Description
Electric Vehicle Coolants and Thermal Fluids Market Overview
The Electric Vehicle Coolants and Thermal Fluids Market, specifically the battery coolant segment, was valued at approximately USD 2.07 billion in 2024, is projected to reach USD 2.14 billion in 2025, and is expected to grow to USD 2.89 billion by 2034, exhibiting a Compound Annual Growth Rate (CAGR) of 3.4% from 2025 to 2034.
The electric vehicle coolants and thermal fluids market is expected to witness substantial growth in the coming years as more consumers embrace EVs. These fluids are specifically designed to meet the unique cooling requirements of electric vehicles, which rely on sophisticated battery systems and electric motors. The market for these fluids is driven by factors such as increasing awareness about environmental sustainability, government incentives for EV adoption, and advancements in EV technology.
One of the key benefits of using electric vehicle coolants is that they help regulate the temperature of the vehicle’s battery pack. Electric vehicle batteries operate most efficiently within a specific temperature range, and if they become too hot or too cold, it can have a negative impact on performance and longevity. By using the right coolant, electric vehicle owners can ensure that their batteries remain within the optimal temperature range, prolonging their lifespan and maximizing performance.
Electric Vehicle Coolants and Thermal Fluids Market Dynamics
Drivers
The transition to electric vehicles is driven by the increasing awareness of environmental issues and the need to reduce carbon emissions. As governments around the world implement stricter regulations on vehicle emissions, automakers are turning to EVs as a cleaner and more sustainable alternative. This shift towards electrification is fueling the demand for innovative cooling solutions that can help enhance the performance and efficiency of electric vehicles.
Restraints
One of the main restraints in the electric vehicle coolant and thermal fluid market is the high cost associated with developing and manufacturing these specialized fluids. EV coolants and thermal fluids need to meet stringent performance requirements and regulatory standards, which can drive up production costs. Additionally, the limited availability of raw materials and the lack of standardized testing methods can pose challenges for manufacturers in this industry.
Challenges
One of the key challenges facing the electric vehicle coolant and thermal fluid market is the need for continuous research and development to improve the thermal management systems of EVs. As electric vehicle technology continues to evolve, new cooling solutions will be required to address the unique thermal challenges posed by high-voltage batteries and powertrain components. This ongoing innovation will be essential to ensure the long-term reliability and performance of electric vehicles.
Opportunities
Despite the challenges, the electric vehicle coolant and thermal fluid market presents a range of opportunities for manufacturers and suppliers. The growing demand for EVs worldwide is creating a lucrative market for innovative cooling solutions that can help improve the efficiency and range of electric vehicles. By investing in research and development and collaborating with automakers to develop customized cooling solutions, companies in this industry can position themselves for long-term success in the rapidly expanding EV market.
List of Key Players
- BASF SE
- Dow Inc.
- 3M Company
- Shell plc
- ExxonMobil Corporation
- TotalEnergies SE
- Valvoline Inc.
- Arteco (a JV of Chevron & TotalEnergies)
- Clariant AG
- Eastman Chemical Company
- Chemours Company
- Afton Chemical Corporation
- Dynalene Inc.
- Laird Thermal Systems
- Castrol (BP plc)
- Paratherm (A Division of Lubrizol)
- Huntsman Corporation
- Petroliam Nasional Berhad (Petronas)
- Solvay S.A.
- Kost USA, Inc.
Recent Developments:
BASF SE – April 2025: Launched next-gen Glysantin® EV thermal fluids compatible with ultra-fast charging battery systems and wider temperature ranges.
3M Company – February 2024: Introduced a new class of Novec™ engineered fluids for immersion cooling of EV batteries and electronics.
Dow Inc. – July 2023: Expanded its global production of DOWFROST™ coolants to support rising EV battery pack demand across Asia-Pacific.
Valvoline Inc. – October 2024: Unveiled a new high-performance EV coolant under its Zerex® brand, designed for direct-to-consumer and aftermarket sales.
Electric Vehicle Coolants and Thermal Fluids Market Segmentation
By Product Type:
- Coolants
- Thermal Fluids
- Dielectric Fluids
- Phase Change Materials (PCMs)
- Immersion Cooling Fluids
By Fluid Type:
- Water-Based Coolants
- Organic Acid Technology (OAT)
- Hybrid Organic Acid Technology (HOAT)
- Inorganic Acid Technology (IAT)
- Synthetic Fluids
- Bio-Based Fluids
By Application:
- Battery Thermal Management
- Electric Motor Cooling
- Inverter and Power Electronics Cooling
- Transmission System Cooling
- Cabin Heating and Cooling
- Charging Infrastructure Cooling (e.g., ultra-fast chargers)
By Propulsion Type:
- Battery Electric Vehicles (BEVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
- Hybrid Electric Vehicles (HEVs)
- Fuel Cell Electric Vehicles (FCEVs)
By Vehicle Type:
- Passenger Cars
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Electric Buses
- Electric Two-Wheelers
By Sales Channel:
- OEM
- Aftermarket
Regional Market Insights: A Breakdown by Region
North America
North America is a key market for electric vehicle coolants and thermal fluids, with a strong focus on innovation and sustainability in the automotive sector.
The stringent environmental regulations in the region have led to the adoption of eco-friendly coolant solutions that are non-toxic and biodegradable.
Major players in the market are investing in research and development to create advanced cooling solutions tailored to the specific requirements of electric vehicles.
Europe
Europe is at the forefront of electric vehicle adoption, with several countries implementing ambitious targets to phase out internal combustion engine vehicles.
The high demand for electric vehicles in Europe has fueled the growth of the market for electric vehicle coolants and thermal fluids.
The region is witnessing a shift towards more sustainable and energy-efficient cooling solutions to support the eco-friendly nature of electric vehicles.
Asia Pacific
Asia Pacific is a rapidly growing market for electric vehicles, driven by the increasing urbanization and government incentives for electric vehicle adoption.
The market for electric vehicle coolants and thermal fluids in Asia Pacific is witnessing significant growth, with a focus on developing cost-effective and high-performance cooling solutions.
Manufacturers in the region are leveraging the latest technologies to enhance the thermal management capabilities of electric vehicles and improve overall efficiency.
Target Audience
Electric Vehicle OEMs
Battery Pack and Powertrain Manufacturers
Coolant and Thermal Fluid Suppliers
Charging Infrastructure Developers
Tier-1 Automotive Component Suppliers
Thermal Management System Integrators
Automotive Service Providers and Aftermarket Distributors
Fleet Operators and Logistics Companies
R&D Labs and Materials Testing Facilities
Government Bodies and Regulatory Authorities
