New York, Oct. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Hydraulic Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06325604/?utm_source=GNW
Additionally, the development of hydraulics equipment is being aided by technological developments creating a greater demand for intelligent hydraulics equipment.
Key Highlights
IoT is employed in fluid power systems, even though its typical applications revolve around electric systems. Electronics for intelligent mobility and sensors for data collection is becoming more and more common in hydraulic equipment. Additionally, manufacturers promote the digitization of hydraulic goods by providing a wide range of electro-hydraulics modules and components with digital interfaces and sensor intelligence. Manufacturers benefit from the intelligent design, configurability, and precision control for hydraulic systems that modern technology in hydraulic applications enables. End users can now monitor, manage, and maintain a complete computer from a single display interface.
Over the last 70 years, material handling has undergone various transformations that have changed the outlook of the industry. Material-handling machines and robots have replaced individual workers. Owing to this transformation, many industries have grown, especially the automotive industry, which has experienced a 10-fold growth.
The growing construction industry is expected to augment the hydraulic equipment market demand over the forecast period. For instance, according to the World Bank report, the construction expenditure worldwide in 2021 was USD 12.4 trillion. Further, In emerging economies, such as India, the possibility of 100% foreign direct investments (FDI) in townships and settlement projects is estimated to boost the demand for hydraulic construction equipment such as hydraulic cranes, excavators, and loaders during the forecast period.
The major challenge impeding the hydraulic equipment market’s growth is the volatility in maintenance costs over the equipment’s lifespan. Fluctuations in prices of raw materials such as stainless steel, iron ore, aluminum, bronze, and other metal alloys have caused volatility in the arrangement cost of hydraulic equipment. This, in turn, has led to a demand-supply gap.
The COVID-19 pandemic created significant supply chain disruptions for the manufacturing of hydraulic power equipment. Manufacturers were forced to shut down factories due to a nationwide lockdown, which began a supply and demand cycle gap. Furthermore, the National Fluid Power Association has detailed the pandemic’s impact on companies, with a few being incredibly hit while others being able to show resilience. In addition to economic decline and lockdown challenges, the market studied has seen the rise of customization as a key trend in hydraulic equipment dealing with heavy-load material handling during the COVID-19 pandemic.
Key Market Trends
Consutruction Segment to Witness Significant Growth
Hydraulic equipment function and perform the tasks via a pressurized fluid. The pressure applied to a contained fluid is transmitted undiminished. That pressurized fluid acts upon every part of a section of the holding vessel and creates force or power. As the technology continued to mature, hydraulics made it possible to achieve far more precise motions. Such precision has gained momentum for more optimization of the construction processes.
The introduction of hydraulics into the construction industry has allowed more work to be finished in less time by significantly increasing productivity. The science of hydraulics enabled the equipment to achieve a range of motion and be controlled with high levels of precision. Hydraulic power is an indispensable part of the modern construction industry, and continuing technological advancements will make the usage of hydraulic equipment even more important in the future.
The hydraulic equipment can withstand and transfer high loads. Compared to other systems that mainly rely on mechanical components, hydraulic equipment has fewer moving and load-bearing components. The hydraulic fluid, motors, and pumps at either end handle most functional limitations. Adopting smart valves, smart pumps, and other parts ensures more efficient operation and controlled performance of the hydraulic equipment. Furthermore, it helps in automating the process.
The construction sector is the vital driver of the Indian economy. The industry is highly responsible for propelling India’s overall development and has an intense focus from the government for initiating policies that would ensure the country’s time-bound creation of world-class infrastructure. While India’s construction sector has seen disruptions, there is optimism for the future with the initiatives and processes being adapted to propel large-scale projects. For instance, in April 2022, Honey Group launched 33 projects, i.e., 24 projects in Andhra Pradesh and nine in Telangana in one day, setting a benchmark for the construction industry. The company has achieved this by using several innovative techniques to design, construct, and manage buildings.
Further, the growing construction industry is expected to augment the hydraulic cylinders market demand over the forecast period. For instance, according to the World Bank report, the construction expenditure worldwide in 2021 was USD 12.4 Trillion.
North America Is Expected to Hold Largest Market Share
The North American hydraulic equipment market is dominated primarily by Tier 1 companies offering robust hydraulic equipment, long-standing partnerships, and extensive distribution channels. However, small, niche competitors can gain market share with customized offerings for specific industry sectors.
The oil and gas industry is witnessing robust growth in the region, which is strengthening the need for hydraulic equipment. According to the US Energy Information Administration, dry natural gas production will increase from 95.1 billion cubic feet per day in October 2021 to 97.5 billion cubic feet per day by December 2022.
Further, due to Russia’s invasion of Ukraine, many countries have banned the import of crude oil from Russia, further providing the region with an opportunity to become the top exporter of crude oil to these countries. The region continues to be a key producer of oil and gas. As old resources are being depleted, new sources of oil are being discovered. According to the BP Statistical Review of World Energy 2022, the United States is the largest oil producer, with a production of 711.1 million tons in 2021.
One of the key trends in the region is the integration of the industry with IoT. The region is witnessing the increasing adoption of industrial automation across end-user industries. Integrated hydraulic equipment provides an opportunity to improve operations and reduce energy costs.
Companies in the region are taking various initiatives and making strategic investments to capture the broader customer base. For instance, in June 2022, Motion Industries Inc. announced the formation of its fluid power business brand, Mi Fluid Power Solutions. The company will focus on hydraulics, pneumatics, lubrication, filtration, process pumps, precision industrial tooling, and factory automation products.
Competitive Landscape
The intensity of competitive rivalry in the Hydraulic Equipment Market is moderately high and is expected to increase over the forecast period due to the presence of several prominent players such as Bosch Rexroth AG (ROBERT BOSCH GMBH), Parker-Hannifin Corporation, Hydac International GmbH, Danfoss A/s, SMC Corporation among others in the market. These players are also adopting merger and acquisition strategies to gain market share.
July 2022 - Parker Aerospace, a business segment of Parker Hannifin Corporation, entered an agreement with the US Air Force and the Defense Logistics Agency for a five-year performance-based logistics (PBL) contract covering hydraulic equipment across five key Air Force platforms. As a part of the sustainment agreement, Parker Aerospace would be providing engineering, supply chain, and field service support at the Ogden Air Logistics Complex at Hill Air Force Base in Utah.
April 2022 - Linde Hydraulics GmbH & Co. KG is investing EUR 50 million in technology at its German sites. The investments will be divided into 50 individual projects and managed in parallel. The investment project is to be completed by 2025. This helps the company’s New machines increase efficiency and flexibility and makes the company focus on existing location development and competitiveness
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06325604/?utm_source=GNW
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