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Transmission & Hydraulic Fluids Market - Forecast(2023 - 2028)
Transmission & Hydraulic Fluids Market Overview
Transmission & Hydraulic
Fluids Market size is expected to be valued at US$10.6 billion by the end of
the year 2026 and the transmission & hydraulic fluids industry is set to
grow at a CAGR of 4.7% during the forecast period from 2021-2026. Transmission
& hydraulic fluids are used for transmitting power in hydraulic equipment
and in other power transmission applications.
Various types of transmission fluids such as polyalkylene glycols
and glycol ether is used in many applications such as brake fluids, metal-on metal
applications for thermal stability and power transmission. Automatic transmission fluid and manual transmission fluid are the main categories of
transmission fluid which is used in automotive engines and machineries used in
construction sector. Other chemical substance such as organophosphate, isoflurophate and others are used as performance additives to
engine oils. This is hugely driving the transmission & hydraulic fluids
market.
COVID-19 impact
During the Covid-19 pandemic, the
transmission & hydraulic fluids market was heavily affected in terms of
production, supply and distribution. The economic shutdown and the various
legal restrictions following the global pandemic led to an abrupt halt of the
functioning of the transmission & hydraulic fluids market. The restrictions
imposed on the export and import of goods across the world affected the
transmission & hydraulic market, since inter-state and inter-country
travels and trades was banned during the pandemic. The transmission &
hydraulic market however started to improve by the year end of 2020 and is
estimated to improve in the coming months of the year 2021.
Report Coverage
Key Takeaways
- Asia-Pacific market held the largest share in the transmission & hydraulic fluids market owing to the increase in demand for heavy machinery and equipment in the construction sector.
- The increase in demand for heavy weight construction machinery and hydraulic equipment in the construction sector is driving the transmission & hydraulic fluids market.
- Rising demand for technologically advanced vehicles with improved drive-trains that can deliver ease of driving and better fuel efficiency is contributing to the growth of transmission & hydraulic fluids market.
- During the Covid-19 pandemic, the transmission & hydraulic fluids market witnessed a downfall owing to the economic restrictions.
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Transmission & Hydraulic Fluids Market Segment Analysis – By Type
Automatic transmission fluids segment held
the largest share of 36% in the transmission & hydraulic fluids market in
the year 2020. Automatic
transmission fluids has a various combination of anti-wear additives, viscosity
index improvers, petroleum dye, corrosion inhibitors, anti-foam additives and
more. Automatic
transmission fluids provide better performance and longer life cycle of
the vehicle and machineries. Automatic
transmission fluids acts as a lubricant in the transmission of vehicles
from overheating and helps in powering the transmission. It improves the fuel
economy of vehicles and helps from engine lock-ups. This is highly driving the automatic transmission fluids segment
in the transmission & hydraulic fluids market.
Transmission & Hydraulic Fluids Market Segment Analysis – By Application
Automotive segment held the largest share of 38% in the transmission
& hydraulic fluids market in the year 2020. According to International
Organization of Motor Vehicle Manufacturers, the global sales of all vehicles stood at 77.97 million
units (passenger cars of 53.59 million units and commercial vehicles of 24.37
million units in the year 2020. Transmission &
hydraulic fluids such as polyalkylene
glycols and glycol ether are
used in various parts of the automotive and applications
such as brake fluids, metal-on metal applications for thermal stability and
power transmission. The increase in the production of vehicles and the
expansion of the automobile industry is driving the transmission & hydraulic
fluids market.
Transmission & Hydraulic Fluids Market Segment Analysis – By Geography
Asia-Pacific region held the
largest share of 43% in the transmission & hydraulic fluids market in the
year 2020. The rapid growth in the population in countries like India and China
coupled with the increase in the demand for heavy machinery in the construction
industry and the increase in production of automobiles in the region is driving
the transmission & hydraulic fluids market in Asia-Pacific region. The
increase in demand from the wind energy sector in countries like India, China
and Japan is also contributing to the demand for transmission & hydraulic
fluids in the Asia-Pacific region. According to World Wind Energy Association
China built around 52 gigawatts within one year in the year 2020 which
corresponds to a market share of 56% and the total capacity of wind in India
amounted to 38.625 gigawatts in the year 2020. This is driving the transmission
& hydraulic fluids market in Asia-Pacific region.
Transmission & Hydraulic Fluids Market Drivers
Increasing demand from heavy machinery and equipment in the construction industry
The increase in the demand for modern
and high-end infrastructure has led to the demand for heavy machinery and
equipment in the construction industry. This is highly driving the demand for
transmission & hydraulic fluids market. Conveyor Equipment Manufacturers
Association (CEMA) reported that the orders for heavy machinery and equipment
increased in February 2021 by 35.21% as compared to February 2020 and increased
by 18.07% as compared to January 2021. The sales for the month February 2021
increased by 22.78% as compared to the last month. This is leading to the
growth of heavy machinery industry which in turn is driving the need and demand
for transmission & hydraulic fluids market.
High demand from the wind energy sector
Transmission & hydraulic fluids are
extensively used in the wind turbines and blades of the wind mill. According to
World Wind Energy Association, the worldwide wind capacity reached 744
giga-watts, an unprecedented installation of 93 giga-watts of new wind turbines
in the year 2020. According to World
Wind Energy Association, the global market for new turbines increased
around 50% more than the previous year 2019. The increase in the number of wind
turbines produced and the expansion of the wind energy sector is highly driving
the transmission & hydraulic fluids as it is highly used for lubrication
and greasing purposes in the wind turbines and for other mechanisms in the wind
mill.
Transmission & Hydraulic Fluids Market Challenges
Impact of Electrical Vehicles
The growing trend of adapting electrical
vehicles owing to the many advantages associated with electrical vehicles over
conventional vehicles is majorly driving the electrical vehicles industry. This
is one of the biggest challenge to the transmission & hydraulic fluids
market as transmission fluids and hydraulic fluids is not used in electrical
vehicles. According to International Energy Agency, the global electric car
stock stood at 7.17 million units in the year 2019, which is an increase of 40.31%
as compared to the 5.11 million units of stock in the year 2018. This is acting
as one of the major challenge to the transmission & hydraulic fluids
market.
Transmission & Hydraulic Fluids Market Industry Outlook
Collaborations, partnerships, investments, facility expansion, production expansion, acquisitions and mergers are some of the key strategies adopted by players in the Transmission & Hydraulic Fluids Market. Major players in the Transmission & Hydraulic Fluids Market are:
- BASF SE
- Gulf Oil
- AMSOIL Inc.
- Royal Dutch Shell
- PJSC Lukoil
- China Petroleum & Chemical Corporation (SINOPEC)
- Afton Chemical Corporation
- Valvoline Inc.
- Millers Oil Ltd.
- Bel-Ray Company Inc. among others.
Acquisitions/Technology Launches
On 21 October 2020, Royal Dutch Shell introduced new e-fluids for
light-, medium- and heavy-duty electrified commercial vehicles to its existing
range of passenger car e-fluids. The new fluids are for battery and fuel-cell
EVs and include transmission fluids, greases and battery coolants.
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