Hydraulic Fluids Market Size, Share & Trends Analysis Report By Base Oil (Mineral Oil, Synthetic Oil, Bio-based Oil), By End-use (Construction, Oil & Gas, Agriculture, Metal & Mining), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global hydraulic fluids market size was estimated at USD 7.6 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. The growth of the market can be attributed to the increasing infrastructure and construction activities across the globe. Governments across developing nations are focusing on infrastructure development. Factors such as availability of finance, focus on operational resilience, deployment of new technologies, and the affordability of infrastructure are helping the rise in infrastructure activities. In 2020, due to the spread of Coronavirus, the market was affected in terms of production, distribution, and supply.

The prices of the base oils dropped severely due to the lack of supply and demand from the end-use industries such as automotive, construction, oil and gas, manufacturing, aerospace and defense, power, marine, etc. Restriction on material and people movement during the pandemic led to an abrupt halt in the functioning of the above industries. In 2022, the Russia-Ukraine war has further disrupted the supply chain of the hydraulic fluids market. Russia is one of the significant producers of base oil in the world. The cut down of base oil import from Russia by various countries has impacted the prices of hydraulic fluid drastically. Numerous companies have increased the prices of base oils by 15% compared to the previous years.

The hydraulic equipment market is changing at a rapid pace. In line with this, the lubricant industry has been changing to satisfy the reliability needs of hydraulic equipment as new technologies enable more efficient operation. The following are the important trends: Finer Filtration: Hydraulic pumps are susceptible to contamination because of the surroundings they work in. Thus, the fluids applied to lubricate them should be ultraclean. Original equipment manufacturers (OEMs) are responding by selecting improved filters that comply with ISO 4406 specifications. Minimizing Power Loss: today Hydraulic equipment places greater importance on reducing power losses and improving overall machine efficiency by lowering the number of joints, bends, and filter pressure differentials. Furthermore, OEMs are focusing on conserving as much energy as possible, and they are turning to energy-efficient hydraulic fluids to do so.

Base Oil Insights

The mineral oil segment led the market for hydraulic fluids and accounted for 48.9% of the global revenue in 2021. Mineral oil is the most common base oil used for hydraulic fluid production and is categorized into three groups: Group I, Group II, and Group III. The mineral oil which is solvent-refined classifies within Group I. Group I base mineral oil is the most common base stock for modern hydraulic fluids. Other base stocks such as silicone oils or propylene glycol, can be required for certain purposes. Hydraulic fluids are given special qualities by adding additives. Anti-erosion additives, corrosion inhibitors, anti-foaming agents, and friction reducers are some common additives. Oils in Group II and Group III are hydrocracked type mineral oils, they have a higher viscosity than Group I. The industry would see a shift from Group I to II over the next few years as more factories that produce Group I oil convert to Group II or shut down.

The synthetic oil segment is expected to witness a CAGR of 5.9% over the forecast period in terms of revenue. Synthetic hydraulic oil was created to compensate for the drawbacks of mineral hydraulic oil. They have better performance than mineral hydraulic fluids because they are formed of chemically manufactured base oils. This type of oil is fire-resistant and therefore appropriate for high-temperature uses as it has outstanding lubrication properties and high viscosity index. The most common benefit of synthetic fluids is that they remain longer in service. In March 2022, BASF SE, a globally renowned company announced to increase its synthetic ester base stock’s production capacity at its Jinshan, China, facility. The investment is in response to the growing demand for high-performance lubricants in the Asia Pacific.

End-use Insights

The construction segment dominated the market for hydraulic fluids and accounted for 25.3% of the global revenue in 2021. According to the Society of Tribologists and Lubrication Engineers (STLE), Hydraulic construction equipment makes up 76% of the hydraulic equipment market. Some of the popular construction hydraulic equipment that uses hydraulic fluids are excavators, backhoes, bulldozers, trenchers, loaders, dump trucks, graders, etc. Maintaining operational flow and end-activity amid often uncontrollable construction situations can be difficult. According to Valvoline, lubricants represent between 1 and 3% of the construction equipment’s maintenance budget. To achieve rigorous deadlines without jeopardizing the bottom line and profitability, construction machinery must stay reliable and available.

Lubrication is an important part of the maintenance process. Although it may only account for a tiny fraction of the budget, lubrication can have a significant impact on performance goals and project success. According to Oxford Economics, the global construction market would rise by USD 4.5 trillion between 2020 and 2030, reaching USD 15.2 trillion in 2030, with USD 8.9 trillion in emerging nations. Sub-Saharan Africa is predicted to have the fastest construction increase, followed by rising Asia. The U.S., India, China, and Indonesia account for 58.3 percent of worldwide construction growth. Short-term recovery is expected to be driven by residential development, whereas medium-term recovery will be driven by infrastructure spending.

The automotive segment is expected to witness a CAGR of 6.0% over the forecast period in terms of revenue. The demand for hydraulic fluids in the automotive industry is expected to rise over the forecast period owing to the increasing off-highway vehicle production and sales. Moreover, technological advancement in vehicle braking and suspension systems and the increasing adoption of electronics in automobiles is further expected to increase the growth of the market.

Regional Insights

Asia Pacific dominated the market for hydraulic fluids and accounted for a revenue share of 36.3% in 2021. Major markets in the Asia Pacific are China, Japan, India, and Australia. Rising investments in manufacturing and construction, growth in the SME sector, and the emergence of new domestic and international players are some of the factors driving the demand for industrial lubricants in the region. Moreover, rising sales of passengers and commercial vehicles in the region and increased demand for synthetic lubricants are also supporting the growth of the market.

In Europe, the market for hydraulic fluids accounted for a revenue share of 24.2% in 2021. The major hydraulic fluid companies present in the region are Shell plc, BP p.l.c., TotalEnergies, and LUKOIL. Europe is one of the key regions for the construction and automotive industry. Demand for hydraulic fluids is expected high in the region over the forecast period. In 2020, the European Union imported prepared liquids for hydraulic transmission and hydraulic fluids for brakes that did not contain or contained less than 70% by weight of petroleum oils or bituminous mineral oils. The transaction was valued at USD 88,641.30 thousand.

In Canada, the market for hydraulic fluids is expected to witness a CAGR of 5.1% over the forecast period. As per the COMTRADE database (by the United Nations) on international trade, the exports of prepared liquids for hydraulic transmission and hydraulic brake fluids in Canada were reported at USD 32.33 Million in 2021. Canada is one of the largest importers of commodities in the world, with most of the imports coming from the U.S.

Key Companies & Market Share Insights

The market for hydraulic fluids is highly competitive due to the presence of a large number of multinational and regional players. Manufacturers in the market offer a wide range of base oils and hydraulic fluids including mineral oils, synthetic oils, and bio-based oils. The competition among players is based on numerous parameters including quality, product offerings, sustainability, eco-friendly products offerings, corporate reputation, and price. New product launches, distribution network expansion, innovation, mergers and acquisitions, geographical expansion, and joint ventures are some of the key strategies adopted by the players to strengthen their position in the market and gain a higher market share. In March 2021, TotalEnergies launched fire-resistant HYDRANSAFE HFC_E hydraulic fluid in Australia. The fluid improves machine reliability while simultaneously reducing fire threats in subterranean mines. Some of the prominent players in the hydraulic fluids market include:

• Shell plc

• Exxon Mobil Corporation

• Chevron Corporation

• BP p.l.c.

• TotalEnergies

• PetroChina Company Limited

• China Petrochemical Corporation (SINOPEC)

• FUCHS

• Valvoline

• NYCO

• Idemitsu Kosan Co., Ltd.

• Dow

• Eastman Chemical Company

• LUKOIL

• Gazprommeft - Lubricants Ltd

Hydraulic Fluids Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global hydraulic fluids market report based on base oil, end-use, and region:

• Base Oil Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Mineral Oil

  • Synthetic Oil

  • Bio-based Oil

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Construction

  • Metal & Mining

  • Oil & Gas

  • Agriculture

  • Automotive

  • Aerospace & Defense

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico      

  • Europe

    • Germany

    • France

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa