Hydraulic Gear Pump Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (External Gear, Internal Gear), By End-Use (Construction, Mining & Metallurgy, Automotive, Transportation, Architecture, Chemicals & Petrochemicals, Others), By Operating Pressure (Less than 100 Bar, 100–300 Bar, Above 300 Bar), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.39 Billion
CAGR (2026-2031)	4.47%
Fastest Growing Segment	100–300 Bar
Largest Market	North America
Market Size (2031)	USD 12.21 Billion

Market Overview

The Global Hydraulic Gear Pump Market will grow from USD 9.39 Billion in 2025 to USD 12.21 Billion by 2031 at a 4.47% CAGR. Hydraulic gear pumps are positive displacement devices that employ meshing gears to convert mechanical power into hydraulic energy by displacing fluid. The market is primarily driven by the sustained demand for heavy construction machinery and the ongoing mechanization of the agricultural sector. These industries rely on gear pumps for their durability and cost efficiency in high-pressure applications. Additionally, the material handling sector supports growth through the requirement for reliable fluid power in forklifts and conveyors.

The market encounters a significant challenge from the increasing viability of electromechanical solutions which compete with traditional hydraulics. This technological substitution poses a potential impediment to market expansion in specific segments where electric actuators offer cleaner operation. According to the National Fluid Power Association, in 2024, shipments of hydraulic products in the United States totaled 17.6 billion dollars. This figure illustrates the substantial economic footprint of the sector even as it navigates competition from electric alternatives.

Key Market Drivers

Accelerated global infrastructure development and urbanization serve as the primary catalyst for the Global Hydraulic Gear Pump Market. As emerging economies invest heavily in residential complexes and transport networks, the demand for heavy construction equipment like excavators and loaders has intensified. These machines rely on gear pumps for their robust performance in high-pressure earthmoving tasks. The expansion of this sector is quantified by the substantial volume of machinery deployed to meet construction goals. According to the China Construction Machinery Association, January 2025, in the 'China's Construction Machinery Market in 2024' report, the annual sales of excavators reached 201,131 units in 2024. This massive deployment of construction assets directly correlates with increased procurement of hydraulic components to ensure operational efficiency.

Simultaneously, the increasing mechanization of agricultural operations significantly influences market trajectory, driven by the imperative to enhance food security. Modern farming relies on tractors and harvesters equipped with hydraulic systems to automate labor-intensive tasks such as tilling and planting. Gear pumps are integral to these vehicles, providing the necessary fluid power for attachments in rugged environments. Despite regional market fluctuations, the underlying volume of machinery production remains significant. According to CEMA, September 2024, in the 'Agricultural machinery: sales down in the main markets' update, sales of agricultural tractors in Europe exceeded 125,000 units during the first seven months of 2024. Highlighting the sector's broad economic scale, according to Danfoss, March 2024, in the 'Annual Report 2023', the company achieved full-year sales of 10.7 billion Euros, reflecting the sustained requirement for advanced power solutions across mobile and industrial applications.

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Key Market Challenges

The increasing viability of electromechanical solutions presents a significant structural impediment to the growth of the hydraulic gear pump market. As end-users in sectors like material handling and light industrial machinery prioritize energy efficiency and cleaner operations, they increasingly substitute traditional hydraulic systems with electric actuators. This migration erodes the installed base for gear pumps, specifically in applications where fluid leakage poses environmental or safety risks. The shift forces hydraulic manufacturers to compete for a shrinking share of the component market in these transitioning industries.

This negative pressure is reflected in recent industry output data. According to the British Fluid Power Association, in 2024, manufacturers' total sales of fluid power equipment in the United Kingdom fell by around 10 percent to 1.4 billion pounds. This downturn illustrates how the widespread adoption of alternative technologies, combined with broader market factors, directly hampers the revenue potential for hydraulic components. The reduced demand volume complicates the growth trajectory for gear pumps as they lose ground to more modern electromechanical counterparts.

Key Market Trends

The Adoption of Electro-Hydraulic Hybrid Technologies is fundamentally reshaping pump architecture as OEMs transition from internal combustion engines to battery-electric powertrains to meet stringent emission standards. This trend necessitates the engineering of gear pumps capable of operating efficiently with variable-speed electric motors, requiring lower noise profiles and higher energy density to preserve battery life in mobile machinery. Leading manufacturers are aggressively realigning their portfolios to capitalize on this secular shift toward decarbonization, ensuring their hydraulic solutions remain relevant in electrified platforms. According to Danfoss, February 2025, in the 'Danfoss Reports EUR 9.7 Billion in Sales for 2024 Amid Market Challenges' press release, the company achieved sales of 9.7 billion Euros, underscoring that electrification remains a primary growth driver despite broader cyclical headwinds in the construction and agricultural sectors.

The Integration of Smart IoT Monitoring Systems is transforming standard hydraulic components into intelligent data nodes that enable predictive maintenance and real-time system optimization. By embedding sensors directly into the gear pump housing, operators can monitor critical parameters such as pressure, temperature, and vibration to detect anomalies before catastrophic failure occurs, thereby reducing unplanned downtime in industrial environments. This convergence of hydraulics with digital interfaces is becoming a central competitive differentiator for major suppliers who are moving beyond simple component sales to offer connected value. According to Bosch Rexroth, April 2025, in the 'Bosch Rexroth looks ahead after challenging 2024 financial year' press release, the company generated sales of 6.5 billion Euros in 2024 while strategically expanding its offering of software and interfaces to the Internet of Things to meet the digital requirements of modern factories.

Segmental Insights

Based on market analysis from trusted sources, the 100–300 Bar pressure segment is recognized as the fastest-growing category within the Global Hydraulic Gear Pump Market. This expansion is primarily driven by rising demand in the construction and agricultural sectors, where machinery such as excavators, cranes, and tractors relies heavily on this specific pressure range for optimal performance. These pumps provide the necessary force for intermediate-pressure tasks like lifting and material handling, offering a critical balance between power and operational efficiency. Consequently, manufacturers are scaling production in this segment to support the increasing global need for infrastructure development and mechanized farming equipment.

Regional Insights

North America maintains a leading position in the global hydraulic gear pump market due to sustained demand from the construction and agricultural sectors. The region benefits from significant investments in infrastructure projects and the widespread utilization of modern industrial machinery for mining and material handling. Furthermore, the presence of major equipment manufacturers strengthens the local supply chain for hydraulic components. Regulatory standards enforced by the Environmental Protection Agency regarding off-highway equipment emissions also drive the adoption of efficient hydraulic systems, ensuring the region remains a central hub for market development.

Recent Developments

• In November 2025, Danfoss Power Solutions launched the Editron EM-PMI180, a new 48-volt electric motor specifically engineered to drive hydraulic gear pumps in compact electric machinery. This product was developed to replace less efficient AC induction motors in applications such as scissor lifts, boom lifts, and compact excavators. The new motor features a synchronous reluctance-assisted permanent magnet design, which provides higher torque and power density in a smaller footprint, facilitating easier integration into space-constrained electric vehicles. This launch represented a significant step in the electrification of mobile hydraulics, enabling original equipment manufacturers to improve the efficiency and runtime of battery-powered construction equipment.
• In July 2025, Concentric AB finalized the acquisition of Officine Mazzocco Pagnoni (O.M.P), an Italian manufacturer renowned for its advanced oil pumps and fluid management components. This strategic move was intended to expand Concentric’s product capabilities in the heavy commercial vehicle and off-highway sectors, leveraging the Italian firm's expertise in vane and gear pump technologies. The integration of this new subsidiary allowed Concentric to broaden its global manufacturing footprint and access new customer bases in the truck and industrial engine markets. The deal underscored a growing trend of consolidation within the fluid power industry to support evolving thermal management and lubrication needs.
• In December 2024, Vivoil Oleodinamica Vivolo introduced the HI-LO double pump, a new hydraulic component engineered to optimize performance in applications requiring variable pressure stages. This dual-stage gear pump system combines a high-pressure stage with a low-pressure stage, allowing for efficient flow management in machinery such as log splitters and industrial presses. The design enables the system to deliver high flow at low pressure for rapid movement and then automatically switch to high pressure for the working phase, significantly improving energy efficiency. The launch highlighted the company's focus on customizable solutions, offering various flange and shaft configurations to meet diverse industrial requirements.
• In November 2024, Bucher Hydraulics completed the strategic acquisition of Hydman Oy, a Finland-based company specializing in the development and manufacturing of custom hydraulic manifold systems. This acquisition was designed to strengthen Bucher Hydraulics’ market presence in the Nordic region and enhance its ability to provide tailored hydraulic solutions to European customers. By integrating the Finnish company’s expertise in hydraulic blocks and systems, the Swiss manufacturer aimed to offer a more comprehensive portfolio of components and systems. The transaction included the retention of the acquired entity's workforce and leadership, rebranding the subsidiary to operate under the Bucher Hydraulics name.

Key Market Players

• Parker Hannifin Corporation
• Eaton Corporation plc
• Shimadzu Corporation
• Danfoss A/S
• HYDAC International GmbH
• Sun Hydraulics, LLC
• Illinois Tool Works Inc.
• Kawasaki Heavy Industries, Ltd.

By Product	By End-Use	By Operating Pressure	By Region
External Gear Internal Gear	Construction Mining & Metallurgy Automotive Transportation Architecture Chemicals & Petrochemicals Others	Less than 100 Bar 100-300 Bar Above 300 Bar	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Hydraulic Gear Pump Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Hydraulic Gear Pump Market, By Product:

• External Gear
• Internal Gear

• Hydraulic Gear Pump Market, By End-Use:

• Construction
• Mining & Metallurgy
• Automotive
• Transportation
• Architecture
• Chemicals & Petrochemicals
• Others

• Hydraulic Gear Pump Market, By Operating Pressure:

• Less than 100 Bar
• 100-300 Bar
• Above 300 Bar

• Hydraulic Gear Pump Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE