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The global fluids and lubricants market for electric vehicles (EV) is expected to create an annual revenue opportunity of $5.7 billion by 2029 says the report of ResearchAndMarkets.com.
With an expected rise in the demand for electric vehicles, automotive OEMs have put in motion ambitious plans to introduce new EV models into their target markets. Companies across the traditional automotive supply chain are looking for ways to maintain their relevance in this fast-changing automotive industry. Further, leading lubricant manufacturers and oil & gas companies, to stay relevant in this industry, are planning to introduce fluids and lubricants for electric vehicles.
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.
The major factor hindering market growth are certain technical challenges, such as higher cost and the viability of developing immersion cooling battery systems.
The global fluids market for electric vehicles accounted for $850.9 million in 2018 and is expected to reach $5.74 billion by 2029. The market is anticipated to grow at a CAGR of 18.66% during the forecast period 2019 to 2029. The increasing application areas for new fluids in an electric vehicle have led to the surging demand for various types of coolants and lubricants. Automotive OEMs have partnered with various fluid providers for sourcing fluids for their electric vehicles to improve the driving experience, which in turn, can increase the electric vehicle sales, which is expected to drive the market growth during the forecast period.