Global Hydraulic Fluids Market is Segmented By Base Oil (Synthetic oil, Mineral Oil, Bio-based Oil), By Point of Salem (OEM, Aftermarket), By End-User (Construction, Metal & Mining, Agriculture, Oil & Gas, Transportation, Food & Beverages, Others) By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) ā Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Report Overview
The global hydraulic fluids market reached US$ YY million in 2023 and is expected to reach US$ YY million by 2031, growing at a high CAGR during the forecast period 2024-2031.
Hydraulic fluid is an essential component in the hydraulic system. The fluid transfers power from the pump to various hydraulic system parts. Moreover, it also lubricates the system, serves as a heat-transfer medium, and prevents wear and corrosion. Hydraulic fluid comprises base oil and additives. The base oil can be mineral oil, vegetable oil, or synthetic oil. The additives take different forms and help enhance or improve particular properties in the fluid.
The companies also offer hydraulic fluids in particularly demanding areas for hydraulic systems. One example is the food industry, where the liquids have to meet the strictest demands on purity, safety, and technical performance. Other examples are aviation, mining, and steel, which all have extremely high demands on fire safety.
Market Summary
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Metrics |
Details |
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Market CAGR |
High |
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Segments Covered |
By Base Oil, By Point of Salem, By End-User, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Source: DataM Intelligence Analysis (2023)
Market Dynamics
The growing demand for reducing fuel consumption in machines will boost the global hydraulic fluids market.
Growing demand for reducing fuel consumption in machines
A key component of the system, hydraulic fluid, is sometimes forgotten as hydraulic components and systems evolve to meet rising expectations for efficiency, productivity, and sustainability. Hydraulic fluids must keep up with the demand for higher operational speeds and pressures, increased electronic use, better precision and accuracy in operation, and smaller reservoir capacities. Straight-grade fluids are good for industrial machinery that work in temperature-controlled conditions. Variable temperatures and energy-efficiency considerations can make multigrade hydraulic fluids a better option in commercial vehicles and mobile equipment. Fuel efficiency is dependent on hydraulic fluid temperature, viscosity, and shear stability, and shear-stable, multigrade hydraulic fluids can enhance fuel economy.
Energy-efficient hydraulic fluids are becoming more important and more available globally. The sustainability trend and fundamental cost considerations make hydraulic fluids attractive to the end user. For instance, Total Lubricants recently launched a new high-performance hydraulic fluid developed with Dynavis Technology. The fluid promises several significant benefits, including fuel economy. Hydraulic fluids have reduced fuel consumption by 5 to 30% in field tests.
Environmental and health concerns on leakage of hydraulic fluids
Hydraulic fluids are likely to attach to soil particles, even though they usually break down in air or soil. Hydraulic fluids have a wide range of chemical properties and potential health concerns depending on their composition. Some may irritate the neurological system, while others may be carcinogenic or wholly safe for flora and wildlife. Hydraulic fluids can enter the environment through many routes due to their wide range of applications.
The most prevalent cause is equipment failure, frequently resulting in hydraulic fluid leaks at active construction sites. Backhoes, man lifts, drilling equipment, and other hydraulic apparatus failed during operations. Many cleanup procedures involve this type of equipment, which poses a danger of contamination in locations with past damage. Before usage, hydraulic fluids are sometimes stored in above-ground or below-ground storage tanks. Larger amounts of hydraulic fluid can be released if containment mechanisms fail. The expense and effort required to remediate this type of release can be enormous. Automobiles and trucks are other common sources of hydraulic fluid pollution. Hydraulic brake and steering systems are used in almost every car on the road today. Hydraulic fluids and other fuels can be leaked during an accident.
COVID-19 Impact on Market
The global hydraulic fluid market was negatively impacted during COVID-19 because of less demand from various end-user industries. Hydraulic fluids are widely utilized in automotive, construction, mining, oil & gas, and other industries. During COVID-19, the UK construction industry faced losses of around US$410.8 million (Ā£301.5 million) per day. The impact of the Coronavirus in India will reduce investment in the construction industry by 13 to 30%, probably affecting gross value added. Moreover, according to a survey by the Associated General Contractors of America in 2020, 78% of contractors responded experiencing project delays has impacted the hydraulic fluid market.
Moreover, according to the OICA report, the automotive industry faced a production decline of 16% in 2020, to less than 78 million vehicles, equivalent to 2010ās sales levels. Europe as a whole witnessed a drop of over 21% on average. All main contributing countries had sharp declines, ranging from 11% to 40%.
Market Segmentation Analysis
The global hydraulic fluids market is segmented based on base oil, point of sale, end-user, and region.
The cheaper cost of mineral-based oil coupled with high performance will boost its market demand
The global hydraulic fluids market is segmented into mineral oil, synthetic oil, and bio-based oil based on base oil.
Mineral-based hydraulic oils are made from fractions of crude oil. The oil is refined to the point where they have suitable lubricating characteristics. Mineral oil is the most common base oil and is classified into three categories: I, II, and III. The mineral oil that has been solvent-refined falls within Group I. Hydrocracked mineral oils in Groups II and III are purer in terms of sulfur impurities and have a higher viscosity than Group I.
Since mineral oil is petroleum-based, they represent a lower-cost option than its synthetic counterparts. Mineral lubricating hydraulic oils can offer high performance depending on the base oil quality. The additives in mineral-based hydraulic oils shield the hydraulic systems against corrosion, water, and wear contamination. Also, they improve the emulsifying properties of the oil and the viscosity index, which enhances their resistance to temperature changes.
Source: DataM Intelligence Analysis (2023)
Market Geographical Share
Expanding automotive and construction industry in Asia-Pacific will boost the demand for hydraulic fluids
Asia-Pacific holds a significant market share in hydraulic fluids and is expected to maintain market momentum in the forecast period due to the region's expanding automotive and construction industry. Most of the equipment used in the construction industry relies on hydraulic fluids for efficient operations. The significant expansion in the construction sector in developing countries like India and China will boost the demand for hydraulic fluids. For instance, After a 1.3% increase in 2020, Chinese construction output has grown by almost 7% in 2021 and 6% in 2023. Moreover, the Indian Urban Affairs Ministry has completed 6,452 projects and 5,809 projects are under progress in 2021 under the smart city mission.
Hydraulic fluid is used in the vehicle's various areas that use the actual non-compressing fluid force. Clutch fluid, power steering fluid, and brake fluid are common forms of specialized hydraulic oil. China holds the largest automobile market worldwide, both in supply and demand. The emerging demand for heavy commercial vehicles will steadily boost the need for hydraulic fluids in the region. For instance, In 2019, China produced nearly 21 million cars and 4.36 million commercial vehicles, making it the world's largest vehicle manufacturer. Moreover, over 2.9 million commercial vehicles and passenger cars were sold in India in 2020.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
A few multinational brands dominate the global hydraulic fluids market; however, the market has a presence of small-level companies. The players in the market include Royal Dutch Shell PLC, Petrochina Company Limited, Exxon Mobil Corporation, Chevron Corporation, Petro-Canada Lubricants, Idemitsu Kosan Co. Ltd., TotalEnergies, Sinopec Limited, LUKOIL, Fuchs Petrolub AG, BP PLC, among others. The players in the market are known to incorporate numerous market strategies to achieve growth in the global hydraulic fluids market; these include product launches, expansion, and collaborations.
- For instance, in 2020, Petro-Canada Lubricants launched ENVIRON MV R, the first hydraulic fluid that utilizes ultra-pure severely hydrotreated base oils to satisfy the OECD 301B standards for ready biodegradability. The patent-pending design makes ENVIRON MV R the first of its kind to meet these requirements, providing longer life and enhanced value without compromising performance.
TotalEnergies
Overview: TotalEnergies is an energy company that produces and markets fuels, natural gas, and electricity. The company has a presence in Africa, Asia-Pacific, Europe, the Middle East, and North & South American countries. The company has over 100,000 employees active in more than 130 countries worldwide.
Product Portfolio:
- HYDRAGRI: It is recommended for all kinds of hydraulic systems to operate under high pressure and high temperature. Lubricants are especially suitable for hydraulic systems working under extreme temperature variations.
- Key Development: In April 2019, Total launched a range of recycled hydraulic fluids for industrial use. The new ECO2 offering is manufactured from regenerated oil to reduce the environmental footprint of lubricant production and contribute to the circular economy.
Why Purchase the Report?
- To visualize the global hydraulic fluids market segmentation by base oil, point of sale, end-user, and region and understand key commercial assets and players.
- Identify commercial opportunities in the global hydraulic fluids market by analyzing trends and co-development.
- Excel data sheet with numerous data points of hydraulic fluids market-level with four segments.
- PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping available in excel consists of key products of all the major market players
The global hydraulic fluids market report would provide approximately 61 tables, 55 figures, and almost 211 pages.
Target Audience 2024
- Buyers
- Industry Investors/Investment Bankers
- Raw Material Providers
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Manufacturers
- OEM
- Logistics companies
- Distributors
