DUBLIN--(BUSINESS WIRE )--The "U.S. Electric Vehicle Fluids Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The U.S. electric vehicle fluids market is expected to grow at a CAGR of 24.58% during 2022-2027.
The U.S. market is significant in the global electric vehicle fluid market. The electric vehicle market is no longer at a nascent stage; instead, it is booming. Primarily due to the rising fuel cost, rising pollution levels, and the declining price of batteries.
The U.S. is the 3rd largest EV market and is growing very fast. The market in the country increased significantly from a few thousand to around 315,000 EVs from 2018 to 2020, as per International Council on Clean Transportation (ICCT). In 2020, the share of electric cars in new vehicle sales was around 2.4%, an increase from about 2.0% in 2019. Government policies are vital in reducing consumer barriers related to the scarcity of appropriate EV models, higher upfront costs, range-related issues, and lack of awareness.
In addition, federal and state governments are implementing various policies to control the harmful emission from vehicles. Hence, OEMs prefer producing electric vehicles over internal combustion vehicles to meet that regulation.
For instance, 15 states of the US and the District of Colombia have targeted to convert 30% of commercial HDVs (heavy-duty vehicles) to be ZEVs (zero emission vehicles) by 2030 and all HDVs vehicles by 2050.
Increasing Demand for Optimising Electric Vehicle Fluids
The integration of sophisticated components in EVs, such as high use of copper metals, availability of wide-bandgap semiconductors, high-performance traction motors that are exposed to high temperature and heat, and increased use of plastics in bearing cages in place of metals is leading to high demand for optimized lubricating fluids by EV.
Original equipment manufacturers need to protect the vehicle's critical components, such as coils, traction batteries, magnet wire insulation, and charging ports, from corrosion, high temperature, and breakdown of electrical components, thereby depending on electric vehicle fluids.
Shortage of Raw Material in the US Automotive Industry
Presently, the government electric vehicle segment is facing a shortage of semiconductor and lithium-ion batteries, but not to a great extent. After two to three years, the industry is expected to witness a substantial demand-supply imbalance for lithium-ion batteries, a crucial component of the electric vehicle.
This is primarily because of the rapid increase in demand for electric vehicles in the US market and limited lithium-ion battery production, which is insufficient to meet the escalating demand. However, electric vehicle OEMs are encouraging mineral producers in terms of long contracts to mitigate this issue in the long run.
By propulsion: The U.S. electric vehicle fluids oil market is divided into segments by propulsion, battery electric vehicles, and plug-in hybrid batteries. During the projection period, battery electric vehicle fluid anticipates dominating the market and experiencing faster growth, mainly driven by the increased demand for battery-powered electric vehicles. The production of electric automobiles gets support from government initiatives to minimize carbon emissions. Henceforth, electric vehicle fluids are used instead of engine oil or other lubricants for the smooth functioning of the battery vehicle and to ensure its long life.
Vehicle Type: Due to the increased demand for electric passenger vehicles in the country, the passenger vehicle segment currently dominates the vehicle type category. It is estimated to grow at a similar rate during the forecast period.
For instance, the EPA and NHTSA suggested that the country implement the Safer Affordable Fuel-Efficient (SAFE) vehicles rule, which would go into effect between 2021 and 2026. This rule intends to establish minimum requirements for company average fuel efficiency and greenhouse gas emissions for both passenger and commercial vehicles, further fostering the growth of the U.S. electric fluids market.
Distribution Channel: The electric vehicle fluids market splits into OEMs and aftermarket segments on the basics of the distribution channel. OEMs are the largest segment and project to witness similar growth during the forecast period, primarily because OEMs such as EV battery manufacturer consumes a significant chunk of the fluids market.
Product Type: The primary segments under product type include heat transfer fluid, grease, transmission fluid, and brake fluid. Heat transfer fluid anticipates dominating the market during the forecast period and projects to witness higher growth. Mainly because of its vital use in BEV and PHEV for cooling the EV battery and maintaining optimal operating temperature range.
The U.S. is a vital electric vehicle fluids market. The penetration of electric vehicle fluids is rising, and the market revenue has been increasing steadily. The country is a major hub for the consumption of electric vehicle fluid due to the strong demand from electric vehicle OEM manufacturers for high-quality lubricants driven by the rising demand for EVs in the U.S market.
The western U.S. is the country's largest electric vehicle fluids market. In West U.S., the demand for electric vehicle fluids majorly comes from the electric vehicle production unit. Tesla, Chevrolet, and Toyota Motor Corporation are some of the EV players operating in the US West region and consume a significant chunk of electric vehicle fluids and drive the growth of the U.S. electric fluids market.
The U.S. electric vehicle fluids market is experiencing an increase in competitiveness. Vendors may be adversely affected by the quickly evolving technical environment and the sustainability situation since customers anticipate constant improvements and innovations. Few companies dominate the industry and offer highly functional electric vehicle goods.
Exxon Mobil Corporation, Phillips 66, GS Caltex, Idemitsu, and Valvoline are a few prominent players operating in the US electric vehicle fluids market.
FACTORS TO BE CONSIDERED WHILE FORMULATING EV FLUIDS:
Recent Developments in the U.S. Electric Vehicle Fluids Market:
6.1 US Electric Vehicle Fluid Market (2021-2027)
8.1.2 Criteria to Consider for Selecting Electric Vehicle Lubricant
8.3.1 Upcoming Investment for EVs and Its Related Components in US
8.3.2 Automotive Emissions in the US
9.1 Escalating Demand for EVs in US
9.2 High Disposable Income Augmenting Demand
9.3 Increasing Demand for Optimising Electric Vehicle Fluids
10.1 Rebates, Grants, & Subsidies to Promote EVs
10.2 Rising Demand for Ev Battery Cooling Fluid
10.3 Reduce Dependency on Fossil Fuels and Carbon Footprint
11.1 Shortage of Raw Materials in US Automotive Industry
11.2 Lack of Adequate Public Charging Stations
12.3 Penetration of Ev Fluid by Region
13.1 Market Snapshot & Growth Engine
14.1 Market Snapshot & Growth Engine
15.1 Market Snapshot & Growth Engine
16.1 Market Snapshot & Growth Engine
17.1 Market Snapshot & Growth Engine
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ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900