Fire Resistant Hydraulic Fluid Market - Forecast(2023 - 2028)

Fire Resistant Hydraulic Fluid Market Overview 

Fire resistant hydraulic fluid market size is forecast to reach US$1.7 billion by 2027, after growing at a CAGR of 4.1% during 2022-2027. Fire-resistant hydraulic fluids are synthetic fluids that do not include any water or other volatile substance and can withstand higher temperatures than water-containing fluids. Fire-resistant hydraulic fluids such as phosphate esters, water-glycol, halogenated hydrocarbons, polyol esters, and more are suitable for cooling higher-pressure systems used for tunnel boring, forging, and more. As a result, fire-resistant hydraulic fluid is often employed in heavy metallurgy industries such as steel, iron, and more to prevent the chances of fire. The growing demand from the power generation industry for fire-resistant hydraulic fluid is expected to benefit the fire resistant hydraulic fluid industry growth during the forecast period.

COVID-19 Impact 

Covid-19 pandemic impacted the metallurgy industry’s new development works in 2020, as major economies across the world were under lockdown. This was due to the halt of construction activities, which also impacted the metallurgy industry. For instance, in February 2020, the Chinese government announced a halt in the industrial construction works, this also included a temporary cease in the metallurgy of new plants development in China. Moreover, industrial machinery production was ceased by various countries such as the U.S, U.K, India, and more, which resulted in decreased machinery production. This decline and halt in metallurgy new plants development resulted in revenue losses for the fire resistant hydraulic fluid market. However, in the year 2021, the ease of regulations on production activities resulted in improving the market condition, which lead to fire resistant hydraulic fluid market growth as it was during the pre-Covid time.

Report Coverage 

The report: "Fire Resistant Hydraulic Fluid Market Report –Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fire Resistant Hydraulic Fluid Industry. 

By Product Type: Water Based (Water-in-oil Emulsions (ISO HFB), Oil-in-water Emulsions (ISO HFA), and Water Glycol Fluids (ISO HFC)), Anhydrous-based (Phosphate Esters (ISO HFDR), PAG, and Polyol Esters), and Others 
By Application: Tunnel Boring, Forging, Foundry, Die-Casting, Lubricants, Glass, and Others 
By End-Use Industry: Metallurgy (Steel, Iron, Aluminium, and Others), Mining, Aerospace (Commercial, Military, and Others), Marine, Automotive (Passenger Cars, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)), Power Generation (Electrohydraulic Control systems (EHC), Diverter Systems, Steam/Gas Turbines, Boiler Area – dampers and Fans, and Furnaces – waste to Energy), and Others 
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa)) 

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Fire Resistant Hydraulic Fluid Market Segment Analysis – By Application 

The die casting held a significant share in the fire resistant hydraulic fluid market in 2021 and is growing at a CAGR of 3.8% during 2022-2027. Die casting is a process used for the melting of high-temperature molten iron, steel, and aluminum during manufacturing, during this process there are high chances of fire. As a result fire resistant hydraulic fluids are utilized as a cooling agent during the die-cast process to provide safeguard against the fire. Moreover, fire-resistant hydraulic fluid due to its high thermal properties ensures safe drying of metals during the die casting process. Thus, the increasing demand for fire-resistant hydraulic fluid for die casting applications is accelerating the growth of the fire resistant hydraulic fluid market. 

Fire Resistant Hydraulic Fluid Market Segment Analysis – By End-Use Industry 

The metallurgy industry held a significant share in the fire resistant hydraulic fluid market in 2021 and is growing at a CAGR of 4.9% during 2022-2027. The metallurgy industry employs fire-resistant hydraulic fluid as a coolant to ensure protection from fire hazards, drying of molten metals such as iron, steel, aluminum, and more. The increasing production of metallurgy products such as aluminum, steel, iron, and more is expected to boost the demand for new machinery. For instance, according to the United States Geological Survey (USGC), in 2019 the worldwide production of aluminum was 63,200 thousand metric tons and in 2020 it was 65,200 thousand metric tons, with an increase of 3.2% when compared with 2019. Since old machinery has a higher chance of causing hydraulic fire and with the surge in production increases the machinery load also increase, there is increasing usage of fire-resistant hydraulic fluid during the production process. Hence, the growing metallurgy industry is fueling the growth of the market.

Fire Resistant Hydraulic Fluid Market Segment Analysis – By Geography 

Asia-Pacific held the largest share in the fire resistant hydraulic fluid market in 2021 up to 42%. Asia-Pacific region's industrial growth is driven by the growth of major sectors such as power generation, metallurgy, and more. The surging new metallurgy development projects in these sectors of the Asia-Pacific region are expected to drive the demand for new machinery. Further, the surge in demand for new machinery will create an opportunity for fire resistant hydraulic fluids market. For instance, In March 2021, Saudi Arabia granted the first mega solar facility in Saudi Arabia, which will be built by Marubeni, a Japanese infrastructure construction corporation, and is expected to be completed by 2023. Also, there are multiple metal projects under approval stages in India such as “Barenda Village Steel Project” which is a US$4.57 billion project. Therefore, the rising power generation and metal projects in the Asia-Pacific region are expected to fuel the growth of the fire resistant hydraulic fluid market during the projected forecast period.