Hydraulic Fluids Market is Projected to Reach USD 29.35 Billion by 2028

The Global Hydraulic Fluids Market is anticipated to reach a value of USD 29.35 billion by 2028, exhibiting a CAGR of 3.6% over a forecast period. As an energy delivery medium, hydraulic fluids or liquids are used in hydraulic engines. Hydraulic fluids are used as corrosion-resistant sealants and lubricating materials in hydraulic systems. Mineral oil/emulsion bases include conventional hydraulic fluids. They have low compressibility and versatility. In hydraulic systems, synthetic hydraulic fluids like polyalkylene glycol and polyalphaolefin are also preferred. Although these fluids are expensive, they have high stability and compression, along with very low volatility.

The main end-users of hydraulic fluids are the construction and automotive industries. They account for a cumulative share of around 52% of global hydraulic fluid consumption. Currently, companies are designing fire-resistant hydraulic fluids. This will surge the demand for hydraulic fluids in industries such as aerospace and food. However, the food industry is apprehensive about using these fluids in food processing due to their toxicity. This scenario is expected to change as non-toxic, non-flammable fluids are being produced, which will increase the food industry's demand for hydraulic fluids.

Demand is continuously growing for different types of hydraulic systems, as modern industry demands high speed and productivity at higher operating pressures and temperatures. Hydraulic fluids are designed to perform tasks such as lubrication, transfer of electricity, and heat removal from machinery components. The selection of an optimum hydraulic fluid is highly dependent on the fundamental characteristics and technicality of the hydraulic fluid grade in relation to the hydraulic machinery. The ideal hydraulic fluid should be chosen on the basis of the following characteristics - hydrolytic stability, thermal stability, low cavitation propensity, low chemical corrosivity, high anti-wear properties, constant viscosity, long life, temperature-independent total water rejection, and low cost.

The growth of the global hydraulic fluids market is driven by the increasing demand for hydraulic fluids from different industries, especially from the construction and automotive industries, coupled with rapid industrialization in emerging economies. In addition, advances in hydraulic fluids such as the introduction of fire-resistant hydraulic fluids are anticipated to drive the growth of the global product demand. However, the demand for hydraulic fluids is heavily dependent on the oil industry, and fluctuating oil prices are a major restraining factor for the growth of the global market for hydraulic fluids. In addition, some types of hydraulic fluids are highly toxic, and hence strict environmental regulations restricting the use of such fluids are expected to hamper the growth of the global market.

Global Hydraulic Fluids Market, By Base Oil

Based on the base oil, the global hydraulic fluids market is divided into mineral oil, synthetic oil, semi-synthetic oil, and bio-based oil. The largest segment of the hydraulic fluid industry is mineral oil. This is largely due to its simple usability and low cost. However, due to its advanced properties, the synthetic oil segment is expected to report the highest CAGR during the forecast period.

Global Hydraulic Fluids Market, By Application

In terms of application, the market is segmented into mining equipment, construction equipment, metal production, food preparation, and others. Demand for hydraulic fluid is high in the construction industry due to the growing construction activity, especially in China's residential sector, and the increasing infrastructure development in India.

Global Hydraulic Fluids Market, By End-Use Industry

In terms of the end-use industry, the global market for hydraulic fluid has been segmented into building & construction, mining, automotive, oil & gas, aerospace, and food & beverages. The construction and automotive segments are the key end-users of hydraulic fluids. These segments account for a combined revenue of around 52% of the worldwide consumption of hydraulic fluids.

Global Hydraulic Fluids Market, By Geographical Regions

Region-wise, the global market for hydraulic fluids has been segmented as North America, Western Europe, Eastern Europe, Asia Pacific, Middle East, and the rest of the world. Due to rising construction activities, the global hydraulic fluid market is dominant in the Asia Pacific region. China is the Asia Pacific region's largest user of hydraulic fluids. Due to the fast-growing economy and the subsequent growth of the automotive industry, along with rapid urbanization, India is also witnessing a large demand for hydraulic fluids. North American's hydraulic fluids market is experiencing steady growth. On the other hand, because of Brexit, the UK hydraulic fluids demand is shrinking and will remain stagnant, resulting in altered oil policies and government regulations. In the Middle East, the hydraulic fluids market will record significant growth.

Key Market Developments in the Global Hydraulic Fluids Market:                                    

  • In June 2019, ExxonMobil announced the launch of a technologically advanced series of hydraulic oils, the Mobil DTETM 20 Ultra Series. The new series is designed for all forms of hydraulic systems and parts, such as servo-valves with near clearance and numerically operated (NC) machine tools with high precision.
  • Royal Dutch Shell (Netherlands) completed the acquisition of Sonnen GmbH, a pioneer in smart energy services, in March 2019.

Some Key Findings of the Global Hydraulic Fluids Market Report Include:

  • A comprehensive analysis of the hydraulic fluids market.
  • Year-on-year growth of the global market in terms of value and volume.
  • Historic and future progress of the global market.
  • Region-wise and country-wise analysis of the global hydraulic fluids market to offer the share and growth details in these areas.
  • Key factors that are affecting the consumption pattern of consumers across a number of regions and countries.
  • Strategic frameworks of the global hydraulic fluids market to boost the growth journey.
  • Wide-ranging insights regarding the current R&D activities performed by each market service provider.
  • Some of the key players in the global market are Royal Dutch Shell, ExxonMobil, BP Corp., Chevron Corporation, Total Corp., PetroChina, Sinopec, LUKOIL, Indian Oil Corporation, and Idemitsu Kosan.

Market Segmentation:

By Base Oil:

  • Mineral Oil
  • Synthetic Oil
    • Polyalkylene Glycol (PAG)
    • Polyalphaolefin (PAO)
    • Esters
    • Group IV
  • Semi-synthetic Oil
  • Bio-based Oil

By Application:

  • Mining Equipment
  • Construction Equipment
  • Metal Production
  • Food Preparation
  • Others

By End-Use Industry:

  • Building & Construction
  • Mining
  • Automotive
  • Aerospace
  • Oil & Gas
  • Food & Beverages

By Regions

  • North America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • Middle East
  • Rest of the world