Hydraulic Fluids Market Size, Share, Growth Analysis, By Base oil Type(Mineral Oil, Synthetic Oil, and Bio-based Oil), By End-use(Construction, Metal & Mining, Oil & Gas, Agriculture), By Region - Industry Forecast 2024-2031

Hydraulic Fluids Market size was valued at USD 8.69 Billion in 2022 and is poised to grow from USD 9.21 Billion in 2023 to USD 14.68 Billion by 2031, at a CAGR of 6.0% during the forecast period (2024-2031).

The hydraulic fluids market 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. The fluid improves machine reliability while simultaneously reducing fire threats in subterranean mines. 'ExxonMobil (US)', 'BP (UK)', 'Chevron (US)', 'Shell (Netherlands)', 'Total (France)', 'Fuchs Petrolub SE (Germany)', 'BASF SE (Germany)', 'Petroliam Nasional Berhad (Petronas) (Malaysia)', 'Eastman Chemical Company (US)', 'Lukoil (Russia)', 'Idemitsu Kosan Co. Ltd. (Japan)', 'Indian Oil Corporation Limited (India)', 'Neste Oyj (Finland)', 'Valvoline Inc. (US)', 'Quaker Chemical Corporation (US)', 'PetroChina Company Limited (China)', 'Houghton International Inc. (US)', 'Schaeffer Manufacturing Co. (US)', 'Royal Dutch Shell plc (Netherlands)', 'Sinopec Lubricant Company Limited (China)'

As modern industry demands better speeds and efficiency at higher working pressures and temperatures, demand for various types of hydraulic systems is steadily increasing. Hydraulic oils fulfill activities including lubrication, energy transmission, and heat removal from machinery components. The rise in industrial growth will further propel the growth rate of the hydraulic oil market. The enhanced quality of the hydraulic fluids will also drive market value growth. Moreover, the base oils in Groups II and III are suitable for use in lubricant formulations for automatic transmission engines, heavy-duty trucks, and passenger automobiles, and various properties of Group II and III base oils are projected to bolster the growth of the market.

Advancements in hydraulic system technology: There is a growing demand for hydraulic fluids that are derived from renewable sources such as vegetable oils and animal fats. Bio-based hydraulic fluids are gaining popularity due to their low environmental impact and biodegradability. The development of intelligent hydraulic systems that use sensors and control systems to optimize the performance of hydraulic systems is a major advancement in hydraulic system technology. These systems can help reduce energy consumption, improve efficiency, and extend the life of hydraulic components. The demand for high-pressure hydraulic systems is increasing in various industries, including construction, mining, and oil and gas.

In 2022, Asia Pacific dominated the market for hydraulic fluids and accounted for a revenue share of 36.3%. 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. rising sales of passengers and commercial vehicles in the region and increased demand for synthetic lubricants are also supporting the growth of the market.