Electric Vehicle Fluid Market in 2025 Amid Soaring EV Sales and Government Incentives

According to researchers from Towards Automotive, the global electric vehicle fluid market, estimated at USD 1.65 Billion in 2024, is forecast to expand to USD 25.84 Billion by 2034, growing at a CAGR of 33.8% over the forecast period.

Ottawa, July 16, 2025 (GLOBE NEWSWIRE) -- The global electric vehicle fluid market size reached approximately USD 2.17 Billion in 2025, with projections suggesting it will climb to USD 25.84 Billion in 2034, according to a report from Towards Automotive, a sister firm of Precedence Research.

The electric vehicle fluid market is expanding at a rapid pace due to the high demand for EVs today. The vehicle is highly preferred today due to its sustainability and zero carbon emission. Government initiative to promote the vehicle in the form of providing funds for the same is also helping the expansion of the market.

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Key Highlights of the Electric Vehicle Fluid Market

By region, Asia Pacific dominated the electric vehicle fluid market in 2024 due to the high preference for EVs in the region, and high government initiatives helped the market to expand.
By product type, the engine oil segment is expected to grow in the expected timeframe.
By vehicle type, the on-highway electric vehicle segment dominated the electric vehicle fluid market in 2024 due to its high demand.

Market Overview

Consumers in automotive sectors have started inclining towards EVs compared to gasoline-fuel-powered vehicles due to their sustainability factor. To promote the initiative the governments globally are also helping the countries by providing funds to consumers to buy EVs easily and help in the mission of following zero-emission completely. High research and development of the vehicle segment is helping to give an equivalent range of the vehicle compared to a traditional engine vehicle.

The electric vehicle fluid market is expanding today due to multiple reasons contributing to the growth of the market. The fluid is necessary for the engine to enhance the vehicle’s performance, maintain cooling and efficiency, and keep essential components of the vehicle lubricated for uninterrupted performance.

Companies today are highly investing in the R&D of electric vehicles for their improved efficiency and also investing in the development of batteries for electric vehicles. EVs are essential for today’s era as they help in managing the increasing carbon footprint observed globally and also help in aiding smooth transportation along with zero-emission.

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What are the Latest Trends in Electric Vehicle Fluid Market?

The rising demand for battery electric vehicles and hybrid electric vehicles is helping in the growth of the electric vehicle fluid market.
Advancements in battery technology to aid faster charging and improved efficiency are helping the growth of the electric vehicle fluid market for ideal thermal management.
Government initiatives to promote the use of EVs for enhanced zero-emission and lower carbon footprint are also helping the expansion of the market.
Fluids have a major role to play in the efficient working of an EV apart from traditional engine oil. Hence, electric vehicle fluid plays a major role in the growth of the electric vehicle fluid market.

What is the Role of AI in the Growth of Electric Vehicle Fluid Market?

AI analysis plays a major role in the growth of the market. The advanced technology helps in analyzing the performance of the vehicle with the help of fluid in real time. The companies are also able to monitor the whole procedure and immediately find errors in the working of the EV at the right time. It helps companies find the issue and treat it at the right time to lower downtime and improve overall vehicle performance. Hence, the advanced technology also helps in lowering the excess cost incurred due to the maintenance cost of the components of EVs.

Technological Advancements: Driving the Electric Vehicle Fluid Market with Greatest Potential:

Technological innovations in EV battery design and thermal management systems are significantly accelerating the growth of the electric vehicle (EV) fluid market. As EVs evolve to deliver higher efficiency and range, the demand for specialized fluids, including coolants, lubricants, and dielectric fluids has surged. These fluids are specifically engineered to support high-voltage systems, ensure thermal stability, and optimize battery performance and longevity.

With the average EV battery operating at 400V–800V, and some newer models like the Porsche Taycan reaching 900V, efficient thermal management is becoming critical. Advanced fluids enhance battery cooling by up to 40%, extend battery life, and help reduce charging time, improving the vehicle's overall performance.

In addition, the development of dielectric EV fluids that prevent electrical discharges in fast-charging environments is gaining traction, especially in EVs equipped with ultra-fast charging systems (up to 350 kW). These innovations not only ensure safety and reliability but also support regulatory compliance for thermal and electrical performance.

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Market Dynamics

Driver

Rising Popularity of Electric Vehicles:

The electric vehicle fluid market is expanding at a higher pace due to multiple aiding factors in the growth of the market. The rising adoption of EVs compared to vehicles operated with traditional fuels is one of the major reasons for the growth of the market. It helps companies to lower their carbon footprint and contribute towards a zero-emission mission globally. Government incentives to promote EVs for improved sustainability are also helping the fueling of the electric vehicle fluid market. Governments globally provide funds to consumers to buy EVs allowing easy promotion of EVs. The rising cost of fuels is another major reason for high EV purchasing in the automotive market.

Challenge

High Cost of Product:

A few barriers restrict the growth of the electric vehicle fluid market. The increasing cost of electric vehicle fluids is one of the major issues restraining the growth of the market. Specialized fluids help in the efficient overall working of the EV along with maintaining the smoothness of the components of the EV by keeping the parts lubricated. Another major issue observed in the growth of the electric vehicle fluid market is the technical complexity faced during the manufacturing of specialized fluids for electric vehicles. The fluid is essential for various functions of EV hence any issue in the manufacturing of the fluid can act as a barrier in the growth of the market.

More Insights of Towards Automotive:

EV Charging Infrastructure Market - The global ev charging infrastructure market size is calculated at USD 32.43 billion in 2024 and is expected to be worth USD 289.87 billion by 2034, expanding at a CAGR of 25.44%.
Off-highway Electric Vehicle Market - The global off-highway electric vehicle market size is calculated at USD 2.58 billion in 2024 and is expected to be worth USD 9.69 billion by 2034.
eVTOL Aircraft Market - The global eVTOL aircraft market size is calculated at USD 2.14 billion in 2024 and is expected to be worth USD 170.60 billion by 2034, expanding at a CAGR of 54.95% from 2024 to 2034.
Off-highway EV Component Market - The global off-highway EV component market size is calculated at USD 34.18 billion in 2024 and is expected to be worth USD 120.03 billion by 2034.
Light Electric Vehicle Market - The global light electric vehicle market is forecast to grow from USD 108.77 billion in 2025 to USD 243.85 billion by 2034, driven by a CAGR of 10.63%.
EV Charging Panelboard Market - The EV charging panelboard market is forecasted to expand from USD 7.18 billion in 2025 to USD 29.53 billion by 2034, growing at a CAGR of 17.13% from 2025 to 2034.
EV Charger Converter Module Market - The EV charger converter module market is expected to grow from USD 6.58 billion in 2025 to USD 46.43 billion by 2034, with a CAGR of 25.47%.
Plug-in Hybrid Electric Vehicle (PHEV) Market - The global plug-in hybrid electric vehicle market size is calculated at USD 36.62 billion in 2024 and is expected to be worth USD 193.80 billion by 2034.
EV Charging Cable Market - The global EV charging cable market is projected to reach USD 19.57 billion by 2034, expanding from USD 2.99 billion in 2025, at an annual growth rate of 23.10%.
Electric Bus Market - The global electric bus market is anticipated to grow from USD 25.08 billion in 2025 to USD 72.91 billion by 2034, with a compound annual growth rate (CAGR) of 12.9%.

Segmental Insights

By Product Type

The engine oil segment of the electric vehicle fluid market dominated the market in 2024 due to its high importance for EV performance. The engine oil in EVs is not functional like the traditional gasoline cars but it plays a crucial role for proper operation of the battery, lubrication of components of the EV, and its improved performance. Hence, the segment dominated the market.

The coolant segment of electric vehicle fluid market is expected to grow in the forecast period. Coolants in an EV help maintain the temperature of the EV which is high due to continuous battery operation, and the functioning of other components as well. It helps in the improved performance of the EV. Hence, the coolant segment is expected to expand in the forecast period. EV coolants are specialized for their compatibility with plastics and other non-metal components to avoid any electrical interference. Hence, technological advancements in the coolant segment also help in improving the efficiency of EVs and help in the growth of the electric vehicle fluid market.

By Vehicle Type

The on-highway electric vehicles segment dominated the market due to its efficient performance on highways in the form of passenger cars, commercial vehicles, and buses. The segment depicts the growth of EVs on highways compared to gasoline vehicles. It helps in maintaining the zero-emission policy and maintaining sustainability. Hence, the segment dominated the electric vehicle fluid market.

Off-highway electric vehicles segment is expected to grow in the forecast period. Off-highway electric vehicles are the ones designed for off-highway driving such as for commercial purposes, mining, agriculture, and forestry uses. Using EVs under such domains helps to lower the carbon emission of the automotive industry globally and hence the segment is also promoted by the governments of certain regions. Hence, the off-highway electric vehicles segment is expected to grow in the forecast period.

By Propulsion Type

The hybrid electric vehicle segment dominated the electric vehicle fluid market in 2024 due to its capability of operating on electricity along with the use of fuel in case of charge depletion of the vehicle. The internal combustion engine in hybrid vehicles acts as a power backup in hybrid electric vehicles. Hence, the segment dominated the market in 2024.

The Battery Electric Vehicles (BEV) Segment of the Electric Vehicle Fluid Market is expected to grow in the Forecast Period.

The BEV segment of the electric vehicle fluid market is expected to grow due to the high adoption of BEV for its sustainability and government initiative to adopt BVs. BV helps in zero-emission and no carbon footprint. Advancements in battery technology are further fuelling the market. EVs today are operational for passenger as well as commercial segments. Hence, the segment is expected to grow in the forecast period.

By Fill Type

The First Fill Segment of Electric Vehicle Fluid Market dominated in 2024

The first fill segment involves the uses of fluids in the EV initially when an EV is manufactured. The use of fluid involves different forms for different operations such as engine oil and the use of coolants for different operations and lubricants for the smooth functioning of different components of EV. The segmented use of fluids is helpful for the efficient performance of the vehicle. Hence, the segment dominated the market.

The Service Fill Segment of the Electric Vehicle Fluid Market is observed to be the fastest-growing segment in the Forecast Period.

The service fill segment of the electric vehicle fluid market is observed to be the fastest growing in the forecast period as it helps in the growth of the market. The segment denotes the use of fluids for the maintenance of EVs and regular top-ups for a vehicle’s efficient performance. The segment also involves the use of coolants for maintaining the temperature of the vehicle due to the continuous use of the battery of an EV. Hence, the segment is observed to be the fastest-growing one in the foreseen period.

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Regional Analysis

Which Region Dominated the Electric Vehicle Fluid Market in 2024?

Asia Pacific dominated the electric vehicle fluid market due to the rising adoption of EVs in the region. The Government of the region also promotes the use of EVs due to its sustainability factor and due to its huge role in the zero-emission mission globally. The region also dominated the market due to higher advancements in technology and high investment of government and private companies in the EV sector.

This leadership is driven by the rapid expansion of EV production in countries like China, Japan, and South Korea, along with significant investments in battery technology and EV infrastructure. China alone contributed to more than 60% of global EV sales in 2023, with over 8 million units sold, fueling massive demand for EV-specific fluids like battery coolants, transmission fluids, and dielectric lubricants.

The region also benefits from strong governmental support, such as EV subsidies, zero-emission mandates, and aggressive electrification goals. As the adoption of high-voltage EV platforms and fast-charging technology grows, Asia Pacific continues to set the pace in both EV innovation and the supporting fluid technologies, cementing its dominance in the foreseeable future.

What to Expect from Europe in Electric Vehicle Fluid Market?

Europe is observed to be the fastest-growing region of the electric vehicle fluid market in the forecast period due to various reasons. The region has an aim to be completely emission-free in the coming years. Hence, the government of the region highly promotes the use of EVs and also helps consumers with funds to buy EVs compared to gasoline vehicles. The region also experiences high investment from private companies in EV manufacturing also helps in the growth of the electric vehicle fluid market in the foreseen period.

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Recent Developments of the Electric Vehicle Fluid Market

In July 2025, TotalEnergies Marketing Canada Inc. launched their Quartz EV-Drive R 3.1, a cutting-edge synthetic fluid for electric vehicles. After the launch, they become the first major supplier in Canada to introduce the urgent need for electric mobility.
In May 2025, MAHLE will launch its E-care fluid in Europe. The company claims its fluid is relevant for cooling media.

Top Companies of Electric Vehicle Fluid Market

Exxon Mobil Corporation
BP p.l.c.
Shell plc
FUCHS
TotalEnergies
Petroliam Nasional Berhad (PETRONAS)
Saudi Arabian Oil Co.
Repsol
PTT LUBRICANTS
ENEOS Corporation

Segments Covered in the Report

By Product Type

Engine oil
Coolants
Transmission fluids
Greases

By Vehicle Type

On-highway Electric Vehicles
Off-highway Electric Vehicles
By Propulsion Type
Battery electric vehicles
Hybrid electric vehicles

By Fill Type

First, fill
Service fill

By Region

North America
Latin America
Europe
Asia Pacific
Middle East and Africa

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