Increasing demand for electric vehicles drive the electric vehicle (EV) fluids market and is anticipated to reach $ 8.6 billion by 2030.
According to the new market research report - Electric Vehicle Fluids Market by product type, vehicle type, propulsion, fill type and region - Global Forecast to 2030, published by MarketsandMarkets, at a CAGR of 31.2% from $ 749 million in 2021.
The report stated that specific fluid requirement in EVs is also one of the other driving factors for EV fluids as an ICE's motor differs significantly from EV motors and, therefore, needs fluids, which cater to different functions than that in the ICEs.
With the growing concern over tailpipe emissions and their harmful effects on the environment, stringent standards for carbon dioxide and pollutants such as nitrogen oxide, unburned hydrocarbons, and particulates have been put in place, resulting in hybrid and full EVs no longer being seen as uncommon. However, the standard for the future, the research company, said.
EV fluids are substances or materials used for lubricating and improving the thermal performance of electric vehicles. They are manufactured using base oils and additives concerning different applications. They perform various functions in EVs, such as regulating the battery and other electronic components, temperature, and noise and vibration reduction. The most commonly used electric vehicle fluids include engine oil, coolants, transmission fluids, greases, and brake fluids.
The key players in the EV fluid market include Royal Dutch Shell, ExxonMobil, BP, TotalEnergies, FUCHS Petrolub, Petronas, ENEOS, Repsol, Valvoline and PTT.
Hybrid EVs
The hybrid EV segment accounted for the larger market share in 2020; however, the Battery EV segment is expected to account for the larger share by 2030. Europe is the largest electric vehicle fluids market, followed by APAC and North America. Stringent mandates by governments are a major opportunity for EV fluids manufacturers. The carbon emission from ICE vehicles is now treated as a significant threat by governments in many countries. Thus, the gradual tightening of fuel economy and tailpipe CO2 standards have augmented the role of EVs to meet the standards. In addition, government initiatives pertaining to EVs, such as investment in infrastructure, tax rebates, and others, also act as a significant opportunity for the growth of EVs and EV fluids market.
The battery EVs do not require a gasoline engine, which requires fuel and routine maintenance. Though battery EVs require less EV fluids than hybrid ones, the large-scale production of battery EVs compared to Hybrid EVs is expected to lead to the demand for EV fluids during the forecast period. The prices of batteries for EVs are decreasing due to the advancements in technology, which are expected to result in the reduced overall prices of BEVs.
According to MarketsandMarkets, Europe accounted for the largest market share in EV fluid market in 2020, in terms of value. The region led the EV fluids market with a share of 44.7%, in terms of value, in 2020 due to high prices and the high number of hybrid vehicles produced and sold in Europe, which requires more EV fluids than battery vehicle fluids. In addition, the high price of engine oil compared to other fluids used in hybrid EVs is one of the major reasons for the largest market share of Europe in 2020.
APAC is expected to be the fastest-growing market by 2030, mainly due to the expected high demand for electric vehicles in the region and the higher number of electric vehicles available for service fill during the forecast period.
High demand for EVs in Europe due to government regulations and investments, subsidies, tax rebates, and others support EV fluids growth in the region.
The major EV fluids market in Europe includes Germany, France, the UK, Italy, Russia, Netherlands, Norway, and Sweden. Europe has stringent emission regulation standards. In addition, the governments of the European countries are providing significant incentives to promote electric vehicles. As a result, the demand for EVs has increased significantly in the region. The region is home to manufacturers such as Renault, Audi, BMW, and Mercedes.
Europe has set a very ambitious goal of reducing 80% CO2 emissions by 2050 and has created a roadmap. The governments of various countries in Europe are subsidizing electric vehicle infrastructure, and the focus is expected to continue to be on electric vehicles in the long run, the research firm added.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Repsol.