Global Electric Vehicle Fluids Market - 2022-2029
The global construction lubricants market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
An Electric Vehicle (EV) is a vehicle that uses an electric motor powertrain for propulsion. The electric powertrain consists of a battery pack as the power source, an AC/DC converter that converts the DC supplied of the battery into AC for the electric motor, which supplies the power to the wheels for propelling the vehicle forward and the onboard charger, which is used for recharging the battery pack.
Various fluids are required for the smooth functioning of the EV. Transmission oil is used to lubricate the vehicle's transmission to ensure optimum performance. Brake fluid is a type of hydraulic fluid used for the braking system. The fluid transmits pressure on the brake pedal to the brakes and amplifies the braking force. A battery coolant fluid is used for heat exchange and maintaining the thermal stability of the electric battery. Synthetic grease is used for lubricating various moving mechanical components such as ball bearings.
The demand for the construction lubricants market is driven by electric vehicles' comprehensive and ever-growing adoption. Consumers become ever more climate-conscious and the drive to decarbonize transportation gathers pace. The high cost of EVs prevents their wider adoption and represents a key challenge for the growth of this market.
Growing adoption of electric vehicles
Consumers and governments globally are becoming more climate-conscious. A major push is underway to decarbonize transportation to avoid the most severe effects of global warming and man-made climate change. Recently, at the COP26 climate conference in Glasgow in November 2021, many governments have pledged net-zero carbon emission targets for the middle of the century. It is bound to accelerate the adoption of carbon-free mobility solutions such as EVs.
The increasing adoption of EVs will see a significant boost, particularly in laggard markets such as South America, the Middle East and Africa. Recent advances in electric battery technology, government subsidies, and reduced costs due to economics of scale are factors that incentivize automotive companies to shift production to EVs. Consumers are attracted by the lower running and maintenance costs. Such factors will accelerate the switch from conventional vehicles to EVs in the medium and long term, thus driving the electric vehicles fluids market.
Technological advancements in electric vehicles
Electric vehicles are undergoing various types of advancements. Electric powertrains are now being developed to run at high performance with fewer service intervals and with optimization for frugal use of transmission fluids. Electric battery packs also have automated intelligent control systems that constantly monitor battery temperature and optimize battery coolant as per the situation. It results in less frequent coolant changes.
Incorporating various technological advancements in electric vehicles is expected to decrease maintenance intervals and other service costs to make them a more attractive option to conventional vehicles. The technological advancements will increase service intervals, reducing the overall demand for fluids, thereby presenting a key challenge for the market's growth.
COVID-19 impact analysis
The global electric vehicle fluids market experienced a sharp decline in 2020 due to the COVID-19 pandemic. The pandemic led to a sharp decline in global oil production and a complete halt to oil trading. Since crude oil and petroleum are the main sources of lubricants, it led to a drastic decline in production in 2020. Global production is not expected to recover until early 2021.
Due to the COVID-19 pandemic, the EV industry saw significant declines in production and sales in 2020. To halt the spread of the pandemic, various governments around the world imposed lockdowns, and many manufacturers were forced to halt operations temporarily. Because industrial manufacturing is a capital-intensive business, many component manufacturers faced bankruptcy. After the lockdowns were lifted, vehicle production in Europe and North America resumed in a limited capacity. Production was unaffected in Asia-Pacific, as the region's largest EV producer, China, lifted lockdowns early, and economic activity has nearly returned to pre-pandemic levels.
The COVID-19 pandemics' knock-on effects on global supply chains have resulted in shortages of critical components for the EV industry. Even after lifting pandemic-related restrictions, it has resulted in long lead times and reduced production rates. The pandemic will have a negligible impact on the long-term growth of the construction lubricants market since the demand for EVs will continue to grow significantly in the coming years.
The construction lubricants market is segmented into product type, propulsion type, vehicle type, fill type and region. The global construction lubricants market is segmented into passenger vehicles, light commercial vehicles and heavy commercial vehicles based on the end-user. Passenger vehicles are leading in this segment since they make up most of the all-electric vehicle sales, far outpacing commercial vehicle sales.
Asia-Pacific is leading in the global electric vehicles fluid market. The region accounts for the largest market share, primarily due to the presence of China, as it is the largest EV consumer globally. China produced about 4.6 million vehicles from 2010-to 2020 and accounted for 44% of the EVs sold during the same period. The most notable instance is Tesla setting up an integrated full-cycle assembly unit in Shanghai in 2020.
The global construction lubricants market is highly competitive due to the availability of different types of proprietary fluids for various applications. Some of the major players contributing to the growth in the segment are TotalEnergies, Royal Dutch Shell PLC, Exxon Mobil Corporation, BP PLC, FUCHS Petrolub SE, Valvoline Inc., Repsol S.A., China National Petroleum Corporation, Kluber Lubrication GmBH and Chevron Corporation. The major players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry.
Overview: TotalEnergies is a multinational integrated oil and gas company. The company's business range from crude oil and natural gas exploration and production to refining, marketing, commodity trading and power generation. TotalEnergies was founded in 1924 and is headquartered in Paris, France.
Visualize the composition of the construction lubricants market segmentation by product, propulsion, vehicle, fill and region, highlighting the critical commercial assets and players.
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Excel data sheet with thousands of construction lubricants market-level 4/5 segmentation data points.
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Target Audience 2022
EV and EV component manufacturers
Industry Investors/Investment Bankers
Education & Research Institutes
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