Hydraulic Power Market Expected to Reach $24.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hydraulic Power Market," The hydraulic power market size was valued at $13.7 billion in 2021, and hydraulic power market is estimated to reach $24.1 billion by 2031, growing at a CAGR of 5.8% from 2022 to 2031.

Hydraulic power is a vital part of a hydraulic system as it can generate a significant quantum of power to initiate mostly any type of hydraulic ram. They draw power using Pascal’s law, i.e., through ratios of area and pressure. The hydraulic power industry includes applications such as machine tools, aerospace test equipment, automation systems, meat processing machinery, mobile equipment, rolling mill machinery, and material handling equipment. Also, they are applied in agricultural equipment, paper mill machinery, oil exploration, oil spill clean-up equipment, industrial process, marine equipment, construction equipment, and theatrical & production equipment.

Rise in construction and increase in production capacities of oil fields coupled with surge in stress on the agricultural sector is projected to drive the demand for hydraulic equipment. It had witnessed considerable growth in the past decades since its implementation in hydraulic machinery. Rise in demand for these machineries and rapid industrialization across the globe are the factors expected to foster the growth of the hydraulic power market. However, increase in demand for alternative power systems such as electromechanical and electric drives with efficient clean and shorter lead times are some of the factors hampering the hydraulic power market growth.

The hydraulic power consists of various components, such as a hydraulic motor and pump, reservoir/accumulators, and other accessories, such as filters, valves, tubes, regulators, and instruments used to monitor the performance of a hydraulic system. In 2021, there was a rapid increase in construction across the United States and Canada. The residential sector was a key driver of the increasing demand for more housing units needing hydraulic power. For instance, construction spending in the United States registered significant growth in 2021 compared to 2020. As of 2021, the average construction spending in the private sector was around USD 1230 billion and over USD 346 billion in the public sector, thus creating significant market demand for hydraulic powers. Also, construction projects in Europe like Crossrail1, Crossrail2, Heathrow airport expansion, Hinkley Point C nuclear plant (UK), and Fehmarn Fixed Belt link (Denmark) are likely to increase the need for hydraulic power during the forecast period. In January 2020, there were nearly 343 pre-construction coal-powered thermal power plants worldwide. The pre-construction plants are estimated to have a capacity of around 299 GW, which may drive the hydraulic power market considerably.

The hydraulic power market forecast is segmented on the basis of operating pressure, component, application, end use and region. On the basis of operating pressure of hydraulic power, the market is segmented into 0-750 PSI, 750-2000 PSI, 2000-3000 PSI, and more than 3000 PSI. On the basis of component, it is classified into power component, control component, and auxiliary component. On the basis of application, the market is divided into cutting, grinding, milling, multi-tooling, forming, rubber & plastic, handling, simulation & testing, and others. On the basis of end-use, it is segmented into mobile, industrial, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Asia-Pacific and Europe.

The major companies profiled in this report include Bosch Rexroth AG, Brevini Fluid Power S.p.A, Nachi-Fujikoshi Corporation, Parker Hannifin Corporation, Weber Hydraulik GmbH, Hydac International GmbH, Hydro-Tek Co Ltd., Bailey International LLC, Eaton Corporation, Energy Manufacturing Company Inc., Hydromega, Branch Hydraulic Systems Ltd., Related Fluid Power Ltd., HCS Control Systems Ltd., Danfoss, Siemens AG, and Daikin Industries. Rapid development of industrialization, modernization and investment in the development of tourism industry has led to surge in the construction and other sectors; which in-turn has fueled the demand for hydraulic power. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the application of hydraulic equipment in various sectors will provide a suitable platform for the development of hydraulic power market trends.

Key findings of the study

• Japan contributes around 3.9% of total hydraulic power market share and would exhibit CAGR of 5.7% during 2022-2031.
• South Korea contributes around 2.51% of total market share and would exhibit CAGR of 7.0% during 2022-2031
• As per global hydraulic power market analysis, by operating pressure, the 2000-3000 PSI segment accounted for the largest share of 46.2% in 2021.
• By component, auxiliary component was the leading segment in 2021 comprising 47.6% of market share in 2021.
• By application, cutting segment occupied market share of 27.5% and is the leading segment in 2021.
• By end use, mobile segment was the highest revenue contributor in 2021 contributing a market share of 45.2% in 2021.
• By region, North America was the leading segment in 2021expected to possess a CAGR of 5.2% during 2022-2031

COVID-19 analysis:

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for solar related equipment in most of the countries across the world led to decline in the demand of the hydraulic power market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.

After the global vaccination the government of various countries has taken initiatives to increase the investment in the energy and transportation infrastructure. Furthermore, India policies to make the country a world class manufacturing hub have led to investment in the construction of air ports, sea ports, and large scale manufacturing facilities. The presence of above mentioned activities and change in policies due to outbreak of pandemic have positive impact on the development of the market during the forecast period.