Hydraulic Equipment Market Size, Share & Trends Analysis Report By Type (Mobile, Industries), By End User (Mining & Construction, Agriculture & Mining, Packaging, Material Handling, Other (petrochemical, machine tools, automotive, paper, plastic, rubber and printing)), By Product (Pumps, Motors, Valves, Cylinders, Accesorise) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global hydraulic equipment market size was valued at USD 45.34 billion in 2023. It is expected to reach USD 65.82 billion in 2032, growing at a CAGR of 4.23% over the forecast period (2024-32). The demand for hydraulic equipment is driven by industrial automation and machinery across various sectors, including manufacturing, construction, agriculture, and mining. Hydraulic systems power a wide range of machinery and equipment, such as hydraulic presses, excavators, loaders, and cranes, facilitating efficient and precise operations.

Hydraulic machines are those that operate with the assistance of liquid fluid. The hydraulic liquid is pumped to cylinders and motors through the machine and is pressurized while accounting for resistance. The liquid is further distributed through pipes, hoses, or tubes after being controlled by the valves. One ON/OFF button is needed to operate the system. Additionally, the system is lighter because no gears or levers are used in the process. Regardless of changes in operation speed, hydraulic equipment maintains a constant force.

The growth of the mining and construction industries, agricultural automation, and the expansion of new manufacturing facilities have all increased the demand for hydraulic machinery. Manufacturers of hydraulic equipment have implemented several strategies to improve their product offerings and provide better customer service to meet the rising demand. Such tactics encourage the market's expansion by increasing demand for hydraulic equipment with cutting-edge technology.

Market Dynamics

Global Hydraulic Equipment Market Drivers

Adoption of Mechanized Agricultural Equipment

Agriculture has been a fundamental and significant business across the world for ages. Various activities such as ploughing, sowing, fertilizers & pesticide spraying, harvesting, and different processes were carried out manually in older times. With the increase in industrialization and the invention of various novel equipment, farmers prefer using machines for agriculture-related activities. Advanced equipment such as atomized tractors or harvesters is used in agriculture activities to increase efficiency and save high labor costs.

With the rise in adoption of equipment in agriculture, several companies such as Komatsu, Bosch, John Deere, New Holland, and AGCO are offering advanced machinery that has hydraulic motors, valves, and pumps such as tractors, dryers, sprayers, rotary cutters, mini excavators, wheel loaders, and planters & seeders. For instance, in April 2018, Mahindra & Mahindra’s Farm Equipment Sector launched new Novo 65 HP and 75 HP tractors equipped with advanced synchromesh transmission coupled with a precision hydraulics system. Thus, adopting automation and machinery in farming is boosting the growth of the hydraulic equipment market.

Increase in Industrialization

The rise in industrialization in developing countries has propelled the requirement for hydraulic equipment. Industries such as mining & construction equipment, agricultural equipment, packaging industry, and material handling require equipment that can handle heavy operations. Hydraulic motors, pumps, valves, cylinders, and actuators can carry out heavy-duty operations with higher speed and efficacy. Thus, hydraulic equipment or components are an ideal and reliable option for various industry functions. Companies such as Bosch Rexroth, Daikin, Eaton, and Parker Hannifin offer hydraulic-operated machines, including motors, pumps, cylinders, valves, steering, seals, press machines, lifts, and cylinders according to the application in the respective industry. Companies continuously adopt atomization for efficient working, and thus advanced versions of hydraulic machines are witnessing continuous demand. This acts as one of the primary drivers of global hydraulic equipment.

Global Hydraulic Equipment Market Restraint

Replacement of Hydraulic Equipment with Electro-Mechanical Systems

Electro-mechanical systems are rapidly replacing hydraulic equipment. This is attributed to the fact that electro-mechanical-operated equipment offers numerous advantages over hydraulic equipment. For instance, an electro-mechanical system is cheaper than a hydraulic system when the requirement of ancillary hydraulic equipment is considered. In addition, these systems require less maintenance and repair, as there is a low risk of leakage. Furthermore, electro-mechanical systems only use power while moving the load. In contrast, hydraulic systems have to maintain pressure levels of operating fluids to maintain the position while holding the load, which can cause a delay in responding to the commands given by the operator. . This acts as a restraining factor in the hydraulic equipment market.

Global Hydraulic Equipment Market Opportunities

The Surge in the Need for Energy-Efficient Hydraulic Equipment

Energy consumption by hydraulic equipment is the primary concern, which incurs additional overall costs of purchasing and operating industrial plants and machinery. As the pressure in hydraulic equipment is high, a considerable amount of energy is consumed, which, in turn, increases energy costs. To curb additional costs, energy-efficient hydraulic equipment is deployed. In addition, various new advancements in hydraulic technology have increased its efficiency. For instance, variable speed pump drives in plastics processing machines reduce pressure holding losses during pauses and partial load operation. Similarly, variable pump and valve systems that allow electronic flow matching minimize losses.

In December 2017, Caterpiller launched backhoe loaders 426 F2, 424 B2, Cat 336E excavators, and Hindustan 2021 D wheel loaders. This new equipment has pump flow in a superior hydraulic system that delivers energy-efficient hydraulic performance even for heavy work. Thus, the introduction of advanced hydraulic equipment by manufacturers is anticipated to create a lucrative opportunity for the growth of the global market during the forecast period.

Regional Analysis

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%. Asia-Pacific witnesses the highest growth in the hydraulic equipment market, owing to a high population base in countries such as China and India. The consumption of FMCG products has increased significantly in this region over the last few years, which drives market growth. In addition, the rapid development of the manufacturing, construction, mining, agriculture, and transportation industries boosts the demand for hydraulic equipment. Owing to this increased demand, manufacturers have set up manufacturing plants to meet the growing requirement in the region. Key players have adopted various developmental strategies to strengthen their foothold in the market. For instance, in October 2017, Sun Hydraulics started construction of its new plant in Incheon, Korea, to meet the increasing demands for valves, manifolds, and integrated packages. It will serve the need for hydraulic equipment of customers from South Korea, Japan, China, Australia, and Southeast Asia.

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. Rapid development has been witnessed in North America's food & beverage, pharmaceutical, and FMCG industries over the past few years. With the increased demand for FMCG products, new manufacturing plants and the expansion of old factories have increased the demand for hydraulic-operated filling and packaging machines. Hydraulic motors that operate conveyors are used in food & beverage while filling the containers such as bags and sacks.

Furthermore, due to the surge in demand for advanced equipment in construction, mining, and agriculture industries, companies such as Liebherr, Hitachi, and Caterpillar launched new hydraulic operated cranes, dozers, tractors, and tree cutters to meet increasing customer needs. For instance, in 2020, Liebherr planned to introduce redeveloped 42 M5 XXT truck-mounted concrete pump and hydraulic drives, which will have more stability while operating and carrying heavy loads. Such strategies and applications of hydraulic equipment drive the growth of the hydraulic equipment market in North America.

Europe is the third largest region. A rapid increase in the requirement for packaged food & beverage, pharmaceutical, and FMCG products in Europe. In addition, the rise in the number of projects carried out in construction, forestry, mining, agriculture, transportation, and other manufacturing industries has driven the demand for hydraulic equipment in Europe. Furthermore, key market players have adopted various developmental strategies to straighten their foothold. For instance, in June 2019, LEFORT launched a new product range for large hydraulic shears & balers. These hydraulic shears and balers have a cutting force ranging from 600 to 1,000 tons and exhibit an operating weight between 45 and 100 tons. Thus, all these factors collectively contribute to the market's growth in Europe.

Segmental Analysis

The global hydraulic equipment market is segmented into application, end user, product, and region.

Based on application, the global market is classified into mobile and industrial. The industrial segment was the highest contributor to the market and is estimated to grow at a CAGR of 3.7% during the forecast period. Industrial hydraulic equipment is used in various industries such as packaging, food & beverage, rubber, paper, printing, plastic, and press. For example, using dyes, hydraulic press machines are used in sheet metal press workshops to mold the sheets in desired shapes. In addition, sheet metal bodies of cars are shaped using hydraulic press machines.

Furthermore, in material handling industries, hydraulic equipment, including aerial maintenance platforms, hydraulic stackers, floor cranes, and drum lifters & tilters, are used to transport the material from one location to another. Similarly, hydraulic paper cutting machines find their application in the paper industry, hydraulic printing machines are used in the printing industry, hydraulic rubber molding machines are applicable in the rubber industry, and hydraulic packaging machines are utilized in the food & beverage and pharmaceutical industries. These machines use hydraulically operated equipment such as motors, pumps, cylinders, actuators, and pumps. Such a wide range of hydraulic equipment applications in various industries due to their easy controlling, simple operation, and a large amount of power generation are anticipated to boost the growth of the industrial hydraulic equipment market during the forecast period.

The mobile segment is the second largest. Mobile hydraulic equipment includes movable equipment operated by hydraulic motors, drivers, pumps, or cylinders to carry out their work. For example, construction, mining, agricultural, marine, and forestry are the industries where movable equipment such as excavators, loaders, dump trucks, tractors, dryers, sprayers, rotary cutters, mini excavators, and wheel loaders are used. These equipment are portable, and hence are considered under the mobile category. A significant increase has been witnessed in construction and mining projects globally. Heavy work needs hydraulic equipment for the process. For instance, O’keefe Group, a civil engineering company, which provides services to public, private, and residential sectors, in April 2019, placed an order for 26 new JCB machines, including crawler excavators of various capacities for the services such as bulk earthworks, demolition, groundworks, and soil stabilization.

Furthermore, in January 2018, Belaz launched 7555H new mining dump trucks with a payload capacity of 55 tons. It is equipped with an automatic control system for hydraulic and mechanical transmission, which helps to improve the operational performance of the truck, reliability, and service life. In addition, it has two circuit-integrated hydraulic systems for the brake system, steering, cooling system, and dumping control. Such construction projects, mining projects, and product launches are expected to boost the growth of the mobile hydraulic equipment market during the forecast period.

 Depending on the end user, the global market is segregated into mining & construction, agriculture & forestry, packaging, material handling, and others (paper, plastic, rubber, and printing). The mining & construction segment was the highest contributor to the market and is estimated to grow at a CAGR of 3.4% during the forecast period. Manufacturers are introducing improved solutions, various excavators for specific requirements, and enhanced technology and fuel efficiency to reduce operating costs and increase productivity. For example, in September 2018, Doosan Infracore launched the Doosan Machine Guidance smart solution for excavators. The machine guidance system provides real-time work progress to the operator, collected using four sensors attached to the excavator boom, bucket, main body, and working arm. Therefore, improved excavators help to increase work efficiency, which is expected to boost the growth of the hydraulic equipment market during the forecast period.

Based on product, the global market is fragmented into pumps, motors, valves, and cylinders. The cylinders segment was the highest contributor to the market and is estimated to grow at a CAGR of 3% during the forecast period. Advanced cylinders give more stability to hydraulic equipment while handling heavy loads. For instance, in September 2019, Komatsu launched a PC2000-11 hydraulic excavator with larger-diameter carrier rollers and improved hydraulic cylinders. It enables the machine to withstand the most abrasive applications. Such product launches where hydraulic cylinders are applicable augments the global market growth.

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

• February 2024 - A new hydraulic control fluid, Transaqua SP-HC, was introduced by Castrol under its Transaqua brand. The fluid offers comprehensive protection for subsea production systems and is designed to be used as the control fluid in subsea production control systems.
• May 2024 - Komatsu's fleet of hydraulic mining excavators for surface mining, the PC9000, has undergone the most recent upgrade, as disclosed by Komatsu Germany Mining Division (KGM) and SMS Equipment.