Market Trends of Europe Electric Vehicle (EV) Fluids Industry
Coolant Product Type to Witness Strong Demand
- Coolants are expected to be the fastest-growing product type for electric vehicles during the forecast period. Heat transfer fluids or coolants are used to regulate the temperature of the battery pack and other electronic components.
- Since electric vehicles have become more advanced, the need for cutting-edge coolant systems has also skyrocketed. There is a growing demand for improved electric vehicle battery coolants that offer superior heat dissipation and also keep up with innovative technology.
- Moreover, with the growing demand for electric vehicles, the need for electric vehicle coolants rises, as these fluids control the temperature of the battery and power electronics while cooling the drivetrain and transmission system.
- The region is witnessing an increase in the number of electric vehicles, with the increased environmental awareness and urge to cut down pollution caused by vehicles. For example, in France, approximately 219,800 new private and commercial battery electric vehicles were registered in 2022. Thereby boosting the demand for coolants in electric vehicles across Europe.
- Further, France witnessed a 26.1 percent increase year on year in the number of electric vehicles registered. In response to the COVID-19 pandemic's increased environmental concern between 2019 and 2020, the number of new BEV registrations more than doubled. Hence, we are supporting the market's growth significantly.
Thus, owing to the above-mentioned factors, the market studied is expected to grow significantly during the forecast period.
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Germany to Dominate the Market
- Germany is expected to witness significant demand for the electric vehicle fluids market during the forecast period.
- The country 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.
- Furthermore, with the growing government initiatives in Germany to enhance e-mobility in the country, the sales number of two-wheeler electric vehicles is rising significantly.
- The German government announced plans to reduce EV subsidies and abolish incentives for PHEVs last year.
- According to the Kraftfahrt-Bundesamt (KBA), EV registrations, comprising battery-electric cars (BEVs) and plug-in hybrids (PHEVs), reached 174,000 units in December 2022, representing a 114% growth year on year. Hence, boosting the market growth significantly.
- Overall, in recent years, the number of new electric vehicles registered in Germany has increased dramatically. Till February 2023, the number of new electric vehicles registrations reached 50,611, according to the Kraftfahrt-Bundesamt (KBA). Thus, increasing the market demand during the forecast period.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for the electric vehicle fluids market in the country, during the forecast period.
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