Electric Vehicle Battery Coolant Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Electric Vehicle Battery Coolant Market Size - Analysis

Electric Vehicle Battery Coolant Market Trends

Transportation sector is recognized as a major contributor to carbon emissions today. This has put the spotlight on electric vehicles that have zero direct emissions. Countries have set ambitious targets to transition to electric mobility to reduce dependence on oil imports and curb greenhouse gas emissions from vehicles.

This burgeoning electric mobility revolution will likely drive strong demand for more sophisticated and efficient battery cooling systems for electric vehicles. Advance cooling solutions will play a vital role in encouraging continued uptake of battery-powered vehicles and faster energy transition globally. Consequently, this is expected to drive growth of the electric vehicle battery coolant market in the coming years.

Market Driver - Government Initiatives Promoting the Use of Electric Vehicles for Environmental Benefits

Policy driven adoption aligns with national goals to diversify energy sources, boost energy security and transition to a greener transport system. Developed nations are leading the push for electric mobility while emerging countries are catching up through supportive policy ecosystems. A robust policy framework has accelerated the push towards low or zero emission vehicles in nations committed to curbing environmental impact of transportation.

Market Challenge - Compatibility Issues with Different Battery Materials that Impact Efficiency

Finding a universal coolant that can efficiently manage heat transfer across all these different battery materials has been difficult. Incompatibility can cause issues like increased impedance between electrodes, decay of active materials and premature capacity loss over battery cycling.

One of the major opportunities for players in the electric vehicle battery coolant market lies in advances being made in solid-state battery technologies. Solid-state batteries offer higher energy densities and better safety compared to traditional lithium-ion batteries. However, they also generate more heat during operation due to characteristics like higher electron and ion conductivity.

With existing thermal solutions, manufacturers in the electric vehicle battery coolant market have an opportunity to engineer products customized for emerging solid state battery chemistries and requirements.

Key winning strategies adopted by key players of Electric Vehicle Battery Coolant Market

Tesla recognized early on that effective thermal management of battery packs is critical for improving EV range and performance. In 2012, Tesla acquired a Canadian company called Hatteras to gain expertise in temperature control technologies. It invested heavily in R&D to develop advanced liquid cooling systems for its batteries.

Total's focus on next-gen coolants:

German auto parts maker Continental followed an acquisition-led strategy to consolidate its presence in the EV battery thermal management space. In 2017, it acquired Priamus System Technology, a specialist in thermal management for lithium-ion batteries. In 2021, it acquired Argus Cyber Security, strengthening its monitoring and cybersecurity capabilities for connected vehicle systems.

Segmental Analysis of Electric Vehicle Battery Coolant Market

Insights, By Vehicle: Battery Electric Vehicles Driving the EV Battery Coolant Market in Terms of Vehicle Type

Battery electric vehicles only use electric powertrains for propulsion without an internal combustion engine. Therefore, efficient thermal management of high-capacity lithium-ion batteries used in such vehicles is crucial to ensure optimal performance and longer life of the batteries. Battery electric vehicles require sophisticated liquid cooling systems to regulate the temperature of lithium-ion battery packs during charging and discharging cycles. The use of specialized coolants engineered to have high thermal conductivity is witnessing increasing demand from electric vehicle manufacturers.

Among the different battery types used in electric vehicles, lithium-ion batteries account for 61.3% revenue share of the electric vehicle battery coolant market. Lithium-ion technology is considered the ideal solution for powering battery electric vehicles and plug-in hybrid electric vehicles. This is due to its higher energy density and better lifecycle compared to other rechargeable battery types.

With lithium-ion emerging as the dominant battery chemistry powering new energy vehicles, its widespread adoption is driving the global demand for specialized electric vehicle battery coolants designed for next-generation high-energy batteries.

Additional Insights of Electric Vehicle Battery Coolant Market

• The Asia-Pacific region led with 46% share in electric vehicle battery coolant market in 2023, mainly due to high EV production in China, Japan, and India.
• North America is expected to grow the fastest in the forecast period due to increasing EV adoption in the U.S. and Canada.
• The lithium-ion battery segment accounted for 61% of the electric vehicle battery coolant market in 2023 due to its efficiency in EV applications.
• The Asia-Pacific electric vehicle battery coolant market is projected to grow from USD 980 million in 2024 to approximately USD 1,430 million by 2034 at a CAGR of 3.88%.

Competitive overview of Electric Vehicle Battery Coolant Market

The major players operating in the electric vehicle battery coolant market include BASF SE, Valvoline Inc., Exxon Mobil Corporation, Shell Group, and GS Caltexa.

Recent Developments in Electric Vehicle Battery Coolant Market

Electric Vehicle Battery Coolant Market Segmentation

• By Vehicle
  • Battery Electric Vehicles
  • Hybrid Electric Vehicles
• By Battery
  • Lithium-Ion Battery
  • Lead Acid Battery
  • Others