Global EV Coolants Market Size, Share, Growth Analysis By Vehicle Type (Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicles, Fuel Cell Electric Vehicles, Others), By Category (Electric Passenger Cars, Electric Commercial Vehicles, Electric Two-Wheelers, Others), By Coolant Type (Ethylene Glycol, Polypropylene Glycol, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Statistics, Trends and Forecast 2025-2034

Report Overview

The Global EV Coolants Market size is expected to be worth around USD 2.7 Billion by 2034, from USD 1.9 Billion in 2024, growing at a CAGR of 3.7% during the forecast period from 2025 to 2034.

The EV coolants market is witnessing significant growth driven by the rapid adoption of electric vehicles (EVs) globally. As EV production scales up, the demand for efficient cooling solutions has risen. EV coolants are essential to maintain battery performance, optimize energy efficiency, and ensure safety. This growing need has expanded the market potential.

Several factors present opportunities within this market. First, manufacturers are focused on developing eco-friendly and high-performance coolants that align with global sustainability trends. Moreover, advancements in battery technologies, such as higher-capacity batteries, will create a consistent need for more efficient and longer-lasting coolants. This drives innovation and expands the potential market for EV coolants.

Governments worldwide are supporting the EV sector through policy reforms and investments, which, in turn, benefit the EV coolants market. For instance, numerous countries have pledged to phase out fossil fuel-powered vehicles and invest heavily in electric vehicle infrastructure. These efforts are expected to boost EV sales, subsequently increasing the demand for cooling solutions in the coming years.

Government regulations also play a critical role in shaping the EV coolants market. With stricter environmental guidelines in place, the demand for biodegradable and less harmful coolant solutions is growing. Furthermore, safety regulations require manufacturers to develop coolants that meet higher performance standards, presenting an opportunity for innovation and expansion.

Key Takeaways

• The Global EV Coolants Market is projected to reach USD 2.7 Billion by 2034, growing at a CAGR of 3.7% from 2025 to 2034.
• Battery Electric Vehicles (BEVs) held a 67.2% market share in 2024, driven by increasing global adoption and stricter emissions regulations.
• Electric Passenger Cars dominated the By Category segment with a 57.3% share in 2024, fueled by advancements in battery technology and government incentives.
• Ethylene Glycol led the By Coolant Type segment with a 72.9% market share in 2024, due to its excellent thermal properties.
• The Asia Pacific region held a dominant share of 47.8%, valued at USD 0.9 Billion, driven by strong EV adoption and infrastructure investments.

Vehicle Type Analysis

Battery Electric Vehicles (BEVs) held a dominant market position with a 67.2% share in 2024.

In 2024, Battery Electric Vehicles (BEVs) were the frontrunners in the EV Coolants Market, commanding a significant 67.2% share. BEVs’ dominance can be attributed to their widespread adoption and the growing demand for zero-emission vehicles globally. As governments around the world introduce stricter emissions regulations, the shift towards BEVs has accelerated, further boosting their market share.

Hybrid Electric Vehicles (HEVs) followed in market share, with their increased adoption due to their ability to combine both electric and combustion engine technologies. Although their share was smaller, HEVs continue to play an essential role in the transition towards fully electric mobility.

Plug-in Hybrid Electric Vehicles (PHEVs) also contributed to the market, representing a growing segment, while Fuel Cell Electric Vehicles (FCEVs) accounted for a niche portion. Although FCEVs hold promise, their adoption remains limited due to infrastructure challenges and higher costs.

Other vehicle types made up the remaining share, representing specific or regional market interests. Overall, BEVs are set to remain the market leader in the foreseeable future.

Category Analysis

Electric Passenger Cars led the EV Coolants Market with a 57.3% share in 2024.

In 2024, Electric Passenger Cars dominated the By Category segment of the EV Coolants Market, holding a substantial 57.3% share. This is largely due to the growing consumer interest in electric cars, supported by advancements in battery technology and favorable government incentives.

Electric Commercial Vehicles followed, showing promising growth as the logistics and transportation sectors explore electric alternatives to reduce emissions and operational costs. Despite their growing importance, the market share of electric commercial vehicles remained below that of passenger cars.

Electric Two-Wheelers also saw an increase in adoption, particularly in urban areas where affordability and space constraints drive demand for smaller electric vehicles. However, they accounted for a smaller share compared to passenger cars and commercial vehicles.

The Others category, representing niche applications, held a minor share of the market. The increasing focus on reducing carbon footprints is expected to propel the electric vehicle category further.

Coolant Type Analysis

Ethylene Glycol dominated the EV Coolants Market with a 72.9% share in 2024.

Ethylene Glycol led the By Coolant Type segment in the EV Coolants Market in 2024, holding an impressive 72.9% market share. This dominance is driven by its excellent thermal properties, which make it highly effective in maintaining the optimal operating temperatures of EV batteries.

Polypropylene Glycol, while also used in certain applications, held a smaller share of the market. It is preferred in regions where environmental regulations favor more biodegradable options. However, its cost-effectiveness and thermal properties do not match those of Ethylene Glycol, limiting its broader adoption.

The Others category, which includes alternative coolant solutions, accounted for the remaining share of the market. As research into coolant solutions for electric vehicles continues, the market may see further diversification. However, Ethylene Glycol remains the most popular choice due to its performance and reliability.

Key Market Segments

By Vehicle Type

• Battery Electric Vehicles (BEVs)
• Hybrid Electric Vehicles (HEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Fuel Cell Electric Vehicles (FCEVs)
• Others

By Category

• Electric Passenger Cars
• Electric Commercial Vehicles
• Electric Two-Wheelers
• Others

By Coolant Type

• Ethylene Glycol
• Polypropylene Glycol
• Others

Drivers

Increasing Demand for Electric Vehicles (EVs) Drives Market Growth

The increasing demand for electric vehicles (EVs) is significantly contributing to the growth of the EV coolants market. As more consumers shift toward EVs due to environmental concerns and the need for sustainable transportation, the need for efficient cooling solutions for EV batteries becomes crucial.

EV batteries generate heat during operation, and coolants are essential to ensure that these batteries maintain optimal temperatures for performance and longevity. This growing market for EVs directly boosts the demand for specialized coolants designed to enhance battery life and efficiency.

Technological advancements in EV coolant formulations are also pushing the market forward. Innovations in coolant materials that offer better heat dissipation and improved environmental compatibility are driving the demand for next-generation coolants. These advancements help optimize the thermal management systems in EVs, making them more energy-efficient and reliable.

Governments worldwide are actively supporting the development of EV infrastructure through various policies and incentives. Subsidies for EV purchases, investments in charging stations, and regulatory frameworks promoting green technologies further enhance the market potential for EV-related products, including coolants.

Restraints

Lack of Standardization in EV Coolant Specifications Hampers Market Progress

One of the key challenges faced by the EV coolants market is the lack of standardization in coolant specifications. Different EV manufacturers often use varying formulations of coolants, making it difficult for consumers and suppliers to adopt a uniform coolant solution. This lack of standardization can lead to compatibility issues, making it challenging for consumers to find the right coolant for their specific EV models.

In addition, the limited availability of compatible EV coolants in emerging markets presents another constraint. Many emerging markets lack the infrastructure and supply chain for high-quality EV coolants, making it harder for consumers in these regions to access appropriate products. This hinders the overall growth of the market in developing regions.

Growth Factors

Expansion of EV Charging Networks and Infrastructure Opens Market Opportunities

The expansion of EV charging networks and infrastructure presents a promising opportunity for the EV coolants market. As the number of charging stations increases, the demand for more efficient EVs and, consequently, advanced cooling solutions will rise.

An improved charging infrastructure will not only encourage the adoption of EVs but also enhance the need for specialized coolants to optimize battery performance during frequent charging cycles.

The rising adoption of thermal management solutions in EV batteries is another significant growth opportunity. As EVs become more sophisticated, battery thermal management plays a crucial role in maximizing battery life and efficiency. Coolants designed to optimize this thermal management will see an increased demand as the market shifts toward more advanced technologies.

Moreover, the development of eco-friendly and biodegradable EV coolants aligns with the growing emphasis on sustainability. Consumers and manufacturers are increasingly looking for environmentally friendly alternatives, which opens doors for innovation and market expansion in the development of sustainable coolant solutions.

Strategic partnerships between EV manufacturers and coolant suppliers also provide growth opportunities. By collaborating, these entities can develop tailored cooling solutions that meet the specific needs of their EV models, ensuring optimal performance and sustainability.

Emerging Trends

Increased Focus on EV Battery Efficiency and Cooling Solutions Drives Market Trends

There is an increased focus on EV battery efficiency and cooling solutions, which is becoming a key trend in the market. As EV batteries are a critical component, manufacturers are focusing on advanced cooling technologies to improve their performance. Efficient cooling solutions help regulate battery temperature, ensuring optimal performance and reducing the risk of overheating, which directly impacts vehicle efficiency.

The integration of smart cooling technologies in EVs is another emerging trend. With the rise of digital technologies, EV manufacturers are incorporating sensors and intelligent control systems into cooling systems. These smart cooling solutions can adapt to real-time changes in battery temperature, optimizing the overall cooling process and enhancing vehicle reliability.

Advancements in high-performance coolant materials for EVs also contribute to this trend. New materials with superior thermal conductivity and environmental performance are being developed to meet the demands of next-generation EVs. These innovations are expected to further increase the efficiency and sustainability of electric vehicles.

Additionally, the growing popularity of aftermarket EV coolant products reflects the evolving market. As more EVs enter the market, the demand for high-quality replacement coolants is increasing, creating new opportunities for aftermarket suppliers.

Regional Analysis

Asia Pacific Dominates the EV Coolants Market with a Market Share of 47.8%, Valued at USD 0.9 Billion

The Asia Pacific region leads the EV coolants market, holding a dominant share of 47.8%, valued at USD 0.9 Billion. This dominance is primarily driven by the rapid growth in electric vehicle adoption and increased investments in EV infrastructure across countries like China, Japan, and South Korea. The growing demand for sustainable automotive solutions in the region further fuels the market for advanced coolants.

North America EV Coolants Market Trends

North America holds a significant share of the EV coolants market, driven by the increasing penetration of electric vehicles in both the U.S. and Canada. The region’s commitment to reducing carbon emissions and the expansion of EV charging infrastructure supports a robust demand for high-performance coolants. Government regulations promoting electric vehicle adoption also play a pivotal role in market growth.

Europe EV Coolants Market Trends

Europe has emerged as a key market for EV coolants, with countries such as Germany, France, and the United Kingdom leading the charge in electric vehicle adoption. The region’s focus on sustainability and carbon neutrality policies drives the demand for efficient cooling solutions, ensuring optimal performance and longevity for electric vehicles. The European market is characterized by a steady increase in production of electric cars by major automotive manufacturers.

Middle East and Africa EV Coolants Market Trends

The Middle East and Africa (MEA) region is gradually emerging as a growing market for EV coolants. While the adoption of electric vehicles in the region remains at an early stage compared to other regions, governments are increasingly focusing on promoting sustainable transportation solutions. The growth in EV infrastructure and environmental awareness is expected to drive demand for EV coolants in the coming years.

Latin America EV Coolants Market Trends

Latin America represents a developing market for EV coolants, where electric vehicle adoption is gaining momentum in countries like Brazil and Mexico. The shift towards sustainable transportation solutions, supported by government incentives and growing environmental awareness, is expected to accelerate the demand for specialized EV coolants. As the EV market in Latin America expands, there will be an increasing need for advanced cooling technologies to ensure vehicle performance.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of MEA

Key EV Coolants Company Insights

In 2024, the global EV coolants market will witness continued growth, driven by advancements in electric vehicle technology and an increasing demand for efficient thermal management systems.

Among the leading players in this market, BASF is expected to maintain its strong position due to its extensive chemical innovation and focus on sustainable coolant solutions. The company’s research in developing eco-friendly, high-performance coolants will enhance its market presence.

Dober is another key player, renowned for its cutting-edge solutions in fluid technologies, particularly for EVs. With a focus on high-quality, environmentally friendly coolants, Dober’s expertise in chemical manufacturing positions it as a trusted partner for OEMs and suppliers in the electric vehicle industry.

Castrol, a part of BP, brings decades of expertise in automotive lubricants and coolants. The company’s long-standing reputation for innovation in fluids technology has helped it cater to the evolving needs of the EV market. Castrol’s commitment to sustainability and high-performing coolants continues to drive its market growth.

Valvoline Inc. stands out with its specialized EV coolant solutions, providing reliable and efficient thermal management products. As EV adoption rises, Valvoline’s focus on enhancing vehicle longevity and performance, especially for electric vehicle batteries, ensures its competitiveness in the global market.

These four players are positioned to play crucial roles in shaping the EV coolants market, leveraging their established reputations and innovative solutions to meet the growing demand for EV thermal management.

Top Key Players in the Market

• BASF
• Dober
• Castrol
• Valvoline Inc.
• Shell
• Total Energies
• Valeo
• Chevron
• Exxon Mobil
• Lukoil Petrons

Recent Developments

• In Mar 2025, Dober EV coolant receives approval under GB standards in China, marking a significant milestone for the company in the electric vehicle (EV) industry. This approval positions Dober as a key player in the growing EV market, where regulatory standards are becoming more stringent.
• In Jun 2025, ZF unveils a new thermal management system designed to enhance the efficiency of electric vehicles. This system has the potential to increase EV range by up to 10 percent, addressing one of the main concerns of EV owners: driving distance per charge.
• In Jun 2025, Rheinmetall secures a substantial order for electric truck coolant pumps, solidifying its position in the electric vehicle infrastructure sector. This deal underscores the increasing demand for specialized components as the electric truck market continues to expand.
• In Nov 2024, BorgWarner successfully wins contracts for its High Voltage Coolant Heater in China, Korea, and Japan. These contracts highlight the company’s growing presence in key Asian markets, where EV adoption is accelerating.

Report Scope