Electric Vehicle Fluids Market Report 2026

The electric vehicle fluids market size has grown exponentially in recent years. It will grow from $2.77 billion in 2025 to $3.61 billion in 2026 at a compound annual growth rate (CAGR) of 30%. The growth in the historic period can be attributed to expansion of electric vehicle production volumes, increasing investments in ev drivetrain efficiency, rising adoption of synthetic lubricants, growing deployment of liquid-cooled battery systems, availability of advanced additive formulations.

The electric vehicle fluids market size is expected to see exponential growth in the next few years. It will grow to $10.17 billion in 2030 at a compound annual growth rate (CAGR) of 29.6%. The growth in the forecast period can be attributed to increasing penetration of bev and phev platforms, rising demand for extended ev driving range, expansion of high-performance battery systems, growing focus on thermal efficiency optimization, increasing collaboration between ev oems and fluid manufacturers. Major trends in the forecast period include increasing development of dedicated ev-specific fluids, rising adoption of dielectric cooling fluids, growing demand for low-viscosity transmission fluids, expansion of battery thermal management solutions, enhanced focus on fluid compatibility with e-motors.

An increase in demand for electric vehicles is expected to propel the growth of the electric vehicle fluids market going forward. An electric vehicle (EV) is a vehicle that runs entirely or partially on electricity and stores the electrical energy that drives the motor in a battery pack. The rising demand for electric vehicles is primarily driven by growing environmental concerns, as consumers and governments seek to reduce greenhouse gas emissions and air pollution associated with traditional internal combustion engines. The increase in electric vehicle manufacturing and sales drives the demand for electric vehicle fluids because fluid is a key component that enhances efficiency and helps reduce carbon footprints in vehicles. For instance, in January 2025, according to Cox Automotive, a US-based system software company, electric vehicle (EV) sales in 2023 were revised upward to 1,212,758 units, representing a 49% increase compared to 2022, and continued to grow in 2024, rising by 7.3% to reach 1,301,411 units. Therefore, the increase in demand for electric vehicles is predicted to drive the growth of the electric vehicle fluids market.

Major companies operating in the electric vehicle fluids market are focusing on developing innovative solutions, such as performance fluids, to improve the efficiency and longevity of electric vehicle components. Performance fluids refer to specialized lubricants, coolants, and other liquids designed to enhance the efficiency, durability, and overall performance of mechanical and electrical systems in vehicles, including electric vehicles (EVs). For instance, in January 2023, Valvoline Inc., a US-based retail automotive services company, launched its EV Performance Fluids, a specialized product line designed for electric vehicles (EVs). This new range includes heat transfer fluids for optimal battery temperature management, drive system fluids for multi-speed transmissions, advanced brake fluids with high boiling points, and grease formulated for EV motors and seal bearings. Each product addresses specific challenges faced by EVs, such as temperature regulation, powertrain performance, and corrosion prevention.

In January 2024, Shell Group, a UK-based energy and manufacturing company, acquired MIDEL and MIVOLT from Manchester-based M&I Materials Ltd for an undisclosed amount. With this acquisition, Shell Lubricants aims to expand its specialty fluids portfolio and strengthen its presence in the sustainable and high-performance dielectric fluids market. Manchester-based M&I Materials Ltd is a UK-based manufacturing company that specializes in producing environmentally friendly insulating and transformer fluids designed for industrial and energy applications.

Major companies operating in the electric vehicle fluids market are Castrol Limited, ExxonMobil Corporation, Fuchs Petrolub SE, The Lubrizol Corporation, Petronas Nasional Bhd, Royal Dutch Shell plc, BP plc, ENEOS Corporation, TotalEnergies SE, Valvoline Inc., Petro-Canada Lubricants Inc., Sinopec Lubricant Company Limited, SK Lubricants Co. Ltd., Eni S.p.A., Repsol S.A., Phillips 66 Company, Quaker Chemical Corporation, Houghton International Inc., Gulf Oil, PTT Public Company Limited, Amalie Oil Company, AMSOIL Inc., Bardahl Manufacturing Corporation, Chemtool Incorporated, Lubrication Engineers Inc., CHS Inc.

Europe was the largest region in the electric vehicle fluids market in 2025. Asia-Pacific is expected to be the fastest-growing region in the electric vehicle fluids market during the forecast period. The regions covered in the electric vehicle fluids market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric vehicle fluids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric vehicle fluids market consists of sales of heat transfer fluid, brake fluid, and drive system fluid. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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