Product Code: 71979
The Global Hydraulic Fluid Market is projected to register a CAGR of more than 2% during the forecast period (2021-2026).
COVID-19 pandemic has negatively affected the market for hydraulic fluids in 2020. During the pandemic, various manufacturing activities in the industries such as automotive, aerospace, construction, oil and gas, mining, etc. have been halted for quite a long period. This in turn has decreased the demand for hydraulic fluids in these industries. For instance, automobile production in 2020 has witnessed a decline of 15.8% compared to 2019. However, the production in these sectors has been resumed in the second half of 2020, owing to the ease of regulations. This is an encouraging sign for the market in the coming years.
- Over the medium term, industrial sector growth in Asia-Pacific and Middle-East and Africa regions is projected to drive the market during the forecast period.
- On the flipside, the declining automotive industry and COVID-19 impact are likely to hinder hte market growth in the coming years.
- Asia-Pacific region is expected to dominate the market with the largest consumption from countries, such as India and China.
Key Market Trends
Automotive Industry to Dominate the Market
- In the automobile industry, hydraulic fluids are used in the applications such as brakes, clutch, and power-steering systems. Brake fluid, clutch fluid, and power steering fluid are the forms of hydraulic fluid used in the automobile sector. It helps in creating force (transfer of kinetic or potential energy) as well as protection against wear on surfaces in contact.
- These fluids need regular attention and necessary to change the hydraulic oil at regular intervals. This drives the demand for hydraulic oil from the aftermarket. For instance, if the brake oil is lower than the required limit, the flow is disturbed and the braking power is thwarted.
- The global automotive industry has witnessed a downfall in recent times. According to the OICA, around 77.62 million vehicles were produced globally in 2020 compared to 92.18 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 15.8%.
- The decline is majorly attributed to the reduced production in the major automotive hubs such as United States, China, Japan, and Germany. In 2020, these countries witnessed a decline of 19%, 2%, 17%, and 24% respectively compared to 2019.
- Additionally, automobile sales have been witnessing a similar trend of production in the past few years. According to OICA, sales have fallen from 90.42 million units in 2019 to 77.97 million units in 2020, registering a decline of around 13.8%.
- Hence, owing to the above-mentioned factors, the market is expected to witness a decline in growth during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for hydraulic fluids during the forecast period. The rising trend is attributed to the growth in the industrial sector in the region which are creating opportunities and investments.
- In 2020, the Chinese construction industry was valued at about USD 1,049.2 billion and is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%.
- Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%.
- Residential and commercial construction in India has been increasing owing to the developing service sector in the country. According to the Ministry of Housing and Urban Affairs of India, the Indian government announced an investment of about USD 27.54 billion construction of 100 cities, under the smart cities plan. This plan includes 5,151 different smart city projects, out of which 1,638 projects have been completed as of April 2021.
- The Chinese aerospace industry is one of the leading industries in the country, and the government is heavily investing to increase its domestic manufacturing capabilities. Moreover, in the next 20 years, the Chinese airline companies are planning to purchase about 7,690 new aircraft, which are valued at about USD 1.2 trillion.
- According to the OICA, Asia-Pacific dominated global automobile production in recent years. However, the decline in automobile industry in the region has negatively affected the market in the part few years. China is the largest producer of automobiles globally, with a production volume of 25.75 million vehicles in 2019 and reached 25.23 million vehicles in 2020, registering a decline rate of about 2%.
- Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
The hydraulic fluid market is consolidated among the top few players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. The top five players in the market are Royal Dutch Shell PLC, Exxon Mobil Corporation, BP PLC, Chevron Corporation, and Total, among others.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Industrial Sector Growth in Asia-Pacific and Middle-East and Africa Regions
- 4.1.2 Other Drivers
- 4.2 Restraints
- 4.2.1 Declining Automotive Industry
- 4.2.2 Unfavourable Conditions Arising due to COVID-19 Outbreak
- 4.3 Industry Value-Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 End-user Industry
- 5.1.1 Automotive
- 5.1.2 Other Transportation
- 5.1.3 Heavy Equipment
- 5.1.4 Food and Beverage
- 5.1.5 Other End-user Industries
- 5.2 Geography
- 5.2.1 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 India
- 22.214.171.124 Japan
- 126.96.36.199 South Korea
- 188.8.131.52 Rest of Asia-Pacific
- 5.2.2 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 18.104.22.168 Mexico
- 5.2.3 Europe
- 22.214.171.124 Germany
- 126.96.36.199 United Kingdom
- 188.8.131.52 Italy
- 184.108.40.206 France
- 220.127.116.11 Rest of Europe
- 5.2.4 South America
- 18.104.22.168 Brazil
- 22.214.171.124 Argentina
- 126.96.36.199 Rest of South America
- 5.2.5 Middle-East and Africa
- 188.8.131.52 Saudi Arabia
- 184.108.40.206 South Africa
- 220.127.116.11 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 BP PLC
- 6.4.2 Chevron Corporation
- 6.4.3 China National Petroleum Corporation
- 6.4.4 China Petroleum & Chemical Corporation
- 6.4.5 Croda International Plc
- 6.4.6 Eni SpA
- 6.4.7 Exxon Mobil Corporation
- 6.4.8 FUCHS
- 6.4.9 Gazprom Neft PJSC
- 6.4.10 LUKOIL
- 6.4.11 Petromin
- 6.4.12 PETRONAS Lubricants International
- 6.4.13 Phillips 66 Company
- 6.4.14 Repsol
- 6.4.15 Royal Dutch Shell PLC
- 6.4.16 Total
- 6.4.17 Valvoline LLC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS