Hydraulic machines are machines that operate through the use of liquid fluid power. Considering the resistance, hydraulic fluid is pumped to cylinders and motors through the machine and pressurized. The valves regulate the liquid flow, distributed through pipes, hoses, or tubes. A single ON/OFF button controls the system. In addition, the system is lighter as no gears or levers are involved in its operation. The hydraulic equipment maintains constant force regardless of changes in operation speed.
The demand for hydraulic equipment has increased due to the growth of the construction and mining industries, automation in agriculture, and expansion of new manufacturing facilities. To meet the increasing need, hydraulic equipment manufacturers have adopted various strategies to expand their product lines and improve customer service. These strategies increase the demand for technologically advanced hydraulic equipment, fostering market expansion.
Since ancient times, agriculture has been the world's primary and most important industry. In the past, many agricultural processes were performed manually, including plowing, sowing, fertilizer and pesticide application, harvesting, and others. With the rise of industrialization and the development of novel machinery, farmers prefer to use machines for agricultural tasks. Advanced equipment such as atomized tractors and harvesters are utilized in agriculture to improve productivity and reduce labor costs.
Several companies, including Komatsu, Bosch, John Deere, New Holland, and AGCO, are offering advanced machinery with hydraulic motors, valves, and pumps, such as tractors, dryers, sprayers, rotary cutters, mini excavators, wheel loaders, and planters & seeders, in response to the increase in agricultural equipment adoption. For example, in April 2018, Mahindra & Mahindra's Farm Equipment Sector introduced the new Novo 65 HP and 75 HP tractors, which feature an advanced synchromesh transmission and a precision hydraulics system. Thus, the adoption of automation and machinery in agriculture is driving the expansion of the market for hydraulic equipment.
The most significant concern is the energy consumption of hydraulic equipment, which increases the overall cost of purchasing and operating industrial plants and machinery. Due to the high pressure in hydraulic equipment, a substantial amount of energy is consumed, increasing energy costs. To curb additional costs, energy-efficient hydraulic equipment is deployed. In addition, several recent developments in hydraulic technology have increased its effectiveness. In plastics processing machines, variable speed pump drives reduce pressure holding losses during pauses and partial load operation—similarly, variable pump and valve systems permit electronic flow matching to minimize losses.
Caterpillar introduced backhoe loaders 426 F2, 426 B2, Cat 336E excavators, and Hindustan 2021 D-wheel loaders in December 2017. Even for heavy work, the superior hydraulic system of this new equipment's pump flow provides energy-efficient hydraulic performance. Consequently, manufacturers' introduction of advanced hydraulic equipment is anticipated to create lucrative growth opportunities for the global market over the forecast period.
Region-wise, the global hydraulic equipment market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor and is estimated to grow at a CAGR of 4.5%. Due to large populations in countries such as China and India, the market for hydraulic equipment expands the most in the Asia-Pacific region. This region's fast-moving consumer goods (FMCG) consumption has increased significantly over the past few years, driving market expansion. Moreover, the rapid growth of the manufacturing, construction, mining, agriculture, and transportation industries increases the demand for hydraulic equipment. Due to this increased demand, manufacturers have established production facilities to meet the rising demand in the region. To strengthen their position in the market, prominent players have adopted various growth strategies. To meet the growing demand for valves, manifolds, and integrated packages, Sun Hydraulics began construction on a new facility in Incheon, Korea, in October 2017. It will serve the needs of customers in South Korea, Japan, China, Australia, and Southeast Asia for hydraulic equipment.
North America is the second largest region. It is estimated to reach an expected USD 14508 million by 2030, growing at a CAGR of 3.5% during the forecast period. The food & beverage, pharmaceutical, and fast-moving consumer goods (FMCG) industries have experienced rapid growth in recent years. With an increase in demand for FMCG products, the establishment of new manufacturing plants and the expansion of existing factories have led to the rise in demand for filling and packaging machines that are hydraulically operated. In the food and beverage industry, conveyors are driven by hydraulic motors while containers such as bags and sacks are filled. In addition, companies such as Liebherr, Hitachi, and Caterpiller have introduced new hydraulic-operated cranes, dozers, tractors, and tree cutters in response to increased customer demand for advanced equipment in the construction, mining, and agriculture industries. In 2020, Liebherr intended to release redesigned 42 M5 XXT truck-mounted concrete pumps and hydraulic drives, which will be more stable when operating and transporting heavy loads. Such strategies and applications of hydraulic equipment drive the expansion of the North American hydraulic equipment market.
Europe is the third largest region. The demand for packaged food & beverage, pharmaceutical, and FMCG products has increased significantly in Europe. In addition, the increase in the number of projects in the construction, forestry, mining, agriculture, transportation, and other manufacturing industries has increased the demand for hydraulic equipment in the European market. In addition, market leaders have implemented various growth strategies to strengthen their position. For example, in June 2019, LEFORT introduced a new line of large hydraulic shears and balers. These hydraulic shears and balers have a cutting force between 600 and 1,000 tons and a weight between 45 and 100 tons. All such factors contribute to the expansion of the European market.