Hydraulic Fluids Market size is poised to reach USD 18.76 Billion by the end of 2035, growing at a CAGR of 6.10% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of hydraulic fluids was USD 9.22 Billion. The reason behind the growth is impelled by 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%.
The rising demand for heavy equipment is believed to fuel the market growth. 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.
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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
End-User (Agriculture, Metal/Mining, Construction, Oil, Gas)
The construction segment in the hydraulic fluids market is estimated to gain a robust market share of 60% in the coming years. 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 hydraulic fluids in the construction sector. Therefore, it is predicted to boost the growth of the segment in the hydraulic fluids market.
Base Oil (Bio-based Oil, Synthetic Oil, Mineral Oil)
The bio-based oil segment is set to garner a notable share of 40% shortly on the account of growing marine sector. As compared to conventional petroleum-based hydraulic fluids bio-based oils are biodegradable and less toxic, and help in reducing the danger of environmental harm to marine life and protect the overall marine ecosystem.
According to recent data, the marine sector in the US contributed over USD 430 billion, to the country's GDP in 2021.
Our in-depth analysis of the global market includes the following segments:
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Base Oil |
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End User |
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APAC Market Forecast
Hydraulic Fluids market in Asia Pacific is predicted to account for the largest share of 59% by 2035 impelled by the growing industrial sector. In developing countries such as Japan, India, and China, the industrial sector is growing owing to rapid urbanization. The need for hydraulic fluid is expected to rise in the region as the industrial sector depends on a variety of machinery that uses hydraulic systems. The hydraulic system's many components receive power from the pump through the hydraulic fluid for the system's performance, and to provide many other functions.
In May 2023, India's industrial production increased by over 5% annually.
North American Market Statistics
The North America hydraulic fluids market is estimated to be the second largest, during the forecast timeframe led by increasing agricultural sector. In the US, agriculture is a significant industry and a key part of the American economy. This has led to an increase in demand for hydraulic fluids in the region as the agriculture industry uses a wide range of sophisticated machinery that utilizes hydraulic systems.
In 2021, the U.S. gross domestic product (GDP) was over USD 1.260 trillion, with contributions from agriculture, food, and associated industries.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Growing automobile manufacturing and the rising demand for heavy equipment are the major factors driving the growth of the market.
Ans: The market size of Hydraulic Fluids is anticipated to attain a CAGR of 6.10% over the forecast period, i.e., 2023 – 2035.
Ans: The major players in the market are Exxon Mobil Corporation, Chevron Corporation, BP plc., TotalEnergies, PetroChina Company Limited, China Petrochemical Corporation (SINOPEC), BASF SE, Valvoline.
Ans: The construction segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
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