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.

The APAC fluids and lubricants market for electric vehicles is projected to reach $2,363.8 million by 2031 from $182.8 million in 2022, growing at a CAGR of 32.89% during the forecast period 2022–2031. Lubricating an electric vehicle is very different from lubricating a conventional internal combustion (IC) 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 required 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.

Drive System Fluids Generate the Highest Demand Amidst the EV Fluid Products

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.

Industrial Impact

• 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 EVs is bound to expand in the coming years.
• For instance, in March 2021, Repsol launched a new range of lubricants exclusively for electric vehicles and motorbikes. In its commitment to electric mobility, Repsol launched a new range of 100% electric vehicles that complement the hybrid vehicles launched by the company in 2019.

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 the forecast period in Type B vehicle type, as the sales of electric passenger vehicles are anticipated to increase in the APAC region. Three-wheelers are the prominent segment in the forecast period in Type A vehicle type, holding more than one-fifth of the total volume market share in Type A vehicle type. For year 2021, Passenger Vehicles segment dominated in the Vehicle Type B segment and Three-Wheelers segment dominated in the Vehicle Type A segment.

Recent Developments in the APAC Fluids and Lubricants Market for EVs

• In November 2021, The Lubrizol Corporation partnered with Intel to develop the industry’s first hydrocarbon collaboration for immersion fluid technology. The company’s new immersion fluid solutions will be warrantied on Intel Xeon and Core microarchitectures.
• In November 2021, Petroliam Nasional Berhad (PETRONAS) unveiled its next-generation range of electric vehicle fluid solutions at its Global Research & Technology Centre in Turin, Italy.
• In July 2021, TotalEnergies SE launched a dedicated hybrid transmission fluid for Great Wall Motors. Great Wall Motors, China’s leading car manufacturer, is a key player in the development of electric vehicles.

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Competitive Landscape

To gain market share, major fluids and lubricants manufacturers are making various kinds of strategic moves. Some key highlights from BIS Research w.r.t. manufacturers of fluids and lubricants for EVs are:

• ExxonMobil, Total Energies SE, Shell plc, Valvoline Inc., and the Lubrizol Corporation are some of the leading players in the APAC region.
• SK Lubricants Co., Ltd. (SK Inc.), GS Caltex Corporation, S-OIL CORPORATION, Klüber Lubrication, and Panolin AG are some of the leading private companies in the APAC region.
• New product launches are the most preferred strategy.
• Apart from product launches, expanding business and sealing new partnerships and collaborations are the other strategies being implemented.
• Most of the players have tie-ups with various electric vehicle OEMs and Tier 1 suppliers.