Electric Vehicle Fluids Market Outlook:
Electric Vehicle Fluids Market size was valued at USD 1.24 billion in 2025 and is likely to cross USD 17.9 billion by 2035, expanding at more than 30.6% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of electric vehicle fluids is estimated at USD 1.58 billion.
The ongoing shift from internal combustion engines to electric drivetrains is a major factor fueling market growth. This has prompted automakers to ramp up EV production capacity significantly. This transformation is supported by policy-driven investments, tightening emissions regulations, and OEM-level electrification commitments. As global EV production scales, demand for specialized fluids, especially those formulated for battery thermal management, electric drive unit lubrication, and high voltage component cooling, is increasing.
According to the report published by the International Energy Agency (IEA), global EV sales reached a record 17.1 million units in 2024, marking a 25% increase from 2023. China led this growth, accounting for 11 million units sold—a 40% year-over-year rise. Notably, plug-in hybrid electric vehicles (PHEVs) surged by 81%, driven by range-extended electric vehicles (REEVs) that offer longer driving ranges due to larger batteries. This expansion necessitates specialized EV fluids for thermal and lubrication management. Electric vehicle fluids have become an integral part of OEM specifications, leading to long-term supply agreements and strategic partnerships between automakers and fluid manufacturers.
