Product Launch: The Go-To Strategy for Companies in Fluids and Lubricants Market for EVs
Since electric vehicles (EVs) do not require any engine oils or diesel and gasoline, many of the companies operating in the fluids market are bound to face an extinction post mass commercialization of EVs. However, in the past few years, these companies have changed their business strategies to develop and invest in electric vehicle applications for their products. An important observation made here was the steady change in the demand for fluids in the EV industry.
Electric vehicle lubricants would be very different from lubricating a conventional internal combustion engine vehicle. In internal combustion engine (ICE) vehicles, oils are used to decrease engine friction. These oils degrade gradually, as they get contaminated with combustion gases and hence need regular replacement. On the other hand, the fluids needed for EVs would have exposure to high voltages and temperatures.
Therefore, to lower the cost of maintenance and increase the marketability of EVs, these fluids need to have increased longevity. As EVs have various power electronics components, the fluids have to ensure safety of such circuits and have to flow easily through various parts with lower viscosity. Additionally, these fluids should have anti-corrosion properties.
Based on the market study by BIS Research, the global fluids and lubricants market for electric vehicles accounted for $850.9 million in 2018 and is anticipated to grow at a CAGR of 18.66% during the forecast period 2019 to 2029.
Competitive landscape provides an organization the edge to understand its key business strategy in the industry, its current competitors, and potential future competitors that might have made their way into the market. In order to lead the market as well as engage in the process of market growth, a company needs to bring new products to the market, invest toward innovations, and collaborate with other top tier-1 component providers to further strengthen its market position.
The global fluids and lubricants market for electric vehicles has witnessed several strategic and technological developments in the past few years, undertaken by the different market players to attain their respective market shares in this emerging domain. Some of the strategies include product launches, partnerships and collaborations, and investments. The preferred strategy for the companies has been product launches to strengthen their position in the electric vehicles fluids market.