Hydraulic Equipment Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 49.75 Billion
CAGR (2026-2031)	5.57%
Fastest Growing Segment	Pumps
Largest Market	North America
Market Size (2031)	USD 68.87 Billion

Market Overview

The Global Hydraulic Equipment Market will grow from USD 49.75 Billion in 2025 to USD 68.87 Billion by 2031 at a 5.57% CAGR. Hydraulic equipment encompasses machinery and components that utilize pressurized fluid to generate, control, and transmit power, providing high force density for heavy-duty applications across various industries. The market is fundamentally supported by the continuous demand for global infrastructure development and the intensifying mechanization of the agricultural sector, where reliable fluid power systems are essential for earthmoving and material handling. These core drivers differ from temporary market trends as they represent sustained industrial requirements for force multiplication and precise motion control in construction, mining, and manufacturing environments.

However, a significant challenge impeding market expansion is the increasing stringency of environmental regulations regarding fluid leakage and disposal, which necessitates costly compliance measures. This pressure is accelerating the scrutiny of traditional hydraulic systems in ecologically sensitive areas. Illustrating the continued economic magnitude of the sector despite these hurdles, according to the National Fluid Power Association, in 2024, the total value of fluid power product imports into the United States reached approximately 11.5 billion dollars. This data underscores the substantial volume of international trade and the critical reliance on these components within major industrial economies.

Key Market Drivers

The rapid expansion of global construction and infrastructure development acts as the primary catalyst for the hydraulic equipment market. As governments and private entities invest heavily in urbanization, transportation networks, and residential projects, the demand for heavy machinery such as excavators, loaders, and cranes has intensified. These machines rely on high-pressure hydraulic cylinders and pumps to deliver the force density required for structural lifting and earthmoving tasks. This sustained industrial activity is reflected in the financial performance of major equipment manufacturers. According to Caterpillar Inc., February 2024, in the '2023 Full-Year Financial Results', the company reported that full-year sales and revenues increased by 13 percent to 67.1 billion dollars. Such robust equipment sales directly correlate to a heightened requirement for fluid power components to support OEM production lines.

Simultaneously, the growth in global mining and earthmoving activities is driving significant procurement of specialized hydraulic technologies. Mining operations, necessitating the extraction of resources from increasingly deeper and harsher environments, demand equipment that ensures reliability under extreme pressure and contamination risks. This sector prioritizes durable hydraulic motors and valves capable of maintaining uptime in remote locations. Validating this trend, according to Komatsu Ltd., April 2024, in the 'Consolidated Business Results for the Fiscal Year Ended March 31, 2024', sales in the Construction, Mining and Utility Equipment segment increased to 3,615.2 billion yen, supported largely by steady demand for mining machinery. Furthermore, the broader component market continues to scale to meet these diverse industrial needs; according to Bosch Rexroth, April 2024, in the press release 'Bosch Rexroth with higher sales in 2023', the company achieved sales of 7.6 billion euros during the previous fiscal year.

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Key Market Challenges

The increasing stringency of environmental regulations regarding fluid leakage and disposal poses a formidable challenge to the global hydraulic equipment market. As regulatory bodies enforce stricter standards to protect sensitive environments, manufacturers must implement costly compliance measures. This landscape demands specialized biodegradable fluids and leak-proof systems, substantially elevating the total cost of ownership. These requirements discourage investment in traditional hydraulic machinery, particularly in price-sensitive sectors where transitioning to compliant technologies is prohibitively expensive, thereby stifling market expansion.

The adverse effect of these constraints is reflected in recent performance metrics indicating a contraction in market activity. The financial burden of meeting environmental mandates has contributed to hesitation in procurement. Highlighting this trend, according to the National Fluid Power Association, in August 2024, total fluid power shipments declined by 14.9% compared to the previous year. This reduction underscores how regulatory pressures are directly impeding the growth momentum of the hydraulic equipment industry.

Key Market Trends

The integration of IoT and smart sensors is transforming hydraulic components from passive hardware into intelligent data sources, enabling real-time monitoring and predictive maintenance. This trend addresses the industry's need to minimize unplanned downtime by utilizing connected sensors to track pressure, temperature, and fluid contamination levels, thereby transitioning revenue models towards service-based solutions. This shift is evident in the resilience of aftermarket revenues even when primary equipment demand fluctuates. According to Volvo Construction Equipment, October 2024, in the report 'Resilient performance for Volvo CE in Q3 2024', while machine sales contracted due to market normalization, service sales increased by 2 percent, a growth directly attributed to the market's rising adoption of digital solutions.

Simultaneously, the market is undergoing a structural transition to electro-hydraulic systems, driven by the broader electrification of industrial and mobile machinery. Manufacturers are replacing traditional mechanical linkages with electric drives and digitally controlled actuators to enhance energy efficiency and ensure compatibility with battery-electric vehicle architectures. This evolution requires substantial capital allocation toward research and development to engineer components capable of high-precision electronic control without sacrificing power density. Highlighting this strategic pivot, according to Danfoss, March 2024, in the 'Annual Report 2023', the company increased its investments in innovation by 7 percent to 487 million euros, specifically to expand its offering of competitive solutions for high-growth sectors such as electrification.

Segmental Insights

Based on data from leading market research, the Pumps segment is currently the fastest-growing category in the Global Hydraulic Equipment Market. This robust expansion is principally fueled by the intensifying demand for mobile hydraulic machinery across the construction and mining sectors, particularly in developing regions. As the critical component responsible for converting mechanical power into fluid energy, pumps are indispensable for heavy-duty operations. Additionally, the industry is witnessing a significant shift toward energy-efficient, variable-displacement pumps to comply with stringent environmental regulations and reduce fuel consumption, further accelerating the segment’s adoption rates globally.

Regional Insights

North America maintains a dominant position in the Global Hydraulic Equipment Market, primarily driven by a mature industrial sector and extensive investments in infrastructure, mining, and construction projects. The region experiences sustained demand from agriculture and manufacturing industries where automation is essential for operational efficiency. This leadership is further strengthened by a rigorous regulatory framework that influences equipment standards. Agencies such as the Occupational Safety and Health Administration mandate strict machinery safety protocols, while the Environmental Protection Agency enforces emissions and fluid containment standards. These requirements compel manufacturers to adopt compliant, energy-efficient hydraulic technologies.

Recent Developments

In September 2024, Bosch Rexroth showcased its latest hydraulic drive and control technologies at MINExpo International, featuring the new Hägglunds Quantum hydraulic motor range. This product introduction marked a significant evolution from the previous Hägglunds CB motor, offering enhanced efficiency and a tripled life expectancy due to improvements in design and materials. The company highlighted that the Quantum range is engineered for both mobile and industrial applications, providing robust performance in demanding mining environments. The display also included the Hägglunds CBm motor, which delivers increased torque in a compact form, further demonstrating the company's focus on advancing hydraulic power density for heavy-duty equipment.
In August 2024, Kawasaki Heavy Industries announced the establishment of a joint venture in China with Yantai Eddie Precision Machinery Co., Ltd., a prominent local manufacturer of hydraulic equipment. The new entity, named Eddie KPM Precision Machinery (Suzhou) Ltd., was formed to manufacture and sell hydraulic components specifically for the construction machinery market. This collaboration integrates Kawasaki’s technological expertise in hydraulic systems with the partner's established production and procurement capabilities. By increasing its presence through this partnership, the company intends to respond more swiftly to market changes and enhance its competitive advantage within the region's precision machinery sector.
In March 2024, Liebherr Components inaugurated a new production facility in Dalian, China, dedicated to the manufacturing of hydraulic cylinders, gearboxes, and slewing bearings. Spanning an area of 44,000 square meters, this plant represents a significant expansion of the company's industrial footprint in the Asian region. With a reported investment of €110 million, the facility allows for the consolidation of component production to serve local customers more effectively. The company aims to utilize this site to strengthen its supply chain for the wind energy and construction machinery sectors, ensuring that high-quality hydraulic components are readily available to meet the growing demand in the Chinese market.
In February 2024, Danfoss Power Solutions launched its newly combined Integrated Circuit Solutions product portfolio, aiming to consolidate cartridge valves and hydraulic integrated circuits from multiple legacy brands into a single, unified offering. This strategic development established one of the industry's most comprehensive product lines, featuring over 500 base valve models and a broad range of options, including proportional and solenoid valves. The Vice President of Integrated Circuit Solutions noted that the expanded portfolio enables the production of more than five million valves annually. This launch was designed to provide customers with simplified pricing, reduced complexity, and streamlined global support for their hydraulic system requirements across various sectors.

Key Market Players

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.

By Type	By End-User Industry	By Region
Pumps Valves Cylinders Motors Filters & Accumulators Transmission	Construction Agriculture Material Handling Aerospace & Defense Machine Tools Oil & Gas Hydraulic Press Plastics Automotive	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

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

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

Competitive Landscape

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

Available Customizations:

Global Hydraulic Equipment Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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

Global Hydraulic Equipment Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Hydraulic Equipment Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Pumps, Valves, Cylinders, Motors, Filters & Accumulators, Transmission)

5.2.2. By End-User Industry (Construction, Agriculture, Material Handling, Aerospace & Defense, Machine Tools, Oil & Gas, Hydraulic Press, Plastics, Automotive)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Hydraulic Equipment Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By End-User Industry

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Hydraulic Equipment Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By End-User Industry

6.3.2. Canada Hydraulic Equipment Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By End-User Industry

6.3.3. Mexico Hydraulic Equipment Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By End-User Industry

7. Europe Hydraulic Equipment Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By End-User Industry

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Hydraulic Equipment Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By End-User Industry

7.3.2. France Hydraulic Equipment Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By End-User Industry

7.3.3. United Kingdom Hydraulic Equipment Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By End-User Industry

7.3.4. Italy Hydraulic Equipment Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By End-User Industry

7.3.5. Spain Hydraulic Equipment Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By End-User Industry

8. Asia Pacific Hydraulic Equipment Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By End-User Industry

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Hydraulic Equipment Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By End-User Industry

8.3.2. India Hydraulic Equipment Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By End-User Industry

8.3.3. Japan Hydraulic Equipment Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By End-User Industry

8.3.4. South Korea Hydraulic Equipment Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By End-User Industry

8.3.5. Australia Hydraulic Equipment Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By End-User Industry

9. Middle East & Africa Hydraulic Equipment Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By End-User Industry

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Hydraulic Equipment Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By End-User Industry

9.3.2. UAE Hydraulic Equipment Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By End-User Industry

9.3.3. South Africa Hydraulic Equipment Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By End-User Industry

10. South America Hydraulic Equipment Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By End-User Industry

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Hydraulic Equipment Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By End-User Industry

10.3.2. Colombia Hydraulic Equipment Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By End-User Industry

10.3.3. Argentina Hydraulic Equipment Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By End-User Industry

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Hydraulic Equipment Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Robert Bosch GmbH

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Parker-Hannifin Corporation

15.3. Hydac International GmbH

15.4. Danfoss AS

15.5. SMC Corporation

15.6. Festo Beteiligungen GmbH & Co. KG

15.7. Norgren Limited

15.8. Bucher Hydraulics

15.9. HAWE Hydraulik SE

15.10. Linde Hydraulics GmbH & Co.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Hydraulic Equipment Market in 2025?

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