Power Steering Fluids Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Synthetic Oil, Mineral Oil, and Other), By Application (Light Commercial Vehicles, Passenger Car, and Heavy Commercial Vehicles), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.92 Billion
CAGR (2026-2031)	6.87%
Fastest Growing Segment	Synthetic Oil
Largest Market	Asia Pacific
Market Size (2031)	USD 4.35 Billion

Market Overview

The Global Power Steering Fluids Market will grow from USD 2.92 Billion in 2025 to USD 4.35 Billion by 2031 at a 6.87% CAGR. Power steering fluids are specialized hydraulic lubricants designed to transmit force in power steering systems while protecting mechanical parts from wear and corrosion. The primary drivers supporting market growth include the steady increase in global vehicle production and the robust demand for commercial vehicles that rely heavily on hydraulic steering mechanisms. Furthermore, the recurring maintenance requirements of an aging global vehicle fleet sustain the aftermarket demand for these essential fluids.

One significant challenge impeding market expansion is the automotive industry's transition toward Electric Power Steering systems that function without hydraulic fluids. According to the 'European Automobile Manufacturers’ Association', in 2025, new car registrations in the European Union increased by 1.4% year-to-date through October. This data indicates that while overall vehicle output remains positive and supports immediate fluid demand, the technological shift in steering mechanisms continues to threaten the long-term volume potential for traditional hydraulic solutions.

Key Market Drivers

The increasing volume of global vehicle production serves as a primary catalyst for the power steering fluids market, directly fueling demand for initial fill applications across assembly lines. As automotive manufacturers scale up output to satisfy transportation needs, the aggregate consumption of hydraulic fluids for new vehicle systems rises proportionally. This momentum is especially evident in key industrial hubs; according to the China Association of Automobile Manufacturers, in November 2025, vehicle production volumes in China increased by 12.1% year-on-year for the month of October. Furthermore, commercial segments continue to bolster this demand, as heavy-duty vehicles remain reliant on robust hydraulic systems. According to the European Automobile Manufacturers’ Association, in October 2025, new bus registrations in the European Union were reported to have increased by 3.6% year-to-date, demonstrating sustained manufacturing activity in sectors that heavily utilize traditional power steering technologies.

The expansion of the automotive aftermarket and routine maintenance sector constitutes the second vital driver, ensuring long-term revenue stability independent of new vehicle sales cycles. As the global vehicle fleet expands and ages, the requirement for periodic fluid checks, top-ups, and system flushes becomes essential to prevent mechanical wear and pump failure. This recurring service demand creates a consistent consumption channel for power steering fluids. According to the Auto Care Association, in June 2025, the United States light-duty automotive aftermarket was projected to grow by 5.1% for the year. This steady growth in the maintenance sector highlights the enduring reliance on fluid replacement services, protecting suppliers from the volatility often associated with original equipment manufacturing rates.

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Key Market Challenges

The automotive industry's fundamental transition toward Electric Power Steering (EPS) systems constitutes a substantial structural impediment to the growth of the global power steering fluids market. Unlike traditional hydraulic configurations that necessitate specialized lubricants to transmit force and lubricate mechanical components, EPS architectures operate via electric motors and electronic sensors, completely eliminating the requirement for hydraulic fluid. As vehicle manufacturers increasingly prioritize fuel efficiency and the integration of semi-autonomous driving features, the standard fitment of dry electric systems in modern vehicle platforms significantly reduces the addressable market for hydraulic solutions in new automotive production.

This technological displacement is most quantifiable in the rapid scaling of the new energy vehicle sector, which predominantly utilizes electric steering mechanisms. According to the 'China Association of Automobile Manufacturers', in 2024, the production of new energy vehicles exceeded 12 million units. This massive volume of vehicles entering the global fleet without hydraulic steering hardware highlights the direct correlation between electrification and the contraction of fluid demand. Consequently, the widespread adoption of these electronic systems restricts the market's expansion potential, increasingly confining revenue opportunities to the service and maintenance of legacy internal combustion engine fleets rather than original equipment manufacturing.

Key Market Trends

The transition toward synthetic and semi-synthetic formulations represents a critical shift in the market, driven by the requirement for superior thermal stability in modern steering architectures. Unlike traditional mineral-based oils, these advanced fluids are engineered to maintain consistent viscosity under the high-pressure and high-temperature conditions characteristic of contemporary hydraulic systems. This move toward higher-performance chemistry is being accelerated by lubricant manufacturers prioritizing premium product mixes to meet tighter OEM specifications and extended service intervals. According to Shell Oman Marketing Company, January 2025, in the 'Annual Report 2024', the company's lubricants business achieved a 10% growth in premium products volume, underscoring the increasing industrial and consumer preference for high-grade synthetic formulations over conventional alternatives.

Simultaneously, the proliferation of specialized aftermarket brands is reshaping the competitive landscape, as independent manufacturers capitalize on the demand for vehicle-specific fluid solutions. As the global vehicle fleet diversifies, these specialized players are gaining traction by offering tailored fluid technologies that address specific regional and heavy-duty application needs, often outperforming generalist competitors in niche segments. This structural shift toward specialized independent suppliers is evident in the financial performance of major market actors. According to Fuchs SE, March 2025, in the 'Annual Report 2024', the company reported that its Earnings Before Interest and Taxes (EBIT) in the North and South America region jumped 15% to €91 million, driven by strong performances in key markets like the United States and Mexico, highlighting the robust value capture available to specialized lubricant brands.

Segmental Insights

The synthetic oil segment is recognized as the fastest-growing category within the global power steering fluids market. This expansion is primarily driven by the superior thermal stability and oxidation resistance of synthetic formulations compared to mineral-based alternatives. Automotive manufacturers are increasingly adopting these fluids to comply with rigorous fuel efficiency and emission standards established by regulatory bodies such as the Environmental Protection Agency. Furthermore, synthetic oils provide extended service intervals and consistent performance under extreme operating conditions, making them essential for ensuring the durability and reliability required by modern vehicle steering systems.

Regional Insights

Asia Pacific holds the dominant position in the Global Power Steering Fluids Market, primarily driven by the extensive automotive manufacturing capabilities in China, Japan, and India. The region benefits from a robust rise in vehicle production and sales, covering both passenger and commercial segments. Additionally, the expanding aftermarket sector contributes significantly to demand, as an aging vehicle fleet requires regular maintenance and fluid replacement. This combination of high manufacturing output and increasing vehicle ownership rates ensures that Asia Pacific remains the central hub for market expansion.

Recent Developments

• In October 2024, Fuchs Lubricants marked a strategic expansion into Southeast Asia by officially launching its Titan line of lubricants in the Philippines. The newly introduced portfolio included high-performance engine oils, gear oils, and central hydraulic and power steering fluids engineered to meet OEM specifications. This launch was facilitated through a partnership with a local distributor, aiming to provide Filipino consumers with advanced lubrication solutions that offer enhanced engine protection and extended service intervals for passenger and commercial vehicles.
• In September 2024, Idemitsu Lubricants America announced a nationwide expansion of its commercial partnership with two prominent automotive parts suppliers, XL Parts and The Parts House. This collaboration was aimed at increasing the availability of Idemitsu's products, including its engine oils, transmission fluids, and power steering fluids, to professional installers. The expanded distribution network allowed these essential automotive fluids to be accessed more easily through direct-to-professional locations across the South Central and Southeast United States.
• In August 2024, Plews & Edelmann expanded its aftermarket product offerings by introducing a new fully synthetic power steering fluid specifically formulated for Honda and Acura applications. This product launch was part of a significant update to the company's portfolio, which also included the release of numerous new power steering hoses and hard parts. The new fluid was designed to provide coverage for over 13 million vehicles in operation, addressing a specific demand for specialized synthetic fluids in the power steering maintenance market.
• In July 2024, ExxonMobil announced a strategic partnership by appointing a new official distributor for its Mobil-branded lubricants throughout the Philippines. This collaboration was established to supply the complete portfolio of Mobil products to the region, positioning the company to capture a larger share of the growing market. The distribution agreement encompasses a wide range of automotive fluids, including those used for vehicle maintenance and performance, ensuring greater accessibility for consumers and businesses across the archipelago.

Key Market Players

• Chevron Corporation
• ExxonMobil Corporation
• Shell Global
• TotalEnergies SE
• Valvoline Inc.
• Castrol Limited
• Pennzoil Products
• Fuchs Petrolub SE
• Petro-Canada Lubricants Inc.
• Royal Dutch Shell plc

By Type	By Application	By Region
Synthetic Oil Mineral Oil and Other	Light Commercial Vehicles Passenger Car and Heavy Commercial Vehicles	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power Steering Fluids Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Steering Fluids Market, By Type:

• Synthetic Oil
• Mineral Oil
• and Other

• Power Steering Fluids Market, By Application:

• Light Commercial Vehicles
• Passenger Car
• and Heavy Commercial Vehicles

• Power Steering Fluids Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE