Global Electric Vehicle Fluids Market Outlook to 2030

Global Electric Vehicle Fluids Market Overview

• The global EV fluids market was valued at USD 1.2 Bn in 2023, is driven by increasing adoption of electric vehicles due to environmental concerns and stringent emission regulations. The demand for specialized fluids, including coolants, transmission fluids, and greases, tailored for EV requirements, has surged as automakers seek to enhance vehicle performance and longevity.

• The key players in the market include Shell, ExxonMobil, TotalEnergies, BP, and FUCHS. These companies have established themselves as leaders through extensive R&D investments, strategic partnerships, and a robust distribution network. Shell, for instance, has been focusing on developing high-performance fluids specifically designed for electric drivetrains, while ExxonMobil has expanded its product portfolio to cater to the unique needs of electric vehicles.
• In 2023, Shell launched its E-Fluids range, which includes specialized transmission and cooling fluids designed for electric powertrains. These products are engineered to meet the high-performance demands of modern EV systems, enhancing efficiency and reliability12. Notably, Shell's E-Thermal Fluid E5 M is formulated for use in batteries and electric motors, utilizing non-corrosive base oil technology to operate effectively across various temperatures
• Cities like Shanghai, Los Angeles, and Oslo dominate the EV fluids market due to their high EV adoption rates, robust charging infrastructure, and supportive government policies. Shanghai has over 300,000 registered electric vehicles, supported by extensive charging networks and government incentives, making it a significant market for EV fluids. Similarly, Los Angeles and Oslo have proactive policies promoting EV usage, contributing to their dominance in the market.

Global Electric Vehicle Fluids Market Segmentation

The Global Electric Vehicle Fluids Market can be segmented based on several factors:

• By Fluid Type: Global electric vehicle fluids market segmentation by fluid type is divided into coolants, transmission fluids and greases. In 2023, coolants dominate the market, driven by their crucial role in managing battery and motor temperatures. This dominance is fueled by the growing adoption of EVs and advancements in coolant technology, which enhance vehicle performance and safety.

• By Region: Global electric vehicle fluids market segmentation by region is divided into North America, Europe, MEA, Latin America and APAC. In 2023, APAC dominates the market, driven by rapid urbanization, strong EV incentives, and significant infrastructure investments. The regions growth is supported by rising EV demand and favorable regulatory environments.

• By Vehicle Type: Global electric vehicle fluids market segmentation by vehicle type is divided into battery EV, plug-in hybrid EV and hybrid EV. In 2023, Battery Electric Vehicles (BEVs) dominate the market, driven by advancements in battery technology, rising environmental concerns, and supportive government policies. These factors boost the demand for BEV-specific fluids.

Global Electric Vehicle Fluids Market Competitive Landscape

• TotalEnergies: On November 1, 2022, TotalEnergies Marketing India Private Limited (TEMIPL) introduced its new range of electric vehicle fluids, specifically designed for electric and hybrid cars as well as electric bikes. The product lineup includesQuartz EV Fluidfor cars andHi-Perf EV Fluidfor bikes. These fluids are engineered to meet the unique cooling, insulating, and lubrication needs of modern EV systems, ensuring optimal performance throughout their operational lifespan.
• ExxonMobil: In 2023, ExxonMobil unveiled its Mobil EV Therm, a thermal management fluid specifically engineered for cooling high-performance EV batteries. This product is crucial for maintaining optimal battery temperatures, which enhances efficiency and prolongs battery life. The fluid's formulation aims to support the sustainability goals of EV manufacturers by ensuring effective thermal management, a vital aspect of electric vehicle operation

Global Electric Vehicle Fluids Industry Analysis

Growth Drivers

• Increasing Electric Vehicle Adoption: In 2023, the number of electric vehicles on the road globally surpassed 26 million, driven by strong sales in key markets such as China, the USA, and Europe. The growing environmental awareness and stringent government regulations aimed at reducing carbon emissions have significantly boosted EV adoption. According to the International Energy Agency (IEA), global EV sales are projected to reach 30 million by 2030. This surge in electric vehicle numbers directly increases the demand for specialized fluids.
• Advancements in EV Technology: Technological advancements in battery technology and electric drivetrains have revolutionized the EV industry. In 2024, major breakthroughs in solid-state battery technology were reported, leading to longer battery life, faster charging times, and improved safety. Companies like Toyota and Volkswagen have announced plans to integrate solid-state batteries into their EVs by 2025. These advancements necessitate the development of advanced EV fluids that can meet the higher thermal management and lubrication requirements of these next-generation batteries and drivetrains.
• Expansion of Charging Infrastructure: The expansion of EV charging infrastructure is a major driver for the EV fluids market. In 2023, the number of public charging points globally reached 1.3 million, with substantial investments from governments and private entities. The European Union, for example, committed USD 1.073 billion in 2023 to enhance the EV charging network across member states. A well-developed charging infrastructure encourages EV adoption, subsequently increasing the need for maintenance fluids that ensure the longevity and efficiency of EV components.

Market Challenges

• Environmental Regulations and Compliance: Stringent environmental regulations concerning the production and disposal of automotive fluids pose a challenge to the EV fluids market. Governments worldwide are enforcing regulations to minimize the environmental impact of chemical production and waste. In 2023, the European Union implemented the REACH regulation, which imposes strict guidelines on the use of hazardous substances in automotive fluids.
• High Cost of Specialized EV Fluids: The production of specialized fluids for electric vehicles involves advanced formulations and high-quality materials, leading to higher costs compared to conventional automotive fluids. For instance, the cost of high-performance EV coolants is higher than standard coolants. This cost disparity poses a challenge for manufacturers and consumers, especially in price-sensitive markets.

Government Initiatives

• New EV Policy: In March 2023, the Indian government approved a new EV policy worth USD 500 million aimed at attracting investments from global EV manufacturers. This policy includes incentives tied to local investment and domestic value addition, aiming for 25% domestic value addition by the third year of manufacturing. Additionally, it sets a minimum investment requirement of USD 498 million, with no upper limit on investment, to encourage significant capital inflow into the electric vehicle sector.
• U.S. Infrastructure Investment and Jobs Act: The U.S. Infrastructure Investment and Jobs Act, enacted in 2023, allocates USD 7.5 billion to build a national network of 500,000 EV chargers by 2030. This initiative aims to accelerate the adoption of electric vehicles in the United States by addressing the charging infrastructure gap. The act also includes provisions for grants and incentives for EV manufacturers and suppliers, promoting the development and usage of specialized EV fluids to enhance vehicle performance and reliability.

Global Electric Vehicle Fluids Future Market Outlook

The market is expected to show significant growth by 2028, driven by the increasing adoption of electric vehicles, advancements in EV technology, and the expansion of charging infrastructure. The market is expected to witness substantial investments in R&D for developing advanced fluids that cater to the evolving needs of electric vehicles.

Future Market Trends

• Development of Next-Generation EV Fluids: Manufacturers will focus on developing next-generation EV fluids that offer superior thermal management and lubrication properties. These advanced fluids will cater to the specific needs of high-performance electric drivetrains and solid-state batteries, enhancing vehicle efficiency and lifespan.
• Increased Integration of AI and IoT in EV Fluid Management: The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) in EV fluid management will become more prevalent. Smart sensors and predictive analytics will enable real-time monitoring and optimization of fluid performance, ensuring optimal vehicle operation and reducing maintenance costs.