Electric Vehicle Battery Coolant Market By Product Type (Glycol-based Coolants, Water-based Coolants, Non-aqueous Coolants, Hybrid Coolants), By Vehicle Type (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Hybrid Electric Vehicles, Battery Two-Wheelers), By Cooling Mechanism (Liquid Cooling, Air Cooling, Dielectric Fluid Cooling), By Battery Type (Lead Acid Battery, Lithium-ion Battery, Others), and By Application (Passenger Cars, Commercial Vehicles, Heavy-duty Vehicles, Industrial Equipment, Others) Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles, And Market Forecast, 2025 – 2035

Industry Outlook

The Electric Vehicle Battery Coolant market accounted for USD 3.25 Billion in 2024 and is expected to reach USD 8.3 Billion by 2035, growing at a CAGR of around 8.9% between 2025 and 2035. The Electric Vehicle Battery Coolant Market deals with cooling systems for electric vehicle batteries. Battery coolant plays a critical role in controlling the temperatures of the battery systems in electric vehicles and increasing battery safety, performance, and durability. This market is fueled by factors such as the increasing use of electric vehicles, a boost in battery technologies, and the requirement for effective thermal management systems.

The major players in this market design coolants with characteristics such as high thermal conductivity, low electrical conductivity, and eco-friendly nature. Battery health management is critical for enhancing electric mobility since it addresses battery performance and safety concerns. The Asia-Pacific is a significant growth area with increasing urbanization and infrastructural developments, and the same goes for the Middle East.

Report Scope:

Market Dynamics

Increasing Electric Vehicle (EV) Adoption Backed by Consumer Awareness and Environmental Concerns

The main factor that has boosted the Electric Vehicle Battery Coolant Market is the awareness among the newer generation towards environmental health.  As per the IEA 2023 survey, global sales of new EVs increased by 55 per cent year on year and hit over 14 million. Such growth is due to the enhancement of consumers’ knowledge of the impacts of environmental degradation coupled with the lobbying for energy conservation by the government. Energy storage in EV batteries is associated with the necessity for intricate coolants as batteries get hot and need cooling to work appropriately. Because EVs are now popular in automotive production, many automakers have started developing ever more sophisticated thermal management systems to accommodate the growth in demand.

Further, with a gradual increase in battery range requirements, there is a need to develop coolants with higher thermal stability. As the major automobile producers have embarked on EV-focused manufacturing, the requirement for battery coolants is expected to rise. The trend also fits into the current international crescent of pursuing reduced carbon emissions and decreased use of fossil energy. G and H Effective control of temperature within automobiles is directly related to energy efficiency, a factor determined by the consumer preference for energy-efficient vehicles.

Advancements in Battery Technology Enhancing Thermal Management Requirements and Coolant Efficiency Standards

Improved technological strength of battery and its availability are another element that also has a positive impact on the Electric Vehicle Battery Coolant Market. Both lithium-ion and solid-state batteries of modern designs release more energy per unit volume than the previous designs and therefore produce more heat during operation. These factors, therefore, call for proper cooling to avoid thermal runaway, enhance safety, and increase battery cycle life. In some applications, this chemistry has resulted in coolants with better heat transfer coefficients, other than being environmentally friendly. For example, the use of new dielectric fluids for improving cooling capability while maintaining electrical insulation capability is a trend.

The evolution in battery materials like cobalt-free waste, extends the need for cooling solutions to match new designs. Such thermal management is also delivered in real-time with the help of artificial intelligence and IoT implemented by the industry players. With car makers focusing on bettering the power to electricity density, battery cooling technologies are slowly shaping up the EVs. This shows the dynamism within this market; if increasing technological integration requires increased cooling capacity, then the development of stronger cooling solutions is paramount.

High Development Costs and Complex Regulatory Standards Hindering Widespread Adoption of Advanced Coolants

The Electric Vehicle Battery Coolant Market has been greatly restricted by high costs and high investments in the development of improved cooling systems. Coolants must conform to high standards of performance and safety, which calls for major investment in research and testing. Moreover, more complicated laws differ depending on the province of the country, which causes problems for global producers. For example, operational constraints call for the application of eco-friendly materials and chemicals, which are expensive to acquire. These costs are reasons why small players are always at a disadvantage to large firms in any given industry. The absence of standards means product design becomes difficult, constraining the ability to extend product reach and market share.

Besides, to adopt new coolants into existing EV platforms, extensive compatibility assessments must be conducted, something that is costly. However, the cost-sensitive markets may not quickly adopt premium coolants that are being developed to tackle these challenges within the industry. Economies of scale and favourable regulatory policies must be achieved to fully exploit the growth of the EV battery coolant market.

Rising Demand for Eco-Friendly Coolants in Line with Global Sustainability Goals and Policies

Eco-friendly and sustainability remain the two major and crucial factors in a purchasing decision in the Electric Vehicle Battery Coolant Market. The growth in the concept of sustainability has vast potential to provide a favourable landscape for the development of the EV Battery Coolant Market. Currently, government and organization policies are being set in various countries that seek to address the environmental challenges, and hence there is the demand for environmentally friendly coolants. Most of these products are environmentally friendly with features such as non-toxic, eco-friendly, biodegradable, and efficient in terms of energy consumption as the world moves towards sustainable living. Businesses are looking for new technologies in the field of renewable materials and the use of green chemical environments.

For instance, coolants that are made from bio-generational materials such as plant residues are slowly finding their way into the market. Changes to carbon-neutral production processes also created opportunities for sustainable coolants to be used. Consumers today are demanding fewer impacts, which are positive for the market. To drive the improvement of sustainable thermal management solutions, strategic collaborations between industries and universities are present. This opportunity shows the market’s potential for contributing to the market's general environmental goals in addition to satisfying more specific functional requirements of advanced EV batteries.

Integration of Smart Coolant Systems Leveraging IoT and AI for Enhanced Battery Thermal Management

The incorporation of information technology and AI systems into thermal managers is considered a revolutionary innovation in the Electric Vehicle Battery Coolant Market. Advanced coolants can manage and control battery temperatures to enhance performance and safeguard against any dangers. Self-sensing IoT within cooling systems assists in monitoring general temperature levels effectively by incorporating advanced algorithms that judge overheating circumstances. They can work under diverse operating modes and guarantee optimal power consumption as well as battery durability.

Premium EV brands and mainstream automobile makers are adding these technologies to their EVs in a bid to set themselves apart from the competition or satisfy customers’ expectations of ‘smart’ vehicles. Also, it mainly defines the ability of smart systems to decrease the maintenance load, as they offer diagnostic data for predicting failures, which adds to their value. This is an exciting opportunity because of the increasing trend towards connected vehicles, where sophisticated thermal management systems become part of the overall EV solution. These innovations speak to the possibilities of technology as a driver of development in the battery coolant industry. 

Industry Experts Opinion

"EV batteries are borrowing the internal combustion engine fluid. We are going to see a shift in the technological aspect of EV batteries’ fluid in the next one to two years. We see where the future is going with EV coolants, and we want to be ready when the manufacturers are ready.”

• Mr. Tom Corrigan, Director of EV Technology at Prestone Products Corp.

Segment Analysis

Based on Product Type, the Electric Vehicle Battery Coolant Market is classified into Glycol-based Coolants, Water-based Coolants, Non-aqueous Coolants, and Hybrid Coolants. The Glycol-based Coolants are dominating this segment mainly due to their high thermal conductivity and low fluctuation at varying temperature conditions. Ethylene or propylene glycol and water solutions, or glycol coolants, are the best brine coolants for managing temperatures because they prevent both freezing and boiling. Their use is backed by low costs, integration with other cooling formats, and overall efficiency. These coolants also bring corrosion characteristics, which improve the battery’s overall life. Although water-based coolants provide a relatively eco-friendly coolant solution, their efficacy at high temperatures points out the high roadblocks to their growth as compared to glycol-based coolants.

Based on Vehicle Type, the Electric Vehicle Battery Coolant Market is classified into Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Hybrid Electric Vehicles, and Battery Two-Wheelers. Battery Electric Vehicles is the largest sub-segment due to increased urbanization and industrialization globally creating a large demand for Electric Vehicle Battery Coolant. The progress in battery technology and supportive policies, as well as the further rise of BEV usage, has intensified the need for effective cooling. Besides, BEVs are likely to use large battery capacity to store enough energy needed for driving the electric vehicle; during use, large battery capacity produces a large amount of heat. Though PHEVs and HEVs are important market segments for automotive thermal management solutions, their coolant demand is less than that of full BEVs because they still rely on ICEs partially.

Regional Analysis

The Asia-Pacific is the strongest region within the global Electric Vehicle Battery Coolant Market, and this is particularly because of countries like China, Japan, and South Korea. Most of these nations are now focusing on the development of EV batteries to cater to their expanding urban populace to prevent pollution. China, which is home to the largest market of EVs, enjoys political backing, production advantages, and leading EV manufacturers like BYD. Moreover, increasing environmental consciousness, especially in the region of transportation, forms the basis for modern battery thermal management systems. Therefore, having well-developed infrastructure and necessary favourable regulations, the region becomes even more dominant in the market.

Europe is the growing region, reporting the highest compound annual growth rate. The region has experienced a rise in the intensity of infrastructure projects, driven by tight emission standards, incentives for EV purchases, and increased attention to the concept of decarbonization. Firms in nations such as Germany, Norway, and the Netherlands are currently among the leaders when it comes to EV adoption, and this has created a need for more effective battery cooling systems. Continued efforts for clean energy sources and commitment to the installation of EV charging infrastructure also boost the growth of the market in the region espoused by the European Union. Also, technology partners formed with automotive and thermal management solution companies propel the region’s growth in the EV battery coolant market. This high demand, along with the infrastructure development plan, looks forward to the region as one of the most rapidly emerging markets for Electric Vehicle Battery Coolant.

Competitive Landscape

The Electric Vehicle Battery Coolant Market is a highly competitive market with both international and domestic players engaging themselves to gain market share through challenging and cutthroat techniques, innovations, and strategic partnerships. Industry giants including Preston Products Corporation, BASF SE, Valvoline Inc, Shell PLC, Chevron Corporation, and ExxonMobil Corporation, enter the market with densely developed networks and international presence. Companies are heavily investing in developing environment-friendly and high-performance coolants that meet the changing demand of thermal management requirements. Market participants spend a lot of capital in research and development to improve coolant performance, heat transfer rates, and outright ecological solidity. It is also seen that the relationships between car makers and coolant producers are evolving to quickly develop integrated solutions. The cutthroat competition pushes companies towards coming up with innovations and diversifying their products to satisfy the need for thermal management for EVs.

One key player in this market is Prestone Products Corporation, which set an example of such a positioning strategy, which involves innovation and cooperation. It concentrates on delivering superior glycol-based and dielectric coolants that fit today’s electric vehicle designs. It works with automobile manufacturers to develop optimized thermal management solutions that improve the capacity and safety of batteries. Preston also pays close attention to sustainability issues and has tried to use sustainable materials in its product line. Leveraging its background and being a market follower, Preston can establish and sustain a competitive advantage in the EV battery coolant industry.

Electric Vehicle Battery Coolant Market, Company Shares Analysis, 2024

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Recent Developments:

• In February 2024, the chemical manufacturer claimed that its DuPont Amberlite EV2X resin helped extend the lifetime of EV coolant while reducing glycol maintenance requirements by offering enhanced thermal stability and excellent operating characteristics compared to standard ion exchange resins.
• In October 2023, the Chinese Nationally of Transport issued a new standard for water glycol-based coolants, requiring the use of a safety coolant in battery cooling loops. Tests conducted by its affiliated ‘Research Institute on Highway’ demonstrated the added value of coolants with much reduced, yet non-zero, electrical conductivity.

Report Coverage:

By Product Type

• Glycol-based Coolants
• Water-based Coolants
• Non-aqueous Coolants
• Hybrid Coolants

By Vehicle Type

• Battery Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Hybrid Electric Vehicles
• Battery Two-Wheelers

By Cooling Mechanism

• Liquid Cooling
• Air Cooling
• Dielectric Fluid Cooling

By Battery Type

• Lead Acid Battery
• Lithium-ion Battery
• Others

By Application

• Passenger Cars
• Commercial Vehicles
• Heavy-duty Vehicles
• Industrial Equipment
• Others

By Region

North America

• The U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Prestone Products Corporation
• BASF SE
• Valvoline Inc.
• Shell PLC
• Chevron Corporation
• ExxonMobil Corporation
• TotalEnergies SE
• Dow Inc.
• Castrol Limited
• Eastman Chemical Company
• Clariant AG
• LyondellBasell Industries N.V.
• CCI Corporation
• Old World Industries, LLC
• Sinopec Group
• BP PLC
• Petro-Canada Lubricants Inc.
• Motul S.A.
• Gulf Oil Lubricants India Ltd.

Frequently Asked Questions (FAQs)