Hydraulic Component Market

Increasing requirement for material handling equipment is driving the market growth

Companies worldwide are grappling with the challenges posed by rising labor costs, which can lead to a decline in relative productivity. Several factors contribute to increased labor costs, such as government regulations, a disparity between labor supply and demand, and a shortage of skilled workers. This growing demand for automation is particularly evident in industries such as metal, automotive, construction, and mining, where material handling plays a crucial role. Hydraulics is increasingly employed to enhance material handling equipment's performance, controllability, power, and safety. This trend is anticipated to drive the market for material handling equipment in the coming years.

Thus, the increasing demand for material handling equipment drives the hydraulics market CAGR.

Additionally, one of the key strategies industry players employ is increased investment in the research and development (R&D) of hydraulic cylinders to develop advanced variants that meet market requirements. Leading manufacturers such as Danfoss, KYB Corporation, and Parker-Hannifin Corporation have significantly invested in R&D activities to enhance their hydraulic technology.

For example, KYB Corporation has developed hydraulic cylinders with reinforced chromium plating to improve wear resistance. Similarly, companies like SMC Corporation, Parker-Hannifin Corporation, and Bosch Rexroth offer customized hydraulic cylinders to meet specific customer needs. Weber-Hydraulik has developed tailor-made hydraulic cylinders for Liebherr Telescopic Mobile (LTM) cranes, among the world's largest cranes capable of carrying up to 1,200 tons and reaching heights of 188 meters.

Furthermore, the increased usage of agricultural machinery is expected during the forecast period. Safety and machine performance are crucial considerations during the design and development phase. Properly handling all types of shutdowns and restarts is critical for machine safety and integration, necessitating well-designed programs that include hydraulic systems to restart the machine to a predetermined safety position and resume the automatic cycle with minimal operator intervention. Hydraulic components are preferred in industries such as chemical and mining due to their spark-free operation, ensuring safety.

Consequently, the need to enhance machinery safety and operation is expected to drive the expansion of the hydraulic components market in the forecast period. Thus, driving the Hydraulic Components market revenue.

The increasing demand for automation across various industries is a primary driver of the Global Hydraulic Components Market Industry. Automation enhances efficiency and productivity, leading to a greater reliance on hydraulic systems in manufacturing, construction, and agriculture. For instance, automated machinery often utilizes hydraulic components for precise control and power transmission. This trend is expected to contribute to the market's growth, with projections indicating that the market could reach 53.5 USD Billion in 2024. As industries continue to adopt automation technologies, the demand for hydraulic components is likely to rise, further solidifying their role in modern industrial applications.

The shift towards renewable energy sources is emerging as a significant driver for the Global Hydraulic Components Market Industry. Hydraulic systems are increasingly utilized in renewable energy applications, such as wind turbines and hydroelectric power plants. These systems provide essential functions, including power generation and control mechanisms. The global push for sustainable energy solutions is likely to enhance the demand for hydraulic components, as they are integral to the efficient operation of renewable energy systems. This trend may contribute to a compound annual growth rate of 5.3% from 2025 to 2035, reflecting the growing importance of hydraulic technology in the energy sector.

Infrastructure development initiatives globally are significantly influencing the Global Hydraulic Components Market Industry. Governments are investing heavily in infrastructure projects, including transportation, energy, and urban development. These projects often require hydraulic systems for construction equipment, such as excavators and cranes, which rely on hydraulic components for operation. For example, the expansion of road networks and public transportation systems necessitates the use of hydraulic machinery. As these initiatives progress, the market is anticipated to grow, potentially reaching 94.4 USD Billion by 2035, driven by the sustained demand for hydraulic components in large-scale infrastructure projects.

Technological advancements in hydraulic systems are driving innovation within the Global Hydraulic Components Market Industry. Developments such as smart hydraulic systems, IoT integration, and enhanced materials are improving the performance and reliability of hydraulic components. These advancements enable more efficient energy use and reduced maintenance costs, appealing to industries seeking to optimize operations. For instance, the integration of sensors and automation in hydraulic systems allows for real-time monitoring and control, enhancing productivity. As these technologies continue to evolve, they are expected to stimulate market growth, aligning with the increasing demand for high-performance hydraulic solutions.

This chart illustrates the projected growth trajectory of the Global Hydraulic Components Market Industry from 2024 to 2035. The market is expected to reach 53.5 USD Billion in 2024, with a significant increase to 94.4 USD Billion by 2035. The compound annual growth rate during the period from 2025 to 2035 is projected to be 5.3%, indicating a robust expansion driven by various factors, including automation, infrastructure development, and technological advancements.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American hydraulic components market area will dominate this market; owing to the increasing adoption of automated and mechanized agriculture practices across the Region will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Hydraulic Components Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Hydraulic Components market accounts for the second-largest market share because of growing demand for machinery and equipment for applications in growing manufacturing, agriculture, mining, and oil and gas sectors in the Region and the early adoption of new and efficient technologies of hydraulic components. Further, the German Hydraulic Components market held the largest market share, and the UK Hydraulic Components market was the fastest-growing market in the European Region.

The Asia-Pacific Hydraulic Components Market is expected to grow at the fastest CAGR from 2023 to 2032.Owing to rising applications and requirements in various machinery and equipment used in agriculture, forestry, manufacturing sector, marine, and mining industry across this Region. Moreover, China’s Hydraulic Components market held the largest market share, and the Indian Hydraulic Components market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the hydraulic components market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The hydraulic Components industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the Hydraulic Components industry to benefit clients and increase the market sector. The Hydraulic Components industry has offered some of the most significant advantages in recent years. Major players in the Hydraulic Components market, including Eaton Corporation PLC, Komatsu Ltd., Caterpillar Inc., DY Power Corporation, Hunan Teli Hydraulic Co. Ltd., Changjiang Hydraulic Component Co., Ltd., Parker-Hannifin Corporation, Ligon Industries LLC, Weber-Hydraulik GmbH., and others, are attempting to increase market demand by investing in research and development operations.

HAWE is a trusted development partner specializing in various mechanical and plant engineering fields. Leveraging our highly adaptable modular system, which includes hydraulic power packs, pumps, valves, and sensors, along with our expertise in electronic components and software, we provide intelligent solutions tailored to meet specific needs. One notable product introduced by HAWE is the HICON mini hydraulic power pack. This compact unit, originally designed for recreational boats, offers exceptional benefits in various applications. Its waterproof construction ensures resistance to splash water and temporary immersion, making it suitable for reliable operation in challenging environments.

Robert Bosch GmbH, commonly called Bosch, is a renowned engineering and technology company headquartered in Gerlingen, Germany. Established by Robert Bosch in Stuttgart in 1886, the company is committed to innovation and advancement. With the majority ownership held by the Robert Bosch Stiftung, a charitable organization, Bosch continues to significantly contribute to various industries. In line with its focus on electrification, Bosch made strategic investments in BRUSA HyPower to enhance its eLION product portfolio for off-highway vehicle electrification.

Major companies, including Bosch, recognize the importance of strategic acquisitions and investments in emerging firms as a key area of focus to drive growth and stay at the forefront of technological advancements.