Global Fluid and Lubricants for Electric Vehicle Market Research Report: Forecast (2024-2030)

Market Definition

Fluids and lubricants for electric vehicles (EVs) are special formulation substances that are intended to meet the unique requirements of electric vehicles. Unlike conventional cars, electric vehicles need fluids such as coolants which help in achieving heat dissipation, insulation, and the safety of the batteries, motors, and electrical systems. These oils provide the ability to reduce friction, have better performance, and extend the lifespan of components in electric vehicles.

Market Insights & Analysis: Global Fluid and Lubricants for Electric Vehicle Market (2024-30):

The Global Fluid and Lubricants for Electric Vehicle Market size is estimated to grow at a CAGR of around 30.4% during the forecast period, i.e., 2024-30. The market has been experiencing robust growth due to the rising demand for efficient and long-lasting fluids tailored for electric vehicles (EVs). Key components within an EV, such as battery systems and electric motors, generate considerable heat during operation. This has led to the development of innovative lubricants equipped with specific additives and dielectric properties that are suited to the unique mechanics of electric vehicles. Common fluid types designed to optimize EV functionality include greases, heat transfer fluids, drive system fluids, and brake fluids. As the industry continues to advance, there is a growing emphasis on creating more effective thermal cooling systems, which are crucial for supporting future market growth & expansion.

Moreover, increased collaboration between automotive Original Equipment Manufacturers (OEMs) and major fluid suppliers has been set to drive growth in the OEM segment. These partnerships aim to enhance the overall driving experience by supplying specially formulated fluids for EVs. Additionally, there has been a notable surge in electric vehicle production efforts by automakers in developing countries, spurred by the global shift towards electric mobility. This trend is likely to further bolster the market for electric vehicle fluid lubricants in the coming years.

Governmental policies favoring environmental sustainability, along with a push towards adopting renewable energy sources and vehicles, have been also significant drivers for the market. The rising implementation of initiatives, combined with increasing competition within the EV industry would further accelerate market growth. Along with this, as more consumers turn to electric vehicles, the demand for specialized fluids that ensure the optimal performance and longevity of these vehicles will continue to rise, promising a bright future for the electric vehicle fluid & lubricant industry.

Global Fluid and Lubricants for Electric Vehicle Market Driver:

Expansion of Electric Vehicle Manufacturing Units to Boost Market Growth – Over the past few years, the adoption of electric automobiles increased substantially owing to the growing greenhouse emissions & the incentives provided for the purchase of electric automobiles. As per the statistics by the IEA, global electric car sales in 2023 reached around 14 million, an increase of about 35% compared to 2022. This mounting electric vehicle demand is necessitating the top companies to ramp up their production capabilities and expand their manufacturing units. Thus, generating a demand for the necessary fluids & lubricants directly from the original equipment manufacturers and enlarging the market size.

Further, authorities across the globe are also easing corporate taxes & providing favorable business environments. Owing to this, several market players are actively constructing their EV manufacturing units. In 2023, PMI Electro announced to setting up of a commercial EV manufacturing plant in Maharashtra, India. These rising establishment of EV production units would continue to boost the demand for Fluids, engine oils, and other lubricants, uplifting the market growth in the forthcoming years.

Global Fluid and Lubricants for Electric Vehicle Market Challenge:

Introduction of Stringent Regulations & Higher Costs Impedes Market Growth – The Global EV industry is currently undergoing evolution. Therefore, the official authorities across the globe are consistently upgrading the regulations & standards for products such as lubricants & fluids associated with the functioning of Electric Vehicles (EVs). This results in the manufacturers investing a hefty amount in further R&D to develop a product that complies with the current standards. Hence, ultimately the manufacturers are increasing the market price of the lubricants & oil to earn profits. This, in turn, is making these products inaccessible to the economically constrained population.

Moreover, the models of EVs launched by the top companies are different and are based on diverse technology. Therefore, there is a requirement for fluids and lubricants that are compatible with new electric vehicle technologies. However, it has become challenging for the manufacturers to develop a specific range of formulations that suits every model, making it difficult for consumers to trust any particular brand and slowing down the market growth.

Global Fluid and Lubricants for Electric Vehicle Market Trend:

Rising Inclination Towards Bio-Based & Biodegradable Lubricants & Fluids – In recent years, consumers across the globe have become more conscious about their carbon footprint and transitioning towards sustainability. Therefore, they are increasingly shifting towards bio-based products rather than chemical lubricants. These biodegradable fluids for the EVs offer excellent heat dissipation and high resistance to oxidation. Therefore, it is suitable for the components, such as batteries, electric motors, or inverters and consumers increasingly prefer these types of fluids & lubricants over conventional products.

Along with this, the top companies are capitalizing on this emerging trend of bio-based products. As a result, they are increasingly launching biodegradable & bio-based dielectric fluids for several electric vehicle models. These fluids help the customers to achieve better car performance. Thus, the increasing introduction of these bio-lubricants & bio-fluids would continue to gain the attention of the customers, supporting market growth.  

Global Fluid and Lubricants for Electric Vehicle Market (2024-30): Segmentation Analysis

The Global Fluid and Lubricants for Electric Vehicle Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on the Vehicle Type

• Passenger Vehicle
• Commercial Vehicle
  • Light Commercial Vehicle
  • Medium & Heavy Commercial Vehicle
• Others (Two-Wheeler Vehicle, Three-Wheeler Vehicle, etc.)

Among them, the passenger vehicle segment in the electric vehicle (EV) product category commands a significant market share due to its widespread consumer acceptance and the high volume of sales compared to other types such as commercial vehicles and two- or three-wheelers. Customers nowadays prefer electric motor cars over conventional fuel-based cars due to the rising oil prices. Along with this, several ride-hailing companies, like Ola & Uber are increasingly adding electric motorcars to their existing fleet size as a part of their corporate sustainability initiatives. The wide utilization of these cars by rental companies & personal transportation for intercity and intracity travel is accentuating the need for adequate lubricants & fluids that ensure the smooth functioning of the vehicles. Thus, there is a higher demand for the fluids & lubricants for electric cars.

Further, several top EV car manufacturers are enhancing their production from numbers 10,000 units yearly to as many as 500,000 units annually. This is not only generating the demand for these products directly from the OEMs but also helping in reducing the production costs per vehicle and making electric cars more accessible to the economically constrained population. This would further result in the adoption of electric cars in under-developing economies, consequently accentuating the demand for fluids & lubricants in the forthcoming years.

By Propulsion Type

• Battery Electric Vehicles (BEVs)
• Hybrid Electric Vehicles (HEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

Of them, the BEVs (Battery Electric Vehicles) segment holds a considerable market share due to the continuous rise in their sales and strong support from the companies. Several government initiatives tailored toward the growth of BEVs including financial support, rebates, and subsidies on purchasing vehicles and investments in the construction of the charging infrastructure are contributing to the surge in the sales of the BEVs. These batter-based electric automobiles have different characteristics than the hybrid vehicles and they are exhaustless. This makes these vehicles more appropriate for consumers concerned about the environment. Furthermore, their quiet running and lower comparison in fuel expenses also make them a more favorable option for consumers. This increasing and substantial demand for BEVs from consumers due to raising awareness of the environment and the transition towards sustainable options of transport would continue to strengthen their position in the market, even during the forecast period.

Global Fluid and Lubricants for Electric Vehicle Market (2024-30): Regional Projections

Geographically, the Global Fluid and Lubricants for Electric Vehicle Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Geographically, Asia-Pacific holds a considerable market share due to a cultural shift towards a more environmentally conscious lifestyle in response to rising CO2 emissions from rapidly growing cities and industries in developing countries like India, China, and Malaysia. The growing reality that sustainable transport solutions are urgent in both the passenger and the commercial vehicle sectors in the Asia-Pacific region is making electric vehicles more necessary in the region. As a result, end-users are increasingly purchasing & widely utilizing electric vehicles, including motorcycles & cars. This extensive usage of these automobiles is raising the requirement for fluids & lubricants, supporting market growth in Asia-Pacific.

Further, the national governments in the region have laid initiatives to replace older and less efficient vehicles with green mobility solutions. This transition not only stimulates the use of eco-friendly cars but also fuels demand for efficient, high-quality hydraulic fluids and lubricants that ensure the proper functioning of these automobiles. Besides, the governments of these Asian nations are encouraging the top companies to develop & produce electric car models within the countries, under programmes, like Make in India & Make in China. This would facilitate the development of more electric vehicles within the region, uplifting the requirement for fluids & lubricants in the forthcoming years.

Global Fluid and Lubricants for Electric Vehicle Industry Recent Development:

• 2024: Lubrizol announced a new low-SAPS heavy-duty lubricant technology that can be used for multiple viscosity profiles, and provides a higher level of performance.
• 2023: Exxon Mobil Corporation: Announced setting up a lubricant manufacturing unit in India with an annual capacity to produce 1 million barrels of lubricants. This facility would be operational by 2025 and strengthen the presence of the company in India.
• 2023: Valvoline Inc.: Introduced performance fluids to extend the battery life & provide protection to the active components of the EVs.

Gain a Competitive Edge with Our Global Fluid and Lubricants for Electric Vehicle Market Report

1. Global Fluid and Lubricants for Electric Vehicle Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Fluid and Lubricants for Electric Vehicle Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.