Hydraulic Equipment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Hydraulic Equipment Market is projected to expand from a valuation of USD 49.75 Billion in 2025 to USD 68.87 Billion by 2031, reflecting a CAGR of 5.57%. This sector is defined by machinery and components that leverage pressurized fluid for power generation, control, and transmission, delivering the high force density required for heavy-duty industrial applications. The market is primarily underpinned by sustained requirements for global infrastructure development and the increasing mechanization of agriculture, where reliable fluid power systems are indispensable for earthmoving and material handling tasks. Unlike temporary market fluctuations, these drivers represent enduring industrial needs for force multiplication and precise motion control within construction, mining, and manufacturing settings.

However, the market faces significant headwinds due to increasingly strict environmental regulations concerning fluid leakage and disposal, which compel manufacturers to adopt expensive compliance measures. This regulatory pressure has intensified the scrutiny of conventional hydraulic systems, particularly when used in ecologically sensitive locations. Despite these obstacles, the economic scale of the sector remains vast; according to the National Fluid Power Association, the total value of fluid power product imports into the United States reached approximately 11.5 billion dollars in 2024. This figure highlights the substantial volume of cross-border trade and the essential role these components play in major industrial economies.

Market Drivers

The principal catalyst for the hydraulic equipment market is the rapid acceleration of global construction and infrastructure initiatives. With governments and private entities channeling substantial investments into urbanization, transportation systems, and residential developments, there is a heightened demand for heavy machinery like excavators, loaders, and cranes.

These assets depend on high-pressure hydraulic pumps and cylinders to achieve the force density necessary for structural lifting and earthmoving. This industrial momentum is evident in the financial results of leading manufacturers; according to Caterpillar Inc., February 2024, in the '2023 Full-Year Financial Results', the company saw full-year sales and revenues rise by 13 percent to 67.1 billion dollars. Such strong equipment sales directly drive the need for fluid power components to supply OEM production lines.

Concurrently, the escalation of global mining and earthmoving activities is fueling the procurement of specialized hydraulic technologies. As mining operations extract resources from deeper and more hostile environments, there is a critical need for equipment that maintains reliability amidst extreme pressure and contamination risks. Consequently, this sector prioritizes durable hydraulic motors and valves that ensure uptime in remote areas. This trend is substantiated by financial data; according to Komatsu Ltd., April 2024, in the 'Consolidated Business Results for the Fiscal Year Ended March 31, 2024', sales within the Construction, Mining and Utility Equipment segment grew to 3.61 trillion yen, driven largely by mining machinery demand. Additionally, the broader component market is expanding to address these needs; according to Bosch Rexroth, April 2024, in the press release 'Bosch Rexroth with higher sales in 2023', the firm recorded sales of 7.6 billion euros over the prior fiscal year.

Market Challenges

The global hydraulic equipment market faces a formidable obstacle in the form of increasingly stringent environmental regulations governing fluid leakage and disposal. As regulatory authorities impose rigorous standards to safeguard sensitive ecosystems, manufacturers are compelled to adopt costly compliance strategies. This regulatory environment necessitates the use of specialized biodegradable fluids and leak-proof systems, which significantly raises the total cost of ownership. Such requirements tend to deter investment in traditional hydraulic machinery, especially within price-sensitive industries where the transition to compliant technologies proves prohibitively expensive, effectively stifling market growth.

The negative impact of these constraints is evident in recent performance indicators that show a contraction in market activity. The financial strain associated with meeting environmental mandates has led to hesitation in procurement processes. Highlighting this downturn, according to the National Fluid Power Association, in August 2024, total fluid power shipments decreased by 14.9% relative to the previous year. This decline serves as a clear indication that regulatory pressures are directly hampering the growth momentum of the hydraulic equipment industry.

Market Trends

The incorporation of IoT and smart sensors is revolutionizing hydraulic components, converting them from passive hardware into intelligent sources of data that facilitate real-time monitoring and predictive maintenance. This evolution meets the industry's demand to reduce unplanned downtime by using connected sensors to track variables such as pressure, temperature, and fluid contamination, effectively shifting revenue models toward service-oriented solutions. This transition is highlighted by the strength of aftermarket revenues even amidst fluctuating primary equipment demand. According to Volvo Construction Equipment, October 2024, in the report 'Resilient performance for Volvo CE in Q3 2024', although machine sales contracted due to market normalization, service sales rose by 2 percent, a growth attributed directly to the increasing adoption of digital solutions.

In parallel, the market is experiencing a structural shift toward electro-hydraulic systems, propelled by the wider electrification of mobile and industrial machinery. Manufacturers are substituting traditional mechanical linkages with electric drives and digitally controlled actuators to improve energy efficiency and ensure compatibility with battery-electric vehicle platforms. This progression necessitates significant capital investment in research and development to create components that offer high-precision electronic control while maintaining power density. Underscoring this strategic focus, according to Danfoss, March 2024, in the 'Annual Report 2023', the company raised its innovation investments by 7 percent to 487 million euros, aiming to broaden its portfolio of competitive solutions for high-growth sectors like electrification.

Key Players Profiled in the Hydraulic Equipment Market

• Robert Bosch GmbH
• Parker-Hannifin Corporation
• Hydac International GmbH
• Danfoss AS
• SMC Corporation
• Festo Beteiligungen GmbH & Co. KG
• Norgren Limited
• Bucher Hydraulics
• HAWE Hydraulik SE
• Linde Hydraulics GmbH & Co.

Report Scope

In this report, the Global Hydraulic Equipment Market has been segmented into the following categories:

Hydraulic Equipment Market, by Type:

• Pumps
• Valves
• Cylinders
• Motors
• Filters & Accumulators
• Transmission

Hydraulic Equipment Market, by End-User Industry:

• Construction
• Agriculture
• Material Handling
• Aerospace & Defense
• Machine Tools
• Oil & Gas
• Hydraulic Press
• Plastics
• Automotive

Hydraulic Equipment Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Hydraulic Equipment Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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