The Global Market for Functional Fluids is Projected to Reach US$22.8 Billion by 2020

Growing Levels of Plant Automation Augurs Well for the Global Functional Fluids Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Functional Fluids. The global market for Functional Fluids is projected to reach US$22.8 billion by 2020, fuelled by the strong emphasis on uninterrupted functioning of machinery and elimination of unwarranted equipment failure.

Functional fluids, made from base stocks sourced from natural petroleum, mineral oils or synthetic polymers, are capable of improving productivity, energy efficiency, and sustainability of equipment in various industries. Dependence of the 21^st century on fuel-based machines makes functional fluids an important market worldwide. Also, growing demand for manufactured goods is driving manufacturers and processors to rely heavily on machinery to automate production and processing operations in order to enhance overall output. Given the critical importance of smooth functioning of such machinery and the need to avoid equipment failure, functional fluids have become an essential consumable in the manufacturing and industrial sectors. The growing importance on routine maintenance programs in plants as a means to improve operational efficiency is also contributing towards the increased consumption of functional fluids.

Demand in the market is closely linked to the health of major end-use sectors such as automotive, industrial machinery, and transportation. In the coming years, steadily rising dependence on fuel-driven machines and the need to ensure optimal functioning of equipment will foster demand for a range of functional fluids. With manufacturing and industrial sectors moving towards equipment that are designed to operate at high temperatures and speeds, manufacturers of functional fluids are focusing efforts on developing thermally stable products. The growth in the market will also be influenced by the growing emphasis on product innovation aimed at improving functional performance, especially against a backdrop where end-user industries are under pressure to ensure compliance with energy efficiency regulations and standards.

Synthetic functional fluids will continue to make gains at the expense of mineral-based functional fluids, fuelled by tightening performance needs, increasing need for lower cost/ high-performance blends, and rising penetration in industrial markets. Demand for biosynthetic functional fluids is expected to grow strongly in the years ahead owing to the increased focus on eco-friendly products and processes in various industries. Changing regulatory landscape for wastewater treatment and disposal is also driving demand for synthetic and semi-synthetic metalworking fluids.

As stated by the new market research report on Functional Fluids, Asia-Pacific represents the largest and the fastest growing market worldwide. Developing countries in Asia-Pacific and Latin America will continue to lend significant traction to global growth. Robust manufacturing activity supported by steady economic growth, increase in employment opportunities, growth in personal income and spending power, and subsequent rise in consumption of goods and services, augurs well for functional fluids used in industrial applications in these regional markets.

Major players covered in the report include BASF SE, BP PLC, Chem-Ecol Ltd., Chevron Corp., Chemtura Corporation, Croda International Plc, Dow Chemical Company, ExxonMobil Corporation, Fuchs Petrolub SE, Gulf Oil Limited Partnership, Henkel AG & Co. KGaA, Houghton International Inc., Idemitsu Kosan Co. Ltd., J.D. Streett & Co Inc., Parker Hannifin Corporation, Permatex Inc., Prestone, Quaker Chemical Corporation, Royal Dutch Shell Plc, Yushiro Chemical Industry Co. Ltd., among others.

The research report titled “Functional Fluids: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections in US$ Million for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Middle East, and Latin America (Brazil and Rest of Latin America). Product segments analyzed include Hydraulic & Transmission Fluids, Heat Transfer Fluids, Metalworking Fluids, Process Oils, and Others.