Lubricating the future of electric vehicles, the EV fluid market will hit the value of USD 4224.42 Million by 2027 | Heat transfer fluid segment is ruling the market with more than 80% market share – Bonafide Research

E-fluids are not only essential for lubricating, cooling powertrains and transmission systems but they are also needed to stabilize the temperature of the vehicle's battery and power electronics. The Asia-Pacific region is dominating the market with more than 45% value market share.

Clifton, New Jersey, March 14, 2022 (GLOBE NEWSWIRE) -- Electric vehicles require completely different engine fluids than traditional internal combustion engines. Traditional lubricants are not an option for EVs, as they can post multiple problems starting from viscosity-related complications to corrosion of other elements of the EV design, all of which will seriously compromise the performance and longevity of the vehicle. The electric vehicle fluid is designed to effectively and efficiently meet a broad range of performance requirements and is engineered specifically for the high-tech powertrains of electrified vehicles. Electric vehicle fluids are not only essential for lubricating and cooling powertrains and transmission systems but they are also needed to stabilize the temperature of the vehicle's battery and power electronics. The heat transfer fluid is used to stabilize the temperature of the EV battery whereas E-grease is designed to counter noise, vibration, and harness (NVH) levels within the electric vehicles. The electric vehicle fluids help in the reduction of energy losses in the drivetrain system and the enhancement of EV Transmission efficiency. Electric vehicle fluids offer insulation to stop any arcing due to close contact with the electrical components of the vehicle. They help in cooling e-motors and gears and provide insulation to electric current, along with extending the lifetime of each electric motor part, and the mileage of EVs by improving machine efficiency.

According to the report title “Global Electric Vehicle Fluid Market Outlook, 2027”, published by Bonafide Research electric vehicle fluid market is anticipated to grow at a CAGR of more than 25% in value terms in the forecast period.  There are various types of e-fluid are present in the market for different E-mobility. The fluid market is segregated into four major types of products i.e. Grease, Brake fluid, Heat transfer fluid and Drive system fluid. Drive system fluid and heat transfer fluid are used in battery electric vehicles and plug-in hybrid electric vehicles. The heat transfer fluid segment is leading the market with more than 80% of the value market share and is likely to capture a higher market share in the forecast period. The early adoption has been taken place in passenger cars and electric vehicle fluid market has a major contribution from this segment which is anticipated to lead the with more than 80% market share by 2027. On the other hand, the commercial vehicle segment including public transport such as EV buses and trucks is expected to have increased market growth during the forecast period.

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According to the report, the fluid market is segregated into three major propulsion types i.e. Battery electric vehicle (BEV), hybrid electric vehicle (HEV) and Plug-in hybrid electric vehicle (PHEV). Battery electric vehicle is leading the market with more than 45% market share and is likely to capture a higher market share in the forecast period. Battery electric vehicle does not include combustion engine so this type of vehicle requires a lesser amount of fluids but the adoption rate is higher for battery electric vehicle. As for the hybrid electric vehicle, it consists engine as well as a battery source which requires a higher amount of fluids than a battery electric vehicle.

The Asia-Pacific region is dominating the market with more than 45% value market share. In the region, the government has introduced industry incentive that is focused on vehicle manufacturers, battery & fluid producers and ancillary companies to encourage the production of electric vehicle and component parts of the electric vehicle value chain. In line with Paris agreement in 2015, The European region aims to be carbon emission neutral by 2050. By 2030, electric vehicle production is expected to reach 50% of overall vehicle production in Europe. Europe government has initiated various policies such as Directive 2014/94/EU, European battery alliance, Charge everywhere, Wireless charging for electric vehicles etc. 

The North American region has adopted electric vehicles in a big way and automakers have announced their intentions to introduce more than 200 new electric vehicle models in the next few years in the region. The car performance is getting enhanced every passing day, Tesla has launched ‘H1EV’ with an approximate 750- mile range and over 1200 horsepower such product launches would fuel the growth of EV vehicles in the future. For Latin America, Numerous countries have incentives for electric vehicles, such as discounts on sale, environmental and import taxes, revenue-neutral ‘feebates’ that tax polluting cars and reward clean once. Many industries in Latin America have initiated the production of highly innovative fluid ranges that can help to design effective and efficient electric and hybrid vehicles.

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The oil rich middle east is the source of the fossil fuel that still power most cars, is switching to EVs. Tesla’s entry into the Middle East electric vehicle market rattled the automotive industry with its all-electric range of vehicles. In 2017, 200 Tesla EVs has been introduced by the Dubai Taxi Corporation and the Emirate’s ambition is to have 25% of trips in its area affected by self-driving vehicles by 2030. According to the new directive, government organisations in Dubai are required to increase the percentage of hybrid and electric vehicles to at least 10% of their overall annual procurement of vehicles until the end of 2024. This percentage will increase to 20% from 2025 to the end of 2029 and 30% from 2030 onwards. Additionally, the region provides advantages to EV drivers by exempting EVs from charging fees and parking fees. The neighbouring Emirate of Sharjah has ordered 50 semi-electric trucks from Tesla to add to its waste management fleet by the end of 2020 and the country offers free charging to EV owners until 2025. In Saudi Arabia, 5% of its parking spaces are to be designated solely for the use of EVs. In several Middle Eastern countries, the respective governments are concentrating on renewable energy, clean transportation technologies, the implementation of economic and energy diversification plans. Electric vehicles remain rare in most of Africa, the probability of finding one is about one in a million. In South Africa, which is thought to be the largest EV market on the continent, only above 1,500 out of more than 16 million vehicles on its roads are EVs. The slow adoption of EVs in Africa faces infrastructural challenges like weak electricity grids, bad roads and lack of public E-chargers.

China is leading the EV fluid market with more than 25% of the market share followed by the United States of America. In China, rising government initiatives to provide subsidies for electric vehicles and rapid penetration of electric vehicles into the automotive industry are responsible for increasing market growth. Further, the USA is the third-largest market worldwide for e-mobility. Many industries present in the United States of America have announced their goal to have 40% to 50% production of electric vehicles and essential fluids by 2030. India will continue to be a large market of interest. In 2015, the Indian government adopted the Faster Adoption and Manufacturing of Hybrid and EV (FAME) scheme with an outlay of USD 130 million, which provided subsidies for electric 2- and 3-wheelers, hybrid and e-cars and buses. Subsequently in the year 2019, FAME II policies were announced by the Indian government to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers In the personal mobility space. The ultimate objective of this scheme was to promote cleaner mobility solutions and financial incentives for enhancing electric vehicle production and the creation of sustainable transport solutions.

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In order to meet the needs of the next generation of electric vehicles, global lubricant companies are investing their R&D resources into engineering lubricants for electric vehicles to minimize friction loss, enhance durability, bolster efficiency, and strengthen other performance aspects. The prominent companies in EV fluid market have already captured more than 55% share in the year 2021. The companies like Shell Plc, Valvoline Inc, Castrol limited etc companies have introduced the e-fluids range to provide a better experience to customers. Other major companies are Totalenergies Se, ExxonMobil Corporation, Petroliam Nasional Berhad (Petronas), Repsol S.A etc. are competing in the emarging e-fluids market.

"Several technical strategies should be considered to best achieve performance outcomes while ensuring proper efficiency and electrical power as well as thermal control. These range from using hydrolubes or incorporating nanotechnology in designing e-fluids to act as coolants for battery packs of EVs, to coupling synthetic and titanium-based complexes in greases and using phosphorus and sulphur-based additives to reduce viscosity. The degree of customization needed is much greater because e-fluids need an optimization with vendor-specific motors and other mechanical components. Collaboration between companies developing e-fluids and EV manufacturers, therefore, is one of the keys to success for this industry. Moreover,  environmentally friendly biodegradable e-fluids that are more organic in origin would be the fast-evolving and active research space that is going to unfold in the years to come as the industry keeps on fine-tuning and optimizing e-fluids with time" said Mr. Dhwipal Shah, Research Director with Bonafide Research.

In the year 2021, the global electric vehicle market registration reached to over 3.4 million, a 45% increase over last year. The total count of electric vehicle on road has been exceeded to over 16 million (2015 to 2021)  including cars, buses, vans and trucks across the world. Also, according to Bloomberg New Energy Finance (BNEF), EVs are expected to hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040. With the rise in the penetration of electric vehicles, the automotive industry is going through a profound shift. While none of these directly relate to the electronic fluid lubricant sector, indirectly, the e-fluids are inexorably tied to vehicle’s performance, running and maintenance costs. Therefore, the increasing demand for electric vehicles is predicted to drive the growth of the electric vehicle fluids market.

With the growing concern over tailpipe emissions and their harmful effects on the environment, stricter standards for carbon dioxide, nitrogen oxide and unburned hydrocarbons. Electric vehicles are portrayed as a variable option; various government organizations across the world have placed strict carbon emission mandates and standards. These are also anticipated to fuel the demand for electric vehicles and for the products in the global electric vehicle fluids market in coming years.

Impact of COVID-19

As the Covid-19 pandemic unfolded in early 2020 and lockdowns were implemented in various countries around the world, the global electric vehicle fluid market experienced an unprecedented drop alongside the electric vehicle market. However, the EV fluid market recovered rapidly in the previous year and is likely to capture higher growth in future. Governments around the world remain committed to providing incentives for the sale of EVs and are focusing on new projects and ambitious policies for EVs. As the world recovers from COVID-19, new regulatory reforms to curb carbon emissions, expansion of the EV battery market, and support for indigenous production of EVs are expected to drive the growth of the electric vehicle fluid market and opportunity for electric vehicle fluids manufacturers.

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Considered in this report
• Geography: Global
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Global Electric Vehicle Fluid market segmentation:

By Product Type
  • Grease
  • Braking Fluid
  • Heat Transfer Fluid
  • Drive System Fluid
By Propulsion Type
  • Battery Electric Vehicle (BEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)
  • Hybrid Electric Vehicle (HEV)
By Vehicle Type
  • Passenger Vehicle
  • Commercial Vehicle
By Region
  • North America
    • USA
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Norway
    • Italy
    • Netherland
    • Sweden
    • Spain
  • Asia-Pacific
    • China
    •  South Korea
    • Japan
    • Australia
    • India
  • Latin America
    • Brazil
    • Argentina
    • Columbia
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • South Africa

Table of Contents

1. Executive Summary
2. Report Methodology
3. Market Structure
3.1. Market Considerate
3.2. Market Definition
4. Economic /Demographic Snapshot
5. Global Electric Vehicle Fluid Market Outlook
5.1. Market Size By Value
5.2. Market Share
5.2.1. By Region
5.2.2. By Product Type
5.2.3. By Propulsion Type
5.2.4. By Vehicle Type
5.2.5. By Company
5.2.6. By Country
6. North America Electric Vehicle Fluid Market Outlook
6.1. Market Size By Value
6.2. Market Share
6.2.1. By Country
6.2.2. By Product Type
6.2.3. By Propulsion Type
6.2.4. By Vehicle Type
6.3. US Electric Vehicle Fluid Market Outlook
6.3.1. Market Size By Value
6.3.2. Market Share By Product Type By Propulsion Type

Prominent  Companies present in the market:

Prominent  Companies:
  • Shell Plc Formerly Royal Dutch Shell Plc             
  • Valvoline Inc.
  • Totalenergies SE          
  • ExxonMobil Corporation          
  • Petroliam Nasional Berhad (PETRONAS)           
  • Repsol S.A      
  • Eneos Corporation      
  • Castrol Limited             
  • The Lubrizol Corporation          
  • Afton Chemicals Corporation 
  • Motul               
  • Infineum International Limited             
  • Fuchs Petrolub SE       
  • BP Plc.              
  • 3M     
  • PTT Public Company Limited   
  • Phillips 66 Company   
  • TETRA Technologies Inc.           
  • Kluber Lubrication       
  • Gulf Oil

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