The Hydraulic Fluid is the hydraulic medium used by the hydraulic system that uses liquid pressure energy. The hydraulic fluid plays the role of energy transmission, anti-wear, system lubrication, anti-corrosion, anti-rust, and cooling in the hydraulic system. Since the viscosity change of the lubricating oil is directly related to the hydraulic action, transmission efficiency, and transmission accuracy, the viscosity-temperature performance of the oil and the shear stability should meet the various needs raised by different uses. The hydraulic systems of automobiles and construction machinery use hydraulic oil as the working medium.
The global hydraulic fluid market size was worth over USD 7.6 billion in 2019 and projected to reach USD 10 billion by 2027, with expanding over 3.42% during the forecast period, 2020-2027. The major factors attributed to the growth are surge in demand for hydraulic fluid in the automotive and industrial segments. Additionally, the growing sales and production of automobiles across the globe will accelerate the growth of the hydraulic fluid market in the analysis period. Further, the increasing demand for hydraulic fluid in the modern industry requires high speed and efficiency at higher operating pressures, and temperatures are projected to propel the global hydraulic fluid industry’s growth in future periods. Also, the mounting industrial production and automotive sectors worldwide tend to upsurge demand for hydraulic fluid oil.
Hydraulic oil improves anti-wear performance, which helps extend the life of components. They also enhance the hydrolytic stability of the oil. Moreover, the growing demand for rapid construction, growing infrastructure, and increased use of heavy machinery in civil engineering projects is anticipated to fuel the demand for hydraulic fluid across the globe in the coming years. The mounting energy demand spurred by the ongoing expansion of the industrial and commercial sectors will augment the market expansion in the forecast span. Also, the growing demand for hydraulic fluids in the automotive industry for manufacturing automobiles and lubrication purposes is strengthening the market growth. Additionally, the construction machinery hydraulic oil is a special oil for hydraulic systems developed for construction machinery’s actual working environment requirements and die casting machines. The hydraulic fluid pressure can be used by the system to play the role of energy transfer, lubrication systems, corrosion, rust, cooling in the hydraulic system.
The Asia-Pacific region includes countries in East Asia, South Asia, Southeast Asia, and Oceania. The region is home to some of the world’s largest producers of light vehicles, with light vehicle production in China, Japan, and South Korea having only slightly higher than 37 million vehicles, accounting for 42% of the global production market. The automobile production level of several ASEAN countries is improving, and Indonesia and the Philippines are in a leading position. Also, the application of scientific and technological means in the automobile manufacturing industry is increasingly strengthened. As additive manufacturing continues to evolve, automakers are using 3D printing technology to reduce production time and costs.
According to the United Nations, the growth rate of China’s manufacturing value added (MVA) has dropped from 6.2% in 2018 to 5.5% in 2019. The growth rate of the US manufacturing value added (MVA) fell from 3.2% in 2018 to 2% in 2019. The increase in the value-added of manufacturing in Europe and other industrialized economies has followed a similar trend. Due to trade frictions, mutual economic sanctions, the uncertainty of Brexit, and the deterioration of the overall business environment, the manufacturing industry is directly affected by the slowdown in commodity flows.
Based on base oil, the global hydraulic fluid market classified into mineral oil, synthetic oil, and bio-based oil. The mineral oil is expected to be the largest market for hydraulic fluid during the forecast period. The growth of the segment is primarily attributed to easy availability and low cost of mineral oil along with its anti-oxidation and anti-rust properties.
The synthetic oil will witness a lucrative growth rate in the estimated period as it provides excellent fluid stability, lubricity, and other performance-enhancing characteristics.
Based on the point of sale, the global hydraulic fluid market bifurcates into OEM and aftermarket. The OEM segment held a lucrative share in 2019 and projected to dominate the global hydraulic fluid market by 2027. It is due to the hydraulic fluid manufacturers are manufacturing new products with better properties and extended life.
The aftermarket will be the fastest-growing segment in the forecast period. It is owing to the online platform by third-party providers, and the rise in demand for less environmental affecting oil.
Based on the end-user industry, the global hydraulic fluid market segregated into construction, metal & mining, agriculture, oil & gas, transportation, cement production, food processing, and others. The construction segment estimated to lead the market by 2027. Due to the mounting construction activities, especially in the residential sector in developing countries and the growing infrastructural developments in emerging economies.
The oil & gas will grow at a significant rate during the forecast period due to rising demand for crude oil across the Middle East & Africa region.
Based on geography, the global hydraulic fluid market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific estimated to occupy the lion’s share in the hydraulic fluid market by 2027. It is due to the growing population in the region, accompanied by increasing construction spending in the developing markets of China, India, and Indonesia, and the rapid industrialization in the region.
North America will capture a prominent share of the hydraulic fluid market-dominant by 2027. Due to the growing demand for hydraulic oil from sectors such as infrastructure and heavy engineering in the region, and increased use of hydraulic in well-established Aerospace & defense industries.
Companies such as ExxonMobil, Royal Dutch Shell PLC, BP p.l.c., Chevron Corporation, Total S.A., Petrochina Company Limited, Idemitsu Kosan Co. Ltd., Sinopec Limited, Fuchs Petrolub AG, Valvoline, Lukoil, Petronas, Gazprom Neft, Pertamina are the key players in the global hydraulic fluid market.
By Base Oil
By Point of Sale
By End-User Industry