Mobile Hydraulic Valves Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The mobile hydraulic valves market is expected to record a CAGR of about 5% during the forecast period. The increasing industrialization and growing investment in the construction sector to replace the aging infrastructure across various countries are among the significant factors driving the demand for mobile hydraulic valves.

Key Highlights

• In general, hydraulic valves are primarily used to direct the flow of a liquid medium, usually oil, properly through the hydraulic system. These valves are designed according to different end-user requirements and international standards. Mobile hydraulic valves are mainly used with mobile hydraulic machines such as cranes, forklifts, excavators, and air seeders and are used in various environments.
• In the last few decades, the industrial sector witnessed significant growth, and the increasing population and rapid urbanization played a crucial role in the sector's growth. Considering the direct correlation of the industrial sector with the economic development of any country, governments across nations are further developing the local industrial sector. As many mobile types of machinery are currently being used in the industrial sector, its growth is expected to drive the demand for mobile hydraulic valves.
• According to the United Nations Industrial Development Organization (UNIDO), in Q2 2022, global manufacturing production grew at a stable pace, with a Y-o-Y growth rate of 3.1%. While the industrial economies registered a growth rate of 2.6%, the manufacturing output of other industrializing economies registered a Y-o-Y output growth of 10.4%.
• The use of mobile hydraulic machinery, such as forklifts and cranes, is also increasing in the agricultural sector, especially in developed countries. Mobile hydraulic directional control valves are used in the agricultural industry for smooth operation, rapid response for precise fluid control, and low-pressure drop in machinery using hydraulic systems. Hence, the sector is expected to offer ample growth opportunities to the vendors operating in the mobile hydraulic valves market.
• However, performance limitations of these valves in operating conditions exposed to temperature fluctuations are among the significant factors challenging the market's growth. As oil is prone to ambient temperature, fast heat loss or gain can cause changes in oil viscosity, affecting the operation of hydraulic components, including valves. These valves should continuously be operated within the specified pressure limits to avoid component failure or leakage.
• The COVID-19 pandemic had a notable impact on the growth of the market as the widespread lockdowns imposed to curb the spread of the virus significantly impacted the productivity and day-to-day operations of the industrial sector. Supply chain disruptions were also among the significant factors affecting the industrial sector's growth. However, with the easing of restrictions across the world, all the major end-user industries of hydraulic valves are expected to witness an upward trend, thus impacting the growth of market positively.

Mobile Hydraulic Valves Market Trends

Oil and Gas Sector to Hold Significant Market Share

• In the last few decades, the oil and gas industry witnessed remarkable growth, primarily due to rapid industrialization and the growth of the automotive industry. The expansion of the urban population also contributed significantly to the growth of the oil and gas industry. According to the World Bank, about 57% of the global population lived in urban areas in 2021.
• The increasing demand for petroleum products significantly drove the need for advanced machinery, including large vehicles such as cranes and forklifts, thus driving the demand for mobile hydraulic devices. According to the IEA, the daily need for crude oil is expected to increase from 91 million barrels per day in 2020 to 104.1 million barrels per day in 2026.
• Various types of mobile hydraulic valves are used in the oil and gas industry. For instance, a pressure relief valve reduces strain on downstream equipment by mitigating the system pressure fluctuation. In contrast, the guided piston valves reduce velocities through the controlling interface of the valve. These valves operate reliably at pressures as low as three psi and as high as 1,000 psi, making them suitable for a wide range of oil and gas equipment applications.
• Several vendors offer mobile hydraulic valves to the oil and gas industry. For instance, Panker Hannifen's Hydraulic Valve Division provides a robust portfolio of valves for the oil and gas sector with a wide range of explosion-proof/hazardous location certifications. Its VPL valve series is a stackable, load-sensing, multi-section, pressure-compensated directional valve for mobile equipment, suitable for the oil and gas industry.

Asia-Pacific to Become the Major Region in Terms of Demand

• The industrial and automotive sectors primarily drive the demand for mobile hydraulic valves in the Asia Pacific region. The region emerged as the global manufacturing hub in the past few decades. Most multinational companies have established and continue to set up their manufacturing units in this region due to the abundant availability of a low-cost, skilled workforce and supportive government regulations. As hydraulic valves are widely used in industrial machinery, the sector's growth is expected to impact the market positively.
• China has become the leading manufacturing and industrial sector in the Asia-Pacific region, witnessing remarkable growth. According to the National Bureau of Statistics of China, industrial production increased by 4.2% Y-o-Y in August 2022, i.e., the fourth consecutive month with increased industrial production following the pandemic.
• Countries such as India and Taiwan are witnessing a similar growth pattern as supportive government regulations and large populations are encouraging global players to enter these markets. For instance, according to the IBEF, India has the potential to become a global manufacturing hub, and by 2030, it can add more than USD 500 billion annually to the global economy.
• The country has received a significant amount of foreign direct investments (FDI) in its sectors, with manufacturing being one of the major sectors. According to the Department for Promotion of Industry and Internal Trade (DPIIT), in FY 2021-22, India received a total FDI inflow of USD 58.77 billion.
• Agriculture is another primary sector of the region, especially in India, China, and Bangladesh. The governments of these countries are taking several initiatives to streamline the agricultural industry, including the increasing adoption of new farming techniques and machinery. Such trends are expected to support the growth of the market during the forecast period.

Mobile Hydraulic Valves Market Competitor Analysis

The mobile hydraulic valves market is moderately competitive, with the presence of several established players. However, an increasing number of new players are also entering the market. The vendors are adopting organic and inorganic growth strategies to further expand their market presence. Some major players operating in the market include Parker Hannifin Corp, Danfoss AS, Eaton Corporation PLC, and OMAX Hydraulics Industrial.

• August 2022 - Helios Technologies Inc. launched its newest product developed by its operating company, Sun Hydraulics. Developed to offer cross-compatibility solutions, Sun Common cartridge valves are designed to provide reliable, universal solutions for various hydraulic systems, ranging from highly demanding applications requiring multidirectional fluid flow to more superficial, lower pressure requirements. These solutions offer a broad range of functions, enabling the design of new hydraulic system solutions with a joint cavity that fits best.
• June 2022 - Bieri Hydraulik AG, a leading valve manufacturer, launched the new 1000 bar valve series WV1000. In addition to high operational reliability at pressure as high as 1000 bar, the valve offers high tightness and good corrosion resistance. The higher pressure range of the valve also enables the designers to design more compact and lighter hydraulic systems.

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