Hydraulic Equipment Market

• Introduction of integrated Industry 4.0 with IoT is driving the market growth

The primary market trend propelling the hydraulic equipment market CAGR growth is the introduction of integrated Industry 4.0 with IoT. The so-called "Industry 4.0 revolution" is taking place in the global economy as end-user industries implement industrial automation. Integration of all the systems in warehouses and distribution centers requires automation. For instance, network-integrated hydraulic equipment can enhance operations and lower operating expenses. Sensor data is stored in the cloud and is instantly accessible for additional analysis. As a result, fluids, air pressure, and temperature are increasingly being adjusted by automated material handling operations, which are essential to any facility.

During the projection period, this is anticipated to raise demand for sophisticated, automated hydraulic equipment, particularly as several businesses are anticipated to implement Industry 4.0.

Around the world, agriculture has long been a vital industry. Many tasks, including seeding, plowing, harvesting, spraying fertilizer and pesticides, and other procedures, were done by hand earlier. As a result of growing industrialization and the development of new technology, farmers today prefer employing machines for agricultural-related chores. Modern equipment is used in agriculture, such as atomized tractors or harvesters, to increase productivity and lower high labour costs.

In response to the rise in the use of equipment in agriculture, many companies, including Komatsu, Bosch, John Deere, New Holland, and AGCO, are offering cutting-edge machinery with hydraulic motors, valves, and pumps, including tractors, dryers, mini excavators, wheel loaders, sprayers, rotary cutters, and planters & seeders. As a result of the usage of automation and mechanisation in farming, the market for hydraulic equipment is growing.

The expansion of the construction industry primarily drives the development of the hydraulic equipment market. The hydraulic equipment market is being driven by the expansion of the real estate industry, particularly the rise in residential and commercial buildings globally. Developed nations like the US intend to make large investments in infrastructure growth. The potential for 100% FDI in township and settlement projects in emerging economies like India is predicted to boost demand for hydraulic construction machinery such as hydraulic cranes, excavators, and loaders throughout the forecast period.

Due to increased global investments in infrastructure projects, there is a growth in the demand for construction equipment. Governments worldwide are making considerable investments in sports facilities and infrastructure construction. As a result, during the projection period, there will be an increase in demand for hydraulic equipment in construction machines. Thus, driving the hydraulic equipment market revenue.

The Global Hydraulic Equipment Market Industry is witnessing a heightened emphasis on energy efficiency, driven by regulatory frameworks and sustainability initiatives. Industries are increasingly adopting hydraulic systems that minimize energy consumption while maximizing output. This shift not only aligns with global environmental goals but also offers cost savings for businesses. Hydraulic equipment manufacturers are responding by developing energy-efficient solutions that comply with stringent regulations. As a result, the market is likely to see a significant uptick in demand for such products, contributing to the overall growth of the industry. This trend reflects a broader commitment to sustainable practices across various sectors.

The Global Hydraulic Equipment Market Industry is significantly influenced by the expansion of agricultural mechanization. As farmers seek to enhance productivity and efficiency, the adoption of hydraulic systems in agricultural machinery is on the rise. Equipment such as tractors and harvesters increasingly rely on hydraulic technology to perform complex tasks with precision. This trend is particularly evident in regions where agriculture is a primary economic driver. The integration of hydraulic systems not only improves operational efficiency but also supports sustainable farming practices. As the agricultural sector continues to evolve, the demand for hydraulic equipment is expected to grow, further bolstering the industry.

The Global Hydraulic Equipment Market Industry is experiencing a surge in demand driven by the booming construction sector. As urbanization accelerates, infrastructure projects are proliferating, necessitating advanced hydraulic systems for machinery such as excavators and cranes. In 2024, the market is projected to reach 57.5 USD Billion, reflecting the industry's response to the increasing need for efficient construction solutions. This growth trajectory is expected to continue, with the market potentially expanding to 150.2 USD Billion by 2035, indicating a robust compound annual growth rate of 9.11% from 2025 to 2035. Such dynamics underscore the critical role of hydraulic equipment in modern construction practices.

The Global Hydraulic Equipment Market Industry is benefiting from the escalating demand from the manufacturing sector. As industries strive for automation and increased production capabilities, hydraulic systems are becoming integral to manufacturing processes. These systems facilitate the operation of machinery, enhancing productivity and precision. The ongoing trend towards automation is likely to drive further investments in hydraulic technology, as manufacturers seek to optimize their operations. This demand is expected to contribute significantly to the market's growth, with projections indicating a robust expansion trajectory. The manufacturing sector's reliance on hydraulic equipment underscores its importance in driving industrial advancements.

Technological innovation plays a pivotal role in shaping the Global Hydraulic Equipment Market Industry. The introduction of smart hydraulic systems, which integrate IoT and automation, enhances operational efficiency and reduces downtime. These advancements allow for real-time monitoring and predictive maintenance, thereby optimizing performance. As industries increasingly adopt these technologies, the demand for sophisticated hydraulic solutions is likely to rise. The ongoing evolution of hydraulic components, such as pumps and valves, further supports this trend, enabling manufacturers to offer more reliable and efficient products. Consequently, the market is poised for substantial growth as businesses seek to leverage these innovations.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American hydraulic equipment market area will dominate this market. Over the past few years, North America's food and beverage, pharmaceutical, and FMCG businesses have all experienced rapid growth. The demand for hydraulic-operated filling and packing equipment has increased as a result of the rise in FMCG product demand, new manufacturing facilities, and the expansion of existing factories. When filling containers like bags and sacks, the food and beverage industry uses conveyors powered by hydraulic motors.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Hydraulic Equipment Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe hydraulic equipment market accounts for the second-largest market share. The demand for packaged food and beverages, pharmaceuticals, and FMCG products has rapidly increased in Europe. Additionally, the need for hydraulic equipment in Europe has been fueled by the increase in projects undertaken in the manufacturing sectors of transportation, forestry, mining, agriculture, and construction. Additionally, major market participants have embraced a variety of developing techniques to strengthen their position. As an example, LEFORT introduced a new product line for large hydraulic shears & balers in June 2019.

Further, the German hydraulic equipment market held the largest market share, and the UK hydraulic equipment market was the fastest growing market in the European region

The Asia-Pacific Hydraulic equipment Market is expected to grow at the fastest CAGR from 2023 to 2032. The hydraulic equipment sector is expanding at the quickest rate in the Asia-Pacific region as a result of the massive population bases in countries like China and India. This region has dramatically increased its use of FMCG products since a few years ago, which fuels market expansion. The rapidly expanding manufacturing, construction, mining, agricultural, and transportation sectors also contribute to the demand for hydraulic equipment. Companies have set up manufacturing facilities to meet the region's developing demand as a result of this growing requirement.

Moreover, China’s hydraulic equipment market held the largest market share, and the Indian hydraulic equipment market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the hydraulic equipment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, hydraulic equipment industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global hydraulic equipment industry to benefit clients and increase the market sector. In recent years, the hydraulic equipment industry has offered some of the most significant advantages to market.

Major players in the Industrial hydraulic equipment market attempting to increase market demand by investing in research and development operations include Bosch Rexroth (Germany), Eaton Corporation Plc (Ireland), Parker Hannifin (US), Kawasaki (Japan), HAWE (Germany), Hydac (Germany), Moog, Inc. (US), Bucker Hydraulics (Germany), Daikin (Japan), Concentric (Sweden), Casappa (Italy), Nachi-Fujikoshi (Japan), Dantal Hydraulics (India), Fluitronics GmbH (Germany), and Linde Hydraulics (Germany).

Hydraulics, electrical engineering, and electronics make up the modular driving systems that Linde Hydraulics develops and distributes around the world. The systems created by Linde Hydraulics, a pioneer in the field of high pressure hydraulics, are the gold standard for drastically lowering fuel and CO2 usage. The product line consists of electric motors, rotary drives, valves, electronic controllers, hydraulic pumps, and motors. Linde Hydraulics is a development partner and supplier for a variety of recognized producers of mobile work equipment, including producers of industrial gear and equipment for the construction, mining, agriculture, forestry, and municipal utility sectors.

Manufacturer of air conditioners and refrigerants is Daikin Industries Ltd. (Daikin). It offers a broad range of goods and technology for air conditioning, refrigeration systems, oil hydraulics, defense systems, chemicals, and other electronics. The company's air conditioners are frequently utilised in home, commercial, and industrial settings. Additionally, it supplies fluoroplastics, machinery for chemical engineering, fluorocarbons, and fine chemical goods. The business offers industrial hydraulic machinery, mobile hydraulic equipment, guided missile componentry, and oxygen therapy equipment.