MARKET OVERVIEW- GLOBAL ELECTRICAL VEHICLE FLUIDS MARKET
An electric vehicle is a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source. The electric vehicle fluids have been modified and engineered specifically to meet the requirements of the high-tech powertrains. These fluids are responsible for cooling the powertrain and transmission system while stabilizing the temperature of the battery and power electronics. In addition, the EV fluid performs the function of heat transfer, and the E-grease lubricates the EV components while reducing the vehicle's noise, vibration, and harness (NVH) levels. New electric vehicle lubricants have additives and dielectric properties added to make them suitable for electric vehicle systems. The electric vehicle fluids aid in the reduction of energy losses in the drivetrain system and the enhancement of EV transmission efficiency.
Electric vehicle fluids provide insulation to prevent any arcing due to close contact with the electrical components of the vehicle. They aid in the cooling of electric motors and gears, provide insulation for electric current, and increase machine efficiency, thereby extending the life of each electric motor component and increasing EV mileage. The main types of products include heat transfer fluid, brake fluid, transmission fluid, and grease.
MARKET DRIVERS
Factors that are responsible for electric vehicle market growth include increasing demand for electric vehicles for convenience and safety. Electric vehicles have fewer moving parts than internal combustion vehicles, so they require very low maintenance costs. As a result of growing demand for EVs, the ultimate demand for EV fluids increases. The other functions of the fluids include reducing energy losses in the drivetrain and improving an electric vehicle's transmission system. In addition, it is the duty of the EV fluids to safeguard against any flaring caused by close contact between the vehicle's components. Furthermore, they aid in cooling the e-motors and gears, which can extend the overall life of the vehicle components and increase the vehicle’s efficiency. The specific fluid requirements in the electrical vehicle are another factor that propels market growth during the forecast period. The EV requires completely different engine fluids than traditional combustion engines. In addition, increasing demand for electric vehicles as well as rising adaptation of these vehicles in various developed economies will also drive the electrical vehicle fluids market during the forecast period.
MARKET OPPORTUNITY
The market is expected to have new opportunities with technological advancements and ongoing R&D activities to develop quality electric vehicle fluid products. This is expected to provide ample new growth opportunities in the market during the forecast period. The major factor driving the demand for electric vehicle fluids is the increasing demand for electric vehicles due to rising fuel costs, rising pollution levels, and declining battery prices. Additionally, a variety of policies are being implemented by governments around the world to limit harmful vehicle emissions. The rising demand for ADAS standards, the growing trend towards the development of autonomous vehicles, and the rising demand for convenience and safety are expected to provide ample of opportunities for the global electric vehicle fluid lubricants market during the forecast period. Moreover, government initiatives promoting the use and adaptation of electric vehicles are also expected to create market opportunities for players and manufacturers in the global electric fluid market during the forecast period.
MARKET RESTRAINTS
The market has major restraining factors like the requirement for high cost compared to the conventional petrol and diesel vehicles. This is primarily because of the expensive battery pack but also due to the absence of economies of scale. Electric vehicles have a high initial cost, and many consumers cannot afford them in their budgets, thus, they are hesitant to switch from regular vehicles to electric vehicles. These are the major factors that affect the growth of the electric fluid market during the forecast period.
MARKET GROWTH CHALLENGES
Compared to oils, greases have a lower capacity for cooling and heat transfer. When greases are used, their high viscosities limit their speed because they produce too much heat. Greases are more susceptible to oxidation as a result of the impact that oxidation products have on the stability of thickeners. It is challenging to apply precise amounts of grease, especially during relubrication, leading to over-greasing.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of electric vehicle fluids market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for electric vehicle fluids in various applications is anticipated to stimulate the growth of the market, and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029
GLOBAL ELECTRICAL VEHICLE FLUIDS MARKET SEGMENTAL OVERVIEW
The global electric vehicle fluids market comprises of different market segments like, propulsion type, vehicle type, product type, distribution channel and geography.
GLOBAL ELECTRIC VEHICLE FLUIDS MARKET BY PROPULSION TYPE
By propulsion type, the global electric fluids vehicle market includes key segments like
- Battery EV
- Plug-in Hybrid EV
On the basis of propulsion type, the global electric fluids vehicle market includes key segments such as battery EV and plug-in hybrid EV. Battery EV segment is expected to account for the largest share during the forecast period. An electric vehicle battery is a rechargeable battery used to power the electric motors of a battery electric vehicle. These battery EV differ from starting, lighting, and ignition (SLI) batteries, as they are typically lithium-ion batteries that are designed for high power-to-weight ratio, specific energy and energy density; smaller, lighter batteries are desirable because they reduce the weight of the vehicle and therefore improve its performance. Battery EVs do not require a gasoline engine, which requires fuel and routine maintenance. The prices of batteries for EVs are reducing due to the technology advancements, which are expected to result in reduced overall prices for BEVs.
GLOBAL ELECTRIC VEHICLE FLUIDS MARKET BY VEHICLE TYPE
By vehicle type, the global electric fluids vehicle market includes key segments such as
- Passenger Vehicle
- Commercial Vehicles
- Others
On the basis of vehicle type, the global electric fluids vehicle market includes key segments like passenger vehicle, commercial vehicles, and others. A passenger vehicle is projected to lead the global electric vehicle fluids market growth during the forecast period. This is due to the rising demand for electric passenger vehicles globally, driven by the supportive government's measures on the electrification of transport fleets and the increasing demand for zero-emission vehicles in the e-commerce and logistics sectors for the eco-friendly vehicle.
GLOBAL ELECTRIC VEHICLE FLUIDS MARKET BY PRODUCT TYPE
On the basis of product type, the global electric fluids vehicle market divided into key segments such as
Heat Transfer Fluid
- Grease
- Transmission Fluid
- Brake Fluid
- Others
Heat transfer fluid is expected to dominate the market during the forecast period. The primary function of the heat transfer fluid (HTF) is as an intermediate fluid for transferring heat from a heat source to other heat needs (also known as cold streams). Through HTF, a single heater can heat any number of cold streams. The HTF is a fluid that circulates, transferring heat to cold streams via heat exchangers before returning to the heat source (the heater). Ester based heat transfer fluid useful as a coolant for electric vehicles. The formulation is useful as a coolant for electric vehicles and has excellent dielectric and heat transfer properties. The primary function of grease in an automobile is to lubricate bearings the majority of the assembly's moving parts to reduce frictional losses.
GLOBAL ELECTRIC VEHICLE FLUIDS MARKET BY DISTRIBUTION CHANNEL
On the basis of distribution channel, the global electric fluids vehicle market divided into key segments such as
The OEMs segments lead the market during the forecast period. The rising demand for electric vehicles (EVs) as a result of rising fuel costs, rising pollution levels, and falling battery prices is the primary driver of the demand for electric vehicle fluids. Additionally, a variety of policies are being implemented by nations' governments to limit harmful vehicle emissions. Hence, OEM prefers developing electric vehicles over internal combustion vehicles to meet that regulation. OEM is an original equipment manufacturer is the original producer of a vehicle's components, and so OEM car parts are identical to the parts used in producing a vehicle.
GLOBAL ELECTRIC VEHICLE FLUIDS MARKET BY GEOGRAPHY
The global electric vehicle fluids market is studied for the following region
- North America
- Asia Pacific
- Europe
- RoW
Geographically, the global electric vehicle fluids market is studied for the following countries North America, Asia Pacific, Europe and RoW. The Asia Pacific region is anticipated to hold a major share in the global electric vehicle fluids market during the forecast period, due to the strong presence of electric vehicles in countries in the region. Another factor that is anticipated to further support the growth of the target market in the Asia-Pacific region is the growing government initiatives for EV penetration. North America is expected to experience significant market growth during the forecast period due to being the major producer of EVs and having a large and developed eco-system for electric vehicles.
COVID-19 IMPACT ANALYSIS ON GLOBAL ELECTRIC VEHICLE FLUIDS MARKET
Some industries in COVID-19 are struggling, while others are thriving. Overall, almost every sector is expected to be impacted. Travel and vehicle use have been restricted by the pandemic. Original equipment manufacturers (OEMs) have also halted production due to the shortage of the workforce and disruption of the supply chain, which has further decreased demand for electric vehicle fluid lubricants. The market for fluid lubricants for electric vehicles is anticipated to experience steady declines as a result of transportation restrictions, issues with maintenance, and high prices.
During COVID-19, the automotive industry is under pressure from both the demand and export sides, as well as from the supply side. This has an effect on the growth of the electric vehicle fluids market. However, due to the coronavirus outbreak's lockdown in several nations, which restricts the production of electric vehicles, the global automobile industry is facing a slowdown. However, this is expected to resume the electric vehicle fluids market's growth during the forecast period. Additionally, the region's market is anticipated to expand during the forecast period as a result of the rising adoption of electric vehicles for convenience and safety.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the electric vehicle fluids market is primarily focused on expanding the global growth of the electric vehicle fluids industry with new product innovation, business expansion, increasing presence of a range of manufacturer operating in electric vehicle fluids sector has led to growing demand for the market. Besides, the market offers a range of products in different application to fulfil the required demand of consumers, which further contributes to healthy growth in the market.
The key players studied in market are
- Shell (US)
- Petronas (Malaysia)
- GS Caltex (South Korea)
- Stellantis (Netherland)
- Fuchs group (Germany)
- Total Energies (France)
- ExxonMobil (US)
- Repsol (Spain)
- Valvoline Inc. (US)
- Phillips 66 (US)
RECENT DEVELOPMENT:
November 2022: Total Energies launched a global range of the new EV Fluid range in India for electric and hybrid cars, and electric bikes. This product was especially developed to meet the cooling, insulating, and lubrication requirements of all types of electric and hybrid vehicles.
November 2021: Petronas Lubricants International (PLI) has introduced the next generation of its iona electric vehicle fluids to cater to manufacturers of zero-emissions vehicles, promising improvements in efficiency. These fluids' improved properties are intended to enhance the performance, energy efficiency, and dependability of high-performance electric vehicles.
