Hydraulic Power Unit Market

• Adoption of Mechanised Agricultural Equipment propels market growth.

Market CAGR for hydraulic power unit is being driven by the adoption of mechanized agriculture equipment. Agriculture has been a vital and significant business throughout history. Various tasks including as ploughing, sowing, fertiliser and pesticide spraying, harvesting, and other processes were done by hand in the past. Farmers prefer employing machines for agriculture-related operations due to increased industrialisation and the advent of various unique equipment. In agriculture, advanced equipment such as atomized tractors or harvesters are employed to boost efficiency and reduce labour expenses.

With the increased adoption of agricultural equipment, several companies, including Komatsu, Bosch, John Deere, New Holland, and AGO, are providing advanced machinery with hydraulic motors, valves, and pumps, such as tractors, dryers, sprayers, rotary cutters, mini excavators, wheel loaders, and planters & seeders.

For instance, in April 2019, Mahindra & Mahindra's Farm Equipment Sector introduced new Novo 65 HP and 75 HP tractors with superior synchromesh gearbox and precise hydraulics. As a result, the adoption of automation and mechanisation in farming is propelling the hydraulic power unit industry forwards.

The increased industrialisation of developing countries has increased the demand for hydraulic equipment. Mining and construction equipment, agricultural equipment, the packaging sector, and material handling all require heavy-duty equipment. Hydraulic motors, pumps, valves, cylinders, and actuators can perform heavy-duty operations at a faster and more efficient rate. As a result, hydraulic equipment or components are an excellent and dependable choice for a variety of industry purposes. Hydraulic-powered machines are available from companies such as Bosch Rexroth, Daikin, Eaton, and Parker Hannifin, and include motors, pumps, cylinders, valves, steering, seals, press machines, lifts, and cylinders depending on the application.

Companies are constantly implementing atomization to improve efficiency, and as a result, modern versions of hydraulic machines are in high demand. One of the key drivers of worldwide hydraulic power unit is this.

The Global Hydraulic Power Unit Market Industry is projected to experience substantial growth in the coming years. With a market value anticipated to reach 13.5 USD Billion in 2024 and further expand to 23.3 USD Billion by 2035, the industry is poised for a robust trajectory. The compound annual growth rate (CAGR) of 5.06% from 2025 to 2035 indicates a sustained demand for hydraulic power units across various applications. This growth is likely driven by factors such as increased automation, infrastructure development, and advancements in hydraulic technology, positioning the market favorably for future expansion.

The Global Hydraulic Power Unit Market Industry experiences a notable surge in demand for automation across various sectors, including manufacturing and construction. As industries increasingly adopt automated systems to enhance efficiency and productivity, hydraulic power units play a crucial role in powering these systems. For instance, hydraulic power units are integral to robotic arms and automated machinery, which are becoming commonplace in modern factories. This trend is expected to contribute significantly to the market's growth, with projections indicating a market value of 13.5 USD Billion in 2024 and a robust CAGR of 5.06% from 2025 to 2035.

The Global Hydraulic Power Unit Market Industry is increasingly influenced by the growth of the renewable energy sector. Hydraulic power units are essential in various renewable energy applications, including wind and hydroelectric power generation. For instance, hydraulic systems are utilized in the operation of wind turbine blades and hydroelectric dam gates, ensuring efficient energy production. As nations strive to transition to cleaner energy sources, the demand for hydraulic power units in these sectors is likely to rise. This shift towards renewable energy not only supports environmental goals but also enhances the market's potential for growth in the coming years.

The Global Hydraulic Power Unit Market Industry is witnessing increased adoption of hydraulic power units in mobile equipment applications. Industries such as agriculture, construction, and forestry rely heavily on mobile machinery that utilizes hydraulic systems for various functions, including lifting, digging, and material handling. For instance, hydraulic power units are essential in excavators, tractors, and cranes, which are widely used in construction and agricultural operations. As the demand for mobile equipment continues to rise, driven by urbanization and agricultural expansion, the hydraulic power unit market is expected to flourish, reflecting the growing reliance on hydraulic technology in these sectors.

Government initiatives aimed at infrastructure development are pivotal drivers of the Global Hydraulic Power Unit Market Industry. Countries worldwide are investing heavily in infrastructure projects, including roads, bridges, and public transportation systems. These projects often require hydraulic power units for various applications, such as lifting, excavation, and material handling. For example, the construction of new highways and urban transit systems necessitates the use of hydraulic equipment, thereby bolstering demand for hydraulic power units. As these initiatives continue to expand, the market is projected to reach 23.3 USD Billion by 2035, reflecting the growing reliance on hydraulic technology in infrastructure.

Technological advancements in hydraulic systems are significantly impacting the Global Hydraulic Power Unit Market Industry. Innovations such as smart hydraulic systems, which incorporate IoT technology, enable real-time monitoring and optimization of hydraulic operations. These advancements enhance efficiency, reduce energy consumption, and improve overall system performance. For example, the integration of sensors and data analytics in hydraulic power units allows for predictive maintenance, minimizing downtime and operational costs. As industries increasingly adopt these advanced technologies, the market is poised for substantial growth, driven by the need for more efficient and reliable hydraulic solutions.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Hydraulic Power Unit Market area will dominate this market, With the rising demand for FMCG items, the demand for hydraulic-operated filling and packaging machines has increased. New manufacturing plants and the expansion of existing companies have raised the demand for hydraulic-operated filling and packaging machines. In the food and beverage industries, hydraulic motors that operate conveyors are used to fill containers such as bags and sacks.

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 Power Unit Market Share By Region 2022 (USD Billion)

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

Europe Hydraulic Power Unit Market accounts for the second-largest market share because hydraulic power units are used in numerous oil field operations, Further, the German Hydraulic Power Unit Market held the largest market share, and the UK Hydraulic Power Unit Market was the fastest growing market in the European region

The Asia-Pacific Hydraulic Power Unit Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because cities around the country are developing subways and other urban transportation systems, and there is a high demand for wheel loaders in the country, there has been a significant growth in infrastructure investment through the Public-Private Partnership model. This will have a direct impact on market growth. Moreover, China’s Hydraulic Power Unit Market held the largest market share, and the Indian Hydraulic Power Unit 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 Power Unit Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their 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 Power Unitindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Hydraulic Power Unit industry to benefit clients and increase the market sector. In recent years, the Hydraulic Power Unit industry has offered some of the most significant advantages to medicine. Major players in the Hydraulic Power Unit Market, including Eaton Corporation, Dana Motion Systems, Energy Manufacturing Co., Inc., Hydromega Services Inc., Branch Hydraulic Systems Ltd. and others, are attempting to increase market demand by investing in research and development operations.

Bosch Rexroth AG is a German engineering corporation headquartered in Lohr am Main. It is a wholly owned subsidiary of Robert Bosch GmbH and the consequence of a merger on May 1, 2001, between Mannesmann Rexroth AG and the Automation Technology Business Unit of Robert Bosch GmbH.Bosch Rexroth employs around 31,000 people worldwide and expects to generate 6.2 billion euros in revenue. In July 2022, Bosch Rexroth intends to acquire HydraForce Inc. of Lincolnshire, Illinois, in order to expand its hydraulics sector.

HydraForce designs and manufactures tiny hydraulic valves and systems with 2,100 personnel spread over six manufacturing plants in the United States, Brazil, the United Kingdom, and China. With the planned acquisition of HydraForce, Bosch Rexroth will expand its sales network and improve market access in North America.

Nachi-Fujikoshi Corp. is a Japanese company that manufactures industrial robots, machining equipment and systems, and machine components. Nachi-Fujikoshi is a Tokyo Stock Exchange-listed company with 50 subsidiaries (22 domestic and 28 international). In September 2022, Nachi-Fujikoshi Corporation introduced the EDX-10 DIN connector, which includes a built-in digital amplifier for solenoid proportional valves. In order to boost productivity and efficiency, there is a growing demand for electronically controllable solenoid proportional valves in hydraulic equipment, as well as a growing demand for digitalisation and space-saving facilities in the industrial industry.

To fulfil the demand for better efficiency, "EDX-10," a DIN connector with extra space-saving features and a built-in digital control amplifier that can be mounted directly on a proportional valve, has been introduced in recent years. This has increased user productivity even further.