Hydraulics Market by Components (Motors, Pumps, Cylinders, Valves, Filters, Accumulators, Transmissions), Type (Mobile Hydraulics, Industrial Hydraulics), End User (Construction, Agriculture, Material Handling), Sensors & Region - Global Forecast to 2028
[218 Pages Report] The hydraulics market is expected to grow from USD 42.5 billion in 2023 to USD 50.5 billion by 2028, at a CAGR of 3.5% during the forecast period. The rapid growth in construction activities, heightened need for material handling equipment, increased demand for advanced agricultural machinery, and widespread adoption of hydraulic equipment across industries all significantly influence the dynamics of the hydraulics market. In addition, the increasing use of lifting equipment in the shipping sector, advancements in intelligent hydraulic machinery, ongoing research and development in hydraulic cylinder technology, and the rising adoption of electric vehicles are all factors that generate opportunities within the hydraulic market.
Hydraulics Market Forecast to 2028
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Hydraulics Market Dynamics
DRIVERS: The surge in construction projects leading to demand for hydraulic equipment
The surge in construction activities will significantly contribute to the expansion of the hydraulics market. Worldwide, there's a growing trend of investments in infrastructural development, notably in developed economies like the US. Governments are directing substantial funding towards the enhancement of sports infrastructure and facilities. This global upsurge in construction projects will drive the demand for hydraulic-based construction equipment, including excavators, hydraulic cranes, and loaders. A combined study conducted by Oxford Economics and Global Construction Perspective (GCP) forecasts that the construction industry is poised to reach a value of USD 15.5 trillion by 2030. The majority of this growth is expected to stem from countries such as China, India, and the US. This, coupled with technological advancements within the core construction and infrastructure sectors, is anticipated to elevate the demand for hydraulic systems.
RESTRAINT: High manufacturing and maintenance costs
The manufacturing of hydraulic equipment involves metal forging and precise engineering to craft high-quality hydraulic systems. Small and medium enterprises (SMEs) face cost barriers when entering the hydraulics market. Apart from the initial manufacturing expenses of hydraulic equipment, these enterprises also encounter ongoing maintenance costs over time. There exist multiple factors beyond oil leakage in hydraulic cylinders that necessitate maintenance. Regular inspection of the quality and condition of the cylinder rod is essential. If the rod is bent, it can lead to load imbalances. Moreover, incorrect rod strength or diameter can result in various failures. The cylinder tube requires regular examination due to potential wear and tear on its walls, causing a reduction in thickness known as a balloon tube. These factors contribute to increased maintenance expenses, thereby impeding the widespread adoption of hydraulic systems.
OPPORTUNITIES: Development of smart hydraulic equipment
Several companies in the hydraulic industry invest continually in R&D to enhance their hydraulic equipment and provide better solutions. Due to intense market competition, periodic product upgrades are essential. A pivotal innovation is the development of smart hydraulic systems, which combine traditional hydraulics with electronic intelligence. These systems collect operational data through embedded sensors, enabling performance monitoring and early equipment failure prediction. Smart hydraulic cylinders, incorporating electronic elements and servo valves, ensure precise and efficient piston movement within the cylinder.
CHALLENGES: Availability of substitute products
Leakage of fluids, particularly oil, leading to environmental contamination, remains a major concern in the use of hydraulic equipment. This concern has sparked an increased demand for alternative solutions such as pneumatic systems. Pneumatics, powered by compressed gas pressure to drive linear motion, offer a contamination-free option compared to hydraulics. This difference makes pneumatic systems suitable for applications like agriculture and material handling, where close proximity to personnel is necessary. Consequently, the availability of cleaner alternatives, like pneumatic systems, poses a challenge to the growth of the hydraulic market.
Hydraulics Market Ecosystem
This section describes the hydraulics ecosystem and the deployment of hydraulics equipment in different industries, along with the impact of associated technologies on the hydraulics market.
Cylinders to hold the largest share of the hydraulics market during 2023–2028.
The cylinders segment is expected to account for the largest size of the hydraulics market during the forecast period. Hydraulic cylinders are utilized in industrial and mobile equipment across diverse industries such as construction, aerospace & defense, automotive, agriculture, mining, oil & gas, and marine. The integration of electronics in smart hydraulic cylinders enhances their functionality, accuracy, and control over piston movement. This integration drives the demand for smart hydraulic cylinders across multiple industries, enabling improved performance and precision in various applications.
The mobile hydraulics segment is expected to grow at the highest CAGR in the hydraulics market during the forecast period.
The mobile type of hydraulic segment is expected to register the highest CAGR in the market during the forecast period. Several mobile hydraulic tools such as cranes and excavators rely on the operation of hydraulic cylinders. Hydraulics within the mobile equipment industry serve multiple purposes, including material handling and mining applications. The increasing potential within the construction sector, accompanied by the ongoing trends of urbanization and industrialization, is poised to amplify the need for hydraulic equipment in mobile applications.
The agriculture industry will dominate the market during the forecast period.
The agriculture industry is expected to account for the largest share of the hydraulics market during the forecast period. Modernized agricultural machinery is adept at both crop production and livestock management. These components and systems play a crucial role in ensuring the agricultural industry operates at peak efficiency, minimizing downtime, and maximizing productivity. The request for contemporary agricultural equipment incorporating smart hydraulics persists due to their dependable performance, adaptability, and ease of use.
Asia Pacific is expected to maintain the highest share during 2023–2028.
Asia Pacific is expected to hold the largest share of the hydraulics market throughout the forecast period. Rapid urbanization and industrialization in the Asia-Pacific region, particularly in industries like construction, agriculture, and mining, are fostering the growth of the market. Major Original Equipment Manufacturers (OEMs) face challenges due to increased labor costs and longer lead times involving manual processes. Consequently, manufacturers in countries like China, Japan, and India are shifting towards automated and semi-automated material handling equipment to boost productivity and minimize downtime. This increased demand for material handling equipment is further propelling the growth of the market in the region. The burgeoning requirements for agricultural, construction, and mining equipment contribute significantly to the upsurge of the hydraulics market.
Hydraulics Market by Region
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Key Market Players
The hydraulics players have /implemented various types of organic and inorganic growth strategies, such as product launches, product developments, partnerships, and collaborations, to strengthen their offerings in the market. The major players are Enerpac Tool Group (US), Bosch Rexroth AG (Germany), Danfoss (Denmark), Hydac International GmbH (Germany), Kawasaki Heavy Industries, Ltd. (Japan), KYB Corporation (Japan), SMC Corporation (Japan) Parker-Hannifin Corporation (US), Wipro Enterprises (India), Caterpillar (US), and others. The study includes an in-depth competitive analysis of these key players in the hydraulics market with their company profiles, recent developments, and key market strategies.
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Report Metric |
Details |
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Market Size Available for Years |
2019–2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Value (USD Million/Billion) |
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Segments Covered |
Type, Component, and End User |
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Geographic Regions Covered |
North America, Europe, Asia Pacific, and RoW |
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Companies Covered |
Major Players: Enerpac Tool Group (US), Bosch Rexorth AG (Germany), Danfoss (Denmark), Hydac International GmbH (Germany), Kawasaki Heavy Industries, Ltd. (Japan), KYB Corporation (Japan), SMC Corporation (Japan) Parker-Hannifin Corporation (US), Wipro Enterprises (India), Caterpillar (US), among other – Total 25 players have been covered. |
Hydraulics Market Highlights
This research report segments the hydraulics market based on type, component, end user, and region.
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Subsegment |
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By Type: |
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By Components: |
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By End User: |
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Recent Developments
- In November 2023, At Agritechnica 2023, Danfoss Power Solutions presented a variety of hydraulic components along with innovations for autonomy and electrification, participating in one of the agriculture industry's most significant global events. The company showcased a lineup of hydraulic, electric, and fluid conveyance components designed for application in agricultural machinery. Additionally, it highlighted its comprehensive autonomy solutions, such as the Autonomous Custom Engineering Services (ACES).
- In October 2023, Danfoss reinforced its commitment to "Make in India for India and the World" by locally manufacturing hydraulic hoses (Winner EC110 and EC210). This strengthens fluid conveyance solutions for India, part of its expansion across Chennai, Pune, Baroda, Navi Mumbai, and Bengaluru manufacturing facilities.
- In February 2023, Bosch Rexroth AG successfully finalized the acquisition of HydraForce after obtaining clearance from antitrust authorities. HydraForce is set to become part of Bosch Rexroth's Compact Hydraulics portfolio, contributing significantly to the expansion of the business unit's product range and customer assistance. While both companies specialize in diverse compact hydraulic products, HydraForce's specialized knowledge in designing mechanical and electrical cartridge valves and hydraulic integrated circuits (HIC) will serve as a valuable addition, complementing the existing portfolio of Bosch Rexroth.
- In February 2023, Bosch Rexroth AG inaugurated a cutting-edge Hydraulics Training Center aimed at catering to the technical education requirements within the fluid power industry. This advanced facility is designed to facilitate skills enhancement for newcomers and experienced professionals alike, addressing the diverse learning needs of individuals across various stages of their careers in the industry.
- In September 2022, Parker Aerospace, a division of Parker Hannifin Corporation, a prominent player in motion and control technologies, was chosen by Boeing to provide the AP15V engine-driven pump (EDP) for the hydraulic system of the B-52H Stratofortress. This long-range bomber is undergoing substantial upgrades, including the U.S. Air Force's Commercial Engine Replacement Program (CERP). The Parker AP15V EDP, referred to as the World Pump, will support the aircraft's hydraulic system until the 2050s.
Frequently Asked Questions(FAQs):
What is Hydraulics?
Hydraulics is defined as the mechanical function that relies on liquid pressure to drive mechanical motion by utilizing contained liquid, often through cylinders moving pistons. It empowers tasks like rotating shafts, lifting heavy loads, and drilling precisely. This technology is widely employed in industrial and mobile equipment across construction, aerospace & defense, material handling, automotive, agriculture, mining, oil & gas, and marine sectors, enhancing productivity and reducing downtime.
What is the total CAGR expected to be recorded for the hydraulics market during 2023-2028?
The global hydraulics market is expected to record a CAGR of 3.5% from 2023–2028.
What are the driving factors for the hydraulics market?
The surge in construction projects, growing need for advanced agricultural machinery, rising demand for material handling equipment, and expansion of process industries are some of the factors driving the hydraulics market.
Which are the significant players operating in the hydraulics market?
Enerpac Tool Group (US), Bosch Rexorth AG (Germany), Danfoss (Denmark), Hydac International GmbH (Germany), Kawasaki Heavy Industries, Ltd. (Japan), KYB Corporation (Japan), SMC Corporation (Japan) Parker-Hannifin Corporation (US), Wipro Enterprises (India), Caterpillar (US) are some of the major companies operating in the hydraulics market.
Which region will lead the hydraulics market in the future?
Asia Pacific is expected to lead the hydraulics market during the forecast period.
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The study involved four major activities in estimating the current size of the hydraulics market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. To validate these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Finally, both top-down and bottom-up approaches have been employed to estimate the complete market size. After that, market breakdown and data triangulation methods have been used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to identify and collect information relevant to this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers, certified publications, and articles from recognized authors; directories; and databases. Secondary research has been mainly conducted to obtain key information about the industry’s supply chain, value chain of the market, the total pool of key players, market classification and segmentation according to industry trends, geographic markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain the qualitative and quantitative information relevant to this report. Primary sources from the supply side include experts such as CEOs, VPs, marketing directors, technology and innovation directors, application developers, application users, and related executives from various key companies and organizations operating in the hydraulics ecosystem. Following is the breakdown of primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the size of the overall hydraulics market and the market based on segments. The research methodology used to estimate the market size has been given below:
- Major players operating in the hydraulics market have been identified and considered for the report through extensive secondary research.
- The supply chain and market size of the hydraulics market, both in terms of value and units, have been estimated/determined through secondary and primary research processes.
- All estimations and calculations, including percentage share, revenue mix, splits, and breakdowns have been determined through the use of secondary sources which are further verified through primary sources.
Global Hydraulics Market Size: Bottom-Up Approach
Global Hydraulics Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the market size estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides of the hydraulics market.
Market Definition
Hydraulics is defined as the mechanical function that operates through the force of liquid pressure. In hydraulic systems, mechanical movement is performed by contained, pumped liquid, typically through cylinders moving pistons. Hydraulics enables the operator to accomplish tasks such as turning a shaft, lifting heavy loads, and drilling precision holes. It finds applications in both industrial and mobile equipment used in the construction, aerospace & defense, material handling, automotive, agricultural, mining, oil & gas, and marine industries, as it helps to maintain high productivity and reduce downtime.
Key Stakeholders
- End users
- Government bodies, venture capitalists, and private equity firms
- Hydraulics manufacturers
- Hydraulics distributors
- Hydraulics industry associations
- Professional service/solution providers
- Research institutions and organizations
- Standards organizations and regulatory authorities related to the Hydraulics market
- System integrators
- Technology consultants
Report Objectives:
- To describe and forecast the Hydraulics market, in terms of value, based on type, component, sensors, end user, and region.
- To forecast the market size, in terms of value, for four main regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the market growth
- To provide a detailed overview of the value chain of the Hydraulics ecosystem
- To provide a detailed analysis of the impact of the recession on the Hydraulics market, its segment, and market players
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the opportunities in the market for stakeholders and details of the competitive landscape of the market
- To strategically profile the key players and comprehensively analyze their market positions in terms of ranking and core competencies
- To analyze the major growth strategies implemented by key market players, such as contracts, agreements, acquisitions, product launches, expansions, and partnerships
Available Customizations:
Based on the given market data, MarketsandMarkets offers customizations in the reports according to the client’s specific requirements. The available customization options are as follows:
Product Analysis
- Product matrix that gives a detailed comparison of the product portfolio of each company
Company Information
- Detailed analysis and profiling of 25 key players
Generating Response ...
Growth opportunities and latent adjacency in Hydraulics Market