Hydraulic Fluids Market Trends

Growth Drivers

• Growing Demand for Renewable Sources – Rising demand for renewable energy sources such as wind and solar power is driving the hydraulic oil market. Hydraulic systems are also used to generate solar energy. They are used in the installation of solar panels and to control the movement of mirrors in concentrator photovoltaic plants.
  According to a report from the International Energy Agency, solar power is expected to be the largest source of electricity by 2035, with solar power capacity increasing by 7% annually.
• Increasing Generation of Crude Oil - As hydraulic systems are widely used in oil and gas exploration and production, thus increasing crude oil production has increased the demand for hydraulic fluids. This increase in production will be driven by increased drilling activity and the use of advanced drilling technology that relies heavily on hydraulic systems and hydraulic fluids. 
  According to the reported data, global oil production reached a total of more than 93 million barrels per day in the year 2021.

Challenges

• Environmental Concerns - Hydraulic fluids, especially those based on mineral oils, are known to harm the environment. Hydraulic oil leaks and spills can cause soil and water contamination and have serious impacts on ecosystems. Governments and regulators are increasingly focused on environmental issues, increasing pressure on manufacturers to develop more sustainable hydraulic fluids with minimal environmental impact.
• Volatility in Raw Material Prices
• Competition from Substitutes