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Functional Fluids Market


Chemicals & Material
Specialty Chemicals

The global functional fluids market is projected to be worth USD 42.2 Billion by 2020, registering a CAGR of 4.5% between 2015 and 2020. The growth of market is primarily driven by the processing industries for manufacturing the finished goods. The massive industrial growth in Asia-Pacific and Africa drive the functional fluid market. Moreover, strong OEM recommendation to use high-performance functional fluids coupled with the stringent emission control regulations in these regions is also driving the demand for function fluids.

The industrial application dominated the functional fluids market in 2014; however, the industrial application is projected to register the highest growth rate in the overall market between 2015 and 2020. The improved living standard and increasing consumer awareness regarding high-performance functional fluids over the conventional mineral oil lubricants in emerging economies are contributing to the growth of the global market.

The functional fluids market is classified on the basis of type: process oil, hydraulic & transmission fluids, metal working fluids, heat transfer fluids, and others. The market is dominated by process oil because of its improved oxidative property and thermal stability. Process oil provides smoothness to the processing unit during the manufacturing of finished goods. It improves the efficiency of machines and helps in producing quality products. Process oil is expected register high growth during the forecast period.

Currently, Asia-Pacific is the largest and fastest-growing market for functional fluids due to high demand from major markets such as China, India, and Japan. The growing automotive industry in the region is also driving the market for functional fluids.

Functional Fluids Market

The major factor restraining the growth of the functional fluids market is the slow growth of end-use sector in North America and Western Europe. The 2008 global economic turmoil has virtually hit almost all the sectors in developed nations of North America and Western Europe. There have been no significant investments in the key end-use industries such as manufacturing, energy, and automotive. Some of the important functional fluids companies are ExxonMobil Corporation (U.S.), Royal Dutch Shell Plc. (Netherlands), BP Plc (U.K.) Fuchs Petrolub SE (Germany), Chevron Corporation (U.S.), Idemitsu Kosan Co. Ltd (Japan), The Dow Chemical Company (U.S.), BASF SE (Germany), and Petroliam Nasional Berhad (Malaysia). The players in this market need to compete with each other with respect to prices and offering wide product range to meet the market requirements.

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