The global hydraulics market is projected to grow from USD 39.40 billion in 2025 to USD 44.26 billion by 2030, recording a CAGR of 2.4%. Infrastructure development in emerging economies is increasingly driving the demand for hydraulic systems in construction equipment like excavators, loaders, and cranes, as these systems are essential for improving performance and efficiency. The rising focus on energy-efficient and compact hydraulic solutions also contributes to market expansion.
Bosch Rexroth AG (Germany), Danfoss (Denmark), Kawasaki Heavy Industries, Ltd. (Japan), KYB Corporation (Japan), and PARKER HANNIFIN CORP (US) are some major players in the hydraulics market. These players have incorporated various organic and inorganic growth strategies, including collaborations, acquisitions, product launches, partnerships, and expansions, to strengthen their international footprint and capture a larger share of the hydraulics market.
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Major Hydraulics Companies Include:
In April 2025, Kawasaki Heavy Industries, Ltd. (Japan) announced the establishment of its local subsidiary, PT Kawasaki Precision Machinery Indonesia (KPM Indonesia), to strengthen the sale of hydraulic products in the Indonesian market. With rising demand driven by infrastructure growth and mining activity, the new sales company with inventory functions aims to enhance responsiveness to market shifts and customer needs.
In October 2024, Danfoss (Denmark) expanded its Vickers portfolio by launching the KBFRG4-5 hydraulic proportional valve. This single-stage, four-way valve features a round solenoid design and offers high power capacity.
Kawasaki Heavy Industries, Ltd. is a diversified multinational corporation engaged in developing, manufacturing, and selling transportation equipment, industrial systems, and energy solutions. The company operates through several key business segments: Aerospace Systems, Rolling Stock, Energy Solution & Marine Engineering, and Precision Machinery and Robot. Kawasaki offers hydraulic components such as pumps, motors, and valves under its Precision Machinery and Robot segment, serving construction, marine, industrial, and agricultural machinery markets. The company adopts strategies focused on enhancing product competitiveness through technological innovation, expanding its global supply chain, and strengthening its presence in high-growth markets.
Danfoss specializes in energy-efficient solutions, industrial automation, and climate and energy infrastructure. The company operates through three key business segments: Danfoss Power Solutions, Danfoss Climate Solutions, and Danfoss Power Electronics & Drives. Its Danfoss Power Solutions segment offers hydraulic components, such as pumps, motors, valves, and steering units, catering to mobile machinery, construction, agriculture, and industrial applications. Danfoss adopts strategies centered on sustainability, digitalization, and innovation, with a strong focus on decarbonization, electrification of machinery, and smart energy systems. It continues to invest in expanding its global footprint through strategic acquisitions and partnerships.
Market Ranking
The hydraulics market is competitive, with five major players collectively accounting for approximately 30–40% of the market share. Bosch Rexroth AG has reinforced its leadership by embedding Industry 4.0 and Internet of Things technologies into its hydraulic systems, enabling predictive maintenance, condition monitoring, and integration into digital factory environments. Danfoss focuses on sustainability and decarbonization, offering energy-efficient hydraulic components and expanding its electrification initiatives, particularly within mobile off-highway applications. Kawasaki Heavy Industries and KYB Corporation maintain a strong foothold in the Asian market, with core competencies in hydraulic systems for construction machinery, industrial equipment, and automotive applications. PARKER HANNIFIN CORP provides a broad portfolio that spans industrial, mobile, and aerospace hydraulic systems, with an increasing emphasis on smart hydraulics and engineered sustainability. The remaining 60–70% of the market is fragmented, comprising numerous regional and niche players. Competitive dynamics in the market are shaped by advancements in electro-hydraulic integration, increasing automation demands across construction and manufacturing sectors, and a rising preference for energy-efficient, low-emission hydraulic solutions.
Related Reports:
Hydraulics Market by Type (Mobile, Industrial), Component (Cylinders, Valves, Pumps, Motors, Filters, Accumulators, Transmissions), Sensor (Position, Pressure, Temperature), End-use Industry (Construction, Agriculture) and Region - Global Forecast to 2030
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