Hydraulic Fluids Market Outlook - 2020–2027
The global hydraulic fluids market was valued at $9.1 billion in 2019, and is projected to reach $12.4 billion by 2027, growing at a CAGR of 6.8% from 2020 to 2027.
Hydraulic fluids encompass a line of different flowing forms of lubricants each designed for a different part of your vehicle or machinery. It is the base fluid that is used in the different area of your vehicle that uses the force of the actual non-compressing fluid to create both a flow of force and protection. Hydraulic fluid consists of numerous superior properties including better stability at high temp, long life and good performance as compared to ordinary turbine oil, better viscosity, and others. Attributing to these properties, hydraulic fluid finds wide range of applications across various industries including oil & gas, chemical manufacturing, automotive, and others.
These fluids are used in the overall vehicle system as various products, such as engine oil, gear oil, brake fluid, and others, to enhance the overall life cycle of a vehicle by reducing friction between surfaces by eliminating the heat generated by the automotive component. In addition, hydraulic fluids have superior hardware compatibility with advanced automotive parts and also they help lower vehicle emissions. Thus, increase in automotive sales fuels the consumption of hydraulic fluids; thereby, boosting the market growth
However, crude oil is base material that is used as a building block in the production of synthetic lubricants including hydraulic fluids. Rise in price of crude oil plays a key role in the prices of overall lubricants. Oil prices are expected to rise, as the U.S. continues to import huge amounts of oil and the percentage of car owners, especially in China. As the price of crude oil rises to unaffordable levels, the demand for raw lubricants is expected to increase, which further lead to increase in prices of hydraulic fluids. Although there is an increase in the overall production of crude oil, the demand is projected to decrease due to abundant supply, which in turn results in a drastic decline in crude oil prices. Hence, fluctuating prices of raw materials is one of the major factors hampering the growth of the global hydraulic fluids market
For the purpose of analysis, the global hydraulic fluids market is segmented into type of base oil, end-use industry, and region. Depending on base oil, the market is divided into synthetic, mineral, and bio-based oil. By end-use industry, the global hydraulic fluids market is segmented into oil and gas, automotive, marine, and aerospace & defense, construction, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global hydraulic fluids market are Royal Dutch Shell plc., Dow, Exxon Mobil Corporation, BASF SE, BP p.l.c, Eastman Chemical Company, Total S.A., Sinopec Limited, LUKOIL Marine Lubricants DMCC, and Chevron Corporation. Other players operating in the hydraulic fluids market are Fuchs Petrolub AG, Idemitsu Kosan Co. Ltd., etrochina Company Limited, and others.
Key players in this market are adopting various key strategies such as business expansion & product launch to stay competitive in the market. For instance, in April 2020, FUCHS and BASF collaborate for a holistic sustainability assessment and more sustainable lubricant products.
Similarly, BASF SE expanded its esters plant in China, to rise demand for high-performance lubricants including hydraulic fluids, greases, aviation and compressor oils, etc. that address sustainability trends in the Asia-Pacific region.
The hydraulic fluids market is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2020–2027. The report includes the study of the hydraulic fluids market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Hydraulic Fluids market, by type of Base Oil
By type of base oil, the mineral oil of hydraulic fluids held the largest market share in the year 2019, owing to increase in demand from oil & gas, chemical processing, automotive, and other industries. In addition, advantages of synthetic hydraulic fluids including better lubrication and stability, viscosity and other characteristics are anticipated to drive the demand for hydraulic fluids.
By Base Oil
Mineral Oil is projected as the most lucrative segment.
Hydraulic Fluids market, by end-use Industry
On the basis of end-use industry, the oil and gas segment dominated the global hydraulic fluids market in 2019, in terms of share, owing to the increase in utilization of hydraulic fluids in oil and gas applications as a fire-resistant fluids.
By End-use
Oil and Gas application is projected as the most lucrative segment.
Hydraulic Fluids market, by region
Asia-Pacific garnered the highest share in the hydraulic fluids market in 2019, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. This is mainly attributed to the highest automotive production as well as sale in China, established automotive industry in countries such as Japan, Indonesia, and India, and economic growth across the region. It is the highest populous region, which further fuels the automotive sales linked with growth in the disposable income of the middle-class population.
By Region
Asia Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdown imposed due to the outbreak of the COVID-19 pandemic has resulted in temporary ban on the import and export, thereby disrupting the supply chain and hampering the hydraulic fluids market growth in the second, third, and fourth quarter of 2020. However, the market is expected to recover in the late year or by the first quarter of 2021 as the operations in various industries such as manufacturing, construction, aerospace & defense, and others restart.
Key Benefits For Stakeholders
- The report includes in-depth analysis of different segments and provides market estimations between 2020 and 2027.
- A comprehensive analysis of the factors that drive and restrict the growth of the global hydraulic fluids market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the global hydraulic fluids market growth, in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current global hydraulic fluids market trends and future estimations from 2020 to 2027, which helps to identify the prevailing market opportunities.
Hydraulic Fluids Market Report Highlights
| Aspects | Details |
 By Base Oil |
|
 By End Use |
|
 By Region |
|
 Key Market Players | BASF SE, SINOPEC LIMITED, Royal Dutch Shell plc., Total SA, LUKOIL Marine Lubricants DMCC, EASTMAN CHEMICAL COMPANY, Exxon Mobil Corporation, Chevron Corporation, Total SE, THE DOW CHEMICAL COMPANY |
Analyst Review
According to the CXOs of the leading companies, the global hydraulic fluids market is witnessing significant growth over the past few years due to high demand for automotive lubricants from passenger cars and light commercial vehicle segments. Moreover, an increase in demand from developing countries, such as China and India, owing to rapid urbanization, strengthening industrialization, and a rise in consumer spending capabilities mainly contribute to the global market growth. The Asia-Pacific hydraulic fluids market offers numerous opportunities for the manufacturers, owing to enhanced production of automobiles in China, Japan, and India; advancement in the automotive & industrial technologies, and economic developments across the region. China reported more than 28 million vehicle unit production in 2018 to cater to the demand for domestic vehicle and increasing export activities. Apart from China, countries such as Japan, India, and Indonesia have reported significant vehicle production, which shows promising potential for the Asia-Pacific region for hydraulic fluids.
The heavy-duty machinery in the industrial application as coolant or lubrication purposes to run equipment more efficiently and eliminate costly downtime and repairs. The growing industrial manufacturing sector is demanding new equipment to cater to the increase in demand for industrial products in the market. This is anticipated to rise the demand for hydraulic fluids market
Global hydraulic fluids market is estimated to reach $12.4 bn by end of forecast period i.e. 2027.
Key players operating in the global hydraulic fluids market are Royal Dutch Shell plc., Dow, Exxon Mobil Corporation, BASF SE, BP plc., Eastman Chemical Company, Total S.A., Sinopec Limited, LUKOIL Marine Lubricants DMCC, and Chevron Corporation.
Oil and gas industry is projected to increase the demand for hydraulic fluids Market.
Mineral hydraulic oil segment accounted for the largest hydraulic fluids market share.
Rise in automotive production and sales is key driver of hydraulic fluids market.
Oil and gas & automotive applications are expected to drive the adoption of hydraulic fluids.
Lockdown imposed due to the outbreak of the COVID-19 pandemic has resulted in temporary ban on the import and export, thereby disrupting the supply chain and hampering the hydraulic fluids market growth in the second, third, and fourth quarter of 2020. However, the market is expected to recover in the late year or by the first quarter of 2021 as the operations in various industries such as manufacturing, construction, aerospace & defense, and others restart.
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