Market Trends of Electric Vehicle (EV) Fluids Industry
Increasing Penetration of Electric Vehicles
- As batteries and motors are the main propulsion sources for EVs, they need a different combination of fluids than conventional vehicles. Conventional fluids are incompatible with EVs since they can cause viscosity issues and corrosion of parts, thus reducing the vehicle's overall performance and durability.
- Thus, with the growing demand for electric vehicles, the need for electric vehicle fluids rises, as these fluids control the temperature of the battery and power electronics while cooling the drivetrain and transmission system.
- Also, the EV grease lubricates the EV parts while reducing the vehicle's noise, vibration, and harshness levels. Furthermore, it performs the function of heat transfer.
- The rising production of electric vehicles is expected to enhance the market's demand.
- As per the World Economic Forum (WEF), nearly 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. Therefore, enhancing the demand for electric vehicle fluids during the forecast period.
- Moreover, according to the China Association of Automobile Manufacturing, the production of New Energy Vehicles in the country witnessed a year-on-year increase of 96.9 percent in December 2022. Thus, the expanding electric vehicle market is expected to increase the demand for electric vehicle fluids in the country.
- Thus, with the increasing demand for electric vehicles, the market is expected to grow significantly during the forecast period.
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Asia-Pacific to Dominate the Market
- During the forecast period, Asia-Pacific is expected to dominate the electric vehicle fluids market with increased demand from countries like China and India.
- The region is expected to witness significant growth with the enhanced demand for electric vehicles and the increased government investment in enhancing the production of electric vehicles in order to reduce carbon emissions.
- According to the China Association of Automobile Manufacturers (CAAM), China has the largest automotive production base in the world. In July 2022, the number of battery-powered electric vehicles increased by 117.2% compared to January-July 2021. In July 2022, the country's electric vehicle sales were estimated at around 617,000 units.
- Furthermore, with the growing government initiatives in India to enhance e-mobility in the country, the sales number of two-wheeler electric vehicles is rising significantly.
- According to the Federation of Automobile Dealers Associations, the total number of two-wheel electric vehicles sold in the country reached nearly 231,000. Therefore, boosting the market for electric vehicle fluids during the forecast period
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for the electric vehicle fluids market in Asia-Pacific during the forecast period.
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