US Fluid Power Equipment Market Size Likely to Expand at a CAGR of 5.36% By 2033

As per the current market research conducted by the CMI Team, the US Fluid Power Equipment Market size is expected to record a CAGR of 5.36% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 17.7 Billion. By 2033, the valuation is anticipated to reach USD 24 Billion.

US Fluid Power Equipment Market: Growth Factors and Dynamics

• Sustainability and Environmental Concerns: In an era of increased environmental concerns, companies will shift to sustainable fluid power. Today, as the carbon footprint decreases, it is considered an important milestone. So, energy-saving fluid power and environment-friendly fluid power are the demands. Companies are looking at ways to reduce emissions and increase energy efficiency in fluid power equipment to respond to regulations and meet customer expectations about sustainable practices. Hydraulic systems, designed to conserve energy, are increasingly popular in manufacturing and construction.

• Global Supply Chain Challenges: Global supply chain disruptions impact the US fluid power equipment market, especially following the COVID-19 pandemic. Issues such as raw material shortages, shipping delays, and labor shortages have increased prices, leading to longer lead times for fluid power components. These factors can impact production timelines and the overall stability of the market. However, many companies are responding by localizing production and sourcing alternative materials, which could help mitigate supply chain risks and stabilize the market in the long term.

• Increasing Demand for Automation: The rising trend of automation in industries like manufacturing and automotive is a key dynamic factor in the fluid power equipment market. As companies seek to reduce labor costs and increase productivity, the demand for automated systems incorporating fluid power technologies is growing. For example, automated hydraulic presses and pneumatic tools are becoming more common in production lines. This shift toward automation will likely drive the demand for advanced fluid power systems, opening opportunities for suppliers to innovate and provide solutions to these needs.

• Labor Shortages and Skill Gaps: The US fluid power equipment market faces labor shortages and skill gaps in sectors such as manufacturing and construction. Many companies face difficulty finding skilled technicians and engineers to maintain and operate fluid power systems. As a result, companies are investing in training programs and automation to offset the need for a large workforce. This shift in labor dynamics is encouraging the development of user-friendly systems and solutions that require less specialized knowledge to operate, which in turn is influencing the design and development of fluid power equipment.

• Increasing Construction Industry: The US construction industry is a significant fluid power equipment market driver. Fluid power systems are widely used in construction machinery such as cranes, excavators, and loaders. It requires hydraulic systems to function. As the construction sector grows, driven by infrastructure projects and urban development, the demand for fluid power equipment will increase. Government investments in infrastructure and construction projects further support this trend, offering long-term growth opportunities for fluid power suppliers.

• Technological Innovations: In-fluid power systems will drive the growth of the fluid power market. The technological innovation of more efficient hydraulic pumps, motors, and valves enables fluid power systems to perform better, with improved efficiency, durability, and lower operating costs. IoT (Internet of Things) devices will continue to be adopted, improving system performance and minimizing system downtime. The attractiveness of such innovations to the fluid power industries, like automotive, aerospace, and manufacturing, is contributing to the expansion of the market.

• Increased Demand for Renewable Energy: Fluid power equipment demand in the energy sector is driven by the shift towards renewable energy sources such as wind and solar power. Fluid power systems find their applications in wind turbines and in running solar energy machinery used for angle-adjusting purposes on panels and blade governing turbine blades. More and more such renewable energy projects proposed for development in the US will need good and reliable fluid power applications within them, fuelling further the move towards cleaner energy and more environment-friendly solutions.

• Aging Infrastructure and Need for Modernization: Replacing and modernizing the old infrastructure in the US is the main driver for the demand for fluid power equipment. The majority of the country’s bridges, roads, and water treatment facilities rely on hydraulic systems for operation, which are often outdated or require repair. Consequently, the demands for high-performance fluid power solutions in infrastructure projects with increased efficiency, safety, and longer life are more significant than ever. This is important, particularly in government and public sectors, as the amount of funds from infrastructure upgrades is also growing.

US Fluid Power Equipment Market: Partnership and Acquisitions

• In October 2024, Danfoss partnered with Google to integrate artificial intelligence into fluid power systems. This collaboration focuses on improving energy efficiency and optimizing manufacturing processes, enhancing Danfoss’s competitive edge in the fluid power market.

• In October 2024, Festo’s electric and pneumatic technology was integrated into HAHN Automation Group’s e-mobility solutions. This initiative highlights the significant role of fluid power systems in advancing sustainable transportation technologies.

• In February 2024, Motion Industries acquired two fluid power companies to expand its market presence. This strategic move leverages existing customer bases and technical expertise to drive growth and innovation in the fluid power sector.

• In September 2023, Wajax Corporation acquired Beta Fluid Power and Beta Industrial in Ontario. This acquisition strengthens Wajax’s product and service portfolio, enhancing its position in the fluid power market and supporting its growth strategy.

• In August 2023, RG Fluid Power Group’s Hydraulics Division launched a national distribution center. This facility aims to improve distribution efficiency and customer service, addressing the rising demand for high-quality hydraulic solutions.

Report Scope

US Fluid Power Equipment Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Fluid Power Equipment Market, with the industry experiencing positive and negative effects. Here are some of the key impacts:

• Positive Impact of COVID-19 on the US Fluid Power Equipment Market: The COVID-19 pandemic positively affected the US fluid power equipment market, especially in industries that needed automation and efficiency. With a need for social distancing and a reduction in manual labor, many businesses turned to automation, which requires heavy reliance on fluid power systems. With a much stronger demand for more refined equipment in manufacturing, logistic construction facilities took their share of the demand while changing the way to opt towards increased orders for material handling machinery associated with pneumatic and hydraulic mechanisms. The health department added medical equipment, ventilator applications, and hospital-based appliances driven and supported by fluid power. This is why these facilities began to grow and acquire significance in the market.

• COVID-19 Negative Impact on US Fluid Power Equipment Market: The most affected industries rely heavily on foreign suppliers for key raw materials and parts. Manufacturing plants went out of commission or saw minimal operations due to health regulations, thus reducing the production capacity. The postponement and cancellation of numerous construction and automotive projects, mainly affecting demand in these sectors for fluid power systems, was another adverse factor. The shortage of manpower and safety issues also hindered the maintenance and servicing of fluid power equipment, thereby creating operational challenges and curbing growth in the market in the short term.

• Current Market Scenario for the US Fluid Power Equipment Market: The current situation of the US fluid power equipment market indicates a tendency towards steady recovery and growth after the COVID-19 pandemic has disrupted the environment. Although the sector faced significant challenges, such as supply chains, labor shortages, and project delays, demand rose gradually in construction, manufacturing, automotive, and aerospace activities. This trend would continue as businesses and more and more production lines switch towards automation. Using these fluid power technologies within any production line will be beneficial in cutting costs through efficiency and labor-saving approaches. The demand will be for automated material handling systems, hydraulic presses, and robot applications, primarily in the manufacturing and logistics industries. Furthermore, the construction industries are gaining momentum due to government infrastructure projects and urbanization, which necessitate the use of fluid power equipment in machinery such as cranes and excavators. The energy sector, the renewable energy segment, also provides an impetus to this market growth since fluid power equipment is used in wind turbines, solar equipment, etc.

List of the prominent players in the US Fluid Power Equipment Market:

• Eaton Corporation
• Parker Hannifin
• Bosch Rexroth
• Danfoss
• SMC Corporation
• HYDAC Technology Ltd
• Kawasaki Heavy Industries
• Daikin Industries Ltd.
• Festo AG
• Moog Inc.
• Bucher Hydraulics
• Applied Industrial Technologies
• Concentric
• Advanced Fluid Systems Inc.
• Hydraulex
• Others

The US Fluid Power Equipment Market is segmented as follows:

By Type

• Hydraulic Equipment
  • Pumps (Gear Pumps, Vane Pumps, Piston Pumps)
  • Valves (Directional, Pressure Control, Flow Control)
  • Cylinders
  • Accumulators
  • Hydraulic Motors
• Pneumatic Equipment
  • Compressors
  • Valves
  • Actuators
  • Filters, Regulators, and Lubricators (FRL units)

By Application

• Industrial Applications
  • Manufacturing
  • Automotive
  • Aerospace
  • Food and Beverage
  • Mining and Construction
• Mobile Applications
  • Construction Machinery
  • Agricultural Equipment
  • Material Handling

By Distribution Channel

• Direct Sales
• Distributors

By End-User Industry

• Construction
• Agriculture
• Aerospace and Defense
• Energy and Power
• Oil and Gas