Fluids and Lubricants Market for Electric Vehicles - A Global and Regional Analysis: Focus on Product Types and Their Applications (Thermal Fluids, Drive System Fluids, and Brake Fluids and Grease), Vehicle Type (Passenger Cars and Light and Heavy Commercial Vehicles), Propulsion Type (BEV, HEV, and PHEV), Distribution Channel (OEMs and Aftermarket), and Countries - Analysis and Forecast, 2022-2031
Fluids and Lubricants Market for Electric Vehicles Industry Overview
The fluids and lubricants market for electric vehicles was estimated to be at $1,387.7 million in 2021, which is expected to grow with a CAGR of 28.81% and reach $17,412.9 million by 2031. The growth in the fluids and lubricants market for electric vehicles is expected to be driven by increasing sales of electric vehicles around the world.
Market Lifecycle Stage
The fluids and lubricants market for electric vehicles is at an early stage and is growing swiftly. Ongoing research and development activities in manufacturing efficient, anti-wear, and optimal temperature fluids are expected to boost key market development activities.
The fluids and lubricants market for electric vehicles is in the growth phase. A growing fleet of electric vehicles (EVs) is consuming more and more EV fluids. As a result, the fluids and lubricants market for electric vehicles is expected to flourish in the forecast period 2022-2031.
Impact
Huge investments in the form of subsidies and infrastructure development by government and federal agencies to promote electric vehicles to cut down carbon dioxide emissions are propelling the growth of electric vehicle fluids and lubricants.
According to CALSTART's Zero-Emission Technology Inventory, the North America market will have 54 manufacturers offering over 100 models of electric heavy commercial vehicles by 2022, which will boost the fluids and lubricants market for electric vehicles. Sales of electric heavy commercial vehicles will lead to an increase in fluid and lubricant consumption. Compared to normal electric cars, heavy commercial vehicles require more maintenance, which may boost aftermarket sales.
Impact of COVID-19
The COVID-19 pandemic impact on the fluids and lubricants market for electric vehicles has been negligible. Despite the pandemic, there was a slight increase in electric vehicle fluids and lubricants consumption. COVID-19 has enhanced awareness of the environment. Because of this, more and more people are planning to purchase sustainable vehicles. This will propel the fluids and lubricants market for electric vehicles.
Market Segmentation:
Segmentation 1: by Propulsion Type
Battery Electric Vehicles (BEVs)
Hybrid Electric Vehicles (HEVs)
Plug-In Hybrid Electric Vehicles (PHEVs)
Segmentation 2: by Vehicle Type
Passenger Vehicles
Light Commercial Vehicles
Heavy Commercial Vehicles
The fluids and lubricants market for electric vehicles in the propulsion type segment is expected to be dominated by the hybrid electric vehicles segment. In terms of vehicle type, passenger vehicle will dominate the Fluids and lubricants market for electric vehicles due to the large fleet of these vehicles.
Segmentation 3: by Product Type
Grease
E-motors
Bearings
Constant Velocity Joints (CV Joints)
Others
Thermal Fluids
Batteries
E-motors
Power Electronics
Others
Drive System Fluids
Gear
E-motors
Others
Brake Fluids
The thermal fluids segment dominates the fluids and lubricants market for electric vehicles due to the higher volume and per liter cost of this fluid.
Segmentation 4: by Distribution Channel
OEMs
Aftermarket
The OEMs channel is anticipated to dominate the global fluids and lubricants market for EVs as most of the fluids have a very low replacement rate and can last for the entire electric vehicle’s lifetime without being flushed.
Segmentation 5: by Region
North America
Asia-Pacific and Japan
China
Europe
South America
Middle East and Africa
China generated the highest revenue of $571.2 million in 2021, which is attributed to the increase in sales of electric vehicles and the high cost of fluids/liter in the China region. The fluids and lubricants market for electric vehicles is attractive in China due to the availability of diverse market segments.
Recent Developments in Fluids and Lubricants Market for Electric Vehicles
In March 2022, Afton invested approximately $400 million in the Singapore chemical additive manufacturing facility under phase 3 expansion to expand its GPA blending capabilities.
In November 2021, the FUCHS Group unveiled a new design for automotive lubricants that features improved orientation, handling, and resource conservation.
In September 2021, Infineum International Ltd announced the launch of a broad portfolio of dedicated e-mobility fluids, covering all of the major hybrid and full battery electric vehicle models.
In February 2020, Kluber Lubrication launched specialty lubes for EVs.
In November 2021, Petronas unveiled its next-generation range of electric vehicle fluid solutions at its Global Research & Technology Centre in Turin, Italy.
Demand – Drivers and Limitations
Following are the demand drivers for the fluids and lubricants market for electric vehicles:
Need for Corrosion Resistant Solutions in the Electric Vehicle Batteries
Increasing Demand to Further Extend the Range of the Electric Vehicles
Rapid Adoption of Immersive Cooling for the Electric Vehicle Batteries
Improved Durability of Powertrain in Electric Vehicles
Increasing Demand for High-Performance Grease in HEVs
Growing Need for Enhanced Electrification Components
The market is expected to face some limitations too due to the following challenges:
Higher Cost of EV Fluids
Energy Efficiency Challenges
Developing Environment-Friendly Electric Vehicle Fluids
Lack of Optimized EV/HEV Performance for Improving Thermal Conductivity
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different types of electric vehicle fluids and lubricants products available based on propulsion type (battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs)), vehicle type (passenger vehicles, light commercial vehicles, and heavy commercial vehicles), product type (thermal fluid, drive system fluid, brake fluid, and grease), and distribution channel (OEMs and aftermarket). Increasing demand for cooling of batteries and high-temperature parts in electric vehicles pushing consumption of electric vehicle fluids and lubricants. Therefore, the fluids and lubricants market for electric vehicles business is a high-investment and high-revenue generating model.
Growth/Marketing Strategy: The fluids and lubricants market for electric vehicles is an exponentially growing market holding enormous opportunities for the market players. Some of the strategies covered in this segment are product launches, partnerships and collaborations, business expansions, and investments. The companies' preferred strategy has been product launches, partnerships, and collaborations to strengthen their positions in the global fluids and lubricants market for electric vehicles.
Competitive Strategy: Key players in the fluids and lubricants market for electric vehicles analyzed and profiled in the study involve electric vehicle fluids and lubricants-based product manufacturers that provide raw or processed products. Moreover, a detailed competitive benchmarking of the players operating in the fluids and lubricants market for electric vehicles has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Public companies are leading in the fluids and lubricants market for electric vehicles. For base year 2021, Private companies in the market capture around 5% of the market share, whereas public companies in the market capture around 95% of the market share in the global fluids and lubricants market for electric vehicles.
Some of the prominent names established in this market are:
Company Type 1: Private Companies
Afton Chemicals
Engineered Fluids
Dober
Infineum International Limited
Klüber Lubrication
M&I Materials Limited
Panolin AG
Company Type 2: Public Companies
CASTROL Limited
3M
Motul
Electrolube
Exxon Mobil Corporation
The Lubrizol Corporation
Petronas
PolySi Technologies Inc.
Shell plc
TotalEnergies SE
Valvoline Inc.
FUCHS
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