PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1766390
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1766390
The electro hydraulics market for off-highway equipment is projected to grow from 92,501 units in 2025 to 234,487 units by 2032 at a CAGR of 14.2%. The increasing demand for higher efficiency and productivity drives the market. Additionally, the need to adopt electric off-highway equipment is expected to propel the electro hydraulics market for off-highway equipment in the coming years.
Scope of the Report | |
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Years Considered for the Study | 2021-2032 |
Base Year | 2024 |
Forecast Period | 2025-2032 |
Units Considered | Volume (Units) |
Segments | By Type; By Equipment Type; By Component; Forklifts, By Component; and By Region |
Regions covered | Asia, Americas, and Europe |
By type, the electric segment is projected to grow at a higher rate than the convention segment during the forecast period
The electrically actuated hydraulic systems market is projected to grow faster than conventional systems due to the growing demand for more innovative, efficient, and environmentally friendly equipment in the off-highway sector. Electro hydraulics' superior efficiency and fuel savings are key factors driving growth. These systems often use load-sensing and proportional valve technology to adjust pump output based on demand, reducing unnecessary energy use and lowering fuel consumption and emissions. Additionally, electro hydraulics support advanced features like precision farming in agriculture and semi-autonomous operations in construction and mining. These capabilities help operators work more accurately and productively, improving job site safety and enabling real-time performance tracking.
Despite higher initial costs and complexity, the long-term benefits of electro hydraulics, including fuel savings, automation potential, and compliance with environmental regulations, make them a future-ready solution. Major technology providers of electro hydraulic systems for off-highway equipment include Bosch Rexroth (Germany), Danfoss (Denmark), Parker Hannifin (US), Nott Company (US), and AB Volvo (Sweden).
By component, the control valves segment is projected to account for the largest share of the electro hydraulics market for off-highway equipment during the forecast period
The dominance of the control valves segment is driven by their critical role in regulating hydraulic fluid flow, direction, and pressure functions that are essential to the performance of any hydraulic system. While control valves have always been fundamental components in conventional hydraulics, their design and functionality have significantly evolved with the rise of electro hydraulic systems.
In traditional systems, where control valves were primarily hydraulic and were operated directly by the machine operator or through pilot pressure, modern electro hydraulic systems use solenoid-operated proportional and servo valves that are electronically controlled. Proportional valves allow variable control over pressure and flow, while servo valves offer precise, closed-loop control, often based on feedback from sensors and logic controllers. These functions are vital in equipment like excavators, wheel loaders, and agricultural tractors, where smooth, coordinated, and efficient operation of multiple hydraulic functions is required.
The adoption of valve banks has further boosted the demand for advanced control valves. These banks consist of several electronically actuated valves grouped, allowing centralized and simultaneous management of multiple actuators. They are widely used in complex off-highway equipment to achieve high levels of operational precision and efficiency.
Key global suppliers offering control valves for off-highway equipment are Parker Hannifin (US), Bosch Rexroth (Germany), Danfoss (Denmark), Kawasaki Precision Machinery (Japan), Poclain (France), Walvoil S.p.A. (Italy), and LHY Powertrain GmbH & Co. KG. (Germany).
The Americas is projected to be the second-largest electro hydraulics market for off-highway equipment during the forecast period
The US, Canada, Mexico, and Brazil have been considered for market analysis in the Americas region. The Americas is projected to account for the second-largest electro hydraulics market for off-highway equipment during the forecast period. This is majorly due to the presence of major technology and component suppliers, such as Parker Hannifin (US) and Nott Company (US), along with leading off-highway equipment manufacturers like Caterpillar (US), Deere & Company (US), and Bobcat Company (US). Caterpillar (US) and Deere & Company (US) are leaders in construction and agriculture machinery and are known for offering equipment like excavators, wheel loaders, and tractors that incorporate electro hydraulic systems. Together, these companies account for more than 21% in the global construction equipment market.
Technology providers in the region have developed advanced electrohydraulic systems tailored for various types of off-highway equipment, and manufacturers are increasingly integrating these systems into their machines. This collaboration between component suppliers and OEMs plays a key role in the growth of the electro hydraulics market for off-highway equipment in the Americas. Moreover, the region has witnessed high adoption of electrically propelled off-highway equipment across sectors, such as construction, agriculture, and material handling. Since electro hydraulic systems are standard in these electric machines, this trend is also expected to boost market demand in the region.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and strategy directors, and executives from various key organizations operating in this market.
Established players such as Bosch Rexroth (Germany), Danfoss (Denmark), Parker Hannifin (US), Nott Company (US), and AB Volvo (Sweden) lead the electro hydraulics market for off-highway equipment.
This report will help market leaders and new entrants with information on the closest approximations of the revenue numbers for the overall electro hydraulics market for off-highway equipment and its subsegments. It will also help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report will also help stakeholders understand the market's pulse and provide information on key market drivers, restraints, challenges, and opportunities.
Market Dynamics: Analysis of key drivers (improved efficiency and precision to drive market, shortage of skilled/trained labor), opportunities (future potential for adoption in excavators and backhoes, and steady adoption of electric equipment where EH systems have higher adoption), and challenges (aftermarket retrofitting to challenge OEM offerings and maintenance challenges with electrohydraulic systems) influencing the electro hydraulics market for off-highway equipment.
Product Development/Innovation: Detailed insights into upcoming technologies, research & development activities, and products & services offered by players in the electro hydraulics market for off-highway equipment.
Market Development: Comprehensive information about the lucrative market and analysis of the electro hydraulics market for off-highway equipment across varied regions
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the electro hydraulics market.
Competitive Assessment: In-depth assessment of market ranking, growth strategies, and service offerings of leading players like Bosch Rexroth (Germany), Danfoss (Denmark), Parker Hannifin (US), Nott Company (US), and AB Volvo (Sweden), in the electro hydraulics market for off-highway equipment.