Global Hydraulic Fluids and Process Oil Market Size, Share, and COVID-19 Impact Analysis, By Type (Mineral Based Hydraulic Fluids, HH (Mineral Oil Without Additives), HI (Mineral Oils With Oxidation and Rust Inhibitors), HM (Improved Anti-Wear Additives), and Others), By Type of Process Oil (Paraffinic Oils, Naphthenic Oils, Aromatic Oils, and Veg & Bio Oils), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035.

Global Hydraulic Fluids and Process Oil Market Insights Forecasts to 2035

• The Global Hydraulic Fluids and Process Oil Market Size Was Estimated at USD 10.42 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 9.22% from 2025 to 2035
• The Worldwide Hydraulic Fluids and Process Oil Market Size is Expected to Reach USD 27.50 Billion by 2035
• Asia Pacific is Expected to Grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, the global Hydraulic Fluids and Process Oil market size was worth around USD 10.42 Billion in 2024 and is predicted to grow to around USD 27.50 Billion by 2035 with a compound annual growth rate (CAGR) of 9.22% from 2025 and 2035. The market for hydraulic fluids and process oil has a number of opportunities to grow due to its increasing demand in construction, mining, and automation sectors, along with a changing inclination towards bio-based and high-performance synthetic fluids.

Market Overview

The global hydraulic fluids and process oil market is the industry encompassing the production, distribution, and sale of fluids used to transmit power in hydraulic systems, and process oils used in various industrial applications. Vegetable-based hydraulic fluids are used across various industries due to their significant benefits, including their sustainability, biodegradability, and non-toxicity. Process oils are used as a raw material component or to help with processing during the manufacturing of rubber, plastics, and other materials. They are refined from crude petroleum through a series of steps that remove impurities and isolate desired hydrocarbon structures. There is an increased emphasis on implementing effective hydraulic oil systems at mine sites that ultimately aid in supporting increased efficiency rates.

Innovation and market expansion are anticipated as a result of major players' growing research on additive manufacturing for improving hydraulic systems. For instance, in September 2021, the Italian company Aidro, which has been producing hydraulic systems has began to research additive manufacturing for improving hydraulic systems. The advancement, including the sustainable production of high-performance bio-based hydraulic fluids from vegetable oils, is driving a huge surge in the global hydraulic fluids and process oil market.    

Report Coverage

This research report categorizes the hydraulic fluids and process oil market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the hydraulic fluids and process oil market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the hydraulic fluids and process oil market. 

Driving Factors

The hydraulic fluids and process oil market is driven by the use of processing oil for rubber compounds, especially aromatic rubber compounds. For instance, an oil composition having a kinematic viscosity at 100° C. of between 32 and 50 cSt and containing less than 3% by weight of polynuclear aromatic compounds is used as processing oil. The use of vegetable seed oils as hydraulic fluids for a wide range of hydraulic systems applications, both mobile and stationary, is contributing to propel market growth. There are significant strides towards sustainability in the hydraulic industry via a combination of advanced technologies, innovative materials, and eco-friendly practices. Additionally, the integration of smart technologies for industrial hydraulics, including smart sensors, edge computing, and AI-driven fluid diagnostics, is significantly contributing to promoting market growth.

Restraining Factors

The hydraulic fluids and process oil market is restricted by the stringent environmental regulations and increasing emphasis on renewable energy sources. Furthermore, the volatility in base oil prices is challenging the market growth.

Market Segmentation

The hydraulic fluids and process oil market share is classified into type and type of process oil.   

• The HM (improved anti-wear additives) segment dominated the market with nearly 40% share in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the type, the hydraulic fluids and process oil market is divided into mineral based hydraulic fluids, HH (mineral oil without additives), HL (mineral oils with oxidation and rust inhibitors), HM (improved anti-wear additives), and others. Among these, the HM (improved anti-wear additives) segment dominated the market with nearly 40% share in 2024 and is projected to grow at a substantial CAGR during the forecast period. HM (improved anti-wear additives) refers to substances that reduce wear in materials, enhancing the efficiency of the development of biodegradable lubricating oils. The use of hydraulic fluid in the drilling operations of crude oil production, along with its increasing need in the oil & gas industry and automotive sector, is driving the segmental market growth.

• The paraffinic oil segment accounted for the largest market share of nearly 45% in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the type of process oil, the hydraulic fluids and process oil market is divided into paraffinic oils, naphthenic oils, aromatic oils, and veg & bio oils. Among these, the paraffinic oil segment accounted for the largest market share of nearly 45% in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Paraffinic oil is a type of rubber processing oil, extensively used in the manufacturing of inner butyl tubes, butyl reclaim, EPDM-based rubber products like weather stripes, hose pipes, and automotive components. The widespread use of paraffinic-based oils in industrial and automotive applications due to their increased saturation and low impurity levels is propelling the market expansion.

Regional Segment Analysis of the Hydraulic Fluids and Process Oil Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the hydraulic fluids and process oil market over the predicted timeframe.

North America is anticipated to hold the largest share of about 24% in the hydraulic fluids and process oil market over the predicted timeframe. The market demand for hydraulic fluids and process oil has been driven by the region's strong manufacturing base and infrastructure modernization. Further, the regions’ booming green lubricants market, comprising major companies like Castrol (BP), Shell, TotalEnergies, ExxonMobil, Fuchs Petrolub, and Chevron, is contributing to propel the hydraulic fluids and process oil market. The United States is the dominant country in the North America hydraulic fluids and process market, accounting for the largest share, owing to the transition of OEMs and industrial operators from traditional hydraulic oils to synthetic variants, with stringent EPA environmental regulations.

Asia Pacific is expected to grow at a rapid CAGR of 5.45% in the hydraulic fluids and process oil market during the forecast period. The Asia Pacific area has a thriving market for hydraulic fluids and process oil due to increasing investments in the manufacturing and construction sectors, along with the emergence of new key market players. Further, the expansion of the tech centre expansion contributing to driving the hydraulic fluids and process oil market. For instance, in October 2019, Afton Chemical Corporation, a global leader in the lubricant and fuel additive market, announced the completion of its Japan Technology Center expansion in Tsukuba. China held the largest share in the Asia Pacific hydraulic fluids and process oil market, with a 35% share in 2024, driven by the country’s expansive manufacturing base, like heavy machinery, automotive, and aerospace. For instance, in January 2025, scientific reports published an article on ‘Seepage mode in lamina-developed shale oil reservoirs under strong heterogeneous and strong fluid-solid coupling in Jiyang depression of China’.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the hydraulic fluids and process oil market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Fuchs Petrolub SE
• Petro-Canada Lubricants Inc.
• Valvoline Inc.
• Idemitsu Kosan Co., Ltd.
• Phillips 66 Lubricants
• Indian Oil Corporation Ltd.
• Sinopec Lubricant Company
• Morris Lubricants
• Gulf Oil Lubricants India Ltd.
• Pentosin (FUCHS subsidiary)
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In September 2024, Baker Hughes, a global oilfield services and industrial process company, is expected to launch a sale process for its Druck, Panametrics and Reuter-Stokes industrial product groups.
• In February 2024, HicksOils & Hicksgas, Inc., sold its Hicks Oils lubricants business to Schaeffer Manufacturing Company. Hicks Oils is a premier independent lubricant blending and packaging business in southern Illinois that produces automotive and industrial lubricants.
• In October 2020, Goodyear & Assurance Int Ltd collaborated on a new line of engine oil that would be manufactured, sourced, and distributed in India to complement Goodyear’s tire product portfolio in the territory.   

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the hydraulic fluids and process oil market based on the below-mentioned segments:  

Global Hydraulic Fluids and Process Oil Market, By Type

• Mineral Based Hydraulic Fluids
• HH (Mineral Oil Without Additives)
• HI (Mineral Oils With Oxidation and Rust Inhibitors)
• HM (Improved Anti-Wear Additives)
• Others

Global Hydraulic Fluids and Process Oil Market, By Type of Process Oil

• Paraffinic Oils
• Naphthenic Oils
• Aromatic Oils
• Veg & Bio Oils

Global Hydraulic Fluids and Process Oil Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
•       Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa