Download Sample, Several Government Incentives Indirectly Boost the Market for EV Coolants
Several regions are interested in e-mobility for a variety of reasons. Large cities in the countries have been compelled to adopt green and sustainable policies, including the use of electric vehicles, since traffic congestion and pollution have come to be synonymous. Furthermore, government subsidies and IC vehicle phase-out have been the primary growth drivers throughout the moderate demand forecast. Climate change and rising carbon emissions have posed challenges for several regions.
The transportation sector contributes considerably to greenhouse gases, accounting for roughly 7% of global CO2 emissions. To reduce carbon emissions from transportation, low- or zero-carbon emission technologies must be widely deployed. Furthermore, the rising number of electrical and electronic components within cars drives the need for more efficient coolant systems due to heat dissipation, which is anticipated to drive market expansion during the forecast period.
The transportation sector contributes considerably to greenhouse gases, accounting for roughly 7% of global CO2 emissions. To reduce carbon emissions from transportation, low- or zero-carbon emission technologies must be widely deployed. Furthermore, the rising number of electrical and electronic components within cars drives the need for more efficient coolant systems due to heat dissipation, which is anticipated to drive market expansion during the forecast period.
Increasing Demand for Electric Vehicles Leads to Market Expansion
The market is being driven by a number of key factors, including the increasing emphasis of prominent automobile manufacturers, the increase in demand for electric vehicles as a result of favorable government policies and advances in electric vehicle battery technology, and the market's growth. In 2030, there will be more than 300 million electric cars on the road, according to the IEA's Net Zero Emissions by 2050 Scenario. China had the highest number of sales in 2021 with 3.3 Mn, followed by Europe with 2.3 Mn.
In 2021, 630,000 electric cars were sold in the United States, doubling their market share to 4.5%. The market is expected to grow significantly as a result of various governments' increased emphasis on encouraging the use of EVs. In the current EV coolants industry, two technologies, aqueous and dielectric, with varied application cases, are competing for market share. Aqueous or water-glycol EV coolants have net profits of less than US$ 0.5 per liter, making them low-performing commodities for market players.
In 2021, 630,000 electric cars were sold in the United States, doubling their market share to 4.5%. The market is expected to grow significantly as a result of various governments' increased emphasis on encouraging the use of EVs. In the current EV coolants industry, two technologies, aqueous and dielectric, with varied application cases, are competing for market share. Aqueous or water-glycol EV coolants have net profits of less than US$ 0.5 per liter, making them low-performing commodities for market players.
Recent Trends in the EV Coolants Industry:
- Increased demand for eco-friendly coolant solutions for electric vehicles.
- Focus on improving heat transfer capabilities in electric vehicle cooling.
- Expansion of nanofluid technologies to enhance EV cooling efficiency.
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Leading Key Product for the EV Coolants Market Will Be Glycol-Based
In comparison, the majority of EV coolants used in most types of electric cars are driveline fluids and coolants. While dielectric EV coolants offer a higher profit margin of US$ 2 to US$ 3 per litre, they also have faster cooling efficiency and protecting qualities. Glycol-based coolants currently account for a sizable portion of the entire market. Aqueous EV coolant is widely viewed as practicable by EV OEMs since it adequately separates batteries from the coolant to minimize interference. As an additional measure of safety in the case of an accident, certain electric vehicles may still use dielectric EV coolants.
Several Challenges Might Limit Electric Vehicle Market Expansion
The low mileage of the vehicles, higher costs, a lack of service centers, a lack of awareness about maintenance and servicing, unclear policies, supply chain issues, and a lack of charging stations are the issues with the EV industry that will hinder the EV coolant market growth. Corrosion may occur as a result of positive-charged contaminants in coolant liquid interacting with metal pipes. Clogging is a concern that exists in the hundreds of small channels through which liquid flows in the battery.
Glysantin, a BASF SE subsidiary, launched a recently developed EV battery coolant in the Chinese automotive industry in November 2022. This EV coolant offers greater reliability and stability and was developed especially for indirect cooling systems. When exposed to a current source, this ready-to-use coolant, marketed as G22 E+TM, produces low and constant currents due to its low conductivity.
Valvoline Cummins Company introduced Valvoline Advanced Coolant in August 2022, which is a glycol-based full-antifreeze coolant with OAT Technology. By using this innovative technology, EV coolants' useful life is extended, and it is anticipated that the company's market position will improve. Shell Group develops coolant for electric motors appropriate for Indian climatic and geographic conditions in August 2022.
BASF SE, Dober Chemical Corporation, Shell plc, Total Energies SE, Valeo SA, BP p.l.c., Fuchs Petrolub, Se, PTT Global Chemical Public Company Limited, Chevron Corporation, Repsol S.A., ConocoPhillips Company, Lanxess, M&I Materials Ltd, Croda International plc, NewMarket Corporation, Eneos Corporation, Engineered Fluids, Inc., Petronas Lubricants International Sdn Bhd, Hinduja Group, GS Caltex, Adolf Würth GmbH & Co. KG are some of the prominent market players operating in the global EV coolants market.
Glysantin, a BASF SE subsidiary, launched a recently developed EV battery coolant in the Chinese automotive industry in November 2022. This EV coolant offers greater reliability and stability and was developed especially for indirect cooling systems. When exposed to a current source, this ready-to-use coolant, marketed as G22 E+TM, produces low and constant currents due to its low conductivity.
Valvoline Cummins Company introduced Valvoline Advanced Coolant in August 2022, which is a glycol-based full-antifreeze coolant with OAT Technology. By using this innovative technology, EV coolants' useful life is extended, and it is anticipated that the company's market position will improve. Shell Group develops coolant for electric motors appropriate for Indian climatic and geographic conditions in August 2022.
BASF SE, Dober Chemical Corporation, Shell plc, Total Energies SE, Valeo SA, BP p.l.c., Fuchs Petrolub, Se, PTT Global Chemical Public Company Limited, Chevron Corporation, Repsol S.A., ConocoPhillips Company, Lanxess, M&I Materials Ltd, Croda International plc, NewMarket Corporation, Eneos Corporation, Engineered Fluids, Inc., Petronas Lubricants International Sdn Bhd, Hinduja Group, GS Caltex, Adolf Würth GmbH & Co. KG are some of the prominent market players operating in the global EV coolants market.
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United States Will Remain a Promising Market for EV Coolants Market Participants
It is anticipated that the industry will continue to be profitable in the future owing to the fact that electric car adoption is increasing faster in the US than in any other nation. Many EV manufacturers in the United States are expanding their manufacturers in other nations, which is projected to impede market growth in the near future. However, increased demand for EVs in the United States due to favourable regulations and improved battery technology may further strengthen the industry. Many Asia Pacific nations, including China, Japan, and others, are adopting technologies with low or no CO2 emissions, that benefit the market significantly. China is the region's lead, exporting a favourable amount of EV coolants to its neighbours and many other countries. Meanwhile, Japan and Australia are projected to emerge as lucrative markets for EV coolant sales in the coming decade.
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The report provides a detailed overview of the EV coolants market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for EV coolants market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the EV coolants market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the EV coolants market. Some key country and region included in the EV coolants market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Belgium, Sweden, Austria, Slovakia, Hungary, Romania, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Egypt, Turkey, Morocco, Nigeria, Iran, Rest of MEA |
EV Coolant Market Research Report Covers In-depth Analysis on:
- EV coolants market detailed segments and segment-wise market breakdown
- EV coolants market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in EV coolants industry)
- Current, historical and forthcoming 10 years market valuation in terms of EV coolants market size (US$ Mn), volume (Litre), share (%), Y-o-Y growth rate, CAGR (%) analysis
- EV coolants market demand analysis
- EV coolants market pricing analysis over forecast period (by key segment and by region)
- EV coolants market regional insights with the region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in EV coolants market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the electric vehicle coolants market
- EV coolant market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the electric vehicle coolants market forecast by countries
- Mergers and acquisitions in the electric vehicle coolants market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the major factors driving the demand for EV coolants?
The increasing adoption of electric vehicles, advancements in battery technology, and growing concerns about thermal management efficiency in EV systems are primary drivers boosting the demand for EV coolants globally.
What challenges do manufacturers face in developing EV coolants?
Key challenges include ensuring compatibility with advanced EV components, meeting stringent safety and environmental regulations, and optimizing coolant formulations for extended performance under extreme operating conditions.
What role does thermal management play in EV performance and safety?
Thermal management is crucial in EVs to prevent battery degradation, maintain energy efficiency, and ensure passenger safety by regulating temperature across various EV components during operation and charging.
