Fluid Power Equipment Market Size, Share & Trends Analysis Report By Product (Hydraulic, Hydraulic Pumps, Hydraulic Motors, Hydraulic Valves, Hydraulic Cylinders, Hydraulic Transmission, Hydraulic Filters, Hydraulic Accumulators, Pneumatic, Pneumatic Pumps, Pneumatic Valves, Pneumatic Actuators, Pneumatic Filter Regulator Lubricator (FRLs), Pneumatic Fittings, Others), By Equipment Type (Pumps, Motors, Valves, Cylinder, Steel Tube and Compression Fitting, Accumulators, Accessories), By End-User Vertical (Construction, Agriculture, Material Handling, Oil and Gas, Aerospace and Defense, Machine Tools, Hydraulic Tools, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global fluid power equipment market was valued at USD 58.23 billion in 2023. It is expected to reach USD 108.13 billion in 2032, growing at a CAGR of 7.12% over the forecast period (2024-32). The rise of industrial automation and the expansion of manufacturing sectors globally drive the demand for fluid power equipment. Industries such as automotive, aerospace, and food processing rely on hydraulic and pneumatic systems for various automated processes.

Work is accomplished by systems that use a fluid motor or a pressured fluid bearing directly on a piston in a cylinder. Fluid cylinders produce a force that causes linear motion, as opposed to fluid engines, which produce torque that causes rotating motion. Cylinders and motors (also known as actuators) perform the required work in a fluid power system. Valves and other control elements regulate the system. Compared to electric, pneumatic, and other drive methods, hydraulic equipment may offer higher power with much smaller equipment. Examples of such items include pumps, motors, valves, and cylinders.

Market Dynamics

Global Fluid Power Equipment Market Drivers

Rising Construction Activity and Increasing Demand for Material Handling Equipment

The hydraulic equipment market is anticipated to benefit from the rising need for material-handling machinery. The advantages of material handling equipment enable high productivity and efficiency by facilitating quick equipment movement. Removing the need for manual labor and assisting in the building of storage facilities further aids in lowering labor expenses. Although the COVID-19 epidemic hurt the construction industry, it is expected that the sector's recovery, with the resumption of operations and government attempts to support the sector's expansion, will have a favorable effect on consumer demand and sales of hydraulic equipment.

Rise of Automation and Collaborative Robots

The increasing use of pneumatic systems as an enabler of collaborative robots in the industry and life science is driving the market's growth. The pneumatic equipment provides robot functions that can be further employed in grabbing, force measurement, and counter-pressure adjustment. Additionally, the expansion of pneumatic equipment, such as valves and actuators in cobots, is anticipated to fuel the analyzed market as IIoT use increases across all key industries. This has also influenced the market for pneumatic equipment and is expected to continue during the forecast period.

Global Fluid Power Equipment Market Restraints

High Costs of Maintenance and a Shortage of Skilled Labour

The expense of hydraulic equipment upkeep may discourage businesses from purchasing the equipment. Additionally, the cost of fixing and replacing outdated equipment may increase, motivating firms to do routine maintenance. The cost of periodic maintenance can discourage adoption even when they are less than replacement. The market's expansion is faltering due to the growing labor shortage for crucial hydraulic equipment operations. This burden can be reversed with early education programs and rigorous training of professional workers. Pneumatic equipment, like hydraulic equipment, is also up against fierce competition from the growing use of electric equipment.

Global Fluid Power Equipment Market Opportunities

Automation's Emergence with Industry 4.0

Demand for networked hydraulic equipment with smart interfaces, open communication standards, quick networkability, and context integration in real-time is being shaped by the rise of smart technology in machinery. According to the 2021 Automation Solutions Survey Study, the COVID-19 epidemic has spurred the development of entirely automated solutions. It has led numerous businesses to investigate the potential benefits of smart hydraulic equipment. For instance, Bosch Rexroth is heavily involved with the decentralized intelligence of motion controls for hydraulic equipment. It is anticipated to drive market growth during the forecast period.

Regional Analysis

Europe Dominates the Global Market

The global fluid power equipment market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Europe is the most significant shareholder in the global fluid power equipment market and is expected to grow at a CAGR of 5.80% during the forecast period. A company like French Oil Mill Machinery Co. combines a rigid proprietary taper essential side plate press design with extremely dependable electrical and hydraulic systems to meet the strictest quality criteria in France's aerospace and defense applications. Numerous design elements increase the press's lifespan and enable the production of more reliable and higher-quality parts. Using pneumatic systems in dangerous settings is fueling the demand for technology. For instance, the pneumatic waste collection system from Envac is being used to install an automated waste collection system in the Norwegian city of Bergen. The demand for diverse cutting-edge technologies to sustain the manufacturing sector's competitiveness grows as European capital spending increases.

North America is anticipated to increase at a CAGR of 6.70%, generating USD 29,744.18 million during the forecast period. The top three US agricultural goods are cattle and calf products, corn, and soybeans. In 2020, there were slightly more than two million farms in the United States, and 10.9% of all US jobs were in agriculture and related businesses. Additionally, hydraulic equipment producers devised several tactics to grow their product line and provide improved customer service to satisfy the rising demand. The pneumatics equipment market is increasing, and there is a high demand for value-added distributors with excellent account management, technical services, and the newest catalog of parts, as well as e-commerce sites like the cutting-edge Direct Pneumatics, which stock both new and difficult-to-find parts.

The Asia-Pacific fluid power equipment market is anticipated to grow steadily during the forecast. Due to the unprecedented rate of infrastructure development in India, the market vendors under study are likewise attempting to take advantage of these changes. Automotive is another industry where hydraulic machinery, such as pumps, finds extensive uses, such as in producing energy to power vehicles. Additionally, the analyzed market's potential is developing due to the current popularity of electric vehicles (EVs) and the increasing use of robots in the automotive industry. In addition, Japan is a world leader in automation, healthcare, and IoT, which is predicted to increase demand for pneumatic systems there. In addition, Japan's manufacturing sector significantly contributes to growth.

Since there are still significant infrastructure needs in the UAE and the entire Gulf Cooperation Council (GCC) area, infrastructure projects are crucial to the country's economic growth. Heavy construction trucks are a classic example of hydraulic equipment that uses liquid fluid power to complete activities, and they are extensively utilized in the construction sector. As the region is home to some of the world's largest providers of natural resources, several nations are actively engaged in mining, energy and electricity production, oil and gas exploration, etc. This is anticipated to boost market growth during the forecast period.

Segmental Analysis

The global fluid power equipment market is segmented by product type, equipment type, and end-user vertical.

Based on product type, the global fluid power equipment market is bifurcated into hydraulics and pneumatics.

The hydraulic equipment market segment is the highest contributor and is expected to grow at a CAGR of 5.80% during the forecast period. There has been a noticeable growth in demand for mobile hydraulic equipment at higher operating pressures, with requirements as high as 5,000 psi and 6,500 psi. Hoists and cranes, mining and logging equipment, farm and construction machinery, and different industrial machines and transportation systems, all have a variety of uses that have led to a demand for higher operating pressure. As businesses transition to more intelligent environments, the sector is seeing significant advancements in the automation space. Several significant market participants are betting on developing synergies between the hydraulic products and the electrical division.

Pneumatic equipment uses pressurized gas, the key distinction from hydraulic equipment, which leverages liquids to pull energy. The machinery has opened the door to a wide range of uses, including crucial jobs in huge industries and simpler ones in daily life, such as bicycle pumps, the brakes on big vehicles like trucks and buses, tire pressure gauges, jackhammers, and nail guns. Adopting pneumatic equipment for diverse processes is assisted by the need for excellent energy efficiency supplied by this equipment.

Based on equipment type, the global fluid power equipment market is bifurcated into pumps, motors, valves, cylinders, accumulators and filters, and others.

The valves segment owns the highest market share and is expected to grow at a CAGR of 6.90% during the forecast period. There are numerous uses for hydraulic cylinders. Hydraulic presses, cranes, forges, and packaging machines are a few common examples and are often used in stationary and mobile settings (such as agricultural machines, construction vehicles, and marine equipment). In addition to using booms, arms, lifts, platforms, and buckets, they are necessary for excavators, loaders, balers, telehandlers, man-lifts, drill rigs, and dump trucks. The most effective and efficient method is hydraulic cylinders for pushing, pulling, lifting, and lowering.

Pneumatic valves have specific uses in the medical and life sciences industry. The system or machine is only a small process component, such as analyzing samples or cleaning instruments. This industry is expected to increase significantly throughout the projection period. When lives are on the line, pneumatic valves must be dependable and made with care, as by products from the production process cannot be left behind and injected into a patient.

Based on end-user verticals, the global fluid power equipment market is bifurcated into construction, agriculture, material handling, oil and gas, aerospace and defense, machine tools, hydraulic tools, and others.

The construction segment is the highest contributor to the market and is expected to grow at a CAGR of 6.7% during the forecast period. In the construction industry, hydraulic system design emphasizes power density rather than just power, particularly in components like hydraulic motors, where space is at a premium. Essential producers of construction equipment are moving away from the more conventional control-by-wire techniques and toward electronic control. However, electric cylinders and motors can never be manufactured as compact yet powerful as to replace hydraulics. Hence it is believed that they will never replace hydraulic actuators in construction machines. A self-contained integrated actuator would be used in place of a central power unit and hydraulic control networks.

Self-propelled harvesters for fruits, vegetables, and row crops are comparable in size to multiple-pulling tractors with engines over 500 horsepower. Some fodder corn harvesters feature 1,000 horsepower or more engines. Some of these machines solely use hydraulic power pumps, which is why they start their engines. Others divide the mechanical tasks between a hydraulic system and a direct drive gearbox. While maintaining the capacity to apply all of the hydraulic power to motor functions for quick movement between growth zones, the system design must strike a compromise between the challenges of distributing hydraulic flow evenly to all of the subcircuits.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• March 2024 - Motion Industries Inc., a prominent distributor of industrial technology solutions and parts for maintenance, repair, and operation, signed a definitive purchase agreement to acquire the operating assets of SER Hydraulics and Perfetto Manufacturing.
• March 2024 - During Work Truck Week 2024, various electric, pneumatic, and hydraulic technologies and novel vehicle designs were showcased. Work Truck Week has grown to be the biggest gathering in North America devoted to the work truck sector, which is an important part of the trucking industry as a whole and a consumer of fluid power systems.