Market Landscape
What are the business opportunities associated with the electrification of vehicles?
Client overview
An established manufacturer of high-performance industrial lubricants was seeking to achieve differentiated growth through partnerships, JVs or acquisitions. The development of fluids for electric vehicles (EVs) was identified as a potential area of opportunity. The global rise of hybrid and electric vehicles is being driven by many factors including consumer demand, stricter emission targets and fuel economy mandates imposed by governments. The fluid requirements of EVs differ from those of conventional internal combustion engines (ICEs), and ideal “e-fluids” not only deliver appropriate frictional properties, but have a high viscosity index, low electrical conductivity, heat stability and protect against copper erosion.
The search
SAL initiated a landscaping study to evaluate opportunities in the e-fluids space. Insights from conversations with KOLs / experts working within the EV industry were combined with secondary research data to build up a comprehensive view of the market. Specific opportunities for our client were identified and evaluated in terms of technical and commercial feasibility.
The research highlighted several challenges associated with entering the E-fluids market, not least the lack of consensus in powertrain architecture and EV design, therefore, the client commissioned a further ‘watching brief’ study for which SAL engaged with a small number of industry experts each month and provide our client with an update report every 6-8 weeks detailing latest insights on the market (status, drivers and challenges), technology, key players, new entrants and innovation that could ‘move the needle’.
Outcome
The client used the insights generated by SAL to inform their future strategy on E-fluids.
Contact was made with 1 of the industry experts presented by SAL to explore opportunities beyond their current business offerings.