A potential opportunity of more than $20 Bn is opening up in the lubricants industry, owing to the shifting technology focus of customers towards electrification and stringent emission regulations.
A potential opportunity of more than $20 Bn is opening up in the lubricants industry, owing to the shifting technology focus of customers towards electrification and stringent emission regulations.
According to MarketsandMarkets™ analysis,
- There is ~USD 8.6 Bn potential within electric vehicle fluids applications, more than half of which is being contributed by passenger vehicles.
- The electric fluids market is estimated to grow at a healthy CAGR of 30-32% in the coming 10 years, driven by the declining conventional passenger vehicle demand and stringent government regulations.
- Lubricants for renewable power generation application is one of the most talked-about trends.
- Adjacent markets hold a potential of over USD 34 Bn in lubricants
Unknowns and Adjacencies
Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –
- The demand for new lubricants made specifically for electric vehicles will be in more demand soon due to different lubricity requirements of electric vehicles in comparison to ICE vehicles. The year 2038 is expected to be the sales (number of units) meeting point of ICE vehicles (passenger cars) and electric vehicles as the sales for electric vehicles is expected to grow from this point.
- The lubricants market for conventional transportation category in the European countries, China, the US, and Canada is expected to be impacted the most due to stringent mandates in these geographies pertaining to the carbon emission and promotion of EVs by the government in these countries. Leading OEMs gradually exit from ICEs.
- Adoption rates of electric construction, mining, and agricultural equipment is more in Europe, Japan, and US.
- By 2035, farm mechanization rates will be 70-80% for Asia Pacific as currently it is below 30-40%.
