Hydraulic Power Unit Market Forecasts to 2028 - Global Analysis By Operating Pressure Rating, Type, End User, and By Geography

According to Stratistics MRC, the Global Hydraulic Power Unit Market is accounted for $7.47 billion in 2022 and is expected to reach $11.60 billion by 2028 growing at a CAGR of 7.6% during the forecast period. A hydraulic power unit is a self-reliant system that includes motors, hydraulic pumps, and reservoirs. It can generate a lot of power, which can be used to drive any form of hydraulic ram. It uses a multi-stage pressurization network to transfer fluid while also adding temperature control devices. Hydraulic power units are also favored for many mobile and industrial applications due to their physical qualities, such as size, power supply, and pumping strength.

Rising number of construction activities and infrastructural development in various countries across the globe is creating high demand for hydraulics equipment. According to a combined study by Global Construction Perspective (GCP) and Oxford Economics, the construction industry is expected to reach a value of USD 15.5 trillion by 2030, among which, China, U.S., and India are expected to account for 57% of the global growth collectively. The construction industry contributed USD 900 billion to the US economy in the first three months of 2020. This, along with technological developments in the core construction and infrastructure industry, is expected to advance the hydraulic power unit Market trend further.

Market Dynamics:

Driver:

Increasing requirement for material handling equipment

Organizations across the world are dealing with issues connected with expanding labor costs. Expanding labor costs lead to diminishing relative efficiency. Numerous factors are impacting the increase in labor costs, which incorporate government regulations, supply-demand mismatch, and the shortage of skilled workforce. With the increase in labor costs, companies are finding it plausible to invest in automated solutions. The growing demand for automated solutions in diverse industries such as metal, automotive, construction, and mining is anticipated to drive the hydraulic power unit market. Hydraulic power unit is increasingly used to improve the function, controllability, power, and safety of material handling equipment. Hence, the rising demand for material handling equipment is driving the demand for the hydraulic power unit market.

Restraint:

Increased concerns regarding oil leaks

Hydraulic cylinders work on hydraulic fluids, primarily oil. Diverse factors such as improper fittings, acquaintances and ecological parameters including shocks, vibrations, and temperature variations, lead to oil leakage in hydraulic cylinders. In industries, such as construction and mining, which require broad earthworks and the deployment of large fixed and mobile plants in an environmentally sensitive location, the problem of leakage persists largely. This leakage is not only costly but also perilous to the environment and workforce. Further, it damages the environment as industries such as the forestry, marine, mining, and agriculture end up releasing this fluid (oil) into lakes, rivers, or soil, for which the cleanup cost paid by governments is quite high.

Opportunity:

Advent of integrated Industry 4.0 with IoT

The global economy is currently witnessing the adoption of industrial automation across end-user industries, which is called the Industry 4.0 revolution. Automation is required to integrate all the systems in warehouses and distribution centers. For instance, integrated hydraulic power unit that is integrated with a network provides an opportunity to improve operations and reduces energy costs. The data collected from sensors are stored on the cloud and can be accessed instantly for further analysis. Therefore, material handling processes, which are a key part of any facility, are increasingly being automated to adjust fluids, air pressure, and temperature. This is expected to increase the demand for advanced, automated hydraulic power unit during the forecast period, particularly as several companies are expected to adopt Industry 4.0.

Threat:

Volatility in manufacturing cost

Fluctuations in prices of raw materials such as stainless steel, iron ore, aluminum, bronze, and other metal alloys have caused volatility in the production cost of hydraulic power unit. This, in turn, has led to a demand-supply gap. Moreover, the components used to manufacture hydraulic equipment components such as motors, valves, and hydraulic cylinders are expensive. Hence, high initial investment is required, which affects the cost of ownership of equipment, thereby reducing the profit margins of manufacturers.

The 750-2000 PSI segment is expected to be the largest during the forecast period

The 750-2000 PSI segment is estimated to have a lucrative growth, as 750-2000 PSI are involved in food processing, beverage processing, simple tools used in cutting, grinding, or milling applications.

The construction industry segment is expected to have the highest CAGR during the forecast period

The construction industry segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the ongoing and upcoming projects in the construction industry, growth of the real estate industry, and increase in residential and commercial construction worldwide. There was a rapid increase in construction across the United States and Canada. The residential sector was a key driver of the increasing demand for more housing units needing HPU. In January 2020, there were nearly 343 pre-construction coal-powered thermal power plants worldwide. The pre-construction plants are estimated to have a capacity of around 299 GW, which may drive the HPU market considerably.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to the rapid industrialization in developing countries such as China, India, Malaysia, and other Southeast Asian countries, growing energy requirements, and increased construction activities. Potential growth of the manufacturing business in China has led to an increase in the HPU market. China has the highest number of under-construction coal-powered plants. The top key players in the hydraulic power unit market are located in the region.

Region with highest CAGR:

Middle East & Africa is projected to have the highest CAGR over the forecast period due to the rise in construction activities spurred by ongoing and upcoming international events, increasing oil exploration activities coupled with rising standard of living demanding better housing facilities, and growing stress on agricultural outputs.

Key players in the market

Some of the key players profiled in the Hydraulic Power Unit Market include Bailey International LLC, Weber Hydraulik GmbH, Bosch Rexroth AG., Nachi-Fujikoshi Corporation, Brevini Fluid Power S.p.A, Stromag, Hydac International GmbH, Parker Hannifin Corporation, Eaton Corporation, Hydro-tek Co Ltd., HCS Control Systems Ltd., Shanghai Mocen Fluid Power Control Co., Ltd., MTS Systems Corporation., Dana Incorporated, Atlas Copco AB, and Related Fluid Power Ltd.

Key Developments:

In January 2022, Stromag launched its all-new range of SHPU hydraulic power packs, suitable for use with Stromag hydraulic brakes and clutches. Replacing all previous hydraulic power unit (HPU) models, the new range offers customers simplified specifications, increased modularity, and excellent performance rolled into a compact package.

In August 2012, Related Fluid Power Ltd. launched its 3kW DC electric fan-cooled motor that has increased the capabilities within its range of Mini130 and Mini150 hydraulic power units. This product development has helped the company enhance its product line of hydraulic power units.

Operating Pressure Ratings Covered:

• Above 3000 PSI
• 2000-3000 PSI
• 750-2000 PSI
• Up To 750 PSI

Types Covered:

• Electric Hydraulic Power Unit
• Gas Hydraulic Power Unit

Products Covered:

• Less than 0.75 GPM
• 0.75 - 4 GPM
• 4-10 GPM
• 10 - 21 GPM
• Above 21GPM

Applications Covered:

• Industrial
• Mobile
• Water & Wastewater Treatment
• Intermittent or Medium-Duty Applications
• Subsea Equipment
• Material Handling
• Aerospace Test Equipment
• Machine Tools
• Meat Processing Machinery
• Paper Mill Machinery
• Agricultural Equipment
• Oil Fields
• Automation
• Theatrical and Production Equipment
• Construction Equipment
• Rolling Mill Machinery
• Government and Military Equipment
• Clean up Equipment for Oil Spills
• Marine Equipment

End Users Covered:

• Construction Industry
• Manufacturing
• Infrastructure Industry
• Machining Industry
• Automotive Industry
• Energy Industry
• Civil Engineering Projects
• Aerospace
• Engineering Vehicles
• Metallurgical

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances