Hydraulic Gear Pump Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Hydraulic Gear Pump Market is projected to expand from USD 9.39 Billion in 2025 to USD 12.21 Billion by 2031, reflecting a CAGR of 4.47%. Hydraulic gear pumps are positive displacement devices that utilize meshing gears to transform mechanical power into hydraulic energy through fluid displacement. Market growth is primarily sustained by the demand for heavy construction machinery and the continued mechanization of the agricultural sector, where these pumps are valued for their durability and cost-effectiveness in high-pressure environments. Furthermore, the material handling industry contributes to this trajectory through the necessity for reliable fluid power in equipment such as conveyors and forklifts.

However, the market faces a notable obstacle from the rising viability of electromechanical solutions, which increasingly compete with traditional hydraulics. This technological shift presents a barrier to expansion in specific segments where electric actuators provide cleaner operational capabilities. Despite these challenges, the sector maintains a significant economic presence; according to the National Fluid Power Association, shipments of hydraulic products in the United States amounted to 17.6 billion dollars in 2024. This figure underscores the industry's substantial footprint even as it navigates competition from electric alternatives.

Market Drivers

Rapid urbanization and global infrastructure development act as the primary catalysts for the Global Hydraulic Gear Pump Market. As emerging economies channel significant investment into residential complexes and transportation networks, the demand for heavy construction machinery, such as loaders and excavators, has intensified. These machines depend on gear pumps for robust performance during high-pressure earthmoving tasks. The scale of this sector is evidenced by the volume of machinery deployed; according to the China Construction Machinery Association's January 2025 report on the 2024 market, annual excavator sales reached 201,131 units in 2024. This massive deployment of construction assets correlates directly with increased procurement of hydraulic components to ensure operational efficiency.

Simultaneously, the growing mechanization of agricultural operations significantly influences market direction, driven by the imperative to improve food security. Modern farming relies on tractors and harvesters equipped with hydraulic systems to automate labor-intensive processes like planting and tilling. Gear pumps are integral to these vehicles, supplying the necessary fluid power for attachments in rugged conditions. Despite regional market fluctuations, machinery production volumes remain high; CEMA reported in September 2024 that agricultural tractor sales in Europe exceeded 125,000 units in the first seven months of 2024. Highlighting the sector's broad economic scale, Danfoss noted in its March 2024 Annual Report that it achieved full-year sales of 10.7 billion Euros in 2023, reflecting the sustained need for advanced power solutions across mobile and industrial applications.

Market Challenges

The increasing viability of electromechanical solutions constitutes a major structural impediment to the growth of the hydraulic gear pump market. As end-users in sectors such as material handling and light industrial machinery prioritize energy efficiency and cleaner operations, they are increasingly substituting traditional hydraulic systems with electric actuators. This migration erodes the installed base for gear pumps, particularly in applications where fluid leakage presents environmental or safety risks. Consequently, hydraulic manufacturers are compelled to compete for a shrinking share of the component market within these transitioning industries.

This negative pressure is evident in recent industry output data. According to the British Fluid Power Association, in 2024, total sales of fluid power equipment by manufacturers in the United Kingdom dropped by approximately 10 percent to 1.4 billion pounds. This downturn demonstrates how the widespread adoption of alternative technologies, combined with broader market factors, directly restricts revenue potential for hydraulic components. The reduced demand volume complicates the growth trajectory for gear pumps as they lose ground to more modern electromechanical counterparts.

Market Trends

The adoption of Electro-Hydraulic Hybrid Technologies is fundamentally altering pump architecture as OEMs transition from internal combustion engines to battery-electric powertrains to comply with stringent emission standards. This trend requires the engineering of gear pumps capable of operating efficiently with variable-speed electric motors, necessitating lower noise profiles and higher energy density to preserve battery life in mobile machinery. Leading manufacturers are actively realigning their portfolios to capitalize on this shift toward decarbonization, ensuring their hydraulic solutions remain relevant in electrified platforms. According to a Danfoss press release in February 2025 regarding 2024 sales, the company achieved 9.7 billion Euros, highlighting that electrification remains a primary growth driver despite cyclical headwinds in the construction and agricultural sectors.

The integration of Smart IoT Monitoring Systems is transforming standard hydraulic components into intelligent data nodes that enable predictive maintenance and real-time system optimization. By embedding sensors directly into the gear pump housing, operators can monitor critical parameters such as pressure, temperature, and vibration to detect anomalies before catastrophic failure occurs, thereby reducing unplanned downtime in industrial environments. This convergence of digital interfaces with hydraulics is becoming a central competitive differentiator for major suppliers moving beyond simple component sales to offer connected value. In April 2025, Bosch Rexroth reported generating sales of 6.5 billion Euros in 2024 while strategically expanding its offering of software and IoT interfaces to meet the digital requirements of modern factories.

Key Players Profiled in the Hydraulic Gear Pump Market

• Parker Hannifin Corporation
• Eaton Corporation PLC
• Shimadzu Corporation
• Danfoss A/S
• HYDAC International GmbH
• Sun Hydraulics, LLC
• Illinois Tool Works Inc.
• Kawasaki Heavy Industries, Ltd.

Report Scope

In this report, the Global Hydraulic Gear Pump Market has been segmented into the following categories:

Hydraulic Gear Pump Market, by Product:

• External Gear
• Internal Gear

Hydraulic Gear Pump Market, by End-Use:

• Construction
• Mining & Metallurgy
• Automotive
• Transportation
• Architecture
• Chemicals & Petrochemicals
• Others

Hydraulic Gear Pump Market, by Operating Pressure:

• Less than 100 Bar
• 100-300 Bar
• Above 300 Bar

Hydraulic Gear Pump Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Hydraulic Gear Pump Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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