Electric Vehicle Fluids Global Market Report 2024

Electric vehicle fluids play a crucial role in reducing energy losses within the drivetrain system and enhancing the transmission efficiency of electric vehicles (EVs). These fluids provide insulation to prevent arcing caused by close contact with the electrical components of the vehicle, contribute to the cooling of electric motors and gears, and offer insulation for electric current. Additionally, they extend the lifespan of each electric motor part and enhance the overall mileage of EVs by improving machine efficiency.

The main types of electric vehicle fluids include engine oils, coolants, transmission fluids, and greases. Engine oils are employed to maintain the engine's coolness and ensure proper sealing of piston rings in internal combustion engines (IC engines). These fluids are utilized in various types of vehicles, including passenger vehicles and commercial vehicles, and cater to different EV types such as Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEV). Electric vehicle fluids find applications in the driveline, battery coolant systems, and grease components.

The electric vehicle fluids market research report is one of a series of new reports that provides electric vehicle fluids market statistics, including electric vehicle fluids industry global market size, regional shares, competitors with an electric vehicle fluids market share, detailed electric vehicle fluids market segments, market trends and opportunities, and any further data you may need to thrive in the electric vehicle fluids industry. This electric vehicle fluids market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The electric vehicle fluids market size has grown exponentially in recent years. It will grow from $1.71 billion in 2023 to $2.2 billion in 2024 at a compound annual growth rate (CAGR) of 28.6%. The growth observed in the historical period can be attributed to several key factors, including the increasing adoption and sales growth of electric vehicles (EVs), government incentives and regulations promoting EV usage, heightened environmental concerns and goals for emissions reduction, consumer demand for convenient charging infrastructure, and significant investments by the automotive industry in the development and promotion of electric vehicles. These factors have collectively contributed to the expansion and development of the electric vehicle fluids market.

The electric vehicle fluids market size is expected to see exponential growth in the next few years. It will grow to $6.13 billion in 2028 at a compound annual growth rate (CAGR) of 29.2%. The anticipated growth in the forecast period can be attributed to several factors, including the continued expansion of EV charging networks, the standardization of charging connectors, the growth of international markets, increased global adoption of electric vehicles (EVs), and the proliferation of both public and private charging stations. Major trends expected in the forecast period encompass the development of specialized EV fluids to cater to the unique needs of electric vehicles, formulations that are biodegradable and eco-friendly, collaboration with original equipment manufacturers (OEMs) to enhance compatibility, focus on thermal management for optimal performance, and the implementation of fluid monitoring and maintenance systems. These trends reflect the evolving landscape of electric vehicle fluids to meet the specific requirements of the growing electric vehicle market.

The electric vehicle fluids market is poised for growth, driven by an increasing demand for electric vehicles (EVs). As EVs, which operate wholly or partially on electricity, become more prevalent, the demand for electric vehicle fluids is expected to rise. These fluids play a crucial role in enhancing fuel efficiency and reducing carbon footprints in vehicles. The surge in manufacturing and sales of electric vehicles, as predicted by Bloomberg New Energy Finance (BNEF), with EVs reaching 10% of global passenger vehicle sales by 2025 and escalating to 28% in 2030 and 58% in 2040, will significantly contribute to the growth of the electric vehicle fluids market.

The electric vehicle fluids market is set to benefit from increasing energy efficiency in the automotive sector. Energy efficiency involves optimizing energy resources to achieve desired outputs with minimal waste. Electric vehicle fluids play a vital role in managing the thermal performance of EV components, reducing friction, and ensuring optimal operation of various systems. These fluids collectively contribute to improving energy efficiency in electric vehicles, leading to extended driving range, lower energy consumption, and overall enhanced performance. The European Union's plan, as indicated by Eurostat in December 2022, to increase energy efficiency with goals of at least 32.5% by 2030 underscores the market's growth trajectory.

Research and development efforts are shaping the electric vehicle fluids market as companies invest in the development, introduction, and optimization of products and processes. In 2021, Gulf Oil, an India-based manufacturer of automobile lubricants and greases, introduced a new range of e-fluids specifically designed for hybrid and electric passenger cars. These e-fluids are formulated to enhance vehicle performance and safety, addressing various applications such as improving braking performance and preventing corrosion. Notably, the Elec coolant in this range plays a crucial role in maintaining optimal temperatures for electric vehicle batteries, particularly in high-temperature conditions. This emphasis on research and development signifies a commitment to advancing the capabilities of electric vehicle fluids in line with the evolving needs of the market.

Leading companies in the electric vehicle fluids market are strategically focusing on innovative products, such as Castrol ON, to drive revenue growth in their sector. Castrol ON represents a range of e-Fluids specifically engineered to enhance the performance and efficiency of electric vehicles (EVs). For instance, in June 2021, Castrol Limited, a UK-based manufacturer of electric vehicle fluids, introduced Castrol ON, featuring e-Greases crucial for preserving maximum performance and extending component life. The battery e-thermal fluids from Castrol ON play a vital role in enhancing thermal management, ensuring the stability and coolness of batteries even in challenging conditions. Additionally, Castrol ON's e-transmission fluids contribute to increased efficiency, extended travel range on a single charge, drivetrain protection, and the overall prolongation of the drivetrain system's lifespan.

In a collaborative effort in May 2021, Castrol, a UK-based manufacturer of lubricating oils, greases, and other automotive products, partnered with XING Mobility to advance XING Mobility's immersion cooling battery technology for electric vehicles. This partnership aimed to enhance battery system performance and optimize fluid and hardware systems for more efficient results. XING Mobility, a China-based EV battery company, and Castrol worked together to drive innovation and address the evolving needs of the electric vehicle fluids market. This strategic collaboration underscores the commitment of major players to stay at the forefront of technological advancements and contribute to the growth of the electric vehicle fluids market.

Major companies operating in the electric vehicle fluids market include Castrol Limited, ExxonMobil Corporation, Fuchs Petrolub SE, The Lubrizol Corporation, Petronas Nasional Bhd, Royal Dutch Shell PLC, Gulf Oil, BP PLC, ENEOS Corporation, PTT Public Company Limited, Repsol S.A, TotalEnergies SE, Valvoline Inc., Shell PLC, Petro-Canada Lubricants Inc., Phillips 66 Company, Quaker Chemical Corporation, Sinopec Lubricant Company Limited, SK Lubricants Co. Ltd., Total Lubrifiants SA, Amalie Oil Company, AMSOIL INC., Bardahl Manufacturing Corporation, CHS INC., Chemtool Incorporated, ConocoPhillips Company, Eni S.p.A., Houghton International Inc., JXTG Nippon Oil & Energy Corporation, Lubrication Engineers Inc.

Europe was the largest region in the electric vehicle fluids market in 2023. Asia-Pacific is expected to be the fastest-growing region in the electric vehicle fluids market during the forecast period. The regions covered in the electric vehicle fluids market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the electric vehicle fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.

The electric vehicle fluids market consists of sales of heat transfer fluid, brake fluid, and drive system fluid. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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