Functional Fluids Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[215+ Pages Report] According to Facts and Factors, The global functional fluids market size was worth USD 43.32 billion in 2021 and is estimated to grow to USD 58.15 billion by 2028, with a compound annual growth rate (CAGR) of approximately 4.30% over the forecast period. The report analyzes the functional fluids market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the functional fluids market.

Market Overview

Fluids utilized for insulation and lubrication in hydraulic and brake system, turbines, compressors, engines, refrigeration systems, gearboxes, and guides are referred to as functional fluids. Engine oils, transmission and hydraulic fluids, metalworking, and heat transfer fluids are a few of the most popular categories of functional fluids. They are generally utilized to reduce friction, heat generation, corrosion, wear, and tear on working components, seal components, and dissipate heat.

Additionally, they have a low compressibility ratio, protect the machine from oxidation, and work effectively at high pressures, mechanical stress, and temperatures. As a result, they have a wide range of uses in the aerospace, metals & mining, transportation, construction, and automotive sectors. The construction and automotive sectors' notable expansion is one of the main drivers of the market's growth. In keeping with this, the increased use of automotive functional fluids, such as antifreeze and engine internal cleaners that help preserve the components of a vehicle's best performance is also fostering market expansion.

Additionally, the industrial metal fabrication industry's growing need for high-performance process oils boosts the global functional fluids market's expansion. Functional fluids provide the processing unit with smooth surfaces and boost the efficiency of the machinery used to make polymers, fibers, and cables. An additional aspect promoting expansion is the development of bio-based oil.

Covid-19 Impact:

The market for functional fluids is rapidly regaining its pre-COVID levels. Throughout the projection period, a solid growth rate is anticipated, led by the economic recovery in most developing countries. Unusual circumstances brought on by the anticipated third and subsequent waves are causing a bleak prognosis.

Key Insights

• As per the analysis shared by our research analyst, the global functional fluids market value is expected to grow at a CAGR of 4.30% over the forecast period.
• In terms of revenue, the global functional fluids market was valued at around USD 43.32 billion in 2021 and is projected to reach USD 58.15 billion by 2028.
• Major drivers propelling the market's expansion include rising demand for high-performance goods in the manufacturing of industrial metal and considerable growth in the construction and automotive sectors.
• By type, the process oils category dominated the market in 2021.
• By application, the industrial category dominated the market in 2021.
• The Asia-Pacific dominated the global functional fluids market in 2021.

Growth Drivers

• The need for high-performance products drivers the market growth

The expanding availability of high-quality base stocks as a consequence of increasing investments in newer base stock capabilities worldwide will help boost the growth of the global functional fluids market. Original equipment manufacturers (OEMs), moving toward global requirements, are increasingly inclined to promote high-performance synthetic goods due to the growing availability of synthetic lubricants and functional fluids.

Restraints

• Higher fuel prices and low disposable incomes may hinder the market growth

Lower vehicle miles traveled due to rising fuel prices and lower discretionary incomes have kept customers off-road and their enthusiasm for SUVs diminishing. Lower new vehicle sales resulting from low employment rates and poor purchasing power is restraining the growth of the worldwide market for functional fluids. Additionally, the global market for synthetic lubricants and functional fluids has been adversely affected by the downturn in industrial output, automobile manufacturing, and mining & construction operations.

Segmentation Analysis

The global functional fluids market is segregated based on type, application, and region.

Based on type, the market is classified into brake fluid, power steering fluids, hydraulic fluid, fire-resistant fluids, metalworking fluids, heat transfer fluids, process oils, and other functional fluids. The largest share was held by the processed oil segment in 2021.

Due to its higher oxidative capabilities and thermal stability, processed oil dominates the market. Process oil keeps the processing unit working smoothly while finished goods are manufactured. It helps produce high-quality items and boosts machine efficiency. Processed oil helps the production process of final items run smoothly in the processing unit. It increases the effectiveness of machinery and aids in the production of high-quality goods. Processed oil is anticipated to expand rapidly throughout the forecasted timeframe.

Based on application, the market is segmented into automotive, paper & pulp, pharmaceutical, textile, mining & metallurgy, chemical, cosmetics & personal care, power generation & energy, and general industrial. The industrial sector dominated the market for functional fluids in 2021.

The global market is growing due to consumers becoming more aware of high-performance functional fluids as an alternative to traditional mineral oil lubricants due to emerging and developing economies. The global market is expanding due to rising consumer awareness of high-performance functional fluids as an alternative to conventional mineral oil lubricants and rising living standards in emerging nations.

Recent Development:

• July 2020: The BASF AltriumTM Fluidized Catalytic Cracking (FCC) catalyst was developed to increase the yields of transportation fuel.

Report Scope

Regional Landscape

• Asia-Pacific dominates the functional fluids market in 2021

The Asia Pacific is anticipated to have the largest revenue share in the global functional fluids market during the forecast period. This may result from increased demand for functional fluids in Asia Pacific countries' industrial, construction, and transportation sectors. A further reason for the region's expanding requirement for functional fluids is the rising demand for automobiles in developing countries like China, Japan, and India. The region's expanding aviation industry is also anticipated to increase demand for synthetic lubricants and functional fluids throughout the forecast period.

Competitive Landscape

• Proviron N.V. 
• The Chemours Company 
• Huntsman International LLC 
• Chevron Phillips Chemical Company 
• Chemtura Corporation 
• Eastman Chemical Company 
• Warren Oil Company 
• Moresco Corporation 
• ICL Industrial Products (I.P.) 
• Valtris Specialty Chemicals
• Functional Fluids Ltd.

The global Functional Fluids Market is segmented as follows:

By Type

• Brake Fluid
• Power Steering Fluids
• Hydraulic Fluid
• Fire Resistant Fluids
• Metalworking Fluids
• Heat Transfer Fluids
• Processed Oils
• Other Functional Fluids

By Application

• Automotive
• Paper and Pulp
• Pharmaceutical
• Textile
• Mining & Metallurgy
• Chemical
• Cosmetics and Personal Care
• Power Generation and Energy
• General Industrial

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America