Market Overview:
The global market for Electric Vehicle Fluids estimated at USD 1405.34 Million in 2022 is projected to reach a revised size of USD 11806.82 Million by 2030, growing at a CAGR of 30.48% over the period 2023-2030.
Electric Vehicle (EV) fluids refer to specialized lubricants, coolants, and other fluids that are specifically designed and formulated for electric vehicles. EV fluids play a crucial role in thermal management, regulating battery, electronics, and e-motor temperatures. By removing excess heat from the engine motor and maintaining optimal temperatures, these fluids enhance fuel efficiency and extend vehicle life. The burgeoning EV infrastructure, supported by governments and key industry players, fuels the expansion of the EV industry, driving the demand for specialized EV fluids over the forecasted period.
The electric vehicles (EVs) has experienced remarkable growth with over 16.5 million EVs on the road in 2021, tripling in just three years. Electric car sales surged despite the pandemic, reaching 6.6 million in 2021, accounting for 9% of the global car market driven by government policies, decarbonization efforts, and investment in EV production capacity, establishing a strong foundation for future expansion. With this the Electric Vehicle (EV) Fluids market is witnessing gradual growth alongside the increasing adoption of electric vehicles in personal mobility. Although EV sales are growing exponentially, the impact on lubricant formulations has been limited due to the relatively small base of electrified vehicles. The development of dedicated lubricants and fluids for EVs is gaining momentum, with only a few companies introducing such products for electrified passenger cars since late 2018.
Top Key Players for Electric Vehicle Fluids Market:
Shell PLC, ENEOS Corporation, ExxonMobil Corporation, BP Plc, Petronas, TotalEnergies SE, Repsol S.A., FUCHS Petrolub AG, Valvoline Inc., and PTT, and Other Major Players.
Market Dynamics and Factors for Electric Vehicle Fluids Market:
Drivers:
Increase in The Number of Private and Commercial Electric Vehicles (EVs)
As the adoption of EVs continues to surge worldwide, the demand for specialized fluids for these vehicles rises proportionally. Private consumers and commercial fleet operators alike seek efficient and reliable EV fluids to ensure optimal performance and extended vehicle lifespan. With more EVs on the road, the market for dedicated EV fluids expands, presenting significant growth opportunities for manufacturers to develop innovative, high-performance solutions tailored to the unique needs of the growing electric vehicle fleet.
Opportunities:
Development of Eco-Friendly and Sustainable Production Techniques and Fluid Solutions
With increasing environmental consciousness and stringent regulations, there is a growing demand for EV fluids that are environmentally friendly, biodegradable, and free from harmful chemicals. Manufacturers can capitalize on this trend by investing in research and development to create greener and more sustainable fluids, appealing to environmentally-conscious consumers and businesses.
Segmentation Analysis of the Electric Vehicle Fluids Market:
By Vehicle Type, Passenger cars are anticipated to dominate the Electric Vehicle Fluids market in coming years. As the electric mobility trend gains momentum, a significant portion of the market is attributed to passenger cars, driven by increasing consumer adoption of electric sedans, hatchbacks, and SUVs. The proliferation of electric passenger cars, coupled with the need for specialized fluids to maintain their performance and efficiency, positions this segment as a key driver in the demand for electric vehicle fluids, solidifying its dominance in the evolving market landscape.
Regional Analysis of the Electric Vehicle Fluids Market:
Asia Pacific is expected to dominate the Electric Vehicle Fluids market due to its significant and growing adoption of electric vehicles. The region's rapid urbanization, supportive government policies, and increasing environmental awareness are driving the demand for EVs, consequently fueling the need for specialized fluids. As the largest automotive market globally, Asia Pacific offers immense growth potential for EV fluids manufacturers.
Key Industry Development:
In October 2022, TotalEnergies and Valeo have announced a collaboration to develop an innovative method of cooling electric vehicle batteries using a new, very high-performance dielectric fluid. This innovation would not only improve the use of electric vehicles, but it would also reduce their carbon footprint.
