Unlocking Growth In Lubricants For EV Era

(MENAFN- Frost & Sullivan) Are You Unlocking New Growth Opportunities in the Lubricants and Coolants Industry to Thrive in the Electric Vehicles Era?

As electric vehicles (EVs) gradually render internal combustion engines obsolete, the demand for traditional engine oils and lubricants is declining in the automotive industry. Automakers have traditionally been the primary consumers of these products, but this shift necessitates that both industry incumbents and new entrants adapt by leveraging alternatives better suited for EVs. Moreover, stringent environmental regulations and increasing consumer awareness about emissions and waste are emphasizing sustainability, yet current lubricant and coolant formulations often fall short of these goals. This evolving landscape presents significant growth opportunities for forward-thinking companies.

Frost & Sullivan's recent Chemicals and Materials webinar delved into the fascinating topic – Opportunities for Lubricants and Coolants in the Age of Electric Vehicles .

The discussion covered innovative business models, growth avenues, constraints, and best practices redefining lubricants, coolants, and engine oils in the EV era, featuring perspectives from leading industry experts:

Christeena Thomas
Growth Expert & Research Manager, Chemicals, Materials and Nutrition at Frost & Sullivan

Anwesha Banerjee
Growth Expert & Senior Consultant, Chemicals and Materials at Frost & Sullivan

Brian Balmer
Growth Expert & Practice Area Leader, Chemicals, Materials and Nutrition at Frost & Sullivan

During this discussion, our panelists identified key strategic imperatives for achieving long-term growth:

Embracing the Electrification Megatrend: Today, passenger and commercial vehicles consume 60% of total lubricants, but this dominance is waning as EVs eliminate the need for traditional engine oils. Newer fluids are being developed to meet the unique requirements of electric powertrains. Additionally, emission regulations driving electrification are pushing customer preferences toward premium and sustainable lubricants, fostering the emergence of bio-based and recyclable formulations. How is your team adapting to transformative megatrends like electrification to bolster your growth pipeline?

Innovative Business Models in the Lubricants Industry: The ecosystem is pivoting towards specialized products for EVs and integrated service packages. Also, the rise of subscription models offering regular lubricant delivery is redefining competitive strategies. Further, green initiatives, including eco-friendly packaging, recycling programs, and waste reduction efforts, are becoming central to the business approaches of leading companies. Which innovative business models is your team prioritizing to achieve competitive differentiation in the current ecosystem?

Sustainability in Lubricants: Major automotive fluid manufacturers, including Shell, have set ambitious net-zero emission targets by 2050. Most industry participants are focusing on three main paths: sourcing renewable base oils, using sustainable packaging materials, and enhancing production efficiency. Eco-friendly base oils are becoming a key component in this transformative industry, with significant potential to dominate the future passenger car engine oil sector. What sustainability approaches is your organization adopting to ensure long-term growth?

Harnessing Disruptive Technologies: Predictive maintenance strategies, utilizing digital tools and cloud-based software for asset tracking, inventory management, and predictive analysis, are revolutionizing the use of lubricants. Automotive fluid manufacturers are leveraging telematics to monitor lubricant performance in real-time, allowing them to build competitive differentiation through data-driven analytics. Is your leadership team embracing disruptive technologies to improve offerings and capitalize on growth opportunities as a lubricants manufacturer?

To know more about emerging growth opportunities in the chemicals industry, click here .

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