Hydraulic Fluids Market Analysis by Base Oil (Mineral Oil, Synthetic Oil, Bio-based Oil), End User (Construction, Oil, Gas, Agriculture, Metal/Mining) – Global Supply and Demand Analysis and Opportunity Outlook 2023 – 2035
Buy Now Report ID: 4889 | Published Date: May 02, 2023
Hydraulic Fluids Market size is estimated to reach ~ USD 18.76 billion by the end of 2035 by growing at a CAGR of ~ 6.10% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of hydraulic fluids was ~ USD 9.22 billion. The growth of this market can be attributed owing to the growing demand for hydraulic equipment in various sectors majorly in the construction and automotive sector. Hydraulic systems are widely used in multiple applications as they are made in such a way they can undergo high temperature, high pressure, and other significant settings to support market growth. The hydraulic fluids market is driven by the increasing utilization of hydraulic fluids that are used in hydraulic equipment to lower component wear and tear, shield the internal system from corrosion and protect external surrounding from erosion. For instance, hydraulic equipment in the construction sector makes up 76% of the total hydraulic fluids sector.
Moreover, rapid industrialization in emerging countries such as India, China, Brazil, and Mexico has led to the growing demand for hydraulic fluids, creating robust opportunities for the market players operating in the global hydraulic fluids market. In addition, on account of growing environmental concerns related to the usage of petroleum oil doubled with growing consumer focus on bio-based oil is expected to offer more growth opportunities for the market in the forecast period. According to the Environmental Protection Agency (EPA), transportation accounts for 28% of US greenhouse gas emissions, with the majority of these emissions coming from the burning of petroleum products.
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Base Year |
2022 |
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Forecast Year |
2023 - 2035 |
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CAGR |
~ 6.10% |
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Base Year Market Size (2022) |
~ USD 9.22 billion |
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Forecast Year Market Size (2035) |
~ USD 18.76 billion |
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Regional Scope |
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Growth Drivers
Challenges
Competition from the Substitutes
The global hydraulic fluids market is segmented and analyzed for demand and supply by end-user into construction, oil & gas, agriculture, and metal & mining. Out of these, the construction segment is anticipated to hold the largest market share by the end of 2035. Common hydraulic construction equipment that utilizes hydraulic fluids are excavators, backhoes, bulldozers, trenchers, loaders, dump trucks, and graders. In an often out-of-control construction situation, it can be difficult to keep operations flowing and things under control. To meet tight deadlines without compromising revenue and profitability, one needs to maintain the reliability and availability of your construction equipment. Lubrication is an important part of the maintenance process. Lubricants account for 1% to 3% of construction equipment maintenance budgets, according to Valvoline. Although a small fraction of the budget, lubrication can have a big impact on your performance goals and project success, and it increases the demand for the hydraulic fluids in the construction sector. Therefore, it is predicted to boost the growth of the segment in the hydraulic fluids market.
The global hydraulic fluid market is segmented and analyzed for demand and supply by base oil into mineral oil, synthetic oil, and bio-based oil. Out of these, the bio-based oil segment is anticipated to hold the largest market share by the end of 2035. The growth of this segment can be attributed owing to the growing demand for this segment from the marine industry. Moreover, growing consumer awareness about the harmful impacts of industrial harmful lubricants as well as strict regulation by the government is raising the demand for environmentally friendly products this in turn is expected to drive the growth of the market in the forecast period.
Our in-depth analysis of the global hydraulic fluids market includes the following segments:
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By Base Oil |
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By End User |
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The market in the Asia Pacific region is anticipated to hold the largest market share in the forecast period. The growth of this market can be attributed owing to the growing industrial sector in the region. The increasing industrial sector in the Asia Pacific region is anticipated to offer lucrative growth opportunities for the hydraulic fluids market in the forecast period. Especially in developing countries such as Japan, India, and China, the industrial sector is growing with rapid industrialization and urbanization which further is expected to drive the market in the region. Residential and commercial construction in India is increasing owing to the development of the domestic service sector. According to the Ministry of Housing and Urban Development, the Indian government has announced an investment of around US$27.54 billion to build 100 cities under its smart city plan. The plan includes 5,151 different smart city projects. As of April 2021, 1,638 of these projects have been completed.
The market in the North American region is anticipated to account for a significant market share by the end of 2035. The growth of the North American hydraulic fluid market is driven by several factors such as the presence of numerous manufacturing industries, increasing demand for heavy equipment, and increasing infrastructure projects. Major hydraulic fluid end-use industries in North America include construction, mining, agriculture, and transportation. The construction industry is the largest consumer of hydraulic fluids in North America owing to the widespread use of hydraulic systems in construction equipment. The North American hydraulic fluid market is subject to various regulations and standards, especially concerning environmental impact. The U.S. Environmental Protection Agency (EPA) has established regulations for the disposal of used hydraulic fluids, and manufacturers must ensure their products meet these standards.
The market in the Europe region is estimated to account for a noteworthy market share in the forecast period. This growth will be driven by increasing demand for hydraulic fluids in various end-use industries such as construction, agriculture, and mining. The government authorities in this region have posed various rules on use of hydraulic fluids as well. The European Union (EU) has issued various regulations to ensure the safe and sustainable use of hydraulic fluids in the region. For instance, the EU's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) regulation requires manufacturers to register their products and conduct a risk assessment before they are marketed locally. The EU RoHS (Restriction of Hazardous Substances) directive restricts the use of certain hazardous substances such as lead and mercury in hydraulic fluids.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The rising automobile industry and increasing generation of crude oil are some of the major factors anticipated to drive the growth of the global hydraulic fluids market.
Ans: The market is anticipated to attain a CAGR of ~ 6.10% over the forecast period, i.e., 2023 – 2035.
Ans: Environmental concerns related to hydraulic fluids is the factor estimated to hamper market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Chevron Corporation, BP p.l.c., TotalEnergies, PetroChina Company Limited, China Petrochemical Corporation (SINOPEC), and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by the end user, base oil, and by region.
Ans: The construction segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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