Functional fluids: Key market research findings
- APAC dominates the market geographically
- The growth of this market is directly proportional to the growth of the transportation industry
- Key vendors – BASF, BP, Chevron Oronite, ExxonMobil, Shell, and TOTAL
Technavio’s market research analysts predict the global market for functional fluids to grow at a CAGR of more than 4% between 2016 and 2020. The growth of this market can be accredited to the rising demand for process oils and metalworking fluids from the transportation sector. It is also useful for other industrial applications, which includes manufacturing of glues, plastics, and printing inks. Additionally, these oils are extensively used in the manufacture of tires in the automobile sector. During 2015, APAC dominated the global functional fluids market by accounting for around 38% of the overall market revenue. The rising use of new machining techniques, such as minimum-quantity lubrication and electrical-discharge machining, which require the use of functional fluids will fuel the growth of the market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the functional fluids segments based on the application.
“The market is currently witnessing the emergence of biosynthetic functional fluids. Biosynthetic estolide base oils have higher oxidative stability than polyalkylene glycols, polyol esters, and high-oleic canola oils. Biosynthetic estolide base oils have higher oxidative stability than polyalkylene glycols, polyol esters, and high-oleic canola oils. They perform well in cold temperatures as well as at pour point temperatures of −15°C to −29 °C and have good oxidative stability,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the transportation segment will account for more than 44% of the overall market revenue to continue its dominance as the key revenue generating vertical of the global functional fluids market. The production of transportation equipment requires a wide range of functional fluids. The most common types of operations are machining, stamping, and forging. Transmission and hydraulic fluids are used in all types of cars and commercial vehicles and are perfect for operating in a wide variety of climatic conditions.
The key vendors in the global functional fluids market comprise of BASF, BP, Chevron Oronite, ExxonMobil, Shell, and TOTAL. Global players have the advantage of significant base stock supplies and invest heavily in product innovations and development to gain a competitive edge over their competitors. Companies that rely on suppliers are undergoing backward integration to enable base stock supply. Furthermore, all major players in the market are following the green trend by adding biosynthetic and sustainable functional fluids to their product portfolio. Strict environmental regulations along with fluctuating prices of the base stock are also forcing market players to go green.
A more detailed analysis is available in the Technavio report, Global Functional Fluids Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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