The global hydraulic fluids market size was estimated at USD 7.6 billion in 2021 and is anticipated to reach USD 12.0 billion by 2030, expanding at a CAGR of 5.2% from 2022 to 2030. The steady growth of this market is largely driven by the rise in infrastructure development and construction activities worldwide, which continue to generate significant demand for hydraulic fluids across multiple end-use industries.

Governments in many developing economies are prioritizing infrastructure expansion as a means to stimulate economic growth and improve connectivity. Key factors such as access to finance, a stronger focus on operational resilience, adoption of modern technologies, and the growing affordability of infrastructure projects are collectively supporting this trend. However, the market faced major setbacks in 2020 due to the global spread of COVID-19, which significantly affected production, distribution, and overall supply dynamics.

During the pandemic, base oil prices fell sharply due to a collapse in supply and demand across industries including automotive, construction, oil and gas, manufacturing, aerospace and defense, power generation, and marine. Furthermore, strict restrictions on the movement of materials and workforce led to a sudden halt in industrial activities, disrupting the hydraulic fluids market on a global scale.

In addition, the Russia-Ukraine war in 2022 created further challenges by severely disrupting the global supply chain. Russia, being a major producer of base oils, faced sanctions and import restrictions from multiple countries, which directly affected the availability and pricing of raw materials for hydraulic fluids. As a result, the market witnessed a sharp increase in base oil prices—by approximately 15% compared to previous years—as companies struggled to manage supply shortages and escalating input costs.

Key Market Trends & Insights:

• In 2021, the Asia Pacific region emerged as the largest market for hydraulic fluids, holding the dominant share of global revenue. This strong regional presence can be attributed to rapid industrialization, large-scale infrastructure projects, and expanding construction activities, particularly in countries such as China, India, and Southeast Asian nations. The growing manufacturing base and increased investments in the automotive and industrial sectors further supported the region’s leadership in the global market.

• By base oil, the mineral oil segment led the hydraulic fluids market in 2021, accounting for 48.9% of global revenue. Mineral oils continue to be widely adopted due to their cost-effectiveness, easy availability, and compatibility with a broad range of hydraulic systems. Although synthetic and bio-based oils are gaining traction, mineral oils remain the most commonly used option across construction, automotive, and industrial machinery applications.

• From an end-use perspective, the construction segment dominated the market in 2021 with a revenue share of 25.3%. The surge in residential, commercial, and infrastructure projects worldwide has significantly contributed to the rising demand for hydraulic fluids in heavy equipment such as excavators, loaders, cranes, and bulldozers. The reliance of the construction industry on hydraulic machinery makes it one of the most influential contributors to market growth.

• Looking ahead, the automotive segment is expected to register a CAGR of 6.0% over the forecast period in terms of revenue. Increasing automobile production, rising demand for passenger and commercial vehicles, and advancements in vehicle design are driving hydraulic fluid usage in braking, steering, and transmission systems. This growth is particularly pronounced in emerging economies, where rising disposable incomes and urbanization continue to boost automotive sales.

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Market Size & Forecast:

• 2021 Market Size: USD 7.6 Billion

• 2030 Projected Market Size: USD 12.0 Billion

• CAGR (2022-2030): 5.2%

• Largest Market: Asia Pacific in 2021

Key Companies & Market Share Insights:

The hydraulic fluids market is highly competitive, characterized by the presence of numerous multinational corporations as well as strong regional players. This diverse mix of participants intensifies competition, as companies continuously strive to differentiate themselves and expand their market presence. Manufacturers offer an extensive portfolio of products, including mineral oils, synthetic oils, and bio-based oils, each catering to different industrial requirements and customer preferences.

The basis of competition among these players extends across several parameters, such as product quality, breadth of offerings, sustainability initiatives, eco-friendly product development, corporate reputation, and pricing strategies. With increasing environmental concerns, the shift toward sustainable and bio-based hydraulic fluids has become a key focus, compelling manufacturers to invest in greener alternatives without compromising on performance.

To enhance their competitive position and capture a larger market share, companies are actively pursuing strategies such as new product launches, innovation in formulations, expansion of distribution networks, mergers and acquisitions, joint ventures, and geographical expansion. These initiatives not only help in strengthening brand presence but also allow players to address evolving customer demands across various industries, including construction, automotive, aerospace, marine, and manufacturing.

A notable example of such innovation occurred in March 2021, when TotalEnergies introduced its fire-resistant HYDRANSAFE HFC_E hydraulic fluid in Australia. This advanced product was designed to improve machine reliability while reducing fire hazards in subterranean mining operations, reflecting how companies are combining innovation and safety to meet industry-specific challenges.

Key Players

• 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

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Conclusion:

The hydraulic fluids market is poised for steady expansion, driven primarily by surging infrastructure development and industrial growth, especially in emerging economies. While supply chains faced challenges during the global pandemic and geopolitical tensions, the sector is now adapting to evolving market dynamics. Technological progression is accelerating too—makers are focusing on ultra-clean filtration standards and energy-efficient fluid formulations to meet the demands of modern hydraulic equipment. As industries push for higher performance, safety, and sustainability, hydraulic fluids will continue to evolve, reinforcing their integral role across multiple industrial applications.