Electric Vehicle Fluids Market: Surging Demand in the Era of Sustainable Mobility
As the world shifts towards sustainable transportation, the demand for specialized fluids tailored for electric vehicles (EVs) is surging. These fluids, vital for the smooth operation of EVs, encompass essential components such as brake fluid and coolant. However, while EVs are gaining popularity, their unique fluid requirements come at a higher cost compared to traditional counterparts. The prices of EV fluids have risen significantly, with some fluids costing twice as much as their conventional counterparts. Despite this, EVs currently constitute a minority share of the automotive market. Nevertheless, experts anticipate that the growing popularity of EVs will continue to propel demand for these specialized fluids.
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Rapid Growth in EV Production Drives Demand for Electric Vehicle Fluids
Electric vehicles are capturing the imagination of environmentally conscious consumers. Advances in EV technology have made electric cars more accessible and affordable than ever before. Governments worldwide are investing heavily in EV infrastructure, further stimulating EV production and consumption, thereby reducing greenhouse gas emissions.
For instance, China has announced a substantial $360 billion investment in EV infrastructure by 2025. This significant commitment is expected to boost the production and demand for EVs, subsequently driving the need for electric vehicle fluids. Major automakers are also ramping up EV production. Tesla, for example, is planning to manufacture 500,000 cars annually by 2022, marking a substantial increase from its production of just 2,500 cars in 2010.
High Initial EV Costs Pose Challenges for the Electric Vehicle Fluids Market
The high initial cost of purchasing an EV remains a barrier to widespread adoption. Electric cars often come at a premium compared to gasoline-powered vehicles due to expensive batteries, the need for charging infrastructure, and the relatively higher costs of maintenance. These factors contribute to the elevated prices of electric vehicles.
Asia Pacific Emerges as the Fastest Growing Market for Electric Vehicle Fluids
Technological advancements and government policies will play pivotal roles in the future penetration of EVs into the global powertrain mix. The relative cost of EVs compared to Internal Combustion Engine Vehicles (ICEVs) will be a crucial factor. The global electric vehicle market is projected to grow at a compound annual growth rate (CAGR) of 30%, reaching 9 million units by 2022.
While Europe currently leads the electric vehicle fluids market, Asia Pacific is expected to overtake it by 2022. China, the largest global market for EVs, is actively promoting their adoption through regulations and financial incentives. India is also experiencing robust growth in EV sales, with a remarkable CAGR of over 50% between 2016 and 2021.
Favorable Government Policies and Private Initiatives Drive Electric Vehicle Fluids Market
Asia Pacific is emerging as the fastest-growing market for electric vehicles, with its thriving economies, increasing disposable incomes, and supportive government policies. The electric vehicle fluids market in this region is forecasted to grow at a CAGR of 53% from 2022 to 2028, driven by strong growth in key economies such as China, Japan, and India. Stringent environmental regulations, growing demand for clean energy vehicles, support from public and private stakeholders, and government initiatives are expected to further boost the regional market for electric vehicle fluids during the forecast period.
Key Players in the Electric Vehicle Fluids Market
Prominent players in the electric vehicle fluids market include PTT (Thailand), Royal Dutch Shell plc (Netherlands), BP plc. (UK), ExxonMobil Corporation (US), FUCHS Petrolub AG (Germany), Total Energies SE (France), ENEOS Corporation (Japan), Petronas (Malaysia), Valvoline Inc. (US), and Repsol S.A. (Spain).
Global Industry Analysis (2018 – 2021) – Growth Trends and Market Forecast (2022 – 2029): https://www.fairfieldmarketresearch.com/report/electric-vehicle-fluids-market
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This press release first seen on Brilad