During the forecast period, the APAC region’s automotive industry is expected to experience a long-lasting impact with the transition from internal combustion engines (ICEs) to electric vehicles (EVs). The demand for fluids and lubricants in gasoline powertrains is anticipated to slow down with the increase in electric vehicle sales. Since electric vehicles do not require engine oil or diesel and gasoline, many of the ICE vehicle fluids and lubricants manufacturing companies are diversifying their product portfolios to meet EV requirements. In the past few years, the companies have changed their business strategies toward developing and investing in electric vehicle applications and their products. An important observation made here was the steady change in demand for fluids and lubricants in the electric vehicle industry.
Lubricating an electric vehicle is very different from lubricating a conventional internal combustion engine vehicle. In IC engine vehicles, oils are used to decrease engine friction. These oils degrade gradually as they get contaminated with combustion gases and need regular replacement. The fluids needed for electric vehicles would have exposure to high voltages and temperatures. The fluids' longevity is also essential for lowering maintenance costs and increasing the marketability of electric vehicles. As electric vehicles have various power electronics components, the fluids must ensure the safety of such circuits and have to flow easily through various parts with lower viscosity. Additionally, these fluids should have anti-corrosion properties. Surging growth in sales of electric-powered two-wheelers in India and Vietnam is expected to boost the market growth in upcoming years. The increasing fleet of electric vehicles may have an optimistic impact on the aftermarket segment of the APAC fluids and lubricants market for electric vehicles. China-plus-one business strategy is benefiting different countries in the APAC region, such as Vietnam, Thailand, Malaysia, and India. This is expected to increase the consumption of electric vehicle fluids and lubricants in these countries.
This study aims to provide a clear picture of the current consumption of electric vehicle fluids and the potential for future growth. Numerous leading automotive OEMs have partnered with fluid manufacturers for lubricants and coolants within electric vehicles. With governments throughout the APAC region implementing plans to increase electric vehicle sales and phase out IC engine vehicles, the APAC fluids and lubricants market for electric vehicles is bound to expand in the coming years.
Fluids and lubricants for electric vehicles are in high demand due to the increasing number of applications for new fluids in electric vehicles. Various electric vehicle fluids and lubricants manufacturers are collaborating with different electric vehicle powertrain and battery technology providers to study and commercializing cooling technologies for batteries. Additionally, government subsidies and infrastructure development aimed at promoting electric vehicles to reduce carbon dioxide emissions are also propelling the growth of the APAC fluids and lubricants for market electric vehicles. Fluids and lubricants for electric vehicles are, however, constrained by certain technical challenges, such as higher costs and viable immersion cooling battery systems.
The prominent types of fluids that are being developed for application in electric vehicles are greases, thermal fluids, driver system fluids, and brake fluids. The application of these types of fluids is in various components such as e-motors, battery systems, bearings, constant velocity joints, power electronics, gears, and the braking system of electric vehicles. Generally, various components of an electric vehicle generate a lot of heat during the operation of the vehicle, such as the battery system and the e-motors. These components have led to the need for better thermal management in these vehicles. The new EV fluids have added additives and dielectric properties, which makes them suitable for application in electric vehicle components. These specialized fluids are able to provide better thermal management properties than regular coolants. Drive system fluids are expected to be the largest segment since they are essential for electric vehicles to cool their electric powertrain components and increase their range.
Application for fluids and lubricants for electric vehicles is mainly categorized into five vehicle types of EVs, i.e., two-wheelers, three-wheelers, passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Heavy commercial vehicles consist of heavy buses and heavy trucks. Production and sales of passenger vehicles are anticipated to be higher than that of commercial vehicles, as more users are rapidly adopting EVs and exchanging their IC engine vehicles for EVs due to their cost efficiency and various government subsidies, among others. The passenger vehicles segment is expected to lead the market in Type B, vehicle type, as the sales of electric passenger vehicles are anticipated to increase in the APAC region. Three-wheelers is the prominent segment in the Type A, vehicle type, with holding more than one fifth of the total volume market share in the Type A, vehicle type.
The APAC fluids and lubricants market for electric vehicles encompasses three major types of electric vehicles, which are hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). These vehicle types are present in the form of two-wheelers, three-wheelers, passenger vehicles, light commercial vehicles, and heavy commercial vehicles. While HEVs and PHEVs’ models have been present in the market for many years, the development of battery technology along with government norms for increased vehicle efficiency has led to an increase in the adoption of HEVs as they are powered solely by the battery systems in the vehicle. In the forecast period 2022-2031, the sales of BEVs are anticipated to increase at a high growth rate as compared to the sales of HEVs and PHEVs due to price competitiveness, spiraling fuel prices, and increasing charging infrastructure. The rise in the sales of HEVs makes them more crucial for automotive OEMs to ensure that the fluids in the EVs are able to optimize the thermal management and driving system.
The APAC fluids and lubricants market for electric vehicles encompasses two main types of distribution channels which are OEMs and the aftermarket. The OEMs channel is anticipated to dominate the APAC fluids and lubricants market for electric vehicles, as most of the fluids have a very low replacement rate and can last for the entire electric vehicle’s lifetime without being flushed. As EV fluids technology evolves, the longevity and efficiency of these fluids in EVs also increase. Only a few EV fluids which might need to be replaced or changed due to vehicle servicing would be procured through the aftermarket.
The demand for electric vehicle fluids varies according to various regions. Japan is currently the largest region in the APAC fluids and lubricants market for electric vehicles due to an increase in the sales of hybrid electric vehicles (HEVs) in this country. However, the India fluids and lubricants market for electric vehicles is expected to grow at a high growth rate during the forecast period (2022-2031). As the sale of electric two-wheelers, three-wheelers, and passenger vehicles grows rapidly, the India fluids and lubricants market for electric vehicles is expected to grow at high rates. Government regulations, technological advancements, extensive investments in dedicated research and development facilities, and the presence of major EV manufacturing companies are some of the major drivers that are propelling the growth of the market in the region. Rising CO2 emissions in India and Japan have led to several concerns from the countries’ governments.
