs. IAT coolants use inorganic additives like silicates and phosphates for corrosion protection and are typically found in older vehicles. These coolants have a shorter service life, requiring replacement every 2-3 years or 30,000 to 50,000 miles. They are still common in older models and heavy-duty applications.

OAT coolants, on the other hand, rely on organic acids for corrosion resistance, offering longer service intervals—up to 5 years or 150,000 miles. OAT coolants are more environmentally friendly, as they don’t contain harmful silicates or phosphates. They are commonly used in newer vehicles for extended maintenance intervals and more efficient cooling. HOAT coolants combine the properties of both IAT and OAT, blending inorganic additives with organic acids. This provides a balance of longer service life and strong corrosion protection, making HOAT coolants suitable for modern vehicles with complex cooling systems. They are typically replaced every 3 to 5 years. Each coolant technology meets specific vehicle requirements, ensuring optimal engine performance and protection.

In 2023, Victoria emerged as the fastest growing region in the Australia automotive coolant market. This growth can be attributed to a combination of factors, including the state's large vehicle fleet, its diverse climate, and a significant automotive aftermarket sector. As one of the most populous and industrialized regions, Victoria sees a high volume of vehicle maintenance and repair, driving the demand for automotive coolants. With both urban centers like Melbourne and regional areas experiencing extreme temperature fluctuations, there is a constant need for high-quality coolants to regulate engine temperatures and protect against overheating or freezing. Victoria’s automotive market is characterized by a high rate of vehicle ownership and extended vehicle lifespans, both of which contribute to the increased need for coolant replacements and maintenance. The state's growing awareness of environmental sustainability has also influenced the adoption of eco-friendly and long-life coolants, which offer better performance and reduced environmental impact. Consumer demand for advanced coolant formulations, such as Organic Acid Technology (OAT) and Hybrid Organic Acid Technology (HOAT), has been particularly strong in Victoria, as vehicle owners prioritize durability and efficient engine protection.

Major market players operating in Australia Automotive Coolant Market are:

  • Ampol Limited
  • Shell Australia Pty Ltd
  • Castrol Limited
  • Gulf Western Premium Quality Lubricating Oils (Manufacturing) Pty Ltd
  • Oil & Energy Pty Ltd
  • Redline Oil Australia Pty Ltd
  • Old World Industries LLC
  • Nulon Products Australia Pty Ltd 
  • TotalEnergies Marketing Australia Pty Ltd
  • Dayco Australia Pty Ltd.

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"The increasing demand for high-performance, technologically advanced automotive coolants in Australia is being driven by factors such as the growth in vehicle ownership, longer vehicle lifespans, and a greater focus on engine efficiency and maintenance. With rising awareness of environmental sustainability, there is a growing preference for eco-friendly and long-life coolant formulations, which provide better protection and reduce the frequency of coolant changes. The shift towards electric and hybrid vehicles is also influencing the market, as these vehicles require specialized coolants for battery and power electronics thermal management. As environmental regulations tighten and consumers prioritize cleaner technologies, the adoption of biodegradable and non-toxic coolants is expected to increase, further transforming the industry,” said Mr. Karan Chechi, Research Director of TechSci Research, a global research and consulting firm.

The report titled “Australia Automotive Coolant Market – Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Commercial Vehicle, and Two-Wheeler), By Technology (Inorganic acid technology, Organic acid technology and Hybrid organic acid technology), By Demand Category (OEM Vs. Replacement), By Region, By Competition, 2019-2029F”, provides a comprehensive analysis of the Australia automotive coolant market. The report offers insights into market size, growth trends, and key drivers, along with an in-depth evaluation of challenges and emerging opportunities. This market intelligence is designed to assist stakeholders in making informed investment decisions and understanding the evolving dynamics of the industry.

 

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