Electric Vehicle Fluids Market Trends

Growth Drivers:

• Electrification of commercial fleets and public transport systems: The electrification trend is not just limited to passenger vehicles but also includes light-duty trucks, buses, and commercial fleets. The commercial fleets are undergoing rapid electrification, driven by fleet decarbonization mandates, cost savings on fuel, and urban clean air regulations. For instance, in January 2025, Amazon placed the UK’s largest-ever order for electric trucks, acquiring over 140 Mercedes-Benz eActros 600 and eight Volvo FM Battery Electric vehicles. These 40-tonne trucks, each with a range of 310 miles per charge, are expected to transport more than 300 million packages annually, replacing traditional diesel vehicles and contributing to Amazon's goal of achieving net-zero carbon emissions by 2040.
• Technological advancements in EV fluid formulations: Continuous innovation in fluid chemistry and engineering promotes market growth. Unlike conventional lubricants and coolants, EV fluids must meet unique technical requirements such as electrical insulation, lower viscosity, compatibility with lightweight materials, and enhanced thermal conductivity. Key players are focused on developing new formulations that address these challenges, including dielectric fluids for direct battery cooling, multi-functional transmission fluids for e-axles, and longer-life lubricants that align with extended EV service intervals.

For instance, in May 2023, Castrol and Jaguar TCS Racing introduced a circular EV transmission fluid in the Jaguar I-Type 6 race cars. The fluid was re-refined from used oil, blended with new additives, and successfully tested in a high-performance race, proving it could match the performance of virgin oil. This innovation supports both sustainability goals and the trend toward customized, high-efficiency EV fluids.

Challenges:

• Complex and evolving OEM specifications: As EV architectures vary significantly across manufacturers, fluid suppliers face a complex and evolving set of technical specifications. Unlike traditional automotive fluids, EV fluids must address unique requirements such as electrical insulation, non-corrosiveness, thermal conductivity, and long service life. The absence of universal standards increases formulation complexity, limits scalability, and creates barriers to widespread product adoption. Thus, suppliers must engage in expensive, ongoing R&D and validation testing to meet the custom needs of OEMs, slowing time to market and increasing development costs.
• Limited aftermarket penetration and end-user awareness: Despite the rising EV population, the aftermarket demand for EV fluids is relatively nascent. Unlike ICE vehicles that require frequent ICE oil changes, many EV fluids are designed for long life, reducing aftermarket turnover. Additionally, EV owners and independent service centers often lack awareness of the specific maintenance needs or replacement intervals for thermal fluids and e-axle lubricants. This limits the growth potential for fluid manufacturers outside of OEM supply contracts, particularly in regions where EV servicing infrastructure is underdeveloped.