Fluid Power Equipment Market Size, Share & Report [2033]

Fluid Power Equipment Market Overview

The Fluid Power Equipment Market size was valued at USD 19768.69 million in 2024 and is expected to reach USD 26759.57 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The fluid power equipment market is experiencing significant growth, driven by advancements in industrial automation and increasing demand across various sectors. In 2024, the global market size reached USD 51.9 billion, with projections indicating a rise to USD 90.2 billion by 2033. This growth is attributed to the widespread adoption of hydraulic and pneumatic systems in industries such as automotive, construction, and manufacturing. For instance, the manufacturing sector in India accounted for 17% of the GDP in 2023, with expectations to reach 25% by 2025, highlighting the escalating demand for fluid power equipment in the region. Additionally, the automotive industry in countries like China, India, and Japan is witnessing substantial growth, with India's vehicle production increasing by 23% in January 2024 compared to December 2023, further propelling the market.

Key Findings

Top Driver Reason: The primary driver is the increasing demand for fluid power equipment in the food and beverage industry, which relies heavily on these systems for processing, packaging, and distribution operations.

Top Country/Region: Asia-Pacific stands out as the fastest-growing region, driven by the continuous expansion of the manufacturing sector in countries like China, India, and Japan.

Top Segment: The construction segment holds a significant share due to the extensive use of fluid power equipment in infrastructure projects and heavy machinery operations.

Fluid Power Equipment Market Trends

The fluid power equipment market is undergoing transformative changes, influenced by technological advancements and evolving industry requirements. One notable trend is the integration of digital technologies, such as IoT-enabled systems, which enhance equipment monitoring and maintenance. These innovations provide real-time operational insights, improving efficiency and reducing downtime. Energy efficiency is another critical focus area, with companies investing in electro-hydraulic integrations and energy recovery systems to minimize environmental impact while maximizing output. For example, Bosch Rexroth launched drive systems for hydrogen filling station compressors in April 2024, aiming to advance hydrogen infrastructure with scalable and efficient solutions. Material innovation is also shaping the market, with manufacturers adopting advanced materials like aluminum and high-grade steel to enhance durability and wear resistance under rigorous operational demands. These materials contribute to the development of compact and efficient fluid power systems suitable for various applications. Furthermore, the market is witnessing increased collaboration among companies to expand product offerings and market presence. Strategic partnerships and mergers, such as the $19 billion all-stock merger between Chart Industries and Flowserve announced in June 2025, exemplify this trend. The merger aims to create a leading provider in gas and liquid technologies, serving industries like LNG, nuclear energy, and data centers.

Fluid Power Equipment Market Dynamics

DRIVER

Rising demand for pharmaceuticals

The pharmaceutical industry's growth is a significant driver for the fluid power equipment market. Fluid power systems are essential in pharmaceutical manufacturing processes, including mixing, filling, and packaging operations. The need for precision and cleanliness in these processes necessitates the use of advanced hydraulic and pneumatic systems. As the global pharmaceutical market expands, the demand for reliable and efficient fluid power equipment is expected to increase correspondingly.

RESTRAINT

Demand for refurbished equipment

The growing preference for refurbished fluid power equipment poses a restraint to market growth. Many small and medium-sized enterprises opt for refurbished systems due to cost considerations, impacting the sales of new equipment. This trend can affect manufacturers' revenues and may lead to increased competition in the aftermarket segment. Additionally, the availability of refurbished equipment can delay the adoption of newer, more efficient technologies.

OPPORTUNITY

Growth in personalized medicines

The rise of personalized medicine presents an opportunity for the fluid power equipment market. Customized treatments require flexible and precise manufacturing processes, which rely on advanced fluid power systems. The need for small-batch production and rapid changeovers in personalized medicine manufacturing necessitates the adoption of sophisticated hydraulic and pneumatic equipment, opening new avenues for market growth.

CHALLENGE

Rising costs and expenditures

The increasing costs associated with raw materials, energy, and labor present challenges for the fluid power equipment market. Manufacturers face pressure to maintain profitability while managing these rising expenditures. Additionally, the need for continuous investment in research and development to stay competitive adds to the financial burden. Companies must navigate these challenges by optimizing operations and exploring cost-effective solutions.

Fluid Power Equipment Market Segmentation

The fluid power equipment market is segmented by type and application, catering to diverse industry needs.

By Type

Automotive: The automotive sector extensively utilizes fluid power equipment for applications like braking systems, suspension, and power steering. In January 2024, India's combined production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles surged by 23% compared to December 2023, indicating a robust demand for fluid power systems in vehicle manufacturing.
Agricultural Machinery: Fluid power systems are integral to agricultural machinery, enhancing efficiency in operations like plowing, harvesting, and irrigation. The modernization of agriculture, especially in regions like Latin America, drives the adoption of hydraulic and pneumatic systems in equipment like tractors and combines.
Food Processing: The food processing industry relies on fluid power equipment for tasks such as mixing, filling, and packaging. The U.S. Department of Agriculture reported that food expenditures constituted 12.8% of U.S. household spending in 2022, up from 12.4% in 2021, reflecting increased activity in the sector and, consequently, higher demand for fluid power systems.
Oil & Gas Machinery: In the oil and gas sector, fluid power equipment is essential for drilling, extraction, and transportation processes. The Canadian Association of Petroleum Producers reported a 2.56% increase in oil and gas industry investment from 2023 to 2024, indicating a positive outlook for fluid power equipment demand in this sector.
Medical Equipment: Precision and reliability are critical in medical equipment, where fluid power systems are used in devices like surgical tools and diagnostic machines. The growing healthcare sector, driven by an aging population and increased healthcare spending, supports the demand for advanced fluid power equipment.
Packaging Machinery: Packaging operations require fluid power systems for tasks such as sealing, labeling, and palletizing. The rise in e-commerce and consumer goods production boosts the need for efficient packaging solutions, thereby increasing the demand for fluid power equipment.
Material Handling: Industries utilize fluid power equipment in material handling applications like conveyors, lifts, and cranes. The expansion of warehouses and distribution centers, especially in the logistics sector, drives the adoption of these systems.
Semiconductor: The semiconductor industry employs fluid power systems in manufacturing processes requiring high precision and cleanliness. The growth in electronics and technology sectors fuels the demand for such equipment.
Other: This category includes industries like aerospace, marine, and mining, where fluid power equipment plays a vital role in various operations.

By Application

Hydraulics: Hydraulic systems are prevalent in heavy machinery and equipment requiring high force and precise control. Their applications span across construction, agriculture, and industrial manufacturing.
Pneumatics: Pneumatic systems are favored for their simplicity and cleanliness, making them suitable for industries like food processing, packaging, and pharmaceuticals. They are used in applications requiring rapid movement and less force.

Fluid Power Equipment Market Regional Outlook

North America

North America holds a significant share in the fluid power equipment market, driven by advanced manufacturing capabilities and technological innovations. The region's focus on automation and energy efficiency contributes to the adoption of sophisticated fluid power systems. The presence of major industry players and investments in infrastructure projects further bolster market growth.

Europe

Europe's fluid power equipment market is characterized by a strong emphasis on sustainability and environmental regulations. The region's commitment to reducing carbon emissions and enhancing energy efficiency leads to the development and adoption of advanced fluid power technologies. Countries like Germany, France, and the UK are at the forefront of this transition, investing in research and development to innovate fluid power solutions.

Asia-Pacific

Asia-Pacific remains the largest and fastest-growing region in the fluid power equipment market. The region's dominance is attributed to rapid industrialization, urbanization, and the expansion of manufacturing sectors in countries like China, India, and Japan. In 2024, Asia-Pacific accounted for a significant share of the global market, driven by increased demand in automotive, construction, and electronics industries. The region's focus on infrastructure development and adoption of advanced technologies further propels market growth.

Middle East & Africa

The Middle East & Africa region is witnessing steady growth in the fluid power equipment market. The expansion of the oil and gas industry, coupled with infrastructure development projects, drives the demand for hydraulic and pneumatic systems. Countries like Saudi Arabia and the UAE are investing in industrial diversification, leading to increased adoption of fluid power equipment in various sectors. Additionally, the mining industry in Africa contributes to market growth, with fluid power systems being integral to mining operations.

List of Top Fluid Power Equipment Market Companies

Alfa Laval
Colfax
Crane
Flowserve
Graco
Burket
DoverTop of FormBottom of Form

Top Two Companies with Highest Market Shares

Alfa Laval: A leading provider of specialized products and engineering solutions, Alfa Laval offers a wide range of fluid handling equipment, including pumps, valves, and heat exchangers. The company's focus on energy efficiency and sustainability aligns with market trends, making it a key player in the industry.
Flowserve: Flowserve is a prominent manufacturer of fluid motion and control products, including pumps, valves, and seals. The company's extensive product portfolio and global presence position it as a major contributor to the fluid power equipment market. Flowserve's commitment to innovation and customer-centric solutions enhances its market share.

Investment Analysis and Opportunities

The fluid power equipment market presents numerous investment opportunities, driven by technological advancements and increasing demand across various industries. Investors are focusing on companies that offer innovative and energy-efficient solutions to meet evolving customer needs. The integration of IoT and automation in fluid power systems is attracting significant investments, as these technologies enhance operational efficiency and reduce maintenance costs. The renewable energy sector offers substantial growth potential for fluid power equipment manufacturers. Hydraulic and pneumatic systems are essential in wind turbines and solar panel tracking systems, creating avenues for investment in sustainable energy projects. Additionally, the expansion of the electric vehicle market necessitates advanced fluid power systems for battery manufacturing and assembly lines, presenting further investment prospects. Emerging economies in Asia-Pacific and Africa are investing heavily in infrastructure development, including transportation, construction, and energy sectors. These investments drive the demand for fluid power equipment, providing opportunities for companies to expand their market presence. Strategic partnerships and mergers are also prevalent, as companies seek to enhance their product offerings and global reach.

New Product Development

Innovation is at the forefront of the fluid power equipment market, with companies investing in research and development to introduce advanced products. The focus is on developing compact, energy-efficient, and intelligent systems that cater to the evolving needs of various industries. For instance, the integration of smart sensors and control systems enables real-time monitoring and predictive maintenance, enhancing system reliability and performance. Manufacturers are also exploring the use of advanced materials, such as composites and lightweight alloys, to improve the durability and efficiency of fluid power components. These materials contribute to the development of equipment that can withstand harsh operating conditions while reducing energy consumption. Additionally, the adoption of additive manufacturing techniques allows for the production of complex components with improved performance characteristics. The medical and pharmaceutical industries are witnessing the development of specialized fluid power equipment designed for precision and hygiene. These innovations cater to the stringent requirements of these sectors, ensuring accurate and contamination-free operations. Furthermore, the agricultural sector benefits from the development of advanced hydraulic systems that enhance the efficiency and productivity of farming equipment.

Five Recent Developments

Chart Industries and Flowserve Merger: In June 2025, Chart Industries and Flowserve announced a $19 billion all-stock merger to create a leading player in industrial-process technologies. The merger aims to deliver $300 million in annual cost savings within three years and enhance competitiveness in the fluid power equipment market.
Bosch Rexroth's Hydrogen Compressor Drive Systems: In April 2024, Bosch Rexroth introduced drive systems for hydrogen filling station compressors, advancing hydrogen infrastructure with scalable and efficient solutions.
ProPetro's Launch of ProPWR: In early 2025, ProPetro Holdings launched ProPWR, a subsidiary providing mobile natural gas-fueled power generation equipment for oilfield and industrial applications. The first order is expected to deliver 110 megawatts of power between June 2025 and March 2026.
DeWalt's Powershift Cordless Equipment System: In January 2025, DeWalt introduced the Powershift cordless equipment system, replacing traditional gasoline-powered tools with battery-operated alternatives, resulting in 60% lower CO2 emissions.
TI Fluid Systems' Acquisition by ABC Technologies: In November 2024, TI Fluid Systems agreed to a £1 billion acquisition by ABC Technologies, a Canadian company supported by Apollo Global Management, reflecting a strategic move to enhance growth and market presence.

Report Coverage of Fluid Power Equipment Market

The fluid power equipment market report provides a comprehensive analysis of the industry's current state and future prospects. It covers various segments, including product types (hydraulics and pneumatics), applications, and end-use industries. The report examines market dynamics, such as drivers, restraints, opportunities, and challenges, offering insights into factors influencing market growth. The report delves into regional market performance, highlighting key regions like North America, Europe, Asia-Pacific, and the Middle East & Africa. It presents detailed analyses of market trends, technological advancements, and competitive landscapes, enabling stakeholders to make informed decisions. Additionally, the report includes profiles of major market players, outlining their strategies, product offerings, and recent developments. Investment analysis within the report identifies emerging opportunities and potential areas for growth, considering factors like industrial automation, renewable energy adoption, and infrastructure development. The report also discusses new product developments, emphasizing innovations in materials, design, and technology that cater to evolving industry requirements. Overall, the fluid power equipment market report serves as a valuable resource for industry participants, investors, and policymakers, providing a thorough understanding of market dynamics and guiding strategic planning and investment decisions.