Electro Hydraulics Market

According to a research report "Electro Hydraulics Market for Off-Highway Equipment by Type (Excavators, Backhoe Loaders, Wheel Loaders, Agriculture Loaders), Component (Hydraulic Cylinders, Electric Motors, Hydraulic Pumps, Control Valves, Sensors, Electronic Control Unit, Programmable Logic Controller), Type, and Region - Global Forecast to 2032" published by MarketsandMarkets, the electro hydraulics market for off-highway equipment is projected to grow from 92,501 units in 2025 to 234,487 units by 2032 at a CAGR of 14.2%.

Browse 163 market data Tables and 66 Figures spread through 214 Pages and in-depth TOC on "Electro Hydraulics Market for Off-Highway Equipment by Type (Excavators, Backhoe Loaders, Wheel Loaders, Agriculture Loaders), Component (Hydraulic Cylinders, Electric Motors, Hydraulic Pumps, Control Valves, Sensors, Electronic Control Unit, Programmable Logic Controller), Type, and Region - Global Forecast to 2032"
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The electro hydraulics market is expanding in the Americas due to the increased focus on efficiency, precision, energy saving, and the demand for fuel-efficient hydraulics for off-highway equipment. Technological advancements in hydraulics, such as the integration of sensors, solenoid-operated control valves, and PLCs and ECUs, are estimated to further increase the demand for electro hydraulics in the coming years.

By equipment type, the excavators segment is projected to lead the electro hydraulics market for off-highway equipment during the forecast period.

Excavators require high energy and fuel to operate, which makes them a key focus for efficiency improvements. Electro hydraulic systems offer precise control over critical functions, such as the boom, arm, and bucket, allowing for smoother and more responsive movements. This precision helps operators perform tasks like digging, lifting, and handling materials with greater accuracy and control than traditional hydraulic systems.

The integration of electronic controls in these systems also improves the overall performance by reducing fuel consumption. For instance, AB Volvo’s IMVT technology improves precision and reduces fuel consumption by up to 25% for work functions. Electro hydraulics also help enhance cycle times and enable advanced features like automatic digging modes and grade assist systems. Moreover, electro hydraulics allow seamless integration with machine control and telematics systems, supporting remote monitoring and boosting job site productivity.

Leading global OEMs such as AB Volvo (Sweden), Sany Global (China), Caterpillar (US), Komatsu Ltd. (Japan), and Hitachi Construction Machinery Ltd. (Japan) are already offering excavators equipped with electro hydraulic technology. Due to excavators’ high energy demands and the substantial benefits of electro hydraulics, this equipment type will likely experience the highest adoption rate.

By type, the electric segment is projected to grow at a higher rate than the conventional segment during the forecast period.

The electrically actuated hydraulic systems market is projected to grow faster than conventional ones due to the increasing demand for precision, efficiency, and automation across off-highway equipment sectors. These systems combine traditional hydraulic strength with the intelligence of electronic controls, offering real-time monitoring and adjustment of hydraulic functions through sensors, actuators, ECUs, and software. This results in significantly better fuel efficiency, reduced emissions, and enhanced performance.

Electro hydraulics are rapidly gaining traction in construction, agriculture, forestry, and mining equipment due to their ability to support advanced technologies like semi-autonomous operation, load-sensing hydraulics, machine control integration, and real-time data monitoring. In agriculture, they are essential for precision farming practices, while in construction and mining, they enhance equipment control and safety. Additionally, features such as advanced joysticks and touchscreen interfaces improve operator comfort and reduce fatigue, increasing demand for these systems.

Although electro hydraulic systems are more complex and come with higher initial costs, their long-term benefits in productivity, fuel savings, and regulatory compliance outweigh these challenges. As industry continues shifting towards smart, connected, and energy-efficient machinery, electro hydraulics are positioned for faster adoption and higher growth than conventional hydraulic systems.

Europe is projected to be the largest electro hydraulics market for off-highway equipment during the forecast period.

Europe is projected to account for the largest share of the global electro hydraulics market for off-highway equipment during the forecast period, at ~40%. The growing demand for electro hydraulics in this region is driven by the need for more efficient technologies, higher productivity, and the strong presence of major electro hydraulics technology providers. The dominance of the European market is further enhanced due to the presence of key technology providers, such as Bosch Rexroth (Germany), Power-Packer Europa B.V. (Netherlands), Poclain (France), and Walvoil S.p.A (Italy). The region also has a strong presence of several leading off-highway equipment manufacturers, including AB Volvo (Sweden), Liebherr (Switzerland), J C Bamford Excavators Ltd. (UK), and CNH Industrial N.V. (Italy). These technology providers have developed advanced electro hydraulic systems for many off-highway machines. Off-highway OEMs are increasingly using these systems in their machinery, which is helping the electro hydraulics market grow across Europe. Also, the European region has seen the highest adoption of electric-propelled off-highway equipment, whether construction or agriculture, which is also expected to drive the market demand in the region.

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