Global Electric Vehicle Fluids Market 2024-2030

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    ELECTRIC VEHICLE FLUIDS MARKET

     

    KEY FINDINGS

    1. The market is based mainly out of China and Europe right now, but it is expanding in other parts of the world, such as the United States and South Korea, and it will soon spread in developing countries like India, etc.
    2. The number of electric vehicles sold was 6.5 million units in 2021. Approximately 5.49 million EVs were sold in both China and Europe in 2021, eight times the EV sales in the US
    3. The growth in the global fluids market for electric vehicles is attributable to the rising demand for efficient and durable fluids for electric vehicles.
    4. An EV uses two to three times the amount of fluid as an ICE vehicle. While pure driveline fluid consumption is comparable (four to 12 litres), an EV requires only ten to twenty litres of coolants over its lifetime, compared to 20 to 80 litres for an ICE vehicle.
    5. Aqueous or water-glycol coolants offer good performance and have found use in the majority of EVs commoditized with gross margins of less than $XX per litre.
    6. Dielectric coolants offer a higher cooling performance and safety profile and have higher gross margins of $XX to $XX per liter.
    7. The Electric Vehicle fluids market at present is dominated by European and American companies. Almost all major oil companies have recently launched their new products for the growing EV market.
    8. Most EV fluid companies cover the three primary application areas in an EV such as  e-transmissions, thermal management of the battery and greases.
    9. In December 2021, Automotive lubricants specialist Castrol entered into a five-year technical partnership with Williams Advanced Engineering (WAE) to co-develop electrically-chargeable vehicle (EV) lubricants.
    10. In May 2022, Castrol made its e-transmission fluid available for aftermarket sales in Europe for the first time since the company launched its dedicated electric vehicle product range last year.

     

    INTRODUCTION

    As Electric vehicles now start becoming mainstream and shaking up the entire supply chain. The Fluid/ lubricant market will not remain aloof to the change and the industry participants will have to develop new products to cater to this growing market segment.

     

    Fluids made for high voltage hybrids and EVs should must have the right electrical properties and be compatible with insulating materials. Also, since BEVs have up to 4X copper content as compared to an ICE vehicle, an electric driveline fluid should also offer Copper corrosion protection.

     

    MARKET SEGMENTATION

    Electric Vehicle Fluids Market segmented by application and fluid type

     

     

    MARKET DYNAMICS

    At present, the application for EV fluids is limited to driveline and battery thermal management but in coming years, owing to increase in fast charging there will be dedicated coolants for power electronics and even charger cables. In power electronics, liquid cooled high power On-board chargers could be a standard fitment, replacing air-cooled, 3.3/3.7kW on-board chargers.

     

    Electric Vehicles present a new set of challenges to their ICE counterparts. EVs need a fluid that can cool and lubricate the motor, and also protect the  on-board electronics and be compatible with non-metal materials like plastics. Therefore, developing specialized high-performance lubricants for BEVs could result in high margin sales.

     

    ABOUT CHINA ELECTRIC VEHICLE FLUIDS MARKET

    China’s monthly electric vehicle sales and production volume have decreased for three consecutive months by the end of July. For the first seven months of this year, China produced a total of 14.44 million vehicles, up 17% Y-o-Y.

     

    However, Jan-July 2021 sales grew by ~19% versus the same period of last year to 14.756 million vehicles. Compared with the same period of 2019, sales and production of the first seven months were up 4.2% and 3.4% respectively. 

     

    NEVs contributed 31.5% of the country’s monthly export volume which soared 180% to 174,000 vehicles in July 2021. The export volume of the first seven months surpassed 1 million, 770,000 of which were passenger vehicles.

     

    Decline in China EV market will have a direct impact on the global Electric Vehicle Fluids Market.

     

    ABOUT US ELECTRIC VEHICLE FLUIDS MARKET

    United States is the 3rd largest EV producer behind China and Europe. Just seven of the 44 major US vehicle assembly plants are slated to be making all EVs by 2025. The US market has remained steadily behind with fewer than 360,000 EV sales annually from 2018 through 2020.

     

    Of the seven US EV-only assembly plants, representing about 16% of US vehicle production and capacity, 3 are owned by General Motors, 2 by Tesla, and 1 each by emerging EV companies Rivian and Lucid Motors.

     

    Five automakers (Ford, Fiat Chrysler, Toyota, Honda, and Nissan) that each produce about 900,000 to 1.5 million vehicles annually in the US have not announced plans for EV-only assembly plants.

     

    • Among 19 EV models from 8 OEMs, which cumulatively accounted for ~87% of total US sales in 2019, only 3 belonged to B segment,8 belonged to C segment and 8 belonged to D Segment.C& D segment vehicles being higher in price are better suited to absorb the high cost of Electrification as compared to B segment
    • AC Induction Motor(ACIM) and Permanent Magnet Synchronous motor(PMSM) combined together accounted for 70% of total EV traction motor consumption in US in 2018, in 2019 they accounted for 77%. All motors except Chevrolet Bolt are liquid(Ethylene glycol) cooled, whereas Chevrolet Bolt`s motor is oil cooled
    • Among 8 OEMs, about 78%(388k units) of EV traction manufacturing was in-sourced, whereas 106k units were outsourced in 2018
    • In 2018, Tesla was the biggest manufacturer of EV Traction motors, accounting for 56%(318k units) of all traction motors with avg power output of 259 hp

     

    ELECTRIC VEHICLE FLUIDS MARKET SIZE AND FORECAST

    The number of electric vehicles sold was 6.5 million units in 2021. Approximately 5.49 million EVs were sold in both China and Europe in 2021, eight times the EV sales in the US. In 2021, a total of 2.27 M passenger electric cars were registered in Europe (up 66% Y-o-Y).

     

    The market size of EV fluids will be closely related with growing sales volume of new EVs, especially BEVs and the number of high voltage components. Unlike the fluids used in ICE vehicles, where they need to be periodically replaced, the EV fluids will have a longer lifespan and will only need to be replaced once or at max twice in a vehicle`s lifetime.

     

    The Electric vehicle fluid market is estimated at $XXM in 2022 and growing at –%CAGR till 2030.

     

    The growth in the global fluids market for electric vehicles is attributable to the rising demand for efficient and durable fluids for electric vehicles. Generally, various components of an electric vehicle generate a lot of heat during the operation of the vehicle, such as the battery system and the e-motors.

     

    This has further led to the need for better thermal management in these vehicles. The new EV fluids have added additives and dielectric properties which makes them suitable for application in electric vehicle components.

     

    According to SK Innovation, a Korean energy chemical company, the global electric vehicle lubricant market is expected to grow from 12 million liters in 2021 to XX million liters in 2030 which would be driven by booming registrations of new autos.

     

    COVID IMPACT ON EV FLUIDS MARKET

    The world has gone through a phase of unprecedented health crisis, economic, social, and political instability triggered by the COVID-19 (C-19), the global community is busy digesting a plethora of views on the immediate impact of C-19 on every type of sector.

     

     As the global vehicle market gets restructured around EVs, the market for lubricants for EVs emerges as the new blue ocean. With improved performances of EVs, the use of exclusive lubricant products for these cars is an essential practice. 

     

    As EV lubricants play essential roles in power trains in boosting performance and driving experience. Products include greases, brake fluids, heat transfer fluids and drive system fluids, all of them classed as e-fluids.

     

    Compared with conventional internal combustion engine lubricants, e-fluids cool e-motors and gears and provide insulation to electric current. Also, they extend the lifetime of each electric motor part, and extend the mileage of EVs by improving machine efficiency.

     

    Before the crisis, the EV market was booming—driven by sales in China, first and foremost—but also in other developed countries in Europe and North America. In the early stages of expansion, EVs have been heavily promoted by strong governmental intervention, leading to regulatory frameworks imposing stringent emission reduction levels, coupled with generous financial support and incentives. 

     

    Electric vehicles market worldwide excluding China and Europe had experienced a shift as consumers preferred affordable products amid COVID-19, which made manufacturers resume production for conventional vehicles. 

     

    The potential shift in consumer preferences affected manufacturers’ investment and production decisions. Ultimately, resuming production levels for conventional vehicles and EVs got dependent on demand revival, supply-chain reactivation and access to the labour force.



    In India there were delays in electric vehicles (EV) production as manufacturers  were focused on reviving demand and producing BS-VI vehicles, while curbs on imports of Chinese components had led to disruptions in EV manufacturing. Lower disposable incomes and a tendency towards cash saving had reduced demand for EV in the short term.

     

    RECENT TREND IN THE EV FLUIDS MARKET

    • Shell E-Fluids will race in the new Nissan Gen2 electric powertrain from round 7 of the ABB FIA Formula E World Championship, in Monaco. The transmission fluid has been designed and tested in collaboration with the race team for their new powertrain.
    • Daikin Industries, has developed a refrigerant for electric vehicles that can extend their range by up to 50%. The new refrigerant supposedly has a boiling point of about minus 40 °C, 10 to 15 degrees lower than the conventional product. That reduces the power required for compression. 
    • XING Mobility and Castrol, a wholly-owned subsidiary of BP p.l.c., are partnering to develop XING Mobility’s immersion cooling battery technology further, utilizing Castrol’s advanced thermal management fluid to deliver power and safety to the EV market.
    • Phillips 66 Lubricants has launched Phillips 66 e-Shield, high-performing lubricant solutions to optimize electric vehicle performance and protection. e-Shield is a new line of products, including system fluid, grease and coolant, designed to fulfill the unique needs of electric vehicles. The lubricants use modern proprietary formulations to enable extended driving range. It’s excellent thermal and conductive properties will keep electric vehicles protected while running cooler and longer per charge.
    • With the start of production of the Audi Q6 e-tron electric SUV in Ingolstadt in 2022, Audi is introducing the second-generation steel coil lubrication Prelube II. The new product is built to reduce the significant amount of lubricant required for protection against corrosion and machining the metal sheets in the press shop. 
    • Researchers at Germany’s Fraunhofer Institute for Manufacturing Technology and Advanced Materials IFAM in Dresden have developed an ultra-high-capacity hydrogen storage substance for PEM fuel cell applications based on solid magnesium hydride. Fraunhofer suggests the use of POWERPASTE for use with e-scooters. 

     

    According to market research firm Kline & Co., demand for electric vehicle fluids is expected to climb by double digits as the United States overtakes China and the European Union as the largest market for battery-powered commercial vehicles.

     

    For greases, driveline fluids, and heavy-duty engine oils used in hybrids and plug-in hybrids, Kline anticipates significant development. 

     

    While growth at that rate is significant, a project manager for Kline headquartered in Prague noted that the market is modest when compared to finished lubricants as a whole.

     

    He noted in a webinar regarding the demand for commercial electric car lubrication that “obviously, it’s expanding tremendously since it’s coming from a very modest basis. “Commercial vehicle thermal management fluids are anticipated to expand more slowly.

     

    According to Luzuriaga, this is largely because long-distance commercial cars have efficient air and indirect conditioning systems. More active rules and policies addressing the commercial vehicle industry in both the United States and Europe, according to Luzuriaga, are to blame for the United States’ leapfrogging.

     

    In the United States, several states, like California, have set sales goals for commercial vehicles and commercial trucks of between 50 and 60 percent electric vehicles. Around 40,000 tonnes of commercial vehicle EV fluids are already in demand, and according to Kline, by 2020, that figure will surpass 500,000 tonnes.

     

    COMPETITIVE LANDSCAPE

    The Electric Vehicle fluids market at present is dominated by European and American companies. Almost all major oil companies have recently launched their new products for the growing EV market.

     

    As we have detailed in our EV DC Fast Charger report that oil companies around the world are investing in electric vehicle charging solutions as they see a significant revenue potential in developing fast charging networks.

     

    The year 2019 and especially in past 10 months or so ,the lubricant industry has witnessed multiple new product launches by many lubricant manufacturers and in coming years we expect all major oil and lubricant manufacturers to enter this market.

     

    In May 2019, Shell launched new range of fluids,  specifically designed  and taregted at Battery electric vehicles. As of YTD -Sep 2019 almost 75-77% of EVs sold globally are BEVs,up from 71% in 2018, so that`s a very smart move by Shell.

     

    Also in May 2019, Total launched a new range of fluids for BEV and hybrid vehicles.

     

    In Sep 2019, ExxonMobil launched a new lineup called Mobil EV Therm and EV Drive, while Valvoline is  now selling EV Drive System lubricants.

     

    Repsol has posted net income of €1.235 billion for the first half of 2021, a period in which the company has advanced towards the decarbonization objectives laid out in its Strategic Plan, supported by an efficiency-oriented management of the company. 

     

    Shell delivered strong financial results in the first quarter of 2021. The Adjusted Earnings increased to $5.5 billion, from $3.2 billion in Q1. 

     

    Hyundai Motor Company signs a new five-year Global Business Cooperation Agreement with Royal Dutch Shell plc. The new agreement finds Hyundai looking to increase eco-friendly production and continue its transformation as a Smart Mobility Solution Provider. Shell will also expand its role in providing Hyundai with cleaner mobility solutions.

     

    Sk Innovation’s products have been used in more than 700,000 EVs, while EV lubricant sales have increased by an average of 33% annually over the past two years. It expects to double sales in 2021 over last year’s figures.

     

    Valvoline Inc., a global leader in vehicle care powering the future of mobility through innovative services and products, has begun piloting electric vehicle (EV) services in its US retail stores. They have been piloting in a limited number of locations, and are the next step in advancing Valvoline’s strategy to extend its world-class preventive auto maintenance service model to EV owners, OEMs and fleets.

     

    COMPANIES PROFILED

    1. Royal Dutch Shell PLC
    2. Total S.A.
    3. Castrol Limited
    4. FUCHS Lubricants
    5. Exxonmobil Corporation
    6. Lubrizol Corporation
    7. Petronas Nasional Bhd
    8. Repsol
    9. Valvoline 
    10. BP

     

    THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

    1. EV fluid market size and forecast for 2024-2030 in $M, average B-2-B price in all region
    2. Important trends, risks and opportunities in electric vehicle fluid market
    3. Average fluid consumption of Battery electric vehicle across different segment
    4. Market share and OE-supplier alignment in Electric vehicle fluid market
    5. How will the competitive landscape of Electric vehicle fluid market emerge in next 5 years
    1 Market Segmentation 3
    2 Executive Summary 5-6
    3 Introduction 7-10
    4 Insights from Industry stakeholders 11
    5 Fluids/Lubricants used presently in BEVs, PHEVs and HEVs 12-13
    6 Key criteria for EV Lubricant selection by OEMs 14-15
    7 EV Fluids manufacturing in US, Europe and China 16-26
    8 EV Fluid content per vehicle(By vehicle type) 27-30
    9 New Product development in EV Fluid market 31-35
    10 Decoding growth strategies of EV lubricant manufacturers 36-44
    11 Potential New entrants in Global EV Fluid Market , by region 45-48
    12 Impact of COVID-19 on Global Auto Industry in 2020-21 49-55
    13 Impact of COVID-19 on Global EV Sales in 2020-21 56-60
    14 Impact of COVID-19 on Chinese EV Sales in 2020-21 61-63
    15 Impact of COVID-19 on BEV Sales in 2020-21 64-66
    16 Market Size ,Dynamics and Forecast By Application 67-78
    17 Market Size ,Dynamics and Forecast By EV type 79-90
    18 Market Size ,Dynamics and Forecast By Geography 91-113
    19 Market Size ,Dynamics and Forecast By Vehicle type 114-126
    20 Competitive Landscape 127-129
    21 OEM-supplier relationship in EV Fluid market 130-132
    22 Market share of leading vendors-2020 133-135
    23 Company Profiles 136-145
    24 Unmet needs and Market Opportunity for suppliers 146
    25 Conclusion 147
    26 5 Key predictions 148
    27 Appendix 149-151
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