Market Trends of North America Electric Vehicle (EV) Fluids Industry
Battery Electric Vehicles (BEVs) to Dominate the Market
- Battery electric vehicles are the type of electric vehicles that exclusively use chemical energy stored in rechargeable battery packs, with no secondary source of propulsion (a hydrogen fuel cell or internal combustion engine).
- These vehicles cannot run on conventional fluids since they might cause viscosity issues and corrosion of parts, reducing the vehicle's overall performance and durability. As a result, EV fluids enter the scene, which are created and adapted expressly to fulfill the needs of high-tech powertrains. These fluids are in charge of cooling the engine and transmission system, as well as maintaining the temperature of the battery and power electronics.
- Around 630,000 electric vehicles were sold in the United States in 2021, more than the combined sales of electric vehicles in the previous two years. About 75% of new EV sales were BEVs, which resulted in a higher share of BEVs relative to PHEVs in the market.
- Due to their great efficiency and low carbon emissions, BEV demand has been rising quickly in the North American region since the end of the epidemic era. According to the International Energy Agency's (IEA) Outlook 2022, the total number of BEVs registered in the United States in 2021 was estimated to be 466,000, or around two-thirds of the number of PHEVs registered.
- Moreover, the outlook also reported that the volume of battery electric car (BEV) sales in Canada increased to around 59,400 units in 2021. This figure represents an increase of about 61 percent compared with the previous year, when around 36,900 units were registered in the country for the first time.
- The region's expanding BEV industry has undoubtedly enticed BEV manufacturers to increase production to satisfy market needs. In North America, there are various battery-electric car models available, including model variants. While Tesla, Hyundai, and Audi are the only manufacturers offering more than one BEV in the United States, Nissan and Tesla provide numerous battery pack options for the LEAF and Model S, X, 3, and Y.
Furthermore, increasing efforts by major automotive OEMs to reduce greenhouse gas emissions and transform their product line-up into green, clean, and environmentally friendly vehicles are anticipated to propel the growth of the market during the forecast period.
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United States to Dominate the Market
- The United States is a significant market for electric vehicles, and there is a positive movement taking place in the nation to adopt electric mobility. This is partially due to the abundance of technology and electric vehicle manufacturing startups and corporations operating in the nation, like Tesla, Rivian, Lucid, General Motors, etc. The market for EV fluids is anticipated to grow as a result of this trend toward electric vehicles.
- According to the EV volumes, EV sales in the United States increased by 48 percent year-on-year, despite a weak overall light vehicle market that plunged by 8 % for 2022 on a year-on-year basis. Moreover, for the United States and Canada combined, EV Volumes expects BEV & PHEV sales to grow by 71 %, for a share of 11.5 % in total light vehicle sales.
- The major driving factor for the growth of electric vehicles in the United States is the rising production of Tesla models and new-generation electric cars manufactured by other automakers. In the United States, Tesla accounts for more than 50% of all the units sold for electric vehicles.
- According to the IEA (International Energy Agency), in the United States, the federal aim is for electric vehicles (EVs) to make up 50% of new passenger cars and light trucks sold by 2030. Additionally, the country targets to make 10% of all vehicles electric by 2025 and reach 100% emission-free vehicles.
- Several major companies have also planned or initiated investing in the electric vehicle segment on account of the growing market. For instance, Link EV Electric Vehicles, a unit of the private United States energy company Citizens Resources, announced its plans to build an assembly plant in the central Mexican state of Puebla with an investment of around USD 265 million. The operations began in the second half of 2022 with four production lines with a nominal capacity of 1,200 units.
- All the aforementioned factors are expected to have a significant impact on the demand for the EV fluids market in the country over the forecast period.
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