South America Electric Vehicle Fluids Market Report and Forecast 2024-2032

According to this report, the South America electric vehicle fluids market size reached a value of USD 76.77 million in 2023. Aided by the burgeoning adoption of electric vehicles across the region, the market is projected to further grow at a CAGR of 22.0% between 2024 and 2032 to reach a value of USD 474.77 million by 2032.

The South America electric vehicle fluids market growth in South America is primarily fueled by the increasing sales of electric vehicles, which is supported by a growing awareness of environmental issues among consumers and governments alike. Countries like Brazil, Argentina, and Chile are leading the charge, with various incentives such as tax reductions, green vehicle subsidies, and investments in EV infrastructure to encourage the adoption of electric vehicles.

As per the South America electric vehicle fluids market analysis, urbanisation and the consequent need for sustainable urban mobility solutions have prompted cities across South America to consider electric buses and taxis, which further drives the demand for EV fluids. The region is witnessing a shift towards electric public transportation systems to reduce urban air pollution and decrease dependency on imported oil.

Innovation is a key trend in the South America electric vehicle fluids market. Manufacturers are focusing on developing advanced fluid technologies that offer enhanced thermal management, better electrical properties, and reduced wear and corrosion for EV components. These innovations are critical for improving the efficiency and range of electric vehicles operating in the diverse climates found across South America, from the humid Amazon rainforest to the arid Andes mountains.

Biodegradable and environmentally friendly fluids are also gaining traction in the market. As per the South America electric vehicle fluids market outlook, as environmental regulations become stricter and consumer preferences shift towards sustainable products, fluid manufacturers are increasingly investing in green formulations that minimise ecological impact without compromising performance.

As the EV market expands in South America, there is a growing trend towards local production of EV fluids to reduce costs, improve supply chain resilience, and meet specific regional needs. This shift is driven by the potential cost savings on import tariffs and the ability to rapidly respond to local market demands.

Advanced diagnostics and monitoring technologies are being integrated into EV fluids in the electric vehicle fluids market in South America to provide real-time data on fluid conditions and performance. This integration helps in predictive maintenance, extending the life of EV components and ensuring optimal performance. Sensors that monitor viscosity, temperature, and contamination levels are becoming more common.

With the diverse climate conditions across South America, from tropical to temperate, there is an increasing demand for EV fluids that offer superior thermal management. Manufacturers are focusing on developing fluids that can operate efficiently in a wide range of temperatures and environmental conditions, enhancing battery performance and vehicle reliability.

Geographically, Brazil holds the largest South America electric vehicle fluids market share due to its sizeable automotive sector and ambitious government initiatives aimed at promoting electric vehicle adoption. Argentina and Chile are also notable markets, with both countries making significant strides in integrating EVs into their national transportation systems.

Market Segmentation

The market can be divided based on propulsion type, vehicle type, fill type, product type, and country.

Market Breakup by Propulsion Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle
• Plug-In Hybrid Electric Vehicle

Market Breakup by Vehicle Type

• On-Highway Electric Vehicle
• Off-Highway Electric Vehicle

Market Breakup by Fill Type

• First Fill
• Service Fill

Market Breakup by Product Type

• Coolants
• Engine Oils
• Transmission Fluids
• Greases
• Others

Market Breakup by Country

• Brazil
• Mexico
• Argentina
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South America electric vehicle fluids market. Some of the major players explored in the report are as follows:

• Shell Plc
• TotalEnergies SE
• Valvoline Inc.
• Exxon Mobil Corp.
• Castrol Ltd.
• Petroliam Nasional Berhad (PETRONAS)
• ENEOS Holdings, Inc.
• Afton Chemical
• Repsol, S.A.
• The Lubrizol Corporation
• Others