Global Electric Vehicle Lubricants Market By Type (Graphite-based Lubricants, Graphite-free Lubricants), By Application (Automotive, Aerospace, Construction, Manufacturing), By Region, And Segment For...

The electric vehicle lubricants market was valued at USD 749.5 million in 2023 and is projected to reach USD 8645 million by 2031, growing at a CAGR of 31.3%. The market is witnessing growth due to the rapid adoption of electric vehicles worldwide due to concerns over tailpipe emissions and their harmful effect on the environment, strict standards for carbon dioxide and pollutants such as unburned hydrocarbons, and nitrogen oxide among others. The market for EV lubricants is also gaining momentum as automakers and consumers increasingly prioritise sustainability and efficiency.

The Covid-19 period resulted in the OEMs (original equipment manufacturers) halting production, owing to a shortage of workforce and disruption of the supply chain, decreasing the demand for electric vehicle fluid lubricants. Transportation restrictions, high prices and maintenance issues also hampered growth and faced pressure in demand and export side as well due to all the stringent regulations.

Premium Insights: 

• Innovations in lubricant formulations are essential to meet the unique requirements of electric drivetrains. These advancements ensure optimal performance, thermal management, and energy efficiency of EVs.

Electrical Vehicle Lubricants Market Dynamics:

Drivers: surge in EV sales, focus on efficiency and extended range and OEM specifications & extended warranties

The primary driver is the rapid increase in electric vehicle sales globally. As more EVs are up and functioning in the market, the demand for specialised lubricants formulated for their unique needs will rise as the lubricant is the main component of the vehicle, which improves fuel economy and helps in reducing carbon footprints in vehicles 

EV lubricant manufacturers are developing products that minimise friction and energy loss within the drivetrain, ultimately contributing to extended battery range and improved efficiency.

Original Equipment Manufacturers (OEMs) are developing their own lubricant specifications for EVs to ensure optimal performance and component longevity. This creates demand for lubricants that meet these specific requirements and contribute to extended warranty coverage for EVs.

Restraints: High initial costs, limited market size, competition from traditional lubricant manufacturers and lack of long-term performance data

Current sales of EVs are still higher than conventional petrol and diesel vehicles and this is mainly due to the expensive battery packs and absence of key economies of scale. Currently, PHEVs have even higher initial purchase costs.

Compared to the established market for conventional lubricants, the EV lubricant market is still relatively small. Additionally, the variety of EV architectures and lubrication needs can limit economies of scale for lubricant manufacturers.

Established players in the conventional lubricant market are actively developing and marketing EV-specific lubricants. This can create competition for new entrants and potentially lead to price pressures.

As a relatively new technology, long-term performance data on the effectiveness of EV lubricants is limited. This can create some hesitation among both consumers and manufacturers when adopting new formulations.

Opportunities: collaboration between OEMs and lubricant manufacturers, expansion into emerging markets, aftermarket service and maintenance and focus on sustainable lubricants 

Strong collaboration between EV manufacturers and lubricant companies can lead to co-developed lubricants that are perfectly suited for specific EV models, maximising performance and efficiency.

As EV adoption accelerates in developing regions, the market for EV lubricants is expected to follow suit. Early entry into these markets can be a significant advantage for lubricant manufacturers.

The growing EV fleet will require a robust aftermarket service network. EV lubricant manufacturers can partner with service providers to ensure the use of appropriate lubricants during maintenance, promoting brand loyalty and product adoption.

Developing lubricants derived from renewable resources or with improved biodegradability can further enhance the environmental credentials of EVs and cater to the growing demand for sustainable solutions.

Market by Electric Vehicle Lubricants Type Market:

Based on the market is segmented into E-Transmission Fluids, E-Greases, and E-Coolant Fluids. Among these  the E-transmission fluids segment holds the dominant market share to its critical role in EV drivetrain performance. They minimise friction and energy loss within the gearbox, optimising efficiency and extending range.

Market By End Use Insights:

Based on application, the market is segmented into Passenger Cars, Commercial Vehicles and Two-Wheeled Electric Vehicles. Among these, the passenger car segment currently dominates the market due to the high volume of electric passenger cars on the road

Market By Region Insights:

Based on regional coverage, the Electric Vehicle Lubricants Maret is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region is expected to have the largest market share for lubricants in 2024, with a value of over $74 billion. This region is also projected to be the fastest-growing in the lubricants market. The region's large market share is due to factors such as the growing chemical manufacturing industry, large automotive production base, Increasing need for wind power

Government initiatives to promote the automotive industry among others.

Competitive Scenario:

Key players in this industry include Royal Dutch Shell plc, ExxonMobil Corporation,  FUCHS Petrolub AG, BP plc, PTT, TotalEnergies SE, ENEOS Corporation, Repsol S.A.,Petronas, Valvoline Inc

Scope of work- Electric Vehicle Lubricants Market

Key Market Developments

• November 2022-New EV Fluid ranges specifically designed for electric and hybrid cars as well as electric bikes are being introduced in India by TotalEnergies Marketing India Private Limited (TEMIPL), a subsidiary of TotalEnergies. These cutting-edge products like Quartz EV Fluid for cars and Hi-Perf EV Fluid for bikes, have been painstakingly designed to work with electric and hybrid vehicles' drivetrain reducers, e-motors, e-transmissions, and batteries. Designed specifically to provide enhanced electrical characteristics to reduce static electricity and short circuits, they have excellent compatibility with copper coils and the newest polymer materials used in electric cars.

• January 2023 - In response to the ever-changing needs of the rapidly expanding electric vehicle (EV) market, Valvoline has introduced a new range of performance fluids made exclusively for EVs. These state-of-the-art EV fluids are carefully designed to prolong battery life and solve common problems with electric cars. Based on Valvoline's dedication to promoting innovation in environmentally friendly automotive solutions, they are compatible with Plug-in Hybrid Electric Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), and Battery Electric Vehicles (BEVs).

Frequently Asked Questions (FAQs)

1. What factors are driving the growth of the EV lubricants market?

Ans. Key Factors include a surge in electric vehicle  sales, a focus on efficiency and extended range and OEM specifications & extended warranties

2. What are the main challenges faced by the EV lubricants market?

Ans. Challenges include High initial costs, limited market size, competition from traditional lubricant manufacturers and lack of long-term performance data

3. What opportunities exist in the EV lubricants market?

Ans. Opportunities include collaboration between OEMs and lubricant manufacturers, expansion into emerging markets, aftermarket service and maintenance and focus on sustainable lubricants

4. Who are the key players in the EV lubricants market?

Ans. Some of the key players are Royal Dutch Shell plc, ExxonMobil Corporation,  FUCHS Petrolub AG, BP plc, PTT, TotalEnergies SE, and ENEOS Corporation.