Hydraulic Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2021 - 2029

The Hydraulic Equipment Market size is estimated at USD 46.94 billion in 2024, and is expected to reach USD 56.07 billion by 2029, growing at a CAGR of 3.62% during the forecast period (2024-2029).

Key Highlights

• Hydraulic equipment encompasses various components and offers many benefits for various industrial applications. These tools usually use the force created by pressurized fluids, transferring the force as energy through the system to complete a wide range of tasks and applications. Furthermore, hydraulic equipment can generate much greater force than pneumatic tools of a similar size, as fluids are incompressible, which gives hydraulic systems the ability to operate at much higher pressure levels. Hence, hydraulic tools are often used in heavy-duty industrial applications.
• Electronics for intelligent mobility & data collection sensors are becoming rapidly standard in hydraulic equipment. IoT is also utilized nowadays in fluid power systems, even though its typical applications revolve around electric systems. Manufacturers encourage the digitization of hydraulic goods by providing a broad range of electro-hydraulics modules and components with digital interfaces & sensor intelligence. They also aid in the smart design, configuration, & precision control for hydraulic systems that current technology in hydraulic applications permits.
• Over the past 70 years, material handling has experienced different transformations that have transformed the industry's outlook. Material-handling machines & robots have substituted individual workers. Due to this transformation, many industries have developed, especially the automotive industry, which has undergone a 10-fold growth.
• The main challenge impeding the hydraulic equipment market's development is the volatility in maintenance expenses over the equipment's lifespan. Changes in the costs of raw materials like stainless steel, iron ore, aluminum, bronze, & other metal alloys have induced volatility in the arrangement cost of hydraulic equipment, which, in turn, has led to a demand-supply gap.
• The expanding construction industry is anticipated to augment the hydraulic equipment market need over the forecast period. For instance, according to the Ministry of Statistics & Programme Implementation (MOSPI), India's construction industry was valued at over INR 3 trillion (USD 36.70 billion) in Q4 of 2022, a significant increase compared to 2020, when the value shrank due to the coronavirus (COVID-19) pandemic. Also, the country's construction & manufacturing industries were among the worst hit then. However, the industry recovered quickly and returned to pre-crisis level again. A similar trend has been observed across other major end-user industries of hydraulic equipment. Hence, the recovery of these industries will create opportunities in the studied market.

Hydraulic Equipment Market Trends

Consutruction Segment to Witness Significant Growth

• Hydraulic equipment operates and executes tasks through a pressurized fluid. The pressure applied to a confined fluid is transferred undiminished. That pressurized fluid acts upon each part of a section of the holding vessel & builds force or power. As the technology persisted in maturing, hydraulics created it likely to reach far more precise motions. Such precision has attained momentum for better optimization of the construction processes.
• The introduction of hydraulics in the construction industry has let more jobs be completed quickly, improving productivity. The science of hydraulics allowed the equipment to complete the range of motion and be held with increased precision. Hydraulic power is an essential part of the current construction industry, and persisting technological advancements will make utilizing hydraulic equipment even more necessary in the future.
• The hydraulic equipment can resist and transmit high loads. Hydraulic equipment has lesser moving and load-bearing parts than other systems that depend on mechanical components. The hydraulic fluid, motors, & pumps are at either end to control most functional limitations. Utilizing smart valves, smart pumps, and other parts provides more efficient operation and managing performance of the hydraulic equipment. Furthermore, it assists in automating the process.
• The construction sector is a robust driver of the Indian economy. The industry is favorably responsible for propelling India's overall development. It has extreme stress on the government to initiate policies that would provide the country's time-bound design of world-class infrastructure. While India's construction sector has seen disturbances, there is positiveness for the future with the initiatives & strategies adapted to drive large-scale projects. For instance, in April 2022, Honeyy Group announced 33 projects, of which 24 were in Andhra Pradesh and 9 in Telangana, setting a bar for the construction industry in one day. The company has accomplished this by utilizing several innovative techniques to develop, construct, & manage buildings.
• Furthermore, the rising construction industry is anticipated to increase the hydraulic cylinders market need over the forecast period. For instance, according to MOSPI, in FY 2022, the real gross value in the construction industry around India increased by more than 10%.

North America Is Expected to Hold Largest Market Share

• The North American hydraulic equipment market is dominated mainly by Tier 1 companies delivering powerful hydraulic equipment, long-standing partnerships, and comprehensive distribution channels. However, niche competitors can acquire market share with customized offerings for distinguishing industry sectors.
• The region's oil and gas industry is witnessing robust growth, supporting the demand for hydraulic equipment. According to the Energy Information Administration (EIA), dry natural gas production in the US grew during 2022, averaging over 100 billion ft³/s in October & November, exceeding pre-pandemic monthly production records from 2019.
• Furthermore, due to Russia's invasion of Ukraine, numerous countries have prohibited the import of crude oil from Russia, providing the region an opportunity to be the leading exporter of crude oil to these countries. The region persists in being a key producer of oil & gas. As old resources are being exhausted, new sources of oil are being located. According to the Statistical Review of World Energy by British Petroleum in 2022, the US was the biggest oil producer, producing 711.1 million tons in 2021.
• One of the major trends in the region is merging the industry with IoT. The region is noticing the growing adoption of industrial automation across end-user industries. Integrated hydraulic equipment delivers an opportunity to enhance operations and lower energy costs.
• Further, regional players are taking different initiatives and creating strategic investments to catch the wider client base. As of June 2022, Motion Industries Inc. unveiled the creation of its fluid power business brand, Mi Fluid Power Solutions. The company is anticipated to concentrate on hydraulics, lubrication, filtration, process pumps, pneumatics, precision industrial tooling, & factory automation products.

Hydraulic Equipment Industry Overview

The intensity of competitive rivalry in the hydraulic equipment market is moderately high. It is expected to increase over the forecast period due to several prominent players such as Bosch Rexroth AG (ROBERT BOSCH GMBH), Parker-Hannifin Corporation, Hydac International GmbH, Danfoss A/s, SMC Corporation, among others in the market. These players are also adopting merger and acquisition strategies to gain market share.

In April 2023, Bosch Rexroth unveiled its Hägglunds Quantum range of hydraulic motors, designed to enhance torque and speed capabilities while retaining efficiency for direct drive applications in heavy-duty equipment. Also, these motors provide a maximum speed of over 150 rpm & maximum torque of more than 350 kNm. Changes to the design and materials used allowed the boost in speed and torque and a longer lifespan while ensuring efficient operation.

In November 2022, Caterpillar announced the launch of two new hydraulic excavators, namely Caterpillar 340 and 352. According to Caterpillar, the new Cat 340 Hydraulic Excavator had a stronger engine, wider track, and 7.5-ton counterweight to improve productivity by 10% over the 2020 model year Cat 336. On the other hand, the new Cat 352 Hydraulic Excavator combined better power and a heavier counterweight to work with bigger tools.

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• The market estimate (ME) sheet in Excel format
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