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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 25% |
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Base Year Market Size (2022) |
~ USD 1 Billion |
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Forecast Year Market Size (2035) |
~ USD 3 Billion |
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Regional Scope |
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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:
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Product Type |
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Propulsion Type |
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Distribution Channels |
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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.
Author Credits: Harshita Srivastava, Saima Khursheed
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