India Thermic Fluid Market Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)

India Thermic Fluid Market Analysis

The India Thermic Fluid Market size is estimated at 44.54 kilotons in 2025, and is expected to reach 57.17 kilotons by 2030, at a CAGR of 5.12% during the forecast period (2025-2030).

The Indian thermic fluid industry is experiencing significant transformation driven by large-scale infrastructure investments and modernization initiatives. The government has demonstrated a strong commitment to industrial development through strategic investments, particularly approving oil and gas projects worth INR 1 lakh crore in Northeast India, scheduled for completion by 2025. This massive infrastructure push is complemented by policies supporting foreign investment, with opportunities worth USD 300 billion available for international investors across various industrial sectors. These developments are reshaping the industrial landscape and creating new opportunities for thermic fluid applications across multiple sectors.

The market is witnessing a notable shift toward sustainable and environmentally friendly solutions, particularly in the development of bio-based thermic fluids. Industry manufacturers are increasingly focusing on research and development of alternative heat transfer fluids derived from renewable sources such as vegetable oils and coconut oil. These bio-based alternatives offer comparable thermophysical properties to synthetic fluids while providing environmental benefits and reduced dependency on fossil fuels. The growing emphasis on sustainability is driving innovation in product development and creating new market opportunities.

India’s ambitious energy transition goals are creating new avenues for thermic fluid applications, particularly in renewable energy infrastructure. The country aims to dramatically increase its renewable energy capacity to 523 GW by 2030 from 101.53 GW recorded in September 2021, representing a significant opportunity for thermic fluid manufacturers. This transition is driving demand for specialized heat transfer solutions in solar thermal applications and other renewable energy technologies, fostering technological advancement in the sector.

The industry is undergoing substantial modernization with significant expansion in refining capacity, which is expected to reach 298 MTPA by 2025. This expansion is accompanied by technological advancements in heat transfer systems, particularly in industrial processes requiring precise temperature control. The modernization trend is evident across various end-user industries, including pharmaceuticals, chemicals, and food processing, where there is increasing adoption of advanced thermic fluid systems for improved operational efficiency. These developments are driving the need for more sophisticated and efficient heat transfer solutions, pushing manufacturers to innovate and improve their product offerings.

India Thermic Fluid Market Trends

EXTENSIVE DEMAND FROM THE OIL AND GAS SECTOR

The oil and gas industry’s extensive utilization of thermal fluids across multiple applications continues to be a major market driver. These thermal fluids play critical roles throughout the value chain—from offshore platform operations, where they facilitate facility heating and glycol regeneration for natural gas dehydration, to refineries, where they enable efficient distillation through column reboiler heating. In natural gas processing specifically, thermal fluids are essential in the liquid phase for dehydration, extraction, sweetening, and fractionation stages, helping maintain precise temperature control and phase stability. According to recent data from Invest India, petroleum products production reached 254.3 MMT in FY 2021-22, with petroleum refinery output growing 4.5% in January 2023 compared to the previous year. Natural gas production also saw a 5.3% increase in January 2023 year-over-year, indicating robust sector growth driving thermal fluid demand.

The market is further strengthened by significant new investments in India’s oil and gas infrastructure expansion. In August 2022, Bharat Petroleum Corporation Limited (BPCL) announced plans to invest INR 1.4 trillion (USD 17.65 billion) in petrochemical capacity, city gas distribution, and clean energy operations over the next five years. This builds upon their earlier commitment of USD 4.05 billion towards improving petrochemical capacity and refining efficiency. The extensive application of thermal oils in oil pipelines and pumping stations, where they help control oil viscosity during transportation, makes such infrastructure investments particularly relevant for market growth. With India planning to expand its refining capacity to 450-500 million tons by 2030, the demand for thermal fluids is expected to see sustained growth from this sector.

INCREASING USE IN CONCENTRATED SOLAR POWER

The growing adoption of concentrated solar power (CSP) technology is emerging as a significant driver for the heat transfer fluids market in India. In CSP systems, heat transfer fluids serve as the critical thermal energy carrier, collecting heat from solar radiation concentrated by programmed mirrors (heliostats) onto receivers. These fluids not only facilitate the conversion of water to steam for power generation but also enable energy storage capabilities that allow consistent power provision despite intermittent sunlight. The technology requires specific properties in thermal fluids to maintain efficient operation at high temperatures for extended periods in solar thermal electricity applications, creating specialized demand for high-performance heat transfer fluid.

The market opportunity is further amplified by India’s ambitious renewable energy goals and ongoing CSP projects. CSP technologies are particularly viable in states with high solar irradiance like Rajasthan, Gujarat, and Tamil Nadu, where they can serve as alternative energy sources to fossil-fuel power plants or replace retiring thermal power plants. The technology’s versatility is demonstrated in applications like powering absorption chiller refrigerators, which can be used to refrigerate food and medicine at 4-7°C temperature and cool spaces in homes, factories, and schools. Large-scale implementations, such as the world’s largest Linear Fresnel Reflector (LFR) at Dhursar, Rajasthan with 125 MWe capacity, showcase the significant volume requirements for thermal oils in these installations. The continued development of such projects, coupled with government initiatives to increase renewable energy capacity, provides strong growth prospects for thermal fluid manufacturers.

Segment Analysis: Types

Silicon & Aromatic Segment in India Thermic Fluid Market

Silicon and aromatic thermic fluids dominate the Indian thermic fluid market, accounting for approximately 55% of the total market share in 2024. This segment’s prominence can be attributed to its superior thermal stability, enhanced lubricity, and broad temperature operating ranges compared to other thermal fluids. These fluids demonstrate exceptional resistance to thermal cracking over extended periods, making them particularly valuable for high-temperature industrial applications. The segment is experiencing robust growth at around 6% annually through 2024-2029, driven by increasing demand from chemical processing, oil and gas, and concentrated solar power applications. The high-performance characteristics of silicon and aromatic thermic fluids, including their ability to maintain stability at extreme temperatures and provide consistent heat transfer fluid efficiency, have made them the preferred choice across various industrial sectors in India.

Mineral Oil Segment in India Thermic Fluid Market

Mineral oil-based thermic fluids represent a significant portion of the market, serving as a cost-effective solution for applications requiring moderate temperature ranges. These thermal oils are derived from petroleum-based distillation processes and are categorized into paraffinic and naphthenic oils, each offering distinct advantages. Paraffinic mineral oils are known for their higher flash points and superior boiling point characteristics, while naphthenic variants excel in low-temperature applications. The segment’s growth is supported by its widespread use in textile manufacturing, chemical processing, and various industrial heating applications where operating temperatures typically range between 270°C and 315°C.

Remaining Segments in Types

The glycol and other thermic fluid segments play specialized roles in the Indian market. Glycol-based thermic fluids are particularly valued for their antifreeze properties and ability to prevent system freezing in cold weather conditions. These fluids are essential in applications requiring precise temperature control and corrosion resistance. The other segment includes various specialized fluids such as synthetic thermic fluids, water-based solutions, and emerging bio-based alternatives. While these segments may represent smaller market shares, they fulfill crucial requirements in specific industrial applications where conventional silicon, aromatic, or mineral oil-based fluids may not be suitable.

Segment Analysis: End-User Industry

Oil & Gas Segment in India Thermic Fluid Market

The oil and gas sector dominates the India thermic fluid market, accounting for approximately 39% of the total market share in 2024. This significant market position is attributed to the extensive application of thermic fluids across various stages of oil and gas operations, including production, transport, refining, and recycling processes. On offshore platforms, these heat transfer fluids are crucial for facility heating and the regeneration of glycols and molecular sieves, which are essential for removing water content from natural gas. The segment’s dominance is further strengthened by the increasing energy consumption patterns in India, where thermic fluids play a vital role in maintaining optimal temperatures during oil processing and refining operations. The government’s supportive policies, including 100% FDI allowance in various segments of the oil and gas sector, have attracted substantial investments, contributing to the segment’s market leadership.

Concentrated Solar Power Segment in India Thermic Fluid Market

The concentrated solar power (CSP) segment is projected to exhibit the highest growth rate of approximately 7% during the forecast period 2024-2029. This remarkable growth is driven by the increasing adoption of CSP technology, where thermic fluids are essential for carrying heat from the solar field to the power block for electricity generation. The segment’s growth is further propelled by the government’s ambitious renewable energy targets and initiatives to increase the share of solar power in the country’s energy mix. CSP plants require specific thermic oils designed to work at precise temperatures for prolonged periods in solar thermal electricity applications, making them integral to the technology’s efficiency and effectiveness. The segment’s expansion is also supported by ongoing technological advancements in CSP systems and the increasing focus on sustainable energy solutions.

Remaining Segments in End-User Industry

The other significant segments in the India thermic fluid market include the chemicals, pharmaceuticals, and food and beverages industries. The chemicals sector represents a substantial portion of the market, with applications ranging from polymerization and condensation reactions to purification and extraction processes. The pharmaceutical industry utilizes thermic fluids for maintaining precise temperature control during batch reactions and bulk drug processing, while the food and beverage sector employs these fluids for sterilization, pasteurization, and various food processing applications. Each of these segments contributes uniquely to the market’s dynamics, with their specific requirements driving innovation and product development in the thermic fluid industry. The diverse applications across these sectors ensure a stable demand base and contribute to the overall market’s resilience and growth potential.