Electric Vehicle Fluids Market Size & Share, Growth Analysis 2035

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Electric Vehicle Fluids Market size is expected to cross USD 3 Billion by the end of 2035, growing at a CAGR of 25% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of electric vehicle fluids was around USD 1 Billion. In order to obtain fluids for their electric vehicles and improve the driving experience, automotive OEMs have formed agreements with a number of fluid suppliers. This increase in sales of electric vehicles is predicted to drive market growth throughout the projection period. For instance, electric car sales increased to 6.6 million across the globe in the year 2022.

In addition to these, market trends like development of autonomous vehicles and escalating competition in the market for electric vehicles to seize opportunities brought about by the steady shift towards EVs are some significant factors anticipated to propel the market growth during the forecast period.

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Electric Vehicle Fluids Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~ 25%
Base Year Market Size (2022)	~ USD 1 Billion
Forecast Year Market Size (2035)	~ USD 3 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Electric Vehicle Fluids Market: Growth Drivers and Challenges

Growth Drivers

Growing Automotive Industry to Boost the Market Growth- During the forecast period, one of the major market variables is expected to be the increase in the production of electric and hybrid electric vehicles in the automotive sector. On the road, electric vehicles are becoming more common. More electric lubricants are expected to be required over the course of the projected period for the efficient maintenance of these vehicles.
Rising Awareness of Carbon Dioxide Emission- Due to the increase in carbon dioxide emissions, it is projected that the manufacturing of electric vehicles would increase during the projection period. Public knowledge of environmental change has been observed to cause a decline in passenger automobile sales. For example, it has been calculated that each passenger car emits roughly 5 metric tonnes of carbon dioxide yearly, and that road transport is responsible for nearly 16% of all global man-made carbon dioxide emissions.

Challenges

Possibility of Allergic Reaction- A multitude of negative effects, such as skin rashes and yeast infections, can result from the usage of lubricants in electric vehicles. It is therefore anticipated that this aspect will significantly constrain the market during the projection period.
Expensive Development of Battery Systems.
Alternative Products are Available on the Market.

Electric Vehicle Fluids Segmentation

Propulsion Type (Battery Electric Vehicles, Hybrid Electric Vehicles)

Hybrid electric vehicles segment is estimated to hold 60% share of the global electric vehicle fluids market during the forecast period. Hybrid electric vehicles are predicted to grow in popularity because of their capacity to reduce greenhouse gas emissions from motor vehicles. For example, it is anticipated that more than 5 million hybrid vehicles will be produced globally by 2025, up from just over 2 million in 2020 and a million in 2015.

Product Type (Grease, Brake Fluid, Heat Transfer Fluid, Drive System Fluid)

Electric vehicle fluids market from grease segment is expected to garner significant share of about 45% in the year 2035. It is common knowledge that hybrid electric vehicles are powered by internal combustion engines, which require lithium grease. Grease is also necessary for the high- and low-speed operation of the grease-bearing systems in electric cars. Thus, with the increasing number of electric vehicles on the road, the demand for grease will also rise.

Our in-depth analysis of the global electric vehicle fluids market includes the following segments:

Product Type	Grease Brake Fluid Heat Transfer Fluid Drive System Fluid
Propulsion Type	Battery Electric Vehicles Hybrid Electric Vehicles
Distribution Channels	OEMs Aftermarket

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Electric Vehicle Fluids Industry - Regional Synopsis

APAC Market Forecast

The Asia Pacific electric vehicle fluids market is projected to hold the largest revenue share of about 32% by the end of 2035. The market's expansion may be largely due to the increase in the number of registrations for electric vehicles in the Asia Pacific region, which is supported by favorable national government legislation. For example, it was expected that by 2020, there will have been approximately 1300 thousand registrations of electric cars, up from 1000 thousand in 2019.

European Market Statistics

The electric vehicle fluids market in the Europe region is anticipated to have a significant share of about 25% in the year 2035. The fast-growing infrastructure of electric vehicle charging stations is significantly responsible for the market's expansion. It is anticipated that France, Germany, the Netherlands, Norway, and the United Kingdom will be the top nations for the growth of electric car production and sales volume. For instance, the EU planned in 2021 to build approximately three million electric vehicle charging stations by the year 2029, up from just over a million by 2024.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the electric vehicle fluids market?

Ans: Growing automotive industry boosts the market growth and growing government initiatives to support electric car manufacturing are the major factors driving the growth of the market.

2) What would be the CAGR of the electric vehicle fluids market over the forecast period?

Ans: The market size of electric vehicle fluids is anticipated to attain a CAGR of 25% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the electric vehicle fluids market?

Ans: The major players in the market are Castrol Limited, Electrolube Limited, Kluber Lubrication MÃ¼nchen GmbH & Co. KG, M&I Materials Limited, PANOLIN Distribution AG, Valvoline Inc., Afton Chemical Corporation, Infineum International Limited, and others.

4) Which segment captures the largest market size in the propulsion type segment in the electric vehicle fluids market?

Ans: The hybrid electric vehicle segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the electric vehicle fluids market in the future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.