Hydraulics Market Size, Share, Trends and Growth Analysis

Updated on : October 22, 2024

Hydraulics Market Size & Growth

The hydraulics market size is expected to grow from USD 42.5 billion in 2023 to USD 50.5 billion by 2028, growing at a CAGR of 3.5% between 2023 to 2028.

The rapid growth in construction activities, heightened need for material handling equipment, increased demand for advanced agricultural machinery, and widespread adoption of hydraulic equipment across industries all significantly influence the dynamics of the hydraulics market. In addition, the increasing use of lifting equipment in the shipping sector, advancements in intelligent hydraulic machinery, ongoing research and development in hydraulic cylinder technology, and the rising adoption of electric vehicles are all factors that generate opportunities within the hydraulic market share.

Hydraulics Market Forecast to 2028

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Hydraulics Market Trends and Dynamics:

DRIVERS: The surge in construction projects leading to demand for hydraulic equipment

The surge in construction activities will significantly contribute to the expansion of the hydraulics market share. Worldwide, there's a growing trend of investments in infrastructural development, notably in developed economies like the US. Governments are directing substantial funding towards the enhancement of sports infrastructure and facilities. This global upsurge in construction projects will drive the demand for hydraulic-based construction equipment, including excavators, hydraulic cranes, and loaders. A combined study conducted by Oxford Economics and Global Construction Perspective (GCP) forecasts that the construction industry is poised to reach a value of USD 15.5 trillion by 2030. The majority of this growth is expected to stem from countries such as China, India, and the US. This, coupled with technological advancements within the core construction and infrastructure sectors, is anticipated to elevate the demand for hydraulic systems.

RESTRAINT: High manufacturing and maintenance costs

The manufacturing of hydraulic equipment involves metal forging and precise engineering to craft high-quality hydraulic systems. Small and medium enterprises (SMEs) face cost barriers when entering the hydraulics market. Apart from the initial manufacturing expenses of hydraulic equipment, these enterprises also encounter ongoing maintenance costs over time. There exist multiple factors beyond oil leakage in hydraulic cylinders that necessitate maintenance. Regular inspection of the quality and condition of the cylinder rod is essential. If the rod is bent, it can lead to load imbalances. Moreover, incorrect rod strength or diameter can result in various failures. The cylinder tube requires regular examination due to potential wear and tear on its walls, causing a reduction in thickness known as a balloon tube. These factors contribute to increased maintenance expenses, thereby impeding the widespread adoption of hydraulic systems.

OPPORTUNITIES: Development of smart hydraulic equipment

Several companies in the hydraulic industry invest continually in R&D to enhance their hydraulic equipment and provide better solutions. Due to intense market competition, periodic product upgrades are essential. A pivotal innovation is the development of smart hydraulic systems, which combine traditional hydraulics with electronic intelligence. These systems collect operational data through embedded sensors, enabling performance monitoring and early equipment failure prediction. Smart hydraulic cylinders, incorporating electronic elements and servo valves, ensure precise and efficient piston movement within the cylinder.

CHALLENGES: Availability of substitute products

Leakage of fluids, particularly oil, leading to environmental contamination, remains a major concern in the use of hydraulic equipment. This concern has sparked an increased demand for alternative solutions such as pneumatic systems. Pneumatics, powered by compressed gas pressure to drive linear motion, offer a contamination-free option compared to hydraulics. This difference makes pneumatic systems suitable for applications like agriculture and material handling, where close proximity to personnel is necessary. Consequently, the availability of cleaner alternatives, like pneumatic systems, poses a challenge to the growth of the hydraulic market.

Hydraulics Market Ecosystem

This section describes the hydraulics ecosystem and the deployment of hydraulics equipment in different industries, along with the impact of associated technologies on the hydraulics market.

Hydraulics Market Segmentation

Cylinders to hold the largest share of the hydraulics market during 2023–2028.

The cylinders segment is expected to account for the largest size of the hydraulics market during the forecast period. Hydraulic cylinders are utilized in industrial and mobile equipment across diverse industries such as construction, aerospace & defense, automotive, agriculture, mining, oil & gas, and marine. The integration of electronics in smart hydraulic cylinders enhances their functionality, accuracy, and control over piston movement. This integration drives the demand for smart hydraulic cylinders across multiple industries, enabling improved performance and precision in various applications.

The mobile hydraulics segment is expected to grow at the highest CAGR in the hydraulics market during the forecast period.

The mobile type of hydraulic segment is expected to register the highest CAGR in the market during the forecast period. Several mobile hydraulic tools such as cranes and excavators rely on the operation of hydraulic cylinders. Hydraulics within the mobile equipment industry serve multiple purposes, including material handling and mining applications. The increasing potential within the construction sector, accompanied by the ongoing trends of urbanization and industrialization, is poised to amplify the need for hydraulic equipment in mobile applications.

The agriculture industry will dominate the market during the forecast period.

The agriculture industry is expected to account for the largest share of the hydraulics market during the forecast period. Modernized agricultural machinery is adept at both crop production and livestock management. These components and systems play a crucial role in ensuring the agricultural industry operates at peak efficiency, minimizing downtime, and maximizing productivity. The request for contemporary agricultural equipment incorporating smart hydraulics persists due to their dependable performance, adaptability, and ease of use.

Hydraulics Industry Regional Analysis

Asia Pacific is expected to maintain the highest share during 2023–2028.

Asia Pacific is expected to hold the largest share of the hydraulics industry throughout the forecast period. Rapid urbanization and industrialization in the Asia-Pacific region, particularly in industries like construction, agriculture, and mining, are fostering the growth of the market. Major Original Equipment Manufacturers (OEMs) face challenges due to increased labor costs and longer lead times involving manual processes. Consequently, manufacturers in countries like China, Japan, and India are shifting towards automated and semi-automated material handling equipment to boost productivity and minimize downtime. This increased demand for material handling equipment is further propelling the growth of the market in the region. The burgeoning requirements for agricultural, construction, and mining equipment contribute significantly to the upsurge of the hydraulics market.

Hydraulics Market by Region

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Top Hydraulics Companies - Key Market Players

The hydraulics companies players have /implemented various types of organic and inorganic growth strategies, such as product launches, product developments, partnerships, and collaborations, to strengthen their offerings in the market.

• Enerpac Tool Group (US),
• Bosch Rexroth AG (Germany),
• Danfoss (Denmark),
• Hydac International GmbH (Germany),
• Kawasaki Heavy Industries, Ltd. (Japan),
• KYB Corporation (Japan),
• SMC Corporation (Japan),
• Parker-Hannifin Corporation (US),
• Wipro Enterprises (India),
• Caterpillar (US), and others are major players.

The study includes an in-depth competitive analysis of these key players in the hydraulics market with their company profiles, recent developments, and key market strategies.

Hydraulics Market Report Scope

Hydraulics Market Highlights

This research report segments the hydraulics market share based on type, component, end user, and region.

Recent Developments in Hydraulics Industry

• In November 2023, At Agritechnica 2023, Danfoss Power Solutions presented a variety of hydraulic components along with innovations for autonomy and electrification, participating in one of the agriculture industry's most significant global events. The company showcased a lineup of hydraulic, electric, and fluid conveyance components designed for application in agricultural machinery. Additionally, it highlighted its comprehensive autonomy solutions, such as the Autonomous Custom Engineering Services (ACES).
• In October 2023, Danfoss reinforced its commitment to "Make in India for India and the World" by locally manufacturing hydraulic hoses (Winner EC110 and EC210). This strengthens fluid conveyance solutions for India, part of its expansion across Chennai, Pune, Baroda, Navi Mumbai, and Bengaluru manufacturing facilities.
• In February 2023, Bosch Rexroth AG successfully finalized the acquisition of HydraForce after obtaining clearance from antitrust authorities. HydraForce is set to become part of Bosch Rexroth's Compact Hydraulics portfolio, contributing significantly to the expansion of the business unit's product range and customer assistance. While both companies specialize in diverse compact hydraulic products, HydraForce's specialized knowledge in designing mechanical and electrical cartridge valves and hydraulic integrated circuits (HIC) will serve as a valuable addition, complementing the existing portfolio of Bosch Rexroth.
• In February 2023, Bosch Rexroth AG inaugurated a cutting-edge Hydraulics Training Center aimed at catering to the technical education requirements within the fluid power industry. This advanced facility is designed to facilitate skills enhancement for newcomers and experienced professionals alike, addressing the diverse learning needs of individuals across various stages of their careers in the industry.
• In September 2022, Parker Aerospace, a division of Parker Hannifin Corporation, a prominent player in motion and control technologies, was chosen by Boeing to provide the AP15V engine-driven pump (EDP) for the hydraulic system of the B-52H Stratofortress. This long-range bomber is undergoing substantial upgrades, including the U.S. Air Force's Commercial Engine Replacement Program (CERP). The Parker AP15V EDP, referred to as the World Pump, will support the aircraft's hydraulic system until the 2050s.

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