Pneumatic and Hydraulic System Global Market Report 2025

The pneumatic and hydraulic system market size has grown strongly in recent years. It will grow from $42.09 billion in 2024 to $44.87 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to increasing industrial automation adoption, rising demand for energy-efficient systems, expanding manufacturing output, growth in automotive production, and increasing construction activities.

The pneumatic and hydraulic system market size is expected to see strong growth in the next few years. It will grow to $57.21 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to increasing renewable energy projects, rising focus on sustainability, expansion of aerospace and defense sectors, growing demand for robotics integration, and increasing urban infrastructure development. Key trends in the forecast period include innovation in modular valve systems, investment in research and development, development of compact hydraulic units, advancements in predictive maintenance solutions, and innovation in energy-efficient pneumatic solutions.

The increasing investments in infrastructure are expected to drive the growth of the pneumatic and hydraulic system market going forward. Infrastructure refers to the basic physical and organizational systems, such as transportation, communication, and utilities, that support the functioning of a society or business. Investments in infrastructure are rising due to rapid urbanization, which increases the demand for modern transportation, utilities, and digital networks to support growing populations and economic activities. Pneumatic and hydraulic systems support infrastructure by providing powerful and precise control for heavy machinery, enabling efficient construction, lifting, and material handling operations. For instance, in July 2025, according to the Office for National Statistics, a UK-based government agency, total government spending on infrastructure increased by 2.2% in 2024, reaching $38 billion (£28.9 billion) at current prices compared to the previous year. Therefore, the increasing investments in infrastructure are driving the growth of the pneumatic and hydraulic system market.

Key companies operating in the pneumatic and hydraulic system market are focusing on developing advanced pneumatic flow control technology to enhance system efficiency, responsiveness, and automation flexibility. Advanced pneumatic flow control technology refers to a modern innovation in pneumatic systems designed to precisely regulate air pressure and flow for improved performance and automation efficiency. For instance, in July 2024, Emerson Electric Co., a US-based industrial solutions provider, launched the AVENTICS Series XV pneumatic valves. This series includes the XV03 model, providing flow volumes up to 350 liters per minute, and the XV05 model, offering up to 880 liters per minute. The valves feature compact dimensions, durable metal threads, and aluminum base plates, facilitating seamless integration into production systems. Such innovations enhance operational efficiency and adaptability in various industries. However, the adoption of these advanced systems may require significant investment and potential modifications to existing infrastructure, posing challenges for widespread implementation across diverse market segments.

In January 2024, Atlas Copco AB, a Sweden-based company that provides industrial productivity solutions, acquired Kracht GmbH for an undisclosed amount. Through this acquisition, Atlas Copco aims to strengthen its industrial pump segment and expand its technological capabilities in fluid handling systems. Kracht GmbH is a Germany-based company specializing in high-quality fluid technology, including pumps, fluid measurement, valves, and hydraulic systems.

Major players in the pneumatic and hydraulic system market are Mitsubishi Heavy Industries Ltd., Daikin Industries Ltd., Eaton Corporation, Parker Hannifin Corporation, Emerson Electric Co., Kawasaki Heavy Industries Ltd., Atos S.p.A., Danfoss A/S, Bosch Rexroth AG, Voith GmbH & Co. KGaA, Festo AG & Co. KG, Moog Inc., IMI Plc, Nachi-Fujikoshi Corp., Bucher Hydraulics GmbH, Rotork Plc, Burkert Fluid Control Systems India Private Limited, Camozzi Automation S.p.A., Hengli Hydraulic India System Solutions Private Limited, HAWE Hydraulik SE, HYDAC International GmbH, Wipro Infrastructure Engineering, Husco International Inc., Ace Automation Engineers Private Limited, and Achieve Hydraulics & Pneumatics Private Limited.

North America was the largest region in the pneumatic and hydraulic system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in pneumatic and hydraulic system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the pneumatic and hydraulic system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

The pneumatic and hydraulic system market research report is one of a series of new reports that provides pneumatic and hydraulic system market statistics, including pneumatic and hydraulic system industry global market size, regional shares, competitors with a pneumatic and hydraulic system market share, detailed pneumatic and hydraulic system market segments, market trends and opportunities, and any further data you may need to thrive in the pneumatic and hydraulic system industry. This pneumatic and hydraulic system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A pneumatic and hydraulic system refers to two types of fluid power transmission methods used to perform mechanical work. Pneumatics uses compressed air or gas and is applied in lightweight, fast-acting systems such as air brakes and automation equipment, while hydraulics uses pressurized liquid, typically oil, to generate high force for heavy-duty applications in construction, automotive, and aerospace machinery. Pneumatic systems operate at lower pressure and are faster but generate less power, whereas hydraulic systems, due to the incompressibility of liquids, can produce very high pressure and precise control, though they are generally bulkier, slower, and prone to leakage.

The key types of pneumatic and hydraulic systems include pneumatic systems and hydraulic systems. Pneumatic systems use compressed air to transmit and control energy for various operations. They use components such as cylinders, valves, pumps, motors, accumulators, filters, and others, with system types including open-loop systems, closed-loop systems, and combination systems. They are applied in industrial machinery, automotive, aerospace, construction, mining, oil and gas, and other sectors, serving end-users including manufacturing, transportation, energy, agriculture, and others.

The pneumatic and hydraulic system market consists of sales of pneumatic actuators, hydraulic actuators, hydraulic manifolds, air compressors, and compressed air treatment units. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.