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

Global Hydraulic Fluids Market Size, Forecast, and Trend Highlights Over 2023 – 2035

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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Global Hydraulic Fluids Market: Key Insights


Base Year


Forecast Year

2023 - 2035


~ 6.10%

Base Year Market Size (2022)

~ USD 9.22 billion

Forecast Year Market Size (2035)

~ USD 18.76 billion








Regional Scope  

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)


Global Hydraulic Fluids Market: Growth Drivers and Challenges


Growth Drivers

  • Growing Automobile Manufacturing - The automotive industry is a key driver of the hydraulic fluid market. Hydraulic fluids are used in many different applications in the automotive industry, such as braking systems, power steering systems, and suspension systems. According to the International Automobile Manufacturers (OICA), global production of automobiles has increased steadily in recent years. In 2020, 74.7 million vehicles were produced worldwide, a year-on-year increase of 4.8%. As vehicle production continues to increase, demand for hydraulic fluids is expected to increase as well. 
  • Increasing Generation of Crude Oil - As hydraulic systems are widely used in oil and gas exploration and production, thus increasing crude oil production has increased the demand for hydraulic fluids. According per the reported data, the global oil production reached to the total to more than 93 million barrels per day in the year 2021. This increase in production will be driven by increased drilling activity and the use of advanced drilling technology that relies heavily on hydraulic systems and hydraulic fluids.  Therefore, it is expected to boost the growth of the hydraulic fluids market in the upcoming years.
  • Growing Demand for Renewable Sources – Rising demand for renewable energy sources such as wind and solar power is driving the hydraulic oil market. Hydraulic systems are also used to generate solar energy. They are used in the installation of solar panels and to control the movement of mirrors in concentrator photovoltaic plants. Growth in the solar energy sector is expected to boost the demand for hydraulic fluids. Hence, these factors are anticipated to expand the growth of the globe hydraulic fluids market over the forecast period. According to a report from the International Energy Agency, solar power is expected to be the largest source of electricity by 2035, with solar power capacity increasing by 7% annually.  
  • Rising Demand for Heavy Equipment - Heavy equipment demand is one of the main drivers of the hydraulic fluid market. Hydraulic fluid is used as a power transmission medium in hydraulic systems commonly used in heavy machinery such as construction machinery, mining machinery, agricultural machinery, and ships. According to the report, North American construction equipment sales grew by 25% year-over-year in 2021, with total sales reaching USD 41.7 billion. 


  • Environmental Concerns - Hydraulic fluids, especially those based on mineral oils, are known to harm the environment. Hydraulic oil leaks and spills can cause soil and water contamination and have serious impacts on ecosystems. Governments and regulators are increasingly focused on environmental issues, increasing pressure on manufacturers to develop more sustainable hydraulic fluids with minimal environmental impact.  
  • Volatility in Raw Material Prices

Competition from the Substitutes

Global Hydraulic Fluids Market Segmentation

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:


     By Base Oil

  • Mineral Oil
  • Synthetic Oil
  • Bio-based Oil



     By End User

  • Construction
  • Oil & Gas
  • Agriculture
  • Metal & Mining

Global Hydraulic Fluids Market Regional Synopsis


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. 

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Top Featuring Companies Dominating the Global Hydraulic Fluids Market

    • Shell plc 
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Exxon Mobil Corporation 
    • Chevron Corporation 
    • BP p.l.c. 
    • TotalEnergies 
    • PetroChina Company Limited 
    • China Petrochemical Corporation (SINOPEC) 
    • BASF SE   
    • Valvoline 
    • NYCO


In The News

  • BASF SE announced the opening of new production plant for fuel performance additives in Shanghai, China. The aim of the pant is to address the surging demand for fuel performance additives of the customers in Asia.
  • TotalEnergies launched a range of recycled hydraulic fluids for industrial use. They are suitable for all types of industrial hydraulic systems.  


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

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

Key Questions Answered in the Report

1) What are the major factors driving the growth of the hydraulic fluids market?

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.

2) What would be the CAGR of hydraulic fluids market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~ 6.10% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the hydraulic fluids market growth?

Ans: Environmental concerns related to hydraulic fluids is the factor estimated to hamper market growth.

4) Which region will provide more business opportunities for growth of hydraulic fluids market in future?

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.

5) Who are the major players dominating the hydraulic fluids market?

Ans: The major players in the market are Chevron Corporation, BP p.l.c., TotalEnergies, PetroChina Company Limited, China Petrochemical Corporation (SINOPEC), and others.

6) How are the company profiles selected?

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.

7) What are the segments in the hydraulic fluids market?

Ans: The market is segmented by the end user, base oil, and by region.

8) Which segment captures the largest market size in end user in the hydraulic fluids market?

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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