US Fluid Power Equipment Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Fluid Power Equipment Market 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.

Favorable growth prospects have been witnessed for the US fluid power equipment market on account of specific key trends. A prominent trend includes the increased need for automation in the construction, automotive, and aerospace industries. Individually and as an overall effort towards efficiency, industries have turned towards these fluid power systems, namely hydraulics and pneumatics, for application.

For instance, construction projects like roads and bridges need fluid power equipment for machinery like excavators and cranes. In addition, the automotive industry is adopting these systems more and more for assembly lines and manufacturing processes.

Sustainability is another big trend, with companies focusing on energy efficiency solutions to meet environmental requirements. Hydraulic systems are designed to consume less energy for the same performance in terms of hydraulic work output. It also helps cut operational costs and reduces environmental impacts. Integration of innovations like IoT enhances functionality in hydraulic systems by monitoring and predictive maintenance.

US Fluid Power Equipment Market – Significant Growth Factors

The US Fluid Power Equipment Market presents significant growth opportunities due to several factors:

• Increased Demand for Automation: The main drivers of the fluid power equipment market are the increasing automation in manufacturing, construction, and agriculture. Fluid power systems, such as hydraulic and pneumatic equipment, help automate processes previously done manually, thereby reducing the need for human labor and increasing efficiency. For instance, fluid systems power robotic arms and automated conveyors in manufacturing. This automation will lead to faster production, better control, and fewer errors. In agriculture, hydraulic and pneumatic power is used by automated irrigation systems and harvesters, which enhance the productivity of the industry.

• Growth in Construction and Infrastructure Development: Hydraulic systems are heavy equipment used in cranes, excavators, and bulldozers, and such machines perform heavy lifting and digging with material handling. Increasing urban areas and new developments need additional equipment; these machines operate based on fluid power. The rise in urbanization and the government’s investment in infrastructural sectors like roads, bridges, and public transport further boost the demand for fluid power solutions. The system gives the power, reliability, and precision to operate in challenging and large-scale construction projects.

• Growing Energy Efficiency: Energy efficiency is being demanded across all sectors, and fluid power systems play a vital role in assisting companies in reducing energy consumption. Hydraulic and pneumatic systems are more energy-efficient than traditional mechanical or electrical systems, especially in heavy-duty machinery.

• Technological Improvements: Technological development is in the form of automation and intelligent systems like IoT-enabled fluid power systems that increase their acceptance among the different industries. Through this advancement, companies get optimal performance, low cost on maintenance, and extended service life, factors that make these products highly in demand.

• Growth in the Oil and Gas Industry: The oil and gas industry is a significant market driver for fluid power. Fluid power systems are broadly used during exploratory operations, drilling, production processes, and transportation of crude and products from oil and gas sources. Fluid Power systems with products like Pumps, valves, and Hydraulic motor is necessary equipment during operations with machinery to get these accomplished offshore or deep sea from their rigs since reliability stands as their top-most requirement.

• Increase in Military and Aerospace Applications: This need in the aerospace industry for lightweight but powerful equipment to handle such functions makes hydraulic systems ideal. Just as it relies on fluid power systems to function such machinery as missile launchers, tanks, and other armed vehicles, the defense industry seeks to continue advancing its operations using advanced systems. Expansion in the aerospace sector leads to high demand for advanced defense systems that boost the market for fluid power equipment. Increasingly, fluid power will be needed because of more efficient military and aerospace technologies.

US Fluid Power Equipment Market – Key Developments

The US Fluid Power Equipment Market has seen several key developments in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the US Fluid Power Equipment Market include:

• In June 2023, Danfoss launched a new range of innovative hydraulic solutions for agricultural machinery. These solutions improve efficiency and connectivity by leveraging IoT technologies, reflecting the industry trend toward integrating intelligent systems into fluid power equipment.

• In April 2023, Eaton Corporation completed the acquisition of Hydraulic Supply Company, strengthening its distribution network and expanding its hydraulic product portfolio. This strategic move enhances Eaton’s ability to meet the growing needs of the North American fluid power equipment market.

• In March 2023, Parker Hannifin introduced a new series of energy-efficient hydraulic pumps designed for construction and industrial applications. This product launch addresses the rising demand for sustainable and high-performance fluid power systems, aligning with the industry’s focus on energy-efficient technologies.

• In January 2022, Moog Inc. partnered with Doosan Bobcat to launch the Bobcat T7X, the world’s first all-electric compact track loader. This innovation focuses on sustainability, delivering zero emissions and reduced noise without compromising performance, marking a significant step in environmentally friendly fluid power solutions.

These key developments have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the US Fluid Power Equipment Market. The trend is expected to continue as companies seek a competitive edge in the market.

US Fluid Power Equipment Market – Significant Threats

The US Fluid Power Equipment Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Economic Downturns: The economic slowdown also directly influences fluid power equipment in that many construction, automobile, and aerospace businesses slow their spending on equipment and machinery. Most of these firms tend to defer or postpone new initiatives in economic instability. In this event, fluid power systems become less sought. In addition, business persons are very likely to consider cost cutting as the significant activity: decrease spending on new equipment and maintenance over replacement. Due to the cyclical nature of most certain kinds of industry, such as construction or oil and gas, these are much more sensitive to economic turns, and any downturn often delays large projects.

• Strict Environmental Laws and Regulations: Energy consumption-emission and waste-generated standards are tightening, especially in the European Union, North America, and Asian jurisdictions. For instance, fluid power equipment has to be developed to satisfy more stringent energy efficiency requirements with growing demands for it. Thus, research and development costs rise. At the same time, improper disposal of hydraulic fluids used in fluid power systems will lead to contamination of the environment. Adherence to these rules is costly for manufacturers; besides raising operational costs, manufacturers must also invest in new technologies, training, and accreditations. Manufacturers failing to adhere to the laws will likely incur judicial punishment, fines, and damage to the company’s reputation, which may worsen the market position.

• Highly Competitive Market: Competition in fluid power equipment is very strong as most established companies, and newer ones, have a big market share. Global leaders such as Parker Hannifin, Bosch Rexroth, and Eaton compete with regional, smaller firms that are offering similar products. Competition may drive down prices and profit margins for manufacturers, particularly on commodity-type products such as pumps and valves. Also, new entrants who offer innovative solutions or have disruptive technologies can rapidly capture market share, thereby challenging the existing companies to be constantly creative and better themselves. Price wars and intense marketing tactics may create further competition that erodes profitability. Companies must compete by finding their differences in product quality, customer service, and solution-based offerings to gain a competitive advantage. The continuous need for innovation combined with the pressure of pricing may become resource-intensive and limit market growth.

• Fluctuations in Oil & Gas Prices: The fluid power market, specifically the hydraulic equipment segment, is susceptible to the oil and gas industry, which comprises a large share of its demand. Oil and gas prices can directly affect the demand for fluid power systems used in the exploration, drilling, and extraction processes. Low oil prices result in decreased capital spending by oil and gas companies for new equipment, reducing the demand for fluid power systems. High oil prices can accelerate exploration and production activities to stimulate equipment demand. Oil price volatility does not give manufacturers any clarity on what to expect from the long-term market trends, and they cannot do appropriate planning for its production. The fluid power industry needs to adjust to uncertainty by diversifying its customers and focusing on areas like construction, automotive, and agriculture, which are generally stable in demand to counter-balance the fluctuations of oil and gas sector performance.

• Technological Disruption and Obsolescence: The fast speed at which automation and electrification of technology are being advanced poses a threat to the old markets of fluid power equipment. As industries move to a more energy-efficient, more digitalized system, alternative options such as electric actuators, servo motors, and advanced robotics gain popularity. These technologies also show advantages in terms of consuming less energy, fewer requirements for maintenance, and accuracy in control as opposed to the traditional hydraulic and pneumatic systems. Consequently, fluid power systems are likely less viable for industries that value sustainability, cost-effectiveness, and performance. Manufacturers within the fluid power market must constantly innovate to remain competitive as they develop more intelligent, more energy-efficient systems to meet ever-changing industry needs. Losing market share to more developed technologies is likely if a manufacturer fails to innovate or keep pace with industry requirements, as in manufacturing, automotive, and robotics.

Category-Wise Insights

By Type

• Hydraulic Equipment: Hydraulic equipment is widely used for high-force, precision, and control applications. Pumps are considered the heart of hydraulic systems; gear pumps offer reliability for less demanding work, while piston pumps provide efficiency and high pressure for heavy-duty work. Valves control flow and pressure in the system; directional, pressure control, and flow control valves are essential for smooth operation. A good cylinder transmutates hydraulic energy into some other form of linear motion, which is very common on machinery- cranes, manufacturing robots, etc. An accumulator stores energy to be on standby for sudden bursts required by the system. This is the end because a hydraulic motor transmutes hydraulic energy into another form of rotary motion essential for industrialized heavy equipment like excavators or loaders.

• Pneumatic Equipment: Pneumatic valves regulate airflow. They ensure exactness and accuracy in procedures such as assembly line applications. They convert pressure inside the system into motion, allowing for automated repetitive tasks: opening and closing valves, manipulating robotic limbs, etc. The FRL units (filters, regulators, and lubricators) help maintain the life of pneumatic systems by maintaining air quality and pressure consistency. The equipment is ubiquitous in automotive manufacturing, food, and material handling industries as they require efficiency, cost-effectiveness, and ease of maintenance.

By Application

• Industrial Applications: In the automotive industry, hydraulic systems assemble car parts and operate robotics on assembly lines. Aerospace companies use hydraulic systems in aircraft to control landing gears, flaps, and braking systems because hydraulic systems can be relied on even in extreme conditions. Food and beverage industries require pneumatic systems with hygienic designs to maintain very high standards of cleanliness for tasks like packaging and sorting that have to be automated. In mining and construction, hydraulic systems are preferred because they are powerful and robust. Hydraulic systems support equipment such as excavators, loaders, and drilling rigs, which require work under harsh, high-stress conditions.

• Mobile Applications: Fluid power plays a vital role in mobile applications, especially in heavy-duty equipment for construction and agriculture. Construction machinery, such as cranes, bulldozers, and diggers, use hydraulic systems to lift, dig, and move heavy materials. It is also applied to pneumatic systems for handling material inside warehouses and distribution centers using conveyors, hoists, and automated guided vehicles, or AGVs, where lightweight and efficient movement is required. Both need fluid power solutions that will work effectively in outdoor and rugged environments with minimal downtime.

By Distribution Channel

• Direct Sales: Most fluid power equipment is still sold through direct sales to industries where customization and technical capabilities are needed. Big-ticket projects in aerospace, construction, and energy industries require customized solutions often unavailable through distributors. The big direct-selling manufacturers and suppliers that sell to end users have always been able to give their customers the right solution for such large, complex systems. This channel also allows manufacturers to build closer customer relationships by providing after-sales support, maintenance, and repair services.

• Distributors: Distributors act as middlemen between the manufacturer and the end-user for standard or smaller quantities of fluid power equipment. The distributors offer a wide range of products from various manufacturers, making off-the-shelf components easily accessible to customers. This channel is significant for SMEs or less complex businesses that need readily available solutions for routine industrial operations. The distributor facilitates faster access to parts and components, reducing business downtime from inefficient fluid power systems. Moreover, they provide value-added service through local support by replacing parts, troubleshooting the system, and giving technical assistance. Distributors also ensure the logistics, warehousing, and management of inventories that can quickly allow customers access to the necessary products and thereby enhance the efficiency of the operations.

By End-User Industry

• Construction: In the construction industry, fluid power systems are essential for running heavy machinery such as excavators, cranes, and bulldozers. Hydraulic systems are more in demand due to their strength and efficiency if heavy equipment runs with a heavy load or over rugged terrain. Systems in which control and precise movement and lifting prove crucial in digging, materials handling, and moving significant things. With the increasing automation in construction machinery, the demand for fluid power systems is also increasing in the construction area. As the construction project increases in size and complexity, it becomes necessary for effective and reliable systems under pressure. In addition to that, hydraulic systems prove very useful as they make possible smooth and precise lifting and digging through operation.

• Agriculture: Fluid power systems are widely applied in agriculture in executing several functions, including irrigation, harvesting, and material handling. The most common applications of pneumatic tools in farming are seeders, irrigation systems, and crop sprayers because they are very efficient and easy to maintain. Hydraulic and pneumatic equipment allows farmers to increase production while cutting labor costs. Fluid power systems enable efficiency in farming operations, a critical in light of the increasing demand for food production.

• Aerospace and Defense: Fluid power systems are used in this industry since they offer great force with less space, which is considered vital for sustaining the aerodynamics and security of the aircraft. In addition, hydraulic systems find applications in missiles, satellites, and other defense systems. Due to stringent aerospace and defense safety and performance conditions, the demand for reliable and efficient fluid power continues to increase. Since advancements in aircraft and fuel efficiency emerged, hydraulic systems have progressed to meet these requirements in the market.

• Energy and Power: Fluid power equipment is important in the energy and power sector. The applications include wind turbines, oil extraction, and hydraulic power units used in different energy production processes. In oil and gas production, pumps, valves, and hydraulic motors are used in exploration, drilling, and refinery operations. The demand for fluid power solutions to efficiently handle energy storage, transportation, and production processes has increased with a focus on renewable energy sources, including wind and solar. The shift towards automation and better operational efficiencies in power generation is boosting the demand for fluid power systems that perform well in challenging situations.

• Oil and Gas: The oil and gas industry is a major user of fluid power systems in exploration, drilling, and refining processes. Hydraulic pumps and valves are used in exploration and extraction to control liquid flow and ensure smooth, safe operations. Hydraulic systems are ideal for offshore rigs, where reliability is paramount in hostile conditions. Fluid power systems are also applied in refining and transportation, such as pipeline pressure control and the operation of oil tankers. The complexity of oil and gas extraction and the trend toward deep-water drilling increase the demand for more advanced fluid power systems. Further, emphasizing energy efficiency and safety in the industry will ensure continued growth in fluid power system applications.

Report Scope

Competitive Landscape – US Fluid Power Equipment Market

The US Fluid Power Equipment Market is highly competitive, with many manufacturers and retailers operating in the US. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

This fluid power equipment market in the US is semi-consolidated with key players Eaton, Parker Hannifin, and Bosch Rexroth. Companies are looking more towards research and development to make their products not only efficient but also environment-friendly.

The demand for construction, agriculture, and oil and gas is high, and hydraulic and pneumatic systems play a significant role in smooth functioning in all these sectors. Competition will be brought about by automated technology and IoT integration; companies will work hard to provide energy efficiency and innovation towards products and services.

Many firms will soon collaborate to enhance product lines and services. Increasing awareness through environmental regulations is pushing more companies to develop sustainable products, making them competitive in the market. The industry is vibrant, with further investment in technology and infrastructure.

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